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. |
BRISTOL-MYERS SQUIBB COMPANY | |||||
Dated: April 26, 2018 | By: | /s/ Sandra Leung | |||
Name: | Sandra Leung | ||||
Title: | Executive Vice President & General Counsel |
• | Increases First Quarter Revenues 5% to $5.2 Billion |
• | Posts First Quarter GAAP EPS of $0.91 and Non-GAAP EPS of $0.94 |
• | Achieves Important Clinical and Regulatory Milestones in Oncology |
◦ | Opdivo plus Yervoy Approved in the U.S. for Patients with Intermediate- and Poor-Risk Advanced Renal Cell Carcinoma |
◦ | Opdivo Four-Week Dosing Approved in the U.S. and Europe |
◦ | Applications for Opdivo plus Yervoy for Previously Treated Patients with MSI-H or dMMR Metastatic Colorectal Cancer and Opdivo for Previously Treated Patients with Small Cell Lung Cancer Accepted for Priority Reviews in the U.S. |
◦ | Presents Important New Data on Immuno-Oncology Portfolio at AACR Including Phase 3 Data for Opdivo plus Yervoy in First-Line Advanced Non-Small Cell Lung Cancer Patients with High Tumor Mutational Burden |
• | Announces Strategic Collaborations with Nektar Therapeutics, Janssen Pharmaceuticals and Illumina, Inc. |
• | Updates 2018 GAAP and Non-GAAP EPS Guidance |
First Quarter | ||||||||||
$ amounts in millions, except per share amounts | ||||||||||
2018 | 2017 | Change | ||||||||
Total Revenues | $ | 5,193 | $ | 4,929 | 5 | % | ||||
GAAP Diluted EPS | 0.91 | 0.94 | (3 | )% | ||||||
Non-GAAP Diluted EPS | 0.94 | 0.84 | 12 | % |
• | Bristol-Myers Squibb posted first quarter 2018 revenues of $5.2 billion, an increase of 5% compared to the same period a year ago. Revenues increased 1% when adjusted for foreign exchange impact. |
• | U.S. revenues increased 1% to $2.8 billion in the quarter compared to the same period a year ago. International revenues increased 10%. When adjusted for foreign exchange impact, international revenues increased 1%. |
• | Gross margin as a percentage of revenue decreased from 74.3% to 69.5% in the quarter primarily due to product mix. |
• | Marketing, selling and administrative expenses decreased 10% to $980 million in the quarter. |
• | Research and development expenses decreased 4% to $1.3 billion. |
• | The effective tax rate was 16.0% in the quarter, compared to 21.9% in the first quarter last year. |
• | The company reported net earnings attributable to Bristol-Myers Squibb of $1.5 billion, or $0.91 per share, in the first quarter compared to net earnings of $1.6 billion, or $0.94 per share, for the same period in 2017. |
• | The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $1.5 billion, or $0.94 per share, in the first quarter, compared to $1.4 billion, or $0.84 per share, for the same period in 2017. An overview of specified items is discussed under the “Use of Non-GAAP Financial Information” section. |
• | Cash, cash equivalents and marketable securities were $9.0 billion, with a net cash position of $1.3 billion, as of March 31, 2018. |
Product | Growth % |
Eliquis | 37% |
Opdivo | 34% |
Orencia | 11% |
Sprycel | (5)% |
Yervoy | (25)% |
• | In April, the European Commission approved an every four-week Opdivo dosing schedule of 480 mg infused over 60 minutes as an option for patients with advanced melanoma and previously treated renal cell carcinoma (RCC) as well as the approval of a two-week Opdivo flat dose option of 240 mg infused over 30 minutes to replace weight-based dosing for all six approved monotherapy indications in the European Union. |
• | In April, the company announced the U.S. Food and Drug Administration (FDA) has accepted for priority review its supplemental Biologics License Application (sBLA) for Opdivo to treat patients with small cell lung cancer (SCLC) whose disease has progressed after two or more prior lines of therapy. The FDA action date is August 16, 2018. |
• | In April, the company announced the FDA approved the combination of Opdivo plus Yervoy for previously untreated patients with intermediate- and poor-risk advanced RCC. |
• | In March, the company announced the FDA accepted for priority review a sBLA for the Opdivo plus Yervoy combination for the treatment of adults with microsatellite instability-high (MSI-H) or mismatch repair deficient (dMMR) metastatic colorectal cancer (mCRC) that has progressed following treatment with a fluoropyrimidine, oxaliplatin and irinotecan. The FDA action date is July 10, 2018. |
