0000014272-17-000017.txt : 20170126 0000014272-17-000017.hdr.sgml : 20170126 20170126083524 ACCESSION NUMBER: 0000014272-17-000017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20170126 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170126 DATE AS OF CHANGE: 20170126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRISTOL MYERS SQUIBB CO CENTRAL INDEX KEY: 0000014272 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 220790350 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01136 FILM NUMBER: 17548134 BUSINESS ADDRESS: STREET 1: 345 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10154 BUSINESS PHONE: 2125464000 MAIL ADDRESS: STREET 1: 345 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10154 FORMER COMPANY: FORMER CONFORMED NAME: BRISTOL MYERS CO DATE OF NAME CHANGE: 19891012 8-K 1 q42016earningsrelease8-k.htm 8-K Document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act Of 1934
Date of Report (Date of earliest event reported): January 26, 2017
 
 
BRISTOL-MYERS SQUIBB COMPANY
(Exact Name of Registrant as Specified in its Charter)
 
 
 
 
 
 
 
 
Delaware
 
1-1136
 
22-0790350
(State or Other
Jurisdiction of
Incorporation)
 
(Commission File
Number)
 
(IRS Employer
Identification
Number)
345 Park Avenue
New York, NY 10154
(Address of Principal Executive Office)
Registrant’s telephone number, including area code: (212) 546-4000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 










Item 2.02. Results of Operations and Financial Condition.

On January 26, 2017, Bristol-Myers Squibb Company (the “Company”) issued a press release announcing its financial results for the fourth quarter and twelve months of 2016. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference. Also furnished and incorporated by reference as Exhibit 99.2 is certain supplemental information posted on the Company’s website at www.bms.com.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.
 
 
99.1
Press release of Bristol-Myers Squibb Company dated January 26, 2017.
 
 
99.2
Certain supplemental information posted on Bristol-Myers Squibb Company’s website at www.bms.com not included in the press release.












































SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 



 
 
BRISTOL-MYERS SQUIBB COMPANY
 
 
 
 
 
Dated: January 26, 2017
 
By:
 
/s/ Katherine R. Kelly
 
 
 
Name:
 
Katherine R. Kelly
 
 
 
Title:
 
Corporate Secretary
 

                           
















































EXHIBIT INDEX
 
 
 
Exhibit No.
Description
 
 
99.1
Press release of Bristol-Myers Squibb Company dated January 26, 2017.
 
 
99.2
Certain supplemental information posted on Bristol-Myers Squibb Company’s website at www.bms.com not included in the press release.





EX-99.1 2 q42016ex991.htm PRESS RELEASE OF BRISTOL-MYERS SQUIBB COMPANY DATED JANUARY 26, 2017 Exhibit


Exhibit 99.1
bmslogoq42016.jpg

Bristol-Myers Squibb Reports Fourth Quarter Financial Results

Increases Fourth Quarter Revenues 22% to $5.2 Billion, 17% for Full Year to $19.4 Billion
Posts Fourth Quarter GAAP EPS of $0.53 and Non-GAAP EPS of $0.63
Announces Settlement and License Agreement to Resolve PD-1 Patent Litigation Against Merck
Achieves Important Regulatory Milestones for Opdivo
Approved in the U.S. for Metastatic Squamous Cell Carcinoma of the Head and Neck
Approved in Europe for Classical Hodgkin Lymphoma
Completes Strategic Transactions in Oncology and Fibrosis
Confirms 2017 GAAP EPS Guidance Range of $2.47 to $2.67 and Adjusts Non-GAAP EPS Guidance Range to $2.70 to $2.90

(NEW YORK, January 26, 2017) - Bristol-Myers Squibb Company (NYSE:BMY) today reported results for the fourth quarter and full year of 2016, which were highlighted by strong sales for key products Opdivo and Eliquis, regulatory approvals for Opdivo in the U.S. and Europe, and strategic transactions in oncology and fibrosis that further strengthened the company’s pipeline.

“Bristol-Myers Squibb achieved outstanding operating and financial results in 2016, driven by strong commercial performance across our portfolio,” said Giovanni Caforio, M.D., chief executive officer, Bristol-Myers Squibb. “In 2017, we will continue to advance our pipeline, drive strong commercial execution across the business and progress our broad portfolio of Immuno-Oncology medicines.”
 
Fourth Quarter
$ amounts in millions, except per share amounts
 
 
 
 
 
 
2016
 
2015
 
Change
Total Revenues
$
5,243

 
$
4,287

 
22
%
GAAP Diluted EPS
0.53

 
(0.12
)
 
**

Non-GAAP Diluted EPS
$
0.63

 
$
0.38

 
66
%
 
Full Year
$ amounts in millions, except per share amounts
 
 
 
 
 
 
2016
 
2015
 
Change
Total Revenues
$
19,427

 
$
16,560

 
17
%
GAAP Diluted EPS
2.65

 
0.93

 
**

Non-GAAP Diluted EPS
$
2.83

 
$
2.01

 
41
%

** In excess of +/- 100%

1




FOURTH QUARTER FINANCIAL RESULTS

Bristol-Myers Squibb posted fourth quarter 2016 revenues of $5.2 billion, an increase of 22% compared to the same period a year ago. Global revenues increased 24% adjusted for foreign exchange impact.

U.S. revenues increased 20% to $2.7 billion in the quarter compared to the same period a year ago. International revenues increased 25%. When adjusted for foreign exchange impact, international revenues increased 28%.

Gross margin as a percentage of revenue decreased from 77.8% to 73.6% in the quarter primarily due to product mix.

Marketing, selling and administrative expenses decreased 3% to $1.5 billion in the quarter.

Research and development expenses decreased 27% to $1.4 billion in the quarter due to lower charges resulting from business development transactions and in-process research and development impairments.

The effective tax rate was 17.3% in the quarter, compared to a benefit of 54.1% in the fourth quarter last year. Income taxes in both periods include net tax benefits attributed to specified items.

The company reported net earnings attributable to Bristol-Myers Squibb of $894 million, or $0.53 per share, in the quarter compared to a net loss of $197 million, or $0.12 per share, a year ago. The results in the fourth quarter of 2015 included per share after tax charges of $0.24 from the Five Prime Therapeutics, Inc. and Cardioxyl Pharmaceuticals, Inc. business development transactions and $0.08 for the transfer of the Erbitux® business in North America to Eli Lilly and Company.

The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $1.1 billion, or $0.63 per share, in the fourth quarter, compared to $647 million, or $0.38 per share, for the same period in 2015. An overview of specified items is discussed under the “Use of Non-GAAP Financial Information” section.

Cash, cash equivalents and marketable securities were $9.1 billion, with a net cash position of $2.4 billion, as of December 31, 2016.







2




FOURTH QUARTER PRODUCT AND PIPELINE UPDATE

Product Sales/Business Highlights
Global revenues for the fourth quarter of 2016, compared to the fourth quarter of 2015, were driven by:
Opdivo, which grew by $835 million
Eliquis, which grew by $346 million or 57% increase
Orencia, which grew by 16%
Sprycel, which grew by 15%
Yervoy, which had sales of $264 million

Opdivo
Litigation
In January, the company and Ono Pharmaceutical Company, Ltd. (Ono) announced they signed a global patent license agreement with Merck & Co., Inc. to settle all patent-infringement litigation related to Merck’s PD-1 antibody Keytruda®. The agreement will result in the dismissal with prejudice of all patent litigation between the companies pertaining to Keytruda®.

Regulatory
In November, the company announced the U.S. Food and Drug Administration (FDA) approved Opdivo for the treatment of patients with recurrent or metastatic squamous cell carcinoma of the head and neck (SCCHN) with disease progression on or after platinum-based therapy.

In November, the company announced the European Commission approved Opdivo for the treatment of patients with relapsed or refractory classical Hodgkin lymphoma (cHL) after autologous stem cell transplant (ASCT) and treatment with brentuximab vedotin.

In December, the company and Ono announced Opdivo was approved in Japan for the treatment of patients with relapsed or refractory cHL.

In December, the company and Ono announced that Ono submitted a supplemental application for Opdivo for the treatment of unresectable advanced or recurrent gastric cancer.

In January, the company announced it decided not to pursue an accelerated regulatory pathway for the regimen of Opdivo plus Yervoy in first-line lung cancer in the U.S. based on a review of data available at this time. Because these are ongoing registrational studies, the company will not be providing additional details.

3




Clinical
In November, the company announced that ONO-4538-12, a Phase 3, randomized, double-blind clinical trial evaluating the efficacy and safety of Opdivo in patients with unresectable advanced or recurrent gastric cancer refractory to, or intolerant of, standard therapy, met its primary endpoint of overall survival. In January, the company announced the results from the trial.

In November, at the Society for Immunotherapy of Cancer Annual Meeting, the company announced new data and analysis from studies evaluating urelumab, lirilumab, Opdivo and the Opdivo + Yervoy regimen:
Safety and efficacy data from a Phase 1/2 study of urelumab in combination with Opdivo in patients with hematologic and solid tumors, including biomarker analyses by level of PD-L1 expression.
Interim efficacy analysis, announced by the company and Innate Pharma S.A., from a Phase 1/2 study of the combination of lirilumab and Opdivo in the cohort of advanced platinum refractory squamous cell carcinoma of the head and neck, including exploratory biomarker analyses of patient response by level of PD-L1 expression.
CheckMate -032: Results from cohorts of the Phase 1/2 open-label trial investigating two combination schedules of Opdivo plus Yervoy in patients with locally advanced or metastatic urothelial carcinoma previously treated with platinum-based therapy.

