Delaware | 1-1136 | 22-0790350 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
¨ | 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. |
Item 9.01. Financial Statements and Exhibits. |
99.1 | Press release of Bristol-Myers Squibb Company dated April 27, 2017. |
99.2 | Certain supplemental information posted on Bristol-Myers Squibb Company’s website at www.bms.com not included in the press release. |
BRISTOL-MYERS SQUIBB COMPANY | |||||
Dated: April 27, 2017 | By: | /s/ Katherine R. Kelly | |||
Name: | Katherine R. Kelly | ||||
Title: | Corporate Secretary |
Exhibit No. | Description |
99.1 | Press release of Bristol-Myers Squibb Company dated April 27, 2017. |
99.2 | Certain supplemental information posted on Bristol-Myers Squibb Company’s website at www.bms.com not included in the press release. |
• | Increases First Quarter Revenues 12% to $4.9 Billion |
• | Posts First Quarter GAAP EPS of $0.94 and Non-GAAP EPS of $0.84 |
• | Achieves Key Regulatory Milestones For Opdivo in the U.S. and Europe |
• | Advances Immuno-Oncology Collaborations with Incyte and Exelixis to include Phase 3 Trials |
• | Increases 2017 GAAP and Non-GAAP EPS Guidance |
First Quarter | ||||||||||
$ amounts in millions, except per share amounts | ||||||||||
2017 | 2016 | Change | ||||||||
Total Revenues | $ | 4,929 | $ | 4,391 | 12 | % | ||||
GAAP Diluted EPS | 0.94 | 0.71 | 32 | % | ||||||
Non-GAAP Diluted EPS | $ | 0.84 | $ | 0.74 | 14 | % |
• | Bristol-Myers Squibb posted first quarter 2017 revenues of $4.9 billion, an increase of 12% compared to the same period a year ago. Revenues increased 13% when adjusted for foreign exchange impact. |
• | U.S. revenues increased 8% to $2.7 billion in the quarter compared to the same period a year ago. International revenues increased 18%. When adjusted for foreign exchange impact, international revenues increased 20%. |
• | Gross margin as a percentage of revenue decreased from 76.0% to 74.5% in the quarter primarily due to product mix. |
• | Marketing, selling and administrative expenses increased 1% to $1.1 billion in the quarter. |
• | Research and development expenses increased 13% to $1.3 billion in the quarter. |
• | The effective tax rate was 21.9% in the quarter, compared to 27.1% in the first quarter last year. |
• | The company reported net earnings attributable to Bristol-Myers Squibb of $1.6 billion, or $0.94 per share, in the first quarter compared to net earnings of $1.2 billion, or $0.71 per share, for the same period in 2016. The results for the first quarter of 2017 included Bristol-Myers Squibb’s share of a patent-infringement litigation settlement related to Merck’s PD-1 antibody Keytruda® that contributed $0.18 per share. |
• | The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $1.4 billion, or $0.84 per share, in the first quarter, compared to $1.2 billion, or $0.74 per share, for the same period in 2016. An overview of specified items is discussed under the “Use of Non-GAAP Financial Information” section. |
• | Cash, cash equivalents and marketable securities were $8.8 billion, with a net cash position of $360 million, as of March 31, 2017. |
Product | Growth % |
Opdivo | 60% |
Eliquis | 50% |
Yervoy | 25% |
Sprycel | 14% |
Orencia | 13% |
• | In April, the company announced the CHMP recommended the approval of Opdivo for the treatment of patients with locally advanced unresectable or metastatic urothelial carcinoma (mUC) in adults after failure of prior platinum-containing chemotherapy. The CHMP recommendation will be reviewed by the European Commission (EC), which has the authority to approve medicines for the European Union (EU). |
• | In April, the company announced the U.S. Food and Drug Administration (FDA) accepted a supplemental Biologics License Application seeking to extend the use of Opdivo to patients with mismatch repair deficient or microsatellite instability high metastatic colorectal cancer after prior fluoropyrimidine-, oxaliplatin- and irinotecan-based chemotherapy. The FDA granted the application priority review and the FDA action date is August 2, 2017. |
• | In April, the FDA approved an updated indication for Opdivo for the treatment of adult patients with Classical Hodgkin lymphoma that have relapsed or progressed after autologous hematopoietic stem cell transplantation (HSCT) and brentuximab vedotin, or three or more lines of systemic therapy that includes autologous HSCT. This indication is approved under accelerated approval based on overall response rate. Continued approval for this indication may be contingent upon verification and description of clinical benefit in confirmatory trials. |
• | In March, the company announced the CHMP recommended the approval of Opdivo as monotherapy for the treatment of squamous cell cancer of the head and neck in adults progressing on or after platinum-based therapy. The CHMP recommendation will be reviewed by the EC. |
• | In March, the company and its partner Ono Pharmaceutical Co. announced the approval of Opdivo as monotherapy for the treatment of recurrent or metastatic head and neck cancer in Japan. |