In December, at the International Association for the Study of Lung Cancer World Conference on Lung Cancer, the company announced new data from studies evaluating Opdivo and the Opdivo + Yervoy regimen:
Checkmate -012: Updated findings from the Phase 1b trial in chemotherapy-naïve advanced non-small cell lung cancer patients evaluating Opdivo monotherapy, or in combination with Yervoy at different doses and schedules.
CheckMate -032: Updated results for Opdivo monotherapy and in combination with Yervoy in previously treated small cell lung cancer patients, a cohort of the Phase 1/2 open-label trial.

In December, during the American Society of Hematology Annual Meeting, the company and Seattle Genetics announced the first reported data from an ongoing Phase 1/2 clinical trial evaluating Adcetris® (brentuximab vedotin) in combination with Opdivo in relapsed or refractory cHL.




4




FOURTH QUARTER BUSINESS DEVELOPMENT UPDATE

In November, the company and Enterome announced a collaboration agreement for the discovery and development of microbiome-derived biomarkers, drug targets and bioactive molecules to be developed as potential companion diagnostics and therapeutics for cancer. Additionally, the collaboration will seek to identify novel microbiome-derived biomarkers in an effort to improve clinical outcomes for patients treated with Bristol-Myers Squibb’s Immuno-Oncology portfolio.

In November, the company and Infinity Pharmaceuticals announced a clinical trial collaboration to evaluate Bristol-Myers Squibb’s Opdivo in combination with Infinity’s IPI-549 in patients with advanced solid tumors. 

In November, the company and Nitto Denko Corporation (Nitto) announced an agreement granting Bristol-Myers Squibb exclusive worldwide rights for the development and commercialization of Nitto’s investigational siRNA molecules targeting heat shock protein 47 (HSP47) in vitamin A containing formulations, which includes Nitto’s lead asset ND-L02-s0201, currently in Phase 1b study for the treatment of advanced liver fibrosis. The agreement also grants Bristol-Myers Squibb the option to receive exclusive licenses for HSP47 siRNAs in vitamin A containing formulations for the treatment of lung fibrosis and other organ fibrosis.

In November, the company announced a five-year research collaboration with the Johns Hopkins University designed to identify mechanisms of response and resistance in patients whose cancer is being treated with checkpoint inhibitor-based immunotherapies, including Opdivo monotherapy, or Opdivo in combination with Yervoy or other investigational immunotherapies.

In December, the company and PsiOxus Therapeutics, Ltd. announced an agreement granting Bristol-Myers Squibb exclusive worldwide rights to NG-348, a pre-clinical stage, “armed” oncolytic virus with the goal of addressing solid tumors.

In December, the company and Calithera Biosciences announced a clinical collaboration to evaluate Opdivo in combination with CB-839 in clear cell renal cell carcinoma.

In January, the company announced a new clinical research collaboration to evaluate the combination of Opdivo and Janssen’s CD38-directed cytolytic antibody Darzalex® in Phase 1b/2 clinical studies in multiple myeloma and solid tumors including non-small cell lung cancer, pancreatic cancer, colorectal cancer , triple negative breast cancer and head and neck cancer.

5





In January, the company and GeneCentric Diagnostics, Inc. announced a research collaboration to explore whether the application of GeneCentric’s Cancer Subtype Platform (CSP) might be able to identify translational biomarkers for Opdivo. Additionally, GeneCentric announced it had secured equity funding from the company to support the clinical development of its CSP and new research laboratory.

2017 FINANCIAL GUIDANCE

Bristol-Myers Squibb is confirming its 2017 GAAP EPS guidance range of $2.47 - $2.67 and is adjusting its non-GAAP EPS guidance range from $2.85 - $3.05 to $2.70 - $2.90. Both GAAP and non-GAAP guidance assume current exchange rates. 2017 GAAP and non-GAAP line-item guidance assumptions include:

Worldwide revenues increasing in the low-single digits.
Gross margin as a percentage of revenue to be approximately 72% to 73% for both GAAP and non-GAAP.
Marketing, selling and administrative expenses decreasing in the mid- to high-single digit range for both GAAP and non-GAAP.
Research and development expenses increasing in the high-single digit range for both GAAP and non-GAAP.
An effective tax rate of approximately 21% for both GAAP and non-GAAP.
    
As previously announced in the third quarter of 2016, the company’s operating model is evolving, to drive the company’s continued success in the near- and long-term. The majority of costs are expected to be incurred by 2020. Although GAAP operating expenses may increase initially as restructuring and other charges are incurred relating to this evolution, the company expects non-GAAP operating expenses to be roughly flat with 2016 levels through 2020.

6




The financial guidance excludes the impact of any potential future strategic acquisitions and divestitures and any specified items that have not yet been identified and quantified. The guidance also assumes no generic entry for Sprycel in Europe following the appeal of the European Patent Office’s decision. The non-GAAP guidance also excludes other specified items as discussed under “Use of Non-GAAP Financial Information.” Details reconciling GAAP amounts to non-GAAP amounts, with non-GAAP reflecting specified items are provided in supplemental materials attached to this press release and available on the company’s website.

Erbitux® is a trademark of ImClone LLC.
Keytruda® is a trademark of Merck & Co., Inc.
Adcetris® is a trademark of Seattle Genetics, Inc.
Darzalex® is a trademark of Janssen Biotech, Inc.
Use of Non-GAAP Financial Information

This press release contains non-GAAP financial measures, including non-GAAP earnings and related EPS information, that are adjusted to exclude certain costs, expenses, gains and losses and other specified items that are evaluated on an individual basis. These items are adjusted after considering their quantitative and qualitative aspects and typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods including restructuring costs, accelerated depreciation and impairment of property, plant and equipment and intangible assets, R&D charges in connection with the acquisition or licensing of third party intellectual property rights, divestiture gains or losses, pension, legal and other contractual settlement charges and debt redemption gains or losses, among other items. Deferred and current income taxes attributed to these items are also adjusted for considering their individual impact to the overall tax expense, deductibility and jurisdictional tax rates. Non-GAAP information is intended to portray the results of our baseline performance, supplement or enhance management, analysts and investors overall understanding of our underlying financial performance and facilitate comparisons among current, past and future periods. For example, non-GAAP earnings and EPS information is an indication of our baseline performance before items that are considered by us to not be reflective of our ongoing results. In addition, this information is among the primary indicators we use as a basis for evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting for future periods. This information is not intended to be considered in isolation or as a substitute for net earnings or diluted EPS prepared in accordance with GAAP.

Statement on Cautionary Factors

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to goals, plans and projections regarding the company’s financial position, results of operations, market position, product development and business strategy. These statements may be identified by the fact that they use words such as "anticipate", "estimates", "should", "expect", "guidance", "project", "intend", "plan", "believe" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations.


7




These factors include, among other things, effects of the continuing implementation of governmental laws and regulations related to Medicare, Medicaid, Medicaid managed care organizations and entities under the Public Health Service 340B program, pharmaceutical rebates and reimbursement, market factors, competitive product development and approvals, pricing controls and pressures (including changes in rules and practices of managed care groups and institutional and governmental purchasers), economic conditions such as interest rate and currency exchange rate fluctuations, judicial decisions, claims and concerns that may arise regarding the safety and efficacy of in-line products and product candidates, changes to wholesaler inventory levels, variability in data provided by third parties, changes in, and interpretation of, governmental regulations and legislation affecting domestic or foreign operations, including tax obligations, changes to business or tax planning strategies, difficulties and delays in product development, manufacturing or sales including any potential future recalls, patent positions and the ultimate outcome of any litigation matter. These factors also include the company’s ability to execute successfully its strategic plans, including its business development strategy, the expiration of patents or data protection on certain products, including assumptions about the company’s ability to retain patent exclusivity of certain products, and the impact and result of governmental investigations. There can be no guarantees with respect to pipeline products that future clinical studies will support the data described in this release, that the compounds will receive necessary regulatory approvals, or that they will prove to be commercially successful; nor are there guarantees that regulatory approvals will be sought, or sought within currently expected timeframes, or that contractual milestones will be achieved. For further details and a discussion of these and other risks and uncertainties, see the company's periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Company and Conference Call Information
    
Bristol-Myers Squibb is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. For more information about Bristol-Myers Squibb, visit us at BMS.com or follow us on LinkedIn, Twitter, YouTube and Facebook.
There will be a conference call on January 26, 2017 at 10:30 a.m. EST during which company executives will review financial information and address inquiries from investors and analysts. Investors and the general public are invited to listen to a live webcast of the call at http://investor.bms.com or by calling the U.S. toll free 877-201-0168 or international 647-788-4901, confirmation code: 60705823. Materials related to the call will be available at the same website prior to the conference call. A replay of the call will be available beginning at 1:30 p.m. EST on January 26, 2017 through 11:59 p.m. EST on February 9, 2017. The replay will also be available through http://investor.bms.com or by calling the U.S. toll free 855-859-2056 or international 404-537-3406, confirmation code: 60705823.
For more information, contact: Ken Dominski, 609-252-5251, ken.dominski@bms.com, Communications; John Elicker, 609-252-4611, john.elicker@bms.com, or Bill Szablewski, 609-252-5894, william.szablewski@bms.com, Investor Relations.


8




BRISTOL-MYERS SQUIBB COMPANY
PRODUCT REVENUE
FOR THE THREE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(Unaudited, dollars in millions)
 
 
Worldwide Revenues
 
U.S. Revenues
 
 
2016
 
2015
 
%
Change
 
2016
 
2015
 
%
Change
Three Months Ended December 31,
 
 
 
 
 
 
 
 
 
 
 
 
Key Products
 
 
 
 
 
 
 
 
 
 
 
 
Oncology
 
 
 
 
 
 
 
 
 
 
 
 
Empliciti
 
$
47

 
$
3

 
**

 
$
36

 
$
3

 
**

Erbitux(a)
 

 

 

 

 

 

Opdivo
 
1,310

 
475

 
**

 
715

 
410

 
74
 %
Sprycel
 
494

 
429

 
15
 %
 
267

 
228

 
17
 %
Yervoy
 
264

 
265

 

 
202

 
164

 
23
 %
Cardiovascular
 
 
 
 
 
 
 
 
 
 
 
 
Eliquis
 
948

 
602

 
57
 %
 
539

 
335

 
61
 %
Immunoscience
 
 
 
 
 
 
 
 
 
 
 
 
Orencia
 
625

 
540

 
16
 %
 
423

 
372

 
14
 %
Virology
 
 
 
 
 
 
 
 
 
 
 
 
Baraclude
 
296

 
309

 
(4
)%
 
17

 
27

 
(37
)%
Hepatitis C Franchise
 
226

 
458

 
(51
)%
 
82

 
212

 
(61
)%
Reyataz Franchise
 
206

 
272

 
(24
)%
 
117

 
142

 
(18
)%
Sustiva Franchise
 
246

 
312

 
(21
)%
 
212

 
269

 
(21
)%
Neuroscience
 
 
 
 
 
 
 
 
 
 
 
 
Abilify(b)
 
31

 
39

 
(21
)%
 

 
7

 
(100
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Mature Products and All Other
 
550

 
583

 
(6
)%
 
95

 
94

 
1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
5,243

 
$
4,287

 
22
 %
 
$
2,705

 
$
2,263

 
20
 %
 
**
In excess of +/- 100%
 
 
(a)
Erbitux is a trademark of ImClone LLC. ImClone LLC is a wholly-owned subsidiary of Eli Lilly and Company.
(b)
Abilify is a trademark of Otsuka Pharmaceutical Co., Ltd.


9




BRISTOL-MYERS SQUIBB COMPANY
PRODUCT REVENUE
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(Unaudited, dollars in millions)
 
 
Worldwide Revenues
 
U.S. Revenues
 
 
2016
 
2015
 
%
Change
 
2016
 
2015
 
%
Change
Twelve Months Ended December 31,
 
 
 
 
 
 
 
 
 
 
 
 
Key Products
 
 
 
 
 
 
 
 
 
 
 
 
Oncology
 
 
 
 
 
 
 
 
 
 
 
 
Empliciti
 
$
150

 
$
3

 
**

 
$
133

 
$
3

 
**

Erbitux
 

 
501

 
(100
)%
 

 
487

 
(100
)%
Opdivo
 
3,774

 
942

 
**

 
2,664

 
823

 
**

Sprycel
 
1,824

 
1,620

 
13
 %
 
969

 
829

 
17
 %
Yervoy
 
1,053

 
1,126

 
(6
)%
 
802

 
602

 
33
 %
Cardiovascular
 
 
 
 
 
 
 
 
 
 
 
 
Eliquis
 
3,343

 
1,860

 
80
 %
 
1,963

 
1,023

 
92
 %
Immunoscience
 
 
 
 
 
 
 
 
 
 
 
 
Orencia
 
2,265

 
1,885

 
20
 %
 
1,532

 
1,271

 
21
 %
Virology
 
 
 
 
 
 
 
 
 
 
 
 
Baraclude
 
1,192

 
1,312

 
(9
)%
 
66

 
135

 
(51
)%
Hepatitis C Franchise
 
1,578

 
1,603

 
(2
)%
 
827

 
323

 
**

Reyataz Franchise
 
912

 
1,139

 
(20
)%
 
484

 
591

 
(18
)%
Sustiva Franchise
 
1,065

 
1,252

 
(15
)%
 
901

 
1,041

 
(13
)%
Neuroscience
 
 
 
 
 
 
 
 
 
 
 
 
Abilify
 
128

 
746

 
(83
)%
 

 
600

 
(100
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Mature Products and All Other
 
2,143

 
2,571

 
(17
)%
 
379

 
460

 
(18
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
19,427

 
$
16,560

 
17
 %
 
$
10,720

 
$
8,188

 
31
 %
 
**
In excess of +/- 100%

10




BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(Unaudited, dollars and shares in millions except per share data)
 
 
 
Three Months Ended
December 31,
 
Twelve Months Ended December 31,
 
 
2016
 
2015
 
2016
 
2015
Net product sales
 
$
4,814

 
$
3,862

 
$
17,702

 
$
14,045

Alliance and other revenues
 
429

 
425

 
1,725

 
2,515

Total Revenues
 
5,243

 
4,287

 
19,427

 
16,560

 
 
 
 
 
 
 
 
 
Cost of products sold
 
1,383

 
952

 
4,946

 
3,909

Marketing, selling and administrative
 
1,461

 
1,501

 
4,911

 
4,841

Research and development
 
1,400

 
1,916

 
4,940

 
5,920

Other (income)/expense
 
(87
)
 
328

 
(1,285
)
 
(187
)
Total Expenses
 
4,157

 
4,697

 
13,512

 
14,483

 
 
 
 
 
 
 
 
 
Earnings/(Loss) Before Income Taxes
 
1,086

 
(410
)
 
5,915

 
2,077

Provision for/(Benefit from) Income Taxes
 
188

 
(222
)
 
1,408

 
446

 
 
 
 
 
 
 
 
 
Net Earnings/(Loss)
 
898

 
(188
)
 
4,507

 
1,631

Net Earnings Attributable to Noncontrolling Interest
 
4

 
9

 
50

 
66

Net Earnings/(Loss) Attributable to BMS
 
$
894

 
$
(197
)
 
$
4,457

 
$
1,565

 
 
 
 
 
 
 
 
 
Average Common Shares Outstanding:
 
 
 
 
 
 
 
 
Basic
 
1,672

 
1,669

 
1,671

 
1,667

Diluted
 
1,680

 
1,669

 
1,680

 
1,679

 
 
 
 
 
 
 
 
 
Earnings/(Loss) per Common Share
 
 
 
 
 
 
 
 
Basic
 
$
0.53

 
$
(0.12
)
 
$
2.67

 
$
0.94

Diluted
 
$
0.53

 
$
(0.12
)
 
$
2.65

 
$
0.93

 
 
 
 
 
 
 
 
 
Other (Income)/Expense
 
 
 
 
 
 
 
 
Interest expense
 
$
40

 
$
43

 
$
167

 
$
184

Investment income
 
(24
)
 
(27
)
 
(105
)
 
(101
)
Provision for restructuring
 
68

 
68

 
109

 
118

Litigation and other settlements
 
(1
)
 
145

 
47

 
159

Equity in net income of affiliates
 
(12
)
 
(16
)
 
(77
)
 
(83
)
Divestiture (gains)/losses
 
(2
)
 
174

 
(576
)
 
(196
)
Royalties and licensing income
 
(140
)
 
(125
)
 
(719
)
 
(383
)
Transition and other service fees
 
(54
)
 
(31
)
 
(238
)
 
(122
)
       Pension charges
 
25

 
49

 
91

 
160

Intangible asset impairment
 

 

 
15

 
13

       Equity investment impairment
 

 

 
45

 

       Written option adjustment
 

 

 

 
(123
)
Loss on debt redemption
 

 

 

 
180

Other
 
13

 
48

 
(44
)
 
7

Other (income)/expense
 
$
(87
)
 
$
328

 
$
(1,285
)
 
$
(187
)



11




BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(Unaudited, dollars in millions)
 
 
 
Three Months Ended
December 31,
 
Twelve Months Ended December 31,
 
 
2016
 
2015
 
2016
 
2015
Cost of products sold(a)
 
$
6

 
$
10

 
$
21

 
$
84

 
 
 
 
 
 
 
 
 
Marketing, selling and administrative
 

 
4

 

 
10

 
 
 
 
 
 
 
 
 
License and asset acquisition charges
 
130

 
554

 
439

 
1,679

IPRD impairments
 
13

 
160

 
13

 
160

Accelerated depreciation and other
 
43

 
27

 
83

 
44

Research and development
 
186

 
741

 
535

 
1,883

 
 
 
 
 
 
 
 
 
Provision for restructuring
 
68

 
65

 
109

 
115

Divestiture (gains)/losses
 

 
171

 
(559
)
 
(187
)
Pension charges
 
25

 
49

 
91

 
160

Written option adjustment
 

 

 

 
(123
)
Litigation and other settlements
 

 
143

 
40

 
158

Intangible asset impairment
 

 

 
15

 
13

Loss on debt redemption
 

 

 

 
180

Royalties and licensing income
 
(10
)
 

 
(10
)
 

Other (income)/expense
 
83

 
428

 
(314
)
 
316

 
 
 
 
 
 
 
 
 
Increase to pretax income
 
275

 
1,183

 
242

 
2,293

 
 
 
 
 
 
 
 
 
Income tax on items above
 
(105
)
 
(339
)
 
51

 
(480
)
 
 
 
 
 
 
 
 
 
Increase to net earnings
 
$
170

 
$
844

 
$
293

 
$
1,813


(a)
Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs.