• | In February, the company announced the FDA provided accelerated approval for Opdivo for the treatment of patients with locally advanced or metastatic urothelial carcinoma who have disease progression during or following platinum-containing chemotherapy or have disease progression within 12 months of neoadjuvant or adjuvant treatment with platinum-containing chemotherapy. |
• | In April, at the American Association for Cancer Research (AACR) Annual Meeting, the company announced new data and analysis from studies evaluating Opdivo and the Opdivo + Yervoy regimen: |
◦ | First overall survival results from CheckMate -067, a Phase 3 trial of Opdivo and the Opdivo + Yervoy regimen versus Yervoy alone in patients with previously untreated advanced melanoma. More detail of the study results is included in the original press release (link). |
◦ | The first report of five-year overall survival data from the Phase 1 dose-ranging study CA209-003 evaluating Opdivo in patients with previously treated advanced non-small cell lung cancer. More detail of the study results is included in the original press release (link). |
• | In April, the company announced CheckMate -143, a randomized Phase 3 clinical trial evaluating the efficacy and safety of Opdivo in patients with first recurrence of glioblastoma multiforme did not meet its primary endpoint of improved overall survival over bevacizumab monotherapy. |
• | In February, the company announced the European Patent Office (EPO) upheld a decision finding European Patent No. 1169038 (the '038 patent), the Composition of Matter patent covering dasatinib, the active ingredient in Sprycel, to be invalid. The decision does not impact patents outside of the EU or other Sprycel-related patents. Additionally in February, the EPO Board of Appeal reversed and remanded an invalidity decision on European Patent No. 1610780 and its claim to the use of dasatinib to treat chronic myeloid leukemia (CML), which the EPO's Opposition Division had revoked in October 2012. The company intends to take appropriate legal actions to protect Sprycel. |
• | In March, at the American College of Cardiology’s (ACC) Annual Scientific Session, the company and its partner Pfizer Inc. announced findings from a real-world data analysis of the U.S. Medicare database comparing the risk of stroke or systemic embolism and rate of major bleeding among patients with non-valvular atrial fibrillation who were treated with direct oral anticoagulants Eliquis, dabigatran or rivaroxaban versus warfarin. More detail of the analysis is included in the original press release (link). |
• | In April, at EASL: The International Liver Congress, the company announced data from a Phase 2 study of BMS-986036, an investigational pegylated analogue of human fibroblast growth factor 21 (FGF21), a key regulator of metabolism, in patients with biopsy-confirmed non-alcoholic steatohepatitis (NASH ) (F1-F3). The study achieved its primary endpoint of significant reduction in liver fat versus placebo, and also showed improvement in markers of liver injury and fibrosis. |
• | In April, the company and Transgene announced a clinical research collaboration to evaluate the safety, tolerability and efficacy of Transgene’s investigational therapeutic vaccine TG4010 in combination with Opdivo + standard chemotherapy (CT) as a first-line treatment for advanced non-squamous non-small cell lung cancer (NSCLC) in patients whose tumors have low or undetectable levels of PD-L1. |
• | In April, the company and Apexigen, Inc. announced a clinical trial collaboration to evaluate the safety, tolerability and preliminary efficacy of Apexigen’s APX005M with Opdivo in patients with second-line metastatic NSCLC who have failed prior chemotherapy, and in metastatic melanoma patients who have failed prior Immuno-Oncology (I-O) therapy. |
• | In April, the company and Nordic Bioscience announced a collaboration to develop biomarker technology to potentially aid in the diagnosis and monitoring of fibrotic diseases including NASH. |
• | In April, the company announced it entered into two separate agreements to outlicense BMS-986168, an anti-eTau compound in development for Progressive Supranuclear Palsy, to Biogen, and BMS-986089, an anti-myostatin adnectin in development for Duchenne Muscular Dystrophy, to Roche. The company will receive upfront payments of $300 million from Biogen and $170 million from Roche, along with potential milestone payments and royalties from each company. |
• | In April, the company and Incyte Corporation announced an agreement to advance their clinical development program evaluating the combination of epacadostat, Incyte’s investigational oral selective IDO1 enzyme inhibitor, with Opdivo into Phase 3 registrational studies in first-line NSCLC across the spectrum of PD-L1 expression and first-line head and neck cancer. Additionally, the companies are expanding the ECHO-204 Phase 1/2 study, established under a collaboration between the companies in 2014, to include anti-PD-1/PD-L1 relapsed/refractory melanoma cohorts. |