12




BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF CERTAIN GAAP LINE ITEMS TO CERTAIN NON-GAAP LINE ITEMS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(Unaudited, dollars in millions)

 
Three Months Ended December 31, 2016
 
Twelve Months Ended December 31, 2016
 
GAAP
 
Specified
Items(a)
 
Non-
GAAP
 
GAAP
 
Specified
Items(a)
 
Non-
GAAP
Gross Profit
$
3,860

 
$
6

 
$
3,866

 
$
14,481

 
$
21

 
$
14,502

Marketing, selling and administrative
1,461

 

 
1,461

 
4,911

 

 
4,911

Research and development
1,400

 
(186
)
 
1,214

 
4,940

 
(535
)
 
4,405

Other (income)/expense
(87
)
 
(83
)
 
(170
)
 
(1,285
)
 
314

 
(971
)
Earnings Before Income Taxes
1,086

 
275

 
1,361

 
5,915

 
242

 
6,157

Provision for Income Taxes
188

 
(105
)
 
293

 
1,408

 
51

 
1,357

 
 
 
 
 
 
 
 
 
 
 
 
Net Earnings Attributable to BMS used for Diluted EPS Calculation
$
894

 
$
170

 
$
1,064

 
$
4,457

 
$
293

 
$
4,750

 
 
 
 
 
 
 
 
 
 
 
 
Average Common Shares Outstanding - Diluted
1,680

 
1,680

 
1,680

 
1,680

 
1,680

 
1,680

Diluted Earnings Per Share
$
0.53

 
$
0.10

 
$
0.63

 
$
2.65

 
$
0.18

 
$
2.83

 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
17.3
%
 
4.2
 %
 
21.5
%
 
23.8
%
 
(1.8
)%
 
22.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31, 2015
 
Twelve Months Ended December 31, 2015
 
GAAP
 
Specified
Items
(a)
 
Non-
GAAP
 
GAAP
 
Specified
Items
(a)
 
Non-
GAAP
Gross Profit
$
3,335

 
$
10

 
$
3,345

 
$
12,651

 
$
84

 
$
12,735

Marketing, selling and administrative
1,501

 
(4
)
 
1,497

 
4,841

 
(10
)
 
4,831

Research and development
1,916

 
(741
)
 
1,175

 
5,920

 
(1,883
)
 
4,037

Other (income)/expense
328

 
(428
)
 
(100
)
 
(187
)
 
(316
)
 
(503
)
Earnings/(Loss) Before Income Taxes
(410
)
 
1,183

 
773

 
2,077

 
2,293

 
4,370

Provision for/(Benefit from) Income Taxes
(222
)
 
(339
)
 
117

 
446

 
(480
)
 
926

 
 
 
 
 
 
 
 
 
 
 
 
Net Earnings/(Loss) Attributable to BMS used for Diluted EPS Calculation
$
(197
)
 
$
844

 
$
647

 
$
1,565

 
$
1,813

 
$
3,378

 
 
 
 
 
 
 
 
 
 
 
 
Average Common Shares Outstanding - Diluted(b)
1,669

 
1,681

 
1,681

 
1,679

 
1,679

 
1,679

Diluted Earnings/(Loss) Per Share
$
(0.12
)
 
$
0.50

 
$
0.38

 
$
0.93

 
$
1.08

 
$
2.01

 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
54.1
%
 
(39.0
)%
 
15.1
%
 
21.5
%
 
(0.3
)%
 
21.2
%
(a)
Refer to the Specified Items schedule for further details. Effective tax rate on the Specified Items represents the difference between the GAAP and Non-GAAP effective tax rate.
(b)
Difference between GAAP and Non-GAAP Diluted Shares Outstanding for the three months ended December 31, 2015 relates to incremental shares attributable to share-based compensation plans.


13




BRISTOL-MYERS SQUIBB COMPANY
NET CASH/(DEBT) CALCULATION
AS OF DECEMBER 31, 2016 AND SEPTEMBER 30, 2016
(Unaudited, dollars in millions)
 
 
 
December 31, 2016
 
September 30, 2016
Cash and cash equivalents
 
$
4,237

 
$
3,432

Marketable securities - current
 
2,113

 
2,128

Marketable securities - non-current
 
2,719

 
3,035

     Cash, cash equivalents and marketable securities
 
9,069

 
8,595

Short-term borrowings and current portion of long-term debt
 
(992
)
 
(990
)
Long-term debt
 
(5,716
)
 
(5,836
)
     Net cash position
 
$
2,361

 
$
1,769



14

EX-99.2 3 q42016ex992.htm CERTAIN SUPPLEMENTAL INFORMATION Exhibit

Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY
QUARTERLY TREND ANALYSIS OF REVENUES
(Unaudited, dollars in millions)
Revenues
 
2015
 
2016
 
% Change
 
FX Impact
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
 
Qtr vs. Qtr
 
YTD vs. YTD
    United States
 
$
2,044

 
$
1,837

 
$
3,881

 
$
2,044

 
$
5,925

 
$
2,263

 
$
8,188

 
$
2,537

 
$
2,688

 
$
5,225

 
$
2,790

 
$
8,015

 
$
2,705

 
$
10,720

 
20%
 
31%
 
 
    Europe
 
782

 
974

 
1,756

 
813

 
2,569

 
922

 
3,491

 
870

 
1,039

 
1,909

 
946

 
2,855

 
1,360

 
4,215

 
48%
 
21%
 
(3)%
 
(2)%
    Rest of the World
 
1,019

 
1,124

 
2,143

 
1,027

 
3,170

 
972

 
4,142

 
840

 
1,013

 
1,853

 
1,069

 
2,922

 
1,042

 
3,964

 
7%
 
(4)%
 
(3)%
 
(4)%
    Other
 
196

 
228

 
424

 
185

 
609

 
130

 
739

 
144

 
131

 
275

 
117

 
392

 
136

 
528

 
5%
 
(29)%
 
N/A
 
N/A
Total
 
$
4,041

 
$
4,163

 
$
8,204

 
$
4,069

 
$
12,273

 
$
4,287

 
$
16,560

 
$
4,391

 
$
4,871

 
$
9,262

 
$
4,922

 
$
14,184

 
$
5,243

 
$
19,427

 
22%
 
17%
 
(2)%
 
(2)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% of Revenues
 
2015
 
2016
 
 
 
 
 
 
 
 
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
 
 
 
 
 
 
 
    United States
 
50.6
%
 
44.1
%
 
47.3
%
 
50.2
%
 
48.3
%
 
52.8
%
 
49.4
%
 
57.8
%
 
55.2
%
 
56.4
%
 
56.7
%
 
56.5
%
 
51.6
%
 
55.2
%
 
 
 
 
 
 
 
 
    Europe
 
19.4
%
 
23.4
%
 
21.4
%
 
20.0
%
 
20.9
%
 
21.5
%
 
21.1
%
 
19.8
%
 
21.3
%
 
20.6
%
 
19.2
%
 
20.1
%
 
25.9
%
 
21.7
%
 
 
 
 
 
 
 
 
    Rest of the World
 
25.2
%
 
27.0
%
 
26.1
%
 
25.2
%
 
25.8
%
 
22.7
%
 
25.0
%
 
19.1
%
 
20.8
%
 
20.0
%
 
21.7
%
 
20.6
%
 
19.9
%
 
20.4
%
 
 
 
 
 
 
 
 
    Other
 
4.8
%
 
5.5
%
 
5.2
%
 
4.6
%
 
5.0
%
 
3.0
%
 
4.5
%
 
3.3
%
 
2.7
%
 
3.0
%
 
2.4
%
 
2.8
%
 
2.6
%
 
2.7
%
 
 
 
 
 
 
 
 
Total
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
 
 
 
 
 
 
 


1


BRISTOL-MYERS SQUIBB COMPANY
EARNINGS FROM OPERATIONS
(Unaudited, dollars and shares in millions except per share data)
 
 
2015
 
2016
 
% Change
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
Net product sales
 
$
3,059

 
$
3,572

 
$
6,631

 
$
3,552

 
$
10,183

 
$
3,862

 
$
14,045

 
$
3,964

 
$
4,432

 
$
8,396

 
$
4,492

 
$
12,888

 
$
4,814

 
$
17,702

 
25%
 
26%
Alliance and other revenues
 
982

 
591

 
1,573

 
517

 
2,090

 
425

 
2,515

 
427

 
439

 
866

 
430

 
1,296

 
429

 
1,725

 
1%
 
(31)%
Total Revenues
 
$
4,041

 
$
4,163

 
$
8,204

 
$
4,069

 
$
12,273

 
$
4,287

 
$
16,560

 
$
4,391

 
$
4,871

 
$
9,262

 
$
4,922

 
$
14,184

 
$
5,243

 
$
19,427

 
22%
 
17%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of products sold
 
847

 
1,013

 
1,860

 
1,097

 
2,957

 
952

 
3,909

 
1,052

 
1,206

 
2,258

 
1,305

 
3,563

 
1,383

 
4,946

 
45%
 
27%
Marketing, selling and administrative
 
1,029

 
1,135

 
2,164

 
1,176

 
3,340

 
1,501

 
4,841

 
1,068

 
1,238

 
2,306

 
1,144

 
3,450

 
1,461

 
4,911

 
(3)%
 
1%
Research and development
 
1,016

 
1,856

 
2,872

 
1,132

 
4,004

 
1,916

 
5,920

 
1,136

 
1,266

 
2,402

 
1,138

 
3,540

 
1,400

 
4,940

 
(27)%
 
(17)%
Other (income)/expense
 
(299
)
 
107

 
(192
)
 
(323
)
 
(515
)
 
328

 
(187
)
 
(520
)
 
(454
)
 
(974
)
 
(224
)
 
(1,198
)
 
(87
)
 
(1,285
)
 
**
 
**
Total Expenses
 
2,593

 
4,111

 
6,704

 
3,082

 
9,786

 
4,697

 
14,483

 
2,736

 
3,256

 
5,992

 
3,363

 
9,355

 
4,157

 
13,512

 
(11)%
 
(7)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings/(Loss) Before Income Taxes
 
$
1,448

 
$
52

 
$
1,500

 
$
987

 
$
2,487

 
$
(410
)
 
$
2,077

 
$
1,655

 
$
1,615

 
$
3,270

 
$
1,559

 
$
4,829

 
$
1,086

 
$
5,915

 
**
 
**
Provision for/(Benefit from) Income Taxes
 
249

 
162

 
411

 
257

 
668

 
(222
)
 
446

 
449

 
427

 
876

 
344

 
1,220

 
188

 
1,408

 
**
 
**
Net Earnings/(Loss)
 
$
1,199

 
$
(110
)
 
$
1,089

 
$
730

 
$
1,819

 
$
(188
)
 
$
1,631

 
$
1,206

 
$
1,188

 
$
2,394

 
$
1,215

 
$
3,609

 
$
898

 
$
4,507

 
**
 
**
Net Earnings Attributable to Noncontrolling Interest
 
13

 
20

 
33

 
24

 
57

 
9

 
66

 
11

 
22

 
33

 
13

 
46

 
4

 
50

 
(56)%
 
(24)%
Net Earnings/(Loss) Attributable to BMS
 
$
1,186

 
$
(130
)
 
$
1,056

 
$
706

 
$
1,762

 
$
(197
)
 
$
1,565

 
$
1,195

 
$
1,166

 
$
2,361

 
$
1,202

 
$
3,563

 
$
894

 
$
4,457

 
**
 
**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted Earnings/(Loss) per Common Share*
 
$
0.71

 
$
(0.08
)
 
$
0.63

 
$
0.42

 
$
1.05

 
$
(0.12
)
 
$
0.93

 
$
0.71

 
$
0.69

 
$
1.41

 
$
0.72

 
$
2.12

 
$
0.53

 
$
2.65

 
**
 
**
Average Common Shares Outstanding - Diluted
 
1,676

 
1,667

 
1,677

 
1,678

 
1,677

 
1,669

 
1,679

 
1,680

 
1,679

 
1,679

 
1,679

 
1,679

 
1,680

 
1,680

 
1%
 
Dividends declared per common share
 
$
0.37

 
$
0.37

 
$
0.74

 
$
0.37

 
$
1.11

 
$
0.38

 
$
1.49

 
$
0.38

 
$
0.38

 
$
0.76

 
$
0.38

 
$
1.14

 
$
0.39

 
$
1.53

 
3%
 
3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
2016
 
 
 
 
% of Total Revenues
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
 
 
 
Gross Margin
 
79.0
%
 
75.7
%
 
77.3
%
 
73.0
%
 
75.9
%
 
77.8
%
 
76.4
%
 
76.0
%
 
75.2
%
 
75.6
%
 
73.5
%
 
74.9
%
 
73.6
%
 
74.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate
 
17.2
%
 
311.5
%
 
27.4
%
 
26.0
%
 
26.9
%
 
54.1
%
 
21.5
%
 
27.1
%
 
26.4
%
 
26.8
%
 
22.1
%
 
25.3
%
 
17.3
%
 
23.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (Income)/Expense
 
2015
 
2016
 
% Change
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
Interest expense
 
$
51

 
$
49

 
$
100

 
$
41

 
$
141

 
$
43

 
$
184

 
$
43

 
$
42

 
$
85

 
$
42

 
$
127

 
$
40

 
$
167

 
(7
)%
 
(9
)%
Investment income
 
(30
)
 
(26
)
 
(56
)
 
(18
)
 
(74
)
 
(27
)
 
(101
)
 
(24
)
 
(25
)
 
(49
)
 
(32
)
 
(81
)
 
(24
)
 
(105
)
 
(11
)%
 
4
 %
Provision for restructuring
 
12

 
28

 
40

 
10

 
50

 
68

 
118

 
4

 
18

 
22

 
19

 
41

 
68

 
109

 

 
(8
)%
Litigation and other settlements
 
12

 
4

 
16

 
(2
)
 
14

 
145

 
159

 
43

 
6

 
49

 
(1
)
 
48

 
(1
)
 
47

 
**

 
(70
)%
Equity in net income of affiliates
 
(26
)
 
(22
)
 
(48
)
 
(19
)
 
(67
)
 
(16
)
 
(83
)
 
(26
)
 
(20
)
 
(46
)
 
(19
)
 
(65
)
 
(12
)
 
(77
)
 
(25
)%
 
(7
)%
Divestiture (gains)/losses
 
(154
)
 
(8
)
 
(162
)
 
(208
)
 
(370
)
 
174

 
(196
)
 
(270
)
 
(283
)
 
(553
)
 
(21
)
 
(574
)
 
(2
)
 
(576
)
 
**

 
**

Royalties and licensing income
 
(98
)
 
(97
)
 
(195
)
 
(63
)
 
(258
)
 
(125
)
 
(383
)
 
(254
)
 
(167
)
 
(421
)
 
(158
)
 
(579
)
 
(140
)
 
(719
)
 
12
 %
 
88
 %
Transition and other service fees
 
(27
)
 
(27
)
 
(54
)
 
(37
)
 
(91
)
 
(31
)
 
(122
)
 
(53
)
 
(74
)
 
(127
)
 
(57
)
 
(184
)
 
(54
)
 
(238
)
 
74
 %
 
95
 %
Pension charges
 
27

 
36

 
63

 
48

 
111

 
49

 
160

 
22

 
25

 
47

 
19

 
66

 
25

 
91

 
(49
)%
 
(43
)%
Intangible asset impairment
 
13

 

 
13

 

 
13

 

 
13

 
15

 

 
15

 

 
15

 

 
15

 

 
15
 %
Equity investment impairment
 

 

 

 

 

 

 

 

 
45

 
45

 

 
45

 

 
45

 

 
N/A

Written option adjustment
 
(36
)
 

 
(36
)
 
(87
)
 
(123
)
 

 
(123
)
 

 

 

 

 

 

 

 

 
(100
)%
Loss on debt redemption
 

 
180

 
180

 

 
180

 

 
180

 

 

 

 

 

 

 

 

 
(100
)%
Other
 
(43
)
 
(10
)
 
(53
)
 
12

 
(41
)
 
48

 
7

 
(20
)
 
(21
)
 
(41
)
 
(16
)
 
(57
)
 
13

 
(44
)
 
(73
)%
 
**

 
 
$
(299
)
 
$
107

 
$
(192
)
 
$
(323
)
 
$
(515
)
 
$
328

 
$
(187
)
 
$
(520
)
 
$
(454
)
 
$
(974
)
 
$
(224
)
 
$
(1,198
)
 
$
(87
)
 
$
(1,285
)
 
**

 
**

*
Quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations.
**
In excess of +/- 100%


2


BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
FOR THE PERIOD ENDED DECEMBER 31, 2016
(Unaudited, dollars in millions)

QUARTER-TO-DATE
 
2016
 
2015
 
Growth $
 
Growth %
 
Favorable /
(Unfavorable)
FX Impact $ *
 
2016
Excluding FX
 
Favorable /
(Unfavorable)
FX Impact % *
 
Growth %
Excluding FX
Revenues
 
$
5,243

 
$
4,287

 
$
956

 
22%
 
$
(60
)
 
$
5,303

 
(2)%
 
24%
Gross profit
 
3,860

 
3,335

 
525

 
16%
 
N/A

 
N/A

 
N/A
 
N/A
Gross profit excluding specified items(a)
 
3,866

 
3,345

 
521

 
16%
 
N/A

 
N/A

 
N/A
 
N/A
          Gross profit excluding specified items as a % of revenues
 
73.7
%
 
78.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing, selling and administrative
 
1,461

 
1,501

 
(40
)
 
(3)%
 
31

 
1,492

 
2%
 
(1)%
Marketing, selling and administrative excluding specified items(a)
 
1,461

 
1,497

 
(36
)
 
(2)%
 
31

 
1,492

 
2%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         MS&A excluding specified items as a % of revenues
 
27.9
%
 
34.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
 
1,400

 
1,916

 
(516
)
 
(27)%
 
7

 
1,407

 
 
(27)%
Research and development excluding specified items(a)
 
1,214

 
1,175

 
39

 
3%
 
8

 
1,222

 
1%
 
4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Research and development excluding specified items as a % of revenues
 
23.2
%
 
27.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YEAR-TO-DATE
 
2016
 
2015
 
Growth $
 
Growth %
 
Favorable /
(Unfavorable)
FX Impact $ *
 
2016
Excluding FX
 
Favorable /
(Unfavorable)
FX Impact % *
 
Growth %
Excluding FX
Revenues
 
$
19,427

 
$
16,560

 
$
2,867

 
17%
 
$
(237
)
 
$
19,664

 
(2)%
 
19%
Gross profit
 
14,481

 
12,651

 
1,830

 
14%
 
N/A

 
N/A

 
N/A
 
N/A
Gross profit excluding specified items(a)
 
14,502

 
12,735

 
1,767

 
14%
 
N/A

 
N/A

 
N/A
 
N/A
          Gross profit excluding specified items as a % of revenues
 
74.6
%
 
76.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing, selling and administrative
 
4,911

 
4,841

 
70

 
1%
 
80

 
4,991

 
2%
 
3%
Marketing, selling and administrative excluding specified items(a)
 
4,911

 
4,831

 
80

 
2%
 
80

 
4,991

 
1%
 
3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         MS&A excluding specified items as a % of revenues
 
25.3
%
 
29.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
 
4,940

 
5,920

 
(980
)
 
(17)%
 
19

 
4,959

 
1%
 
(16)%
Research and development excluding specified items(a)
 
4,405

 
4,037

 
368

 
9%
 
20

 
4,425

 
1%
 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Research and development excluding specified items as a % of revenues
 
22.7
%
 
24.4
%
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Refer to the Specified Items schedule for further details.
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Foreign exchange impacts were derived by applying the prior period average currency rates to the current period sales and expenses.