• | In March, the company and Foundation Medicine announced a collaboration to leverage Foundation Medicine’s comprehensive genomic profiling and molecular information solutions to identify predictive biomarkers such as Tumor Mutational Burden and Microsatellite Instability in patients enrolled across clinical trials investigating Bristol-Myers Squibb’s cancer immunotherapies. |
• | In March, the company, the Parker Institute for Cancer Immunotherapy and the Cancer Research Institute (CRI) announced a multi-year collaboration agreement to coordinate and rapidly initiate clinical I-O studies across the Parker Institute and CRI networks. |
• | In March, the company and CytomX Therapeutics, Inc. announced an expansion of their collaboration to discover novel therapies against multiple I-O targets using CytomX’s proprietary Probody® Platform, expanding the number of targets from four to twelve. |
• | In March, the company announced an equity investment and plans for a research collaboration with GRAIL Inc. that grants the company early access to GRAIL’s comprehensive clinical trial databases that may help improve understanding of tumor genomics. Additionally, Bristol-Myers Squibb will utilize GRAIL’s analytics tools to inform research, advance diagnostics and improve patient outcomes. |
• | In February, the company and Exelixis, Inc. announced a clinical development collaboration to evaluate Cabometyx® (cabozantinib), Exelixis’ small molecule inhibitor of receptor tyrosine kinases, with Opdivo, either alone or in combination with Yervoy. The agreement is expected to include a Phase 3 pivotal trial in first-line renal cell carcinoma, with additional trials planned in bladder cancer, hepatocellular carcinoma (HCC), and potentially other tumor types. |
• | In February, the company announced an expansion of the five-year old International Immuno-Oncology Network (II-ON) with the addition of Columbia University Medical Center and Peter MacCallum Cancer Centre (Peter Mac). II-ON is a global peer-to-peer collaboration between Bristol-Myers Squibb and academia that aims to advance I-O science and translational medicine to improve patient outcomes. |
• | Worldwide revenues increasing in the mid-single digits. |
• | Research and development expenses increasing in the high-teens digit range for GAAP and increasing in the low-double digits range for non-GAAP. |
• | An effective tax rate of approximately 22% for GAAP with non-GAAP remaining at approximately 21%. |
Worldwide Revenues | U.S. Revenues | |||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
Prioritized Brands | ||||||||||||||||||||||
Opdivo | $ | 1,127 | $ | 704 | 60 | % | $ | 761 | $ | 594 | 28 | % | ||||||||||
Eliquis | 1,101 | 734 | 50 | % | 699 | 468 | 49 | % | ||||||||||||||
Orencia | 535 | 475 | 13 | % | 362 | 321 | 13 | % | ||||||||||||||
Sprycel | 463 | 407 | 14 | % | 247 | 210 | 18 | % | ||||||||||||||
Yervoy | 330 | 263 | 25 | % | 243 | 199 | 22 | % | ||||||||||||||
Empliciti | 53 | 28 | 89 | % | 36 | 28 | 29 | % | ||||||||||||||
Established Brands | ||||||||||||||||||||||
Hepatitis C Franchise | 162 | 427 | (62 | )% | 42 | 259 | (84 | )% | ||||||||||||||
Baraclude | 282 | 291 | (3 | )% | 14 | 17 | (18 | )% | ||||||||||||||
Sustiva Franchise | 184 | 273 | (33 | )% | 153 | 228 | (33 | )% | ||||||||||||||
Reyataz Franchise | 193 | 221 | (13 | )% | 88 | 120 | (27 | )% | ||||||||||||||
Other Brands | 499 | 568 | (12 | )% | 93 | 93 | — | |||||||||||||||
Total | $ | 4,929 | $ | 4,391 | 12 | % | $ | 2,738 | $ | 2,537 | 8 | % |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Net product sales | $ | 4,580 | $ | 3,964 | ||||
Alliance and other revenues | 349 | 427 | ||||||
Total Revenues | 4,929 | 4,391 | ||||||
Cost of products sold | 1,259 | 1,052 | ||||||
Marketing, selling and administrative | 1,074 | 1,068 | ||||||
Research and development | 1,288 | 1,136 | ||||||
Other (income)/expense | (647 | ) | (520 | ) | ||||
Total Expenses | 2,974 | 2,736 | ||||||
Earnings Before Income Taxes | 1,955 | 1,655 | ||||||
Provision for Income Taxes | 429 | 449 | ||||||
Net Earnings | 1,526 | 1,206 | ||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | (48 | ) | 11 | |||||
Net Earnings Attributable to BMS | $ | 1,574 | $ | 1,195 | ||||
Average Common Shares Outstanding: | ||||||||
Basic | 1,662 | 1,669 | ||||||
Diluted | 1,671 | 1,680 | ||||||
Earnings per Common Share | ||||||||
Basic | $ | 0.95 | $ | 0.72 | ||||
Diluted | $ | 0.94 | $ | 0.71 | ||||
Other (Income)/Expense | ||||||||
Interest expense | $ | 45 | $ | 43 | ||||
Investment income | (33 | ) | (24 | ) | ||||
Provision for restructuring | 164 | 4 | ||||||
Litigation and other settlements | (484 | ) | 43 | |||||
Equity in net income of affiliates | (18 | ) | (26 | ) | ||||
Divestiture gains | (127 | ) | (270 | ) | ||||
Royalties and licensing income | (199 | ) | (254 | ) | ||||
Transition and other service fees | (7 | ) | (53 | ) | ||||
Pension charges | 33 | 22 | ||||||
Intangible asset impairments | — | 15 | ||||||
Other | (21 | ) | (20 | ) | ||||
Other (income)/expense | $ | (647 | ) | $ | (520 | ) |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Cost of products sold(a) | $ | — | $ | 4 | ||||