3


BRISTOL-MYERS SQUIBB COMPANY
WORLDWIDE REVENUES
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
 
 
2015
 
2016
 
Growth $
 
% Change
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
 
Qtr vs. Qtr
 
YTD vs. YTD
Oncology(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Empliciti
 
$

 
$

 
$

 
$

 
$

 
$
3

 
$
3

 
$
28

 
$
34

 
$
62

 
$
41

 
$
103

 
$
47

 
$
150

 
$
44

 
$
147

 
**

 
**

Erbitux
 
165

 
169

 
334

 
167

 
501

 

 
501

 

 

 

 

 

 

 

 

 
(501
)
 

 
(100
)%
Opdivo
 
40

 
122

 
162

 
305

 
467

 
475

 
942

 
704

 
840

 
1,544

 
920

 
2,464

 
1,310

 
3,774

 
835

 
2,832

 
**

 
**

Sprycel
 
375

 
405

 
780

 
411

 
1,191

 
429

 
1,620

 
407

 
451

 
858

 
472

 
1,330

 
494

 
1,824

 
65

 
204

 
15
 %
 
13
 %
Yervoy
 
325

 
296

 
621

 
240

 
861

 
265

 
1,126

 
263

 
241

 
504

 
285

 
789

 
264

 
1,053

 
(1
)
 
(73
)
 

 
(6
)%
Cardiovascular(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eliquis
 
355

 
437

 
792

 
466

 
1,258

 
602

 
1,860

 
734

 
777

 
1,511

 
884

 
2,395

 
948

 
3,343

 
346

 
1,483

 
57
 %
 
80
 %
Immunoscience(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Orencia(b)
 
400

 
461

 
861

 
484

 
1,345

 
540

 
1,885

 
475

 
593

 
1,068

 
572

 
1,640

 
625

 
2,265

 
85

 
380

 
16
 %
 
20
 %
Virology(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baraclude
 
340

 
343

 
683

 
320

 
1,003

 
309

 
1,312

 
291

 
299

 
590

 
306

 
896

 
296

 
1,192

 
(13
)
 
(120
)
 
(4
)%
 
(9
)%
Hepatitis C Franchise(c)
 
264

 
479

 
743

 
402

 
1,145

 
458

 
1,603

 
427

 
546

 
973

 
379

 
1,352

 
226

 
1,578

 
(232
)
 
(25
)
 
(51
)%
 
(2
)%
Reyataz Franchise
 
294

 
303

 
597

 
270

 
867

 
272

 
1,139

 
221

 
247

 
468

 
238

 
706

 
206

 
912

 
(66
)
 
(227
)
 
(24
)%
 
(20
)%
Sustiva Franchise(d)
 
290

 
317

 
607

 
333

 
940

 
312

 
1,252

 
273

 
271

 
544

 
275

 
819

 
246

 
1,065

 
(66
)
 
(187
)
 
(21
)%
 
(15
)%
Neuroscience(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Abilify(e)
 
554

 
107

 
661

 
46

 
707

 
39

 
746

 
33

 
35

 
68

 
29

 
97

 
31

 
128

 
(8
)
 
(618
)
 
(21
)%
 
(83
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mature Products and All Other(f)
 
639

 
724

 
1,363

 
625

 
1,988

 
583

 
2,571

 
535

 
537

 
1,072

 
521

 
1,593

 
550

 
2,143

 
(33
)
 
(428
)
 
(6
)%
 
(17
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
4,041

 
$
4,163

 
$
8,204

 
$
4,069

 
$
12,273

 
$
4,287

 
$
16,560

 
$
4,391

 
$
4,871

 
$
9,262

 
$
4,922

 
$
14,184

 
$
5,243

 
$
19,427

 
$
956

 
$
2,867

 
22
 %
 
17
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
**
In excess of +/- 100%
(a)
Key products listed do not represent all products in the respective therapeutic areas.
(b)
Includes Orencia SubQ revenues of $323 million and $262 million for the three months ended December 31, 2016 and 2015, respectively, and $1,107 million and $872 million for the twelve months ended December 31, 2016 and 2015, respectively.
(c)
Includes Daklinza (daclatasvir) revenues of $221 million and $423 million for the three months ended December 31, 2016 and 2015, respectively, and $1,550 million and $1,315 million for the twelve months ended December 31, 2016 and 2015, respectively.
(d)
The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla. Includes alliance revenue of $217 million and $273 million for the three months ended December 31, 2016 and 2015, respectively, and $934 million and $1,096 million for the twelve months ended December 31, 2016 and 2015, respectively.
(e)
Includes alliance revenue of $7 million for the three months ended December 31, 2015 and $604 million for the twelve months ended December 31, 2015. BMS's U.S. commercialization rights to Abilify expired in April 2015.
(f)
Represents all other products, including those which have lost exclusivity in major markets, over the counter brands and royalty-related revenue.
 
 
 
Note: 2015 year-to-date revenues of new and inline brands grew 41% excluding Abilify, Baraclude and the Sustiva Franchise.

4


BRISTOL-MYERS SQUIBB COMPANY
U.S. REVENUES
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
 
 
2015
 
2016
 
% Change
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
Oncology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Empliciti
 
$

 
$

 
$

 
$

 
$

 
$
3

 
$
3

 
$
28

 
$
33

 
$
61

 
$
36

 
$
97

 
$
36

 
$
133

 
**
 
**
   Erbitux
 
157

 
165

 
322

 
165

 
487

 

 
487

 

 

 

 

 

 

 

 
 
(100)%
   Opdivo
 
38

 
107

 
145

 
268

 
413

 
410

 
823

 
594

 
643

 
1,237

 
712

 
1,949

 
715

 
2,664

 
74%
 
**
   Sprycel
 
181

 
205

 
386

 
215

 
601

 
228

 
829

 
210

 
233

 
443

 
259

 
702

 
267

 
969

 
17%
 
17%
   Yervoy
 
181

 
136

 
317

 
121

 
438

 
164

 
602

 
199

 
179

 
378

 
222

 
600

 
202

 
802

 
23%
 
33%
Cardiovascular
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Eliquis
 
200

 
243

 
443

 
245

 
688

 
335

 
1,023

 
468

 
444

 
912

 
512

 
1,424

 
539

 
1,963

 
61%
 
92%
Immunoscience
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Orencia(a)
 
259

 
310

 
569

 
330

 
899

 
372

 
1,271

 
321

 
401

 
722

 
387

 
1,109

 
423

 
1,532

 
14%
 
21%
Virology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Baraclude
 
46

 
37

 
83

 
25

 
108

 
27

 
135

 
17

 
15

 
32

 
17

 
49

 
17

 
66

 
(37)%
 
(51)%
   Hepatitis C Franchise(b)
 

 

 

 
111

 
111

 
212

 
323

 
259

 
294

 
553

 
192

 
745

 
82

 
827

 
(61)%
 
**
   Reyataz Franchise
 
143

 
157

 
300

 
149

 
449

 
142

 
591

 
120

 
122

 
242

 
125

 
367

 
117

 
484

 
(18)%
 
(18)%
   Sustiva Franchise(c)
 
234

 
258

 
492

 
280

 
772

 
269

 
1,041

 
228

 
227

 
455

 
234

 
689

 
212

 
901

 
(21)%
 
(13)%
Neuroscience
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Abilify
 
508

 
67

 
575

 
18

 
593

 
7

 
600

 

 

 

 

 

 

 

 
(100)%
 
(100)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mature Products and All Other(d)
 
97

 
152

 
249

 
117

 
366

 
94

 
460

 
93

 
97

 
190

 
94

 
284

 
95

 
379

 
1%
 
(18)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total(e)
 
$
2,044

 
$
1,837

 
$
3,881

 
$
2,044

 
$
5,925

 
$
2,263

 
$
8,188

 
$
2,537

 
$
2,688

 
$
5,225

 
$
2,790

 
$
8,015

 
$
2,705

 
$
10,720

 
20%
 
31%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
**
 In excess of +/- 100%
(a)
Includes Orencia SubQ revenues of $203 million and $174 million for the three months ended December 31, 2016 and 2015, respectively, and $693 million and $567 million for the twelve months ended December 31, 2016 and 2015, respectively.
(b)
Includes revenues of Daklinza (daclastasvir) only, which was launched in the U.S. in the third quarter of 2015.
(c)
The Sustiva Franchise includes sales of Sustiva, as well as revenue from sales of bulk efavirenz included in the combination therapy, Atripla.
(d)
Represents all other products sold in the U.S., including those which have lost exclusivity.
(e)
Includes United States and Puerto Rico.