License and asset acquisition charges | 50 | 125 | ||||||
IPRD impairments | 75 | — | ||||||
Accelerated depreciation and other | 72 | 13 | ||||||
Research and development | 197 | 138 | ||||||
Provision for restructuring | 164 | 4 | ||||||
Divestiture gains | (100 | ) | (269 | ) | ||||
Pension charges | 33 | 22 | ||||||
Litigation and other settlements | (481 | ) | 43 | |||||
Intangible asset impairments | — | 15 | ||||||
Other (income)/expense | (384 | ) | (185 | ) | ||||
Decrease to pretax income | (187 | ) | (43 | ) | ||||
Income taxes on specified items | 72 | 83 | ||||||
Increase/(decrease) to net earnings | (115 | ) | 40 | |||||
Noncontrolling interest | (59 | ) | — | |||||
Increase/(decrease) to net earnings used for diluted Non-GAAP EPS calculation | $ | (174 | ) | $ | 40 |
(a) | Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs. |
Three Months Ended March 31, 2017 | |||||||||||
GAAP | Specified Items(a) | Non- GAAP | |||||||||
Gross Profit | $ | 3,670 | $ | — | $ | 3,670 | |||||
Research and development | 1,288 | (197 | ) | 1,091 | |||||||
Other (income)/expense | (647 | ) | 384 | (263 | ) | ||||||
Earnings Before Income Taxes | 1,955 | (187 | ) | 1,768 | |||||||
Provision for Income Taxes | 429 | 72 | 357 | ||||||||
Noncontrolling interest | (48 | ) | (59 | ) | 11 | ||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation | $ | 1,574 | $ | (174 | ) | $ | 1,400 | ||||
Average Common Shares Outstanding - Diluted | 1,671 | 1,671 | 1,671 | ||||||||
Diluted Earnings Per Share | $ | 0.94 | $ | (0.10 | ) | $ | 0.84 | ||||
Effective Tax Rate | 21.9 | % | (1.7 | )% | 20.2 | % | |||||
Three Months Ended March 31, 2016 | |||||||||||
GAAP | Specified Items(a) | Non- GAAP | |||||||||
Gross Profit | $ | 3,339 | $ | 4 | $ | 3,343 | |||||
Research and development | 1,136 | (138 | ) | 998 | |||||||
Other (income)/expense | (520 | ) | 185 | (335 | ) | ||||||
Earnings Before Income Taxes | 1,655 | (43 | ) | 1,612 | |||||||
Provision for Income Taxes | 449 | 83 | 366 | ||||||||
Noncontrolling interest | 11 | — | 11 | ||||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation | $ | 1,195 | $ | 40 | $ | 1,235 | |||||
Average Common Shares Outstanding - Diluted | 1,680 | 1,680 | 1,680 | ||||||||
Diluted Earnings Per Share | $ | 0.71 | $ | 0.03 | $ | 0.74 | |||||
Effective Tax Rate | 27.1 | % | (4.4 | )% | 22.7 | % |
(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. |
March 31, 2017 | December 31, 2016 | |||||||
Cash and cash equivalents | $ | 3,910 | $ | 4,237 | ||||
Marketable securities - current | 2,199 | 2,113 | ||||||
Marketable securities - non-current | 2,685 | 2,719 | ||||||
Cash, cash equivalents and marketable securities | 8,794 | 9,069 | ||||||
Short-term debt obligations | (1,197 | ) | (992 | ) | ||||
Long-term debt | (7,237 | ) | (5,716 | ) | ||||
Net cash position | $ | 360 | $ | 2,361 |
Revenues | 2016 | 2017 | % 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 | $ | 2,537 | $ | 2,688 | $ | 5,225 | $ | 2,790 | $ | 8,015 | $ | 2,705 | $ | 10,720 | $ | 2,738 | 8% | 8% | — | — | ||||||||||||||||||||||||||||||||
Europe | 870 | 1,039 | 1,909 | 946 | 2,855 | 1,360 | 4,215 | 1,146 | 32% | 32% | (5)% | (5)% | ||||||||||||||||||||||||||||||||||||||||
Rest of the World | 840 | 1,013 | 1,853 | 1,069 | 2,922 | 1,042 | 3,964 | 925 | 10% | 10% | 1% | 1% | ||||||||||||||||||||||||||||||||||||||||
Other | 144 | 131 | 275 | 117 | 392 | 136 | 528 | 120 | (17)% | (17)% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,391 | $ | 4,871 | $ | 9,262 | $ | 4,922 | $ | 14,184 | $ | 5,243 | $ | 19,427 | $ | 4,929 | 12% | 12% | (1)% | (1)% | ||||||||||||||||||||||||||||||||
% of Revenues | 2016 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 57.8 | % | 55.2 | % | 56.4 | % | 56.7 | % | 56.5 | % | 51.6 | % | 55.2 | % | 55.5 | % | ||||||||||||||||||||||||||||||||||||
Europe | 19.8 | % | 21.3 | % | 20.6 | % | 19.2 | % | 20.1 | % | 25.9 | % | 21.7 | % | 23.3 | % | ||||||||||||||||||||||||||||||||||||
Rest of the World | 19.1 | % | 20.8 | % | 20.0 | % | 21.7 | % | 20.6 | % | 19.9 | % | 20.4 | % | 18.8 | % | ||||||||||||||||||||||||||||||||||||
Other | 3.3 | % | 2.7 | % | 3.0 | % | 2.4 | % | 2.8 | % | 2.6 | % | 2.7 | % | 2.4 | % | ||||||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
2016 | 2017 | % 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 | $ | 3,964 | $ | 4,432 | $ | 8,396 | $ | 4,492 | $ | 12,888 | $ | 4,814 | $ | 17,702 | $ | 4,580 | 16% | 16% | ||||||||||||||||||||||||||||||||
Alliance and other revenues | 427 | 439 | 866 | 430 | 1,296 | 429 | 1,725 | 349 | (18)% | (18)% | ||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 4,391 | $ | 4,871 | $ | 9,262 | $ | 4,922 | $ | 14,184 | $ | 5,243 | $ | 19,427 | $ | 4,929 | 12% | 12% | ||||||||||||||||||||||||||||||||
Cost of products sold | 1,052 | 1,206 | 2,258 | 1,305 | 3,563 | 1,383 | 4,946 | 1,259 | 20% | 20% | ||||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 1,068 | 1,238 | 2,306 | 1,144 | 3,450 | 1,461 | 4,911 | 1,074 | 1% | 1% | ||||||||||||||||||||||||||||||||||||||||
Research and development | 1,136 | 1,266 | 2,402 | 1,138 | 3,540 | 1,400 | 4,940 | 1,288 | 13% | 13% | ||||||||||||||||||||||||||||||||||||||||
Other (income)/expense | (520 | ) | (454 | ) | (974 | ) | (224 | ) | (1,198 | ) | (87 | ) | (1,285 | ) | (647 | ) | 24% | 24% | ||||||||||||||||||||||||||||||||
Total Expenses | 2,736 | 3,256 | 5,992 | 3,363 | 9,355 | 4,157 | 13,512 | 2,974 | 9% | 9% | ||||||||||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | $ | 1,655 | $ | 1,615 | $ | 3,270 | $ | 1,559 | $ | 4,829 | $ | 1,086 | $ | 5,915 | $ | 1,955 | 18% | 18% | ||||||||||||||||||||||||||||||||
Provision for Income Taxes | 449 | 427 | 876 | 344 | 1,220 | 188 | 1,408 | 429 | (4)% | (4)% | ||||||||||||||||||||||||||||||||||||||||
Net Earnings | $ | 1,206 | $ | 1,188 | $ | 2,394 | $ | 1,215 | $ | 3,609 | $ | 898 | $ | 4,507 | $ | 1,526 | 27% | 27% | ||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | 11 | 22 | 33 | 13 | 46 | 4 | 50 | (48 | ) | ** | ** | |||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to BMS | $ | 1,195 | $ | 1,166 | $ | 2,361 | $ | 1,202 | $ | 3,563 | $ | 894 | $ | 4,457 | $ | 1,574 | 32% | 32% | ||||||||||||||||||||||||||||||||
Diluted Earnings per Common Share* | $ | 0.71 | $ | 0.69 | $ | 1.41 | $ | 0.72 | $ | 2.12 | $ | 0.53 | $ | 2.65 | $ | 0.94 | 32% | 32% | ||||||||||||||||||||||||||||||||
Average Common Shares Outstanding - Diluted | 1,680 | 1,679 | 1,679 | 1,679 | 1,679 | 1,680 | 1,680 | 1,671 | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.38 | $ | 0.38 | $ | 0.76 | $ | 0.38 | $ | 1.14 | $ | 0.39 | $ | 1.53 | $ | 0.39 | 3% | 3% | ||||||||||||||||||||||||||||||||
2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
% 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 | 76.0 | % | 75.2 | % | 75.6 | % | 73.5 | % | 74.9 | % | 73.6 | % | 74.5 | % | 74.5 | % | ||||||||||||||||||||||||||||||||||
Other Ratios | ||||||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 27.1 | % | 26.4 | % | 26.8 | % | 22.1 | % | 25.3 | % | 17.3 | % | 23.8 | % | 21.9 | % | ||||||||||||||||||||||||||||||||||
Other (Income)/Expense | 2016 | 2017 | % 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 | $ | 43 | $ | 42 | $ | 85 | $ | 42 | $ | 127 | $ | 40 | $ | 167 | $ | 45 | 5 | % | 5 | % | ||||||||||||||||||||||||||||||
Investment income | (24 | ) | (25 | ) | (49 | ) | (32 | ) | (81 | ) | (24 | ) | (105 | ) | (33 | ) | 38 | % | 38 | % | ||||||||||||||||||||||||||||||
Provision for restructuring | 4 | 18 | 22 | 19 | 41 | 68 | 109 | 164 | ** | ** | ||||||||||||||||||||||||||||||||||||||||
Litigation and other settlements | 43 | 6 | 49 | (1 | ) | 48 | (1 | ) | 47 | (484 | ) | ** | ** | |||||||||||||||||||||||||||||||||||||
Equity in net income of affiliates | (26 | ) | (20 | ) | (46 | ) | (19 | ) | (65 | ) | (12 | ) | (77 | ) | (18 | ) | (31 | )% | (31 | )% | ||||||||||||||||||||||||||||||
Divestiture gains | (270 | ) | (283 | ) | (553 | ) | (21 | ) | (574 | ) | (2 | ) | (576 | ) | (127 | ) | (53 | )% | (53 | )% | ||||||||||||||||||||||||||||||
Royalties and licensing income | (254 | ) | (167 | ) | (421 | ) | (158 | ) | (579 | ) | (140 | ) | (719 | ) | (199 | ) | (22 | )% | (22 | )% | ||||||||||||||||||||||||||||||
Transition and other service fees | (53 | ) | (74 | ) | (127 | ) | (57 | ) | (184 | ) | (54 | ) | (238 | ) | (7 | ) | (87 | )% | (87 | )% | ||||||||||||||||||||||||||||||
Pension charges | 22 | 25 | 47 | 19 | 66 | 25 | 91 | 33 | 50 | % | 50 | % | ||||||||||||||||||||||||||||||||||||||
Intangible asset impairments | 15 | — | 15 | — | 15 | — | 15 | — | (100 | )% | (100 | )% | ||||||||||||||||||||||||||||||||||||||
Equity investment impairment | — | 45 | 45 | — | 45 | — | 45 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other | (20 | ) | (21 | ) | (41 | ) | (16 | ) | (57 | ) | 13 | (44 | ) | (21 | ) | 5 | % | 5 | % | |||||||||||||||||||||||||||||||
$ | (520 | ) | $ | (454 | ) | $ | (974 | ) | $ | (224 | ) | $ | (1,198 | ) | $ | (87 | ) | $ | (1,285 | ) | $ | (647 | ) | 24 | % | 24 | % |
* | Quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations. | |||||||||||
** | In excess of +/- 100% |
QUARTER-TO-DATE | 2017 | 2016 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2017 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | ||||||||||||||||||
Revenues | $ | 4,929 | $ | 4,391 | $ | 538 | 12% | $ | (39 | ) | $ | 4,968 | (1)% | 13% | ||||||||||||
Gross profit | 3,670 | 3,339 | 331 | 10% | N/A | N/A | N/A | N/A | ||||||||||||||||||
Gross profit excluding specified items(a) | 3,670 | 3,343 | 327 | 10% | N/A | N/A | N/A | N/A | ||||||||||||||||||
Gross profit excluding specified items as a % of revenues | 74.5 | % | 76.1 | % | ||||||||||||||||||||||
Research and development | 1,288 | 1,136 | 152 | 13% | 4 | 1,292 | 1% | 14% | ||||||||||||||||||
Research and development excluding specified items(a) | 1,091 | 998 | 93 | 9% | 4 | 1,095 | 1% | 10% | ||||||||||||||||||
Research and development excluding specified items as a % of revenues | 22.1 | % | 22.7 | % | ||||||||||||||||||||||
(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. |
2016 | 2017 | 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 | |||||||||||||||||||||||||||||||||||||||||