5


BRISTOL-MYERS SQUIBB COMPANY
INTERNATIONAL REVENUES
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
 
 
2015
 
2016
 
% Change
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
Oncology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Empliciti
 
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$
1

 
$
1

 
$
5

 
$
6

 
$
11

 
$
17

 
N/A
 
N/A
Erbitux
 
8

 
4

 
12

 
2

 
14

 

 
14

 

 

 

 

 

 

 

 
 
(100)%
Opdivo
 
2

 
15

 
17

 
37

 
54

 
65

 
119

 
110

 
197

 
307

 
208

 
515

 
595

 
1,110

 
**
 
**
Sprycel
 
194

 
200

 
394

 
196

 
590

 
201

 
791

 
197

 
218

 
415

 
213

 
628

 
227

 
855

 
13%
 
8%
Yervoy
 
144

 
160

 
304

 
119

 
423

 
101

 
524

 
64

 
62

 
126

 
63

 
189

 
62

 
251

 
(39)%
 
(52)%
Cardiovascular
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eliquis
 
155

 
194

 
349

 
221

 
570

 
267

 
837

 
266

 
333

 
599

 
372

 
971

 
409

 
1,380

 
53%
 
65%
Immunoscience
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Orencia
 
141

 
151

 
292

 
154

 
446

 
168

 
614

 
154

 
192

 
346

 
185

 
531

 
202

 
733

 
20%
 
19%
Virology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baraclude
 
294

 
306

 
600

 
295

 
895

 
282

 
1,177

 
274

 
284

 
558

 
289

 
847

 
279

 
1,126

 
(1)%
 
(4)%
Hepatitis C Franchise(a)
 
264

 
479

 
743

 
291

 
1,034

 
246

 
1,280

 
168

 
252

 
420

 
187

 
607

 
144

 
751

 
(41)%
 
(41)%
Reyataz Franchise
 
151

 
146

 
297

 
121

 
418

 
130

 
548

 
101

 
125

 
226

 
113

 
339

 
89

 
428

 
(32)%
 
(22)%
Sustiva Franchise(b)
 
56

 
59

 
115

 
53

 
168

 
43

 
211

 
45

 
44

 
89

 
41

 
130

 
34

 
164

 
(21)%
 
(22)%
Neuroscience
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Abilify(c)
 
46

 
40

 
86

 
28

 
114

 
32

 
146

 
33

 
35

 
68

 
29

 
97

 
31

 
128

 
(3)%
 
(12)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mature Products and All Other(d)
 
542

 
572

 
1,114

 
508

 
1,622

 
489

 
2,111

 
442

 
440

 
882

 
427

 
1,309

 
455

 
1,764

 
(7)%
 
(16)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total(e)
 
$
1,997

 
$
2,326

 
$
4,323

 
$
2,025

 
$
6,348

 
$
2,024

 
$
8,372

 
$
1,854

 
$
2,183

 
$
4,037

 
$
2,132

 
$
6,169

 
$
2,538

 
$
8,707

 
25%
 
4%

**
In excess of +/- 100%
(a)
Includes Daklinza (daclatasvir) revenues of $139 million and $211 million for the three months ended December 31, 2016 and 2015, respectively, and $723 million and $992 million for the twelve months ended December 31, 2016 and 2015, respectively.
(b)
The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla.
(c)
Includes revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd.
(d)
Represents all other products, including those which have lost exclusivity in major markets, over the counter brands and royalty-related revenue.
(e)
When adjusted for foreign exchange impact, total revenues increased 28% for the fourth quarter and increased 7% year to date.



6


BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
(Unaudited, dollars in millions)
 
 
2015
 
2016
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
Cost of products sold(a)
 
$
34

 
$
25

 
$
59

 
$
15

 
$
74

 
$
10

 
$
84

 
$
4

 
$
4

 
$
8

 
$
7

 
$
15

 
$
6

 
$
21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing, selling and administrative
 
1

 
3

 
4

 
2

 
6

 
4

 
10

 

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
License and asset acquisition charges
 
162

 
869

 
1,031

 
94

 
1,125

 
554

 
1,679

 
125

 
139

 
264

 
45

 
309

 
130

 
439

IPRD impairments
 

 

 

 

 

 
160

 
160

 

 

 

 

 

 
13

 
13

Accelerated depreciation and other
 

 
2

 
2

 
15

 
17

 
27

 
44

 
13

 
13

 
26

 
14

 
40

 
43

 
83

Research and development
 
162

 
871

 
1,033

 
109

 
1,142

 
741

 
1,883

 
138

 
152

 
290

 
59

 
349

 
186

 
535

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for restructuring
 
12

 
28

 
40

 
10

 
50

 
65

 
115

 
4

 
18

 
22

 
19

 
41

 
68

 
109

Divestiture (gains)/losses
 
(152
)
 
(8
)
 
(160
)
 
(198
)
 
(358
)
 
171

 
(187
)
 
(269
)
 
(277
)
 
(546
)
 
(13
)
 
(559
)
 

 
(559
)
Pension charges
 
27

 
36

 
63

 
48

 
111

 
49

 
160

 
22

 
25

 
47

 
19

 
66

 
25

 
91

Written option adjustment
 
(36
)
 

 
(36
)
 
(87
)
 
(123
)
 

 
(123
)
 

 

 

 

 

 

 

Litigation and other settlements
 
14

 
1

 
15

 

 
15

 
143

 
158

 
43

 

 
43

 
(3
)
 
40

 

 
40

Intangible asset impairment
 
13

 

 
13

 

 
13

 

 
13

 
15

 

 
15

 

 
15

 

 
15

Loss on debt redemption
 

 
180

 
180

 

 
180

 

 
180

 

 

 

 

 

 

 

Royalties and licensing income
 

 

 

 

 

 

 

 

 

 

 

 

 
(10
)
 
(10
)
Other (income)/expense
 
(122
)
 
237

 
115

 
(227
)
 
(112
)
 
428

 
316

 
(185
)
 
(234
)
 
(419
)
 
22

 
(397
)
 
83

 
(314
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase/(decrease) to pretax income
 
75

 
1,136

 
1,211

 
(101
)
 
1,110

 
1,183

 
2,293

 
(43
)
 
(78
)
 
(121
)
 
88

 
(33
)
 
275

 
242

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax on items above
 
(68
)
 
(116
)
 
(184
)
 
43

 
(141
)
 
(339
)
 
(480
)
 
83

 
76

 
159

 
(3
)
 
156

 
(105
)
 
51

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase/(decrease) to net earnings
 
$
7

 
$
1,020

 
$
1,027

 
$
(58
)
 
$
969

 
$
844

 
$
1,813

 
$
40

 
$
(2
)
 
$
38

 
$
85

 
$
123

 
$
170

 
$
293

(a)
Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs.

7


BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF CERTAIN GAAP LINE ITEMS TO CERTAIN NON-GAAP LINE ITEMS
(Unaudited, dollars in millions)
 
 
2015
 
2016
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
Gross Profit
 
$
3,194

 
$
3,150

 
$
6,344

 
$
2,972

 
$
9,316

 
$
3,335

 
$
12,651

 
$
3,339

 
$
3,665

 
$
7,004

 
$
3,617

 
$
10,621

 
$
3,860

 
$
14,481

Specified items(a)
 
34

 
25

 
59

 
15

 
74

 
10

 
84

 
4

 
4

 
8

 
7

 
15

 
6

 
21

Gross profit excluding specified items
 
3,228

 
3,175

 
6,403

 
2,987

 
9,390

 
3,345

 
12,735

 
3,343

 
3,669

 
7,012

 
3,624

 
10,636

 
3,866

 
14,502

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing, selling and administrative
 
1,029

 
1,135

 
2,164

 
1,176

 
3,340

 
1,501

 
4,841

 
1,068

 
1,238

 
2,306

 
1,144

 
3,450

 
1,461

 
4,911

Specified items(a)
 
(1
)
 
(3
)
 
(4
)
 
(2
)
 
(6
)
 
(4
)
 
(10
)
 

 

 

 

 

 

 

Marketing, selling and administrative excluding specified items
 
1,028

 
1,132

 
2,160

 
1,174

 
3,334

 
1,497

 
4,831

 
1,068

 
1,238

 
2,306

 
1,144

 
3,450

 
1,461

 
4,911

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
 
1,016

 
1,856

 
2,872

 
1,132

 
4,004

 
1,916

 
5,920

 
1,136

 
1,266

 
2,402

 
1,138

 
3,540

 
1,400

 
4,940

Specified items(a)
 
(162
)
 
(871
)
 
(1,033
)
 
(109
)
 
(1,142
)
 
(741
)
 
(1,883
)
 
(138
)
 
(152
)
 
(290
)
 
(59
)
 
(349
)
 
(186
)
 
(535
)
Research and development excluding specified items
 
854

 
985

 
1,839

 
1,023

 
2,862

 
1,175

 
4,037

 
998

 
1,114

 
2,112

 
1,079

 
3,191

 
1,214

 
4,405

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (income)/expense
 
(299
)
 
107

 
(192
)
 
(323
)
 
(515
)
 
328

 
(187
)
 
(520
)
 
(454
)
 
(974
)
 
(224
)
 
(1,198
)
 
(87
)
 
(1,285
)
Specified items(a)
 
122

 
(237
)
 
(115
)
 
227

 
112

 
(428
)
 
(316
)
 
185

 
234

 
419

 
(22
)
 
397

 
(83
)
 
314

Other (income)/expense excluding specified items
 
(177
)
 
(130
)
 
(307
)
 
(96
)
 
(403
)
 
(100
)
 
(503
)
 
(335
)
 
(220
)
 
(555
)
 
(246
)
 
(801
)
 
(170
)
 
(971
)

(a)
Refer to the Specified Items schedule for further details.