Prioritized Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Opdivo | $ | 704 | $ | 840 | $ | 1,544 | $ | 920 | $ | 2,464 | $ | 1,310 | $ | 3,774 | $ | 1,127 | $ | 423 | $ | 423 | 60 | % | 60 | % | ||||||||||||||||||||||||||||||||||
Eliquis | 734 | 777 | 1,511 | 884 | 2,395 | 948 | 3,343 | 1,101 | 367 | 367 | 50 | % | 50 | % | ||||||||||||||||||||||||||||||||||||||||||||
Orencia(a) | 475 | 593 | 1,068 | 572 | 1,640 | 625 | 2,265 | 535 | 60 | 60 | 13 | % | 13 | % | ||||||||||||||||||||||||||||||||||||||||||||
Sprycel | 407 | 451 | 858 | 472 | 1,330 | 494 | 1,824 | 463 | 56 | 56 | 14 | % | 14 | % | ||||||||||||||||||||||||||||||||||||||||||||
Yervoy | 263 | 241 | 504 | 285 | 789 | 264 | 1,053 | 330 | 67 | 67 | 25 | % | 25 | % | ||||||||||||||||||||||||||||||||||||||||||||
Empliciti | 28 | 34 | 62 | 41 | 103 | 47 | 150 | 53 | 25 | 25 | 89 | % | 89 | % | ||||||||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hepatitis C Franchise(b) | 427 | 546 | 973 | 379 | 1,352 | 226 | 1,578 | 162 | (265 | ) | (265 | ) | (62 | )% | (62 | )% | ||||||||||||||||||||||||||||||||||||||||||
Baraclude | 291 | 299 | 590 | 306 | 896 | 296 | 1,192 | 282 | (9 | ) | (9 | ) | (3 | )% | (3 | )% | ||||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(c) | 273 | 271 | 544 | 275 | 819 | 246 | 1,065 | 184 | (89 | ) | (89 | ) | (33 | )% | (33 | )% | ||||||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 221 | 247 | 468 | 238 | 706 | 206 | 912 | 193 | (28 | ) | (28 | ) | (13 | )% | (13 | )% | ||||||||||||||||||||||||||||||||||||||||||
Other Brands | 568 | 572 | 1,140 | 550 | 1,690 | 581 | 2,271 | 499 | (69 | ) | (69 | ) | (12 | )% | (12 | )% | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,391 | $ | 4,871 | $ | 9,262 | $ | 4,922 | $ | 14,184 | $ | 5,243 | $ | 19,427 | $ | 4,929 | $ | 538 | $ | 538 | 12 | % | 12 | % |
(a) | Includes Orencia SubQ revenues of $244 million and $216 million for the three months ended March 31, 2017 and 2016, respectively. |
(b) | Includes Daklinza (daclatasvir) revenues of $158 million and $420 million for the three months ended March 31, 2017 and 2016, respectively. |
(c) | The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla. Includes alliance revenue of $158 million and $241 million for the three months ended March 31, 2017 and 2016, respectively. |
2016 | 2017 | % 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 | |||||||||||||||||||||||||||||||||||
Prioritized Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||
Opdivo | $ | 594 | $ | 643 | $ | 1,237 | $ | 712 | $ | 1,949 | $ | 715 | $ | 2,664 | $ | 761 | 28 | % | 28 | % | ||||||||||||||||||||||||||||||
Eliquis | 468 | 444 | 912 | 512 | 1,424 | 539 | 1,963 | 699 | 49 | % | 49 | % | ||||||||||||||||||||||||||||||||||||||
Orencia(a) | 321 | 401 | 722 | 387 | 1,109 | 423 | 1,532 | 362 | 13 | % | 13 | % | ||||||||||||||||||||||||||||||||||||||
Sprycel | 210 | 233 | 443 | 259 | 702 | 267 | 969 | 247 | 18 | % | 18 | % | ||||||||||||||||||||||||||||||||||||||
Yervoy | 199 | 179 | 378 | 222 | 600 | 202 | 802 | 243 | 22 | % | 22 | % | ||||||||||||||||||||||||||||||||||||||
Empliciti | 28 | 33 | 61 | 36 | 97 | 36 | 133 | 36 | 29 | % | 29 | % | ||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||
Hepatitis C Franchise(b) | 259 | 294 | 553 | 192 | 745 | 82 | 827 | 42 | (84 | )% | (84 | )% | ||||||||||||||||||||||||||||||||||||||
Baraclude | 17 | 15 | 32 | 17 | 49 | 17 | 66 | 14 | (18 | )% | (18 | )% | ||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(c) | 228 | 227 | 455 | 234 | 689 | 212 | 901 | 153 | (33 | )% | (33 | )% | ||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 120 | 122 | 242 | 125 | 367 | 117 | 484 | 88 | (27 | )% | (27 | )% | ||||||||||||||||||||||||||||||||||||||
Other Brands | 93 | 97 | 190 | 94 | 284 | 95 | 379 | 93 | — | — | ||||||||||||||||||||||||||||||||||||||||
Total(d) | $ | 2,537 | $ | 2,688 | $ | 5,225 | $ | 2,790 | $ | 8,015 | $ | 2,705 | $ | 10,720 | $ | 2,738 | 8 | % | 8 | % |
(a) | Includes Orencia SubQ revenues of $146 million and $132 million for the three months ended March 31, 2017 and 2016, respectively. |
(b) | Includes revenues of Daklinza (daclastasvir) only. |
(c) | The Sustiva Franchise includes sales of Sustiva, as well as revenue from sales of bulk efavirenz included in the combination therapy, Atripla. |
(d) | Includes United States and Puerto Rico. |
2016 | 2017 | % 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 | |||||||||||||||||||||||||||||||||||
Prioritized Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||
Opdivo | $ | 110 | $ | 197 | $ | 307 | $ | 208 | $ | 515 | $ | 595 | $ | 1,110 | $ | 366 | ** | ** | ||||||||||||||||||||||||||||||||
Eliquis | 266 | 333 | 599 | 372 | 971 | 409 | 1,380 | 402 | 51 | % | 51 | % | ||||||||||||||||||||||||||||||||||||||
Orencia | 154 | 192 | 346 | 185 | 531 | 202 | 733 | 173 | 12 | % | 12 | % | ||||||||||||||||||||||||||||||||||||||
Sprycel | 197 | 218 | 415 | 213 | 628 | 227 | 855 | 216 | 10 | % | 10 | % | ||||||||||||||||||||||||||||||||||||||
Yervoy | 64 | 62 | 126 | 63 | 189 | 62 | 251 | 87 | 36 | % | 36 | % | ||||||||||||||||||||||||||||||||||||||
Empliciti | — | 1 | 1 | 5 | 6 | 11 | 17 | 17 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||
Hepatitis C Franchise(a) | 168 | 252 | 420 | 187 | 607 | 144 | 751 | 120 | (29 | )% | (29 | )% | ||||||||||||||||||||||||||||||||||||||
Baraclude | 274 | 284 | 558 | 289 | 847 | 279 | 1,126 | 268 | (2 | )% | (2 | )% | ||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(b) | 45 | 44 | 89 | 41 | 130 | 34 | 164 | 31 | (31 | )% | (31 | )% | ||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 101 | 125 | 226 | 113 | 339 | 89 | 428 | 105 | 4 | % | 4 | % | ||||||||||||||||||||||||||||||||||||||
Other Brands | 475 | 475 | 950 | 456 | 1,406 | 486 | 1,892 | 406 | (15 | )% | (15 | )% | ||||||||||||||||||||||||||||||||||||||
Total(c) | $ | 1,854 | $ | 2,183 | $ | 4,037 | $ | 2,132 | $ | 6,169 | $ | 2,538 | $ | 8,707 | $ | 2,191 | 18 | % | 18 | % |
** | In excess of +/- 100% |
(a) | Includes Daklinza (daclatasvir) revenues of $116 million and $161 million for the three months ended March 31, 2017 and 2016, respectively. |
(b) | The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla. |
(c) | When adjusted for foreign exchange impact, total revenues increased 20% for the first quarter. |
2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||
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) | $ | 4 | $ | 4 | $ | 8 | $ | 7 | $ | 15 | $ | 6 | $ | 21 | $ | — | ||||||||||||||||||||||||||||
License and asset acquisition charges | 125 | 139 | 264 | 45 | 309 | 130 | 439 | 50 | ||||||||||||||||||||||||||||||||||||
IPRD impairments | — | — | — | — | — | 13 | 13 | 75 | ||||||||||||||||||||||||||||||||||||
Accelerated depreciation and other | 13 | 13 | 26 | 14 | 40 | 43 | 83 | 72 | ||||||||||||||||||||||||||||||||||||
Research and development | 138 | 152 | 290 | 59 | 349 | 186 | 535 | 197 | ||||||||||||||||||||||||||||||||||||
Provision for restructuring | 4 | 18 | 22 | 19 | 41 | 68 | 109 | 164 | ||||||||||||||||||||||||||||||||||||
Divestiture gains | (269 | ) | (277 | ) | (546 | ) | (13 | ) | (559 | ) | — | (559 | ) | (100 | ) | |||||||||||||||||||||||||||||
Pension charges | 22 | 25 | 47 | 19 | 66 | 25 | 91 | 33 | ||||||||||||||||||||||||||||||||||||
Litigation and other settlements | 43 | — | 43 | (3 | ) | 40 | — | 40 | (481 | ) | ||||||||||||||||||||||||||||||||||
Intangible asset impairments | 15 | — | 15 | — | 15 | — | 15 | — | ||||||||||||||||||||||||||||||||||||
Royalties and licensing income | — | — | — | — | — | (10 | ) | (10 | ) | — | ||||||||||||||||||||||||||||||||||
Other (income)/expense | (185 | ) | (234 | ) | (419 | ) | 22 | (397 | ) | 83 | (314 | ) | (384 | ) | ||||||||||||||||||||||||||||||
Increase/(decrease) to pretax income | (43 | ) | (78 | ) | (121 | ) | 88 | (33 | ) | 275 | 242 | (187 | ) | |||||||||||||||||||||||||||||||
Income taxes on specified items | 83 | 76 | 159 | (3 | ) | 156 | (105 | ) | 51 | 72 | ||||||||||||||||||||||||||||||||||
Increase/(decrease) to net earnings | 40 | (2 | ) | 38 | 85 | 123 | 170 | 293 | (115 | ) | ||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | (59 | ) | |||||||||||||||||||||||||||||||||||
Increase/(decrease) to net earnings used for diluted Non-GAAP EPS calculation | $ | 40 | $ | (2 | ) | $ | 38 | $ | 85 | $ | 123 | $ | 170 | $ | 293 | $ | (174 | ) |
(a) | Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs. |
2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||
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 | $ | 3,339 | $ | 3,665 | $ | 7,004 | $ | 3,617 | $ | 10,621 | $ | 3,860 | $ | 14,481 | $ | 3,670 | ||||||||||||||||||||||||||||
Specified items(a) | 4 | 4 | 8 | 7 | 15 | 6 | 21 | — | ||||||||||||||||||||||||||||||||||||
Gross profit excluding specified items | 3,343 | 3,669 | 7,012 | 3,624 | 10,636 | 3,866 | 14,502 | 3,670 | ||||||||||||||||||||||||||||||||||||
Research and development | 1,136 | 1,266 | 2,402 | 1,138 | 3,540 | 1,400 | 4,940 | 1,288 | ||||||||||||||||||||||||||||||||||||
Specified items(a) | (138 | ) | (152 | ) | (290 | ) | (59 | ) | (349 | ) | (186 | ) | (535 | ) | (197 | ) | ||||||||||||||||||||||||||||
Research and development excluding specified items | 998 | 1,114 | 2,112 | 1,079 | 3,191 | 1,214 | 4,405 | 1,091 | ||||||||||||||||||||||||||||||||||||
Other (income)/expense | (520 | ) | (454 | ) | (974 | ) | (224 | ) | (1,198 | ) | (87 | ) | (1,285 | ) | (647 | ) | ||||||||||||||||||||||||||||
Specified items(a) | 185 | 234 | 419 | (22 | ) | 397 | (83 | ) | 314 | 384 | ||||||||||||||||||||||||||||||||||
Other (income)/expense excluding specified items | (335 | ) | (220 | ) | (555 | ) | (246 | ) | (801 | ) | (170 | ) | (971 | ) | (263 | ) |
(a) | Refer to the Specified Items schedule for further details. |
2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||
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 before income taxes | $ | 1,655 | $ | 1,615 | $ | 3,270 | $ | 1,559 | $ | 4,829 | $ | 1,086 | $ | 5,915 | $ | 1,955 | ||||||||||||||||||||||||||||
Specified items(a) | (43 | ) | (78 | ) | (121 | ) | 88 | (33 | ) | 275 | 242 | (187 | ) | |||||||||||||||||||||||||||||||
Earnings before income taxes excluding specified items | 1,612 | 1,537 | 3,149 | 1,647 | 4,796 | 1,361 | 6,157 | 1,768 | ||||||||||||||||||||||||||||||||||||