8


BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP TO NON-GAAP EPS
(Unaudited, dollars in millions)
 
 
2015
 
2016
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
Earnings/(loss) before income taxes
 
$
1,448

 
$
52

 
$
1,500

 
$
987

 
$
2,487

 
$
(410
)
 
$
2,077

 
$
1,655

 
$
1,615

 
$
3,270

 
$
1,559

 
$
4,829

 
$
1,086

 
$
5,915

Specified items(a)
 
75

 
1,136

 
1,211

 
(101
)
 
1,110

 
1,183

 
2,293

 
(43
)
 
(78
)
 
(121
)
 
88

 
(33
)
 
275

 
242

Earnings before income taxes excluding specified items
 
1,523

 
1,188

 
2,711

 
886

 
3,597

 
773

 
4,370

 
1,612

 
1,537

 
3,149

 
1,647

 
4,796

 
1,361

 
6,157

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for/(benefit from) income taxes
 
249

 
162

 
411

 
257

 
668

 
(222
)
 
446

 
449

 
427

 
876

 
344

 
1,220

 
188

 
1,408

Tax on specified items(a)
 
(68
)
 
(116
)
 
(184
)
 
43

 
(141
)
 
(339
)
 
(480
)
 
83

 
76

 
159

 
(3
)
 
156

 
(105
)
 
51

Provision for income taxes excluding tax on specified items
 
317

 
278

 
595

 
214

 
809

 
117

 
926

 
366

 
351

 
717

 
347

 
1,064

 
293

 
1,357

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings/(loss) attributable to BMS used for Diluted EPS Calculation - GAAP
 
1,186

 
(130
)
 
1,056

 
706

 
1,762

 
(197
)
 
1,565

 
1,195

 
1,166

 
2,361

 
1,202

 
3,563

 
894

 
4,457

Specified items(a)
 
7

 
1,020

 
1,027

 
(58
)
 
969

 
844

 
1,813

 
40

 
(2
)
 
38

 
85

 
123

 
170

 
293

Net earnings attributable to BMS used for Diluted EPS Calculation excluding specified items - Non-GAAP
 
1,193

 
890

 
2,083

 
648

 
2,731

 
647

 
3,378

 
1,235

 
1,164

 
2,399

 
1,287

 
3,686

 
1,064

 
4,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average Common shares Outstanding - Diluted- GAAP
 
1,676

 
1,667

 
1,677

 
1,678

 
1,677

 
1,669

 
1,679

 
1,680

 
1,679

 
1,679

 
1,679

 
1,679

 
1,680

 
1,680

Incremental shares Attributable to Share-Based compensation Plans
 

 
10

 

 

 

 
12

 

 

 

 

 

 

 

 

Weighted-average Common shares Outstanding - Diluted- Non-GAAP
 
1,676

 
1,677

 
1,677

 
1,678

 
1,677

 
1,681

 
1,679

 
1,680

 
1,679

 
1,679

 
1,679

 
1,679

 
1,680

 
1,680

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted Earnings/(loss) Per Share - GAAP
 
$
0.71

 
$
(0.08
)
 
$
0.63

 
$
0.42

 
$
1.05

 
$
(0.12
)
 
$
0.93

 
$
0.71

 
$
0.69

 
$
1.41

 
$
0.72

 
$
2.12

 
$
0.53

 
$
2.65

Diluted Earnings/(loss) Per Share attributable to specified items
 

 
0.61

 
0.61

 
(0.03
)
 
0.58

 
0.50

 
1.08

 
0.03

 

 
0.02

 
0.05

 
0.08

 
0.10

 
0.18

Diluted Earnings Per Share - Non-GAAP
 
$
0.71

 
$
0.53

 
$
1.24

 
$
0.39

 
$
1.63

 
$
0.38

 
$
2.01

 
$
0.74

 
$
0.69

 
$
1.43

 
$
0.77

 
$
2.20

 
$
0.63

 
$
2.83

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
 
17.2
%
 
311.5
 %
 
27.4
 %
 
26.0
 %
 
26.9
 %
 
54.1
 %
 
21.5
 %
 
27.1
 %
 
26.4
 %
 
26.8
 %
 
22.1
 %
 
25.3
 %
 
17.3
%
 
23.8
 %
Specified items (a)
 
3.6
%
 
(288.1
)%
 
(5.5
)%
 
(1.8
)%
 
(4.4
)%
 
(39.0
)%
 
(0.3
)%
 
(4.4
)%
 
(3.6
)%
 
(4.0
)%
 
(1.0
)%
 
(3.1
)%
 
4.2
%
 
(1.8
)%
Effective Tax Rate excluding specified items
 
20.8
%
 
23.4
 %
 
21.9
 %
 
24.2
 %
 
22.5
 %
 
15.1
 %
 
21.2
 %
 
22.7
 %
 
22.8
 %
 
22.8
 %
 
21.1
 %
 
22.2
 %
 
21.5
%
 
22.0
 %
(a)
Refer to the Specified Items schedule for further details. Effective tax rate on the Specified Items represents the difference between the GAAP and Non-GAAP effective tax rate.

9


BRISTOL-MYERS SQUIBB COMPANY
SELECTED BALANCE SHEET INFORMATION
(Unaudited, dollars in millions)
 
 
 
March 31,
2015
 
June 30,
2015
 
September 30,
2015
 
December 31,
2015
 
March 31,
2016
 
June 30,
2016
 
September 30,
2016
 
December 31,
2016
Cash and cash equivalents
 
$
6,294

 
$
4,199

 
$
3,975

 
$
2,385

 
$
2,644

 
$
2,934

 
$
3,432

 
$
4,237

Marketable securities - current
 
1,313

 
1,277

 
1,438

 
1,885

 
1,663

 
1,717

 
2,128

 
2,113

Marketable securities - non-current
 
4,279

 
4,632

 
4,627

 
4,660

 
3,689

 
3,281

 
3,035

 
2,719

     Cash, cash equivalents and marketable securities
 
11,886

 
10,108

 
10,040

 
8,930

 
7,996

 
7,932

 
8,595

 
9,069

 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
Short-term borrowings and current portion of long-term debt
 
(330
)
 
(755
)
 
(642
)
 
(139
)
 
(106
)
 
(155
)
 
(990
)
 
(992
)
Long-term debt
 
(7,127
)
 
(6,615
)
 
(6,632
)
 
(6,550
)
 
(6,593
)
 
(6,581
)
 
(5,836
)
 
(5,716
)
     Net cash position
 
$
4,429

 
$
2,738

 
$
2,766

 
$
2,241

 
$
1,297

 
$
1,196

 
$
1,769

 
$
2,361



10


 
BRISTOL-MYERS SQUIBB COMPANY
                                         2017 FULL YEAR PROJECTED DILUTED EPS FROM OPERATIONS
 
EXCLUDING PROJECTED SPECIFIED ITEMS
 
 
Full Year 2017
 
 
 
 
 
 
 
 
Pre-tax
 
Tax
 
After-tax
 
Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP
 
 
 
 
$2.47 to $2.67

 
 
 
 
 
 
 
 
 
 
Projected Specified Items:
 
 
 
 
 
 
Restructuring, accelerated depreciation and other shutdown costs (1)
0.33

 
0.11

 
0.22

 
Divestiture gains
(0.06
)
 
(0.02
)
 
(0.04
)
 
Research and development license and asset acquisition charges
0.19

 
0.01

 
0.18

 
Pension charges
0.08

 
0.03

 
0.05

 
Litigation and other settlements
(0.28
)
 
(0.10
)
 
(0.18
)
 
Total
0.26

 
0.03

 
0.23

 
 
 
 
 
 
 
 
 
 
Projected Diluted Earnings Attributable to Shareholders per Common Share - non-GAAP
 
 
 
 
$2.70 to $2.90

 
 
 
 
 
 
 
 
 
 
(1) Includes items recognized in Research and development and Other (income)/expense.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note - The above per-share amounts include certain rounding adjustments.
 
 
 
 
 
The following table summarizes the company's 2017 financial guidance:
 
Line item
 
GAAP
 
Non-GAAP
 
Gross margin as a percent of revenue
 
Approximately 72%-73%
 
Approximately 72%-73%
 
Marketing, selling and administrative expense
 
Decrease in mid to high-single digits compared to 2016
 
Decrease in mid to high-single digits compared to 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development expense
 
Increase in the high-single digits compared to 2016
 
Increase in the high-single digits compared to 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate
 
Approximately 21%
 
Approximately 21%
The GAAP financial results for the full year 2017 will include specified items, including gains on divestitures, charges associated with downsizing and streamlining worldwide operations, in-process research and development (IPRD), license and asset acquisition charges, charges related to significant legal proceedings, licensed asset impairments, restructuring and pension charges.  The GAAP financial results for 2017 could also include other specified items that have not yet been identified and quantified, including any additional gains or losses from divestitures, license and asset acquisition charges, charges for IPRD and licensed asset impairments, recoveries relating to significant legal proceedings and significant tax events. For a fuller discussion of certain litigation and other matters that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Reports Fourth Quarter 2016 Financial Results, January 26, 2017 including “2017 Financial Guidance” and “Use of non-GAAP Financial Information” therein. 


11
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