Provision for income taxes | 449 | 427 | 876 | 344 | 1,220 | 188 | 1,408 | 429 | ||||||||||||||||||||||||||||||||||||
Tax on specified items(a) | 83 | 76 | 159 | (3 | ) | 156 | (105 | ) | 51 | 72 | ||||||||||||||||||||||||||||||||||
Provision for income taxes excluding tax on specified items | 366 | 351 | 717 | 347 | 1,064 | 293 | 1,357 | 357 | ||||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | 11 | 22 | 33 | 13 | 46 | 4 | 50 | (48 | ) | |||||||||||||||||||||||||||||||||||
Specified items(a) | — | — | — | — | — | — | — | (59 | ) | |||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Noncontrolling Interest excluding specified items | 11 | 22 | 33 | 13 | 46 | 4 | 50 | 11 | ||||||||||||||||||||||||||||||||||||
Net earnings attributable to BMS used for Diluted EPS Calculation - GAAP | 1,195 | 1,166 | 2,361 | 1,202 | 3,563 | 894 | 4,457 | 1,574 | ||||||||||||||||||||||||||||||||||||
Specified items(a) | 40 | (2 | ) | 38 | 85 | 123 | 170 | 293 | (174 | ) | ||||||||||||||||||||||||||||||||||
Net earnings attributable to BMS used for Diluted EPS Calculation excluding specified items - Non-GAAP | 1,235 | 1,164 | 2,399 | 1,287 | 3,686 | 1,064 | 4,750 | 1,400 | ||||||||||||||||||||||||||||||||||||
Weighted-average Common shares Outstanding - Diluted- GAAP | 1,680 | 1,679 | 1,679 | 1,679 | 1,679 | 1,680 | 1,680 | 1,671 | ||||||||||||||||||||||||||||||||||||
Weighted-average Common shares Outstanding - Diluted- Non-GAAP | 1,680 | 1,679 | 1,679 | 1,679 | 1,679 | 1,680 | 1,680 | 1,671 | ||||||||||||||||||||||||||||||||||||
Diluted Earnings Per Share - GAAP | $ | 0.71 | $ | 0.69 | $ | 1.41 | $ | 0.72 | $ | 2.12 | $ | 0.53 | $ | 2.65 | $ | 0.94 | ||||||||||||||||||||||||||||
Diluted Earnings Per Share attributable to specified items | 0.03 | — | 0.02 | 0.05 | 0.08 | 0.10 | 0.18 | (0.10 | ) | |||||||||||||||||||||||||||||||||||
Diluted Earnings Per Share - Non-GAAP | $ | 0.74 | $ | 0.69 | $ | 1.43 | $ | 0.77 | $ | 2.20 | $ | 0.63 | $ | 2.83 | $ | 0.84 | ||||||||||||||||||||||||||||
Effective Tax Rate | 27.1 | % | 26.4 | % | 26.8 | % | 22.1 | % | 25.3 | % | 17.3 | % | 23.8 | % | 21.9 | % | ||||||||||||||||||||||||||||
Specified items (a) | (4.4 | )% | (3.6 | )% | (4.0 | )% | (1.0 | )% | (3.1 | )% | 4.2 | % | (1.8 | )% | (1.7 | )% | ||||||||||||||||||||||||||||
Effective Tax Rate excluding specified items | 22.7 | % | 22.8 | % | 22.8 | % | 21.1 | % | 22.2 | % | 21.5 | % | 22.0 | % | 20.2 | % |
(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. |
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | |||||||||||||||||||
Cash and cash equivalents | $ | 2,644 | $ | 2,934 | $ | 3,432 | $ | 4,237 | $ | 3,910 | ||||||||||||||||
Marketable securities - current | 1,663 | 1,717 | 2,128 | 2,113 | 2,199 | |||||||||||||||||||||
Marketable securities - non-current | 3,689 | 3,281 | 3,035 | 2,719 | 2,685 | |||||||||||||||||||||
Cash, cash equivalents and marketable securities | 7,996 | 7,932 | 8,595 | 9,069 | 8,794 | |||||||||||||||||||||
Short-term debt obligations | (106 | ) | (155 | ) | (990 | ) | (992 | ) | (1,197 | ) | ||||||||||||||||
Long-term debt | (6,593 | ) | (6,581 | ) | (5,836 | ) | (5,716 | ) | (7,237 | ) | ||||||||||||||||
Net cash position | $ | 1,297 | $ | 1,196 | $ | 1,769 | $ | 2,361 | $ | 360 |
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 | $2.72 to $2.87 | ||||||||||
Projected Specified Items: | |||||||||||
Restructuring, accelerated depreciation and other shutdown costs (1) | 0.35 | 0.12 | 0.23 | ||||||||
Divestiture gains and licensing income | (0.36 | ) | (0.13 | ) | (0.23 | ) | |||||
Research and development license and asset acquisition charges | 0.31 | 0.05 | 0.26 | ||||||||
Pension charges | 0.11 | 0.04 | 0.07 | ||||||||
Litigation and other settlements | (0.29 | ) | (0.10 | ) | (0.19 | ) | |||||
Other | 0.01 | 0.02 | (0.01 | ) | |||||||
Total | 0.13 | — | 0.13 | ||||||||
Projected Diluted Earnings Attributable to Shareholders per Common Share - non-GAAP | $2.85 to $3.00 | ||||||||||
(1) Includes items recognized in Research and development and Other (income)/expense. | |||||||||||
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-teens digits compared to 2016 | Increase in the low double digits compared to 2016 | ||||||||||||||||||||
Effective tax rate | Approximately 22% | Approximately 21% |
The GAAP financial results for the full year 2017 will include specified items, including gains on divestitures, upfront payments from out licensed assets, charges associated with restructuring, downsizing and streamlining worldwide operations, license and asset acquisition charges, litigation and other settlements, licensed asset impairments 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, licensed asset impairments, litigation and other settlements and significant tax events, among other items. 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 First Quarter 2017 Financial Results, April 27, 2017 including “2017 Financial Guidance” and “Use of non-GAAP Financial Information” therein. |
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