• | In March, the company announced the FDA approved a sBLA updating the Opdivo dosing schedule to include 480 mg infused every four weeks for a majority of approved indications as well as a shorter 30 minute infusion across all approved indications. |
• | In April, at the American Association for Cancer Research (AACR) Annual Meeting, the company presented results from numerous studies of novel agents and Opdivo-based combinations. Key clinical data presented at the meeting include: |
◦ | CheckMate -227: First presentation of data from the Phase 3 study assessing the Opdivo plus Yervoy combination versus platinum-doublet chemotherapy in first-line advanced non-small cell lung cancer (NSCLC) patients with high tumor mutational burden (≥10 mutations/megabase). (link) |
◦ | CheckMate -568: First presentation of data from a Phase 2 study evaluating Opdivo plus Yervoy in treatment naïve patients with advanced NSCLC. Results demonstrated Opdivo 3 mg/kg plus low-dose Yervoy (1mg/kg) identified high tumor mutational burden of ≥10 mutations/megabase (mut/Mb) as an effective cutoff for selecting which patients were most likely to respond to first-line treatment of Opdivo plus Yervoy regardless of tumor PD-L1 expression. |
◦ | CheckMate -078: First presentation of data from the Phase 3 study evaluating Opdivo monotherapy versus docetaxel in a predominantly Chinese patient population with previously treated advanced NSCLC. (link) |
◦ | CheckMate -141: Announced a two-year overall survival (OS) update from the Phase 3 study evaluating patients treated with Opdivo over standard of care in patients with recurrent or metastatic squamous cell carcinoma of the head and neck (SCCHN) after failure on platinum-based therapy. (link) |
• | In March, at the American College of Cardiology’s 67th Annual Scientific Session & Expo, the company and Pfizer Inc. announced the largest real-world data analysis from studies evaluating different direct oral anticoagulants, including Eliquis, rivaroxaban and dabigatran, for non-valvular atrial fibrillation patients. (link) |
• | In April, the company and Illumina, Inc. announced a collaboration that will utilize Illumina’s next-generation sequencing technology to develop and globally commercialize in-vitro diagnostic assays in support of Bristol-Myers Squibb’s oncology portfolio. |
• | In April, the company and Janssen Pharmaceutical Companies of Johnson & Johnson announced a worldwide collaboration to develop and commercialize Bristol-Myers Squibb’s Factor XIa inhibitor program, including BMS-986177, an anticoagulant compound being studied for prevention and treatment of major thrombotic conditions. |
• | In April, the company and the Harvard Fibrosis Network of the Harvard Stem Cell Institute announced a research collaboration to discover and develop potential new therapies for fibrotic diseases, including fibrosis of the liver and heart. |
• | In February, the company announced that Yale Cancer Center will join the International Immuno-Oncology Network, a global peer-to-peer collaboration between Bristol-Myers Squibb and academia that aims to advance translational Immuno-Oncology science. |
• | In February, the company and Nektar Therapeutics announced a global strategic development and commercialization collaboration for Nektar’s lead Immuno-Oncology program, NKTR-214. The companies will jointly develop and commercialize NKTR-214 in combination with Opdivo and Opdivo plus Yervoy in more than 20 indications across nine tumor types. |
• | Worldwide revenues increasing in the mid-single digits. |
• | Research and development expenses increasing in the low-single digits for GAAP. |
• | An effective tax rate between 17% and 18% for both GAAP and non-GAAP. |
Worldwide Revenues | U.S. Revenues | |||||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | |||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
Prioritized Brands | ||||||||||||||||||||||
Opdivo | $ | 1,511 | $ | 1,127 | 34 | % | $ | 938 | $ | 761 | 23 | % | ||||||||||
Eliquis | 1,506 | 1,101 | 37 | % | 885 | 699 | 27 | % | ||||||||||||||
Orencia | 593 | 535 | 11 | % | 385 | 362 | 6 | % | ||||||||||||||
Sprycel | 438 | 463 | (5 | )% | 214 | 247 | (13 | )% | ||||||||||||||
Yervoy | 249 | 330 | (25 | )% | 162 | 243 | (33 | )% | ||||||||||||||
Empliciti | 55 | 53 | 4 | % | 37 | 36 | 3 | % | ||||||||||||||
Established Brands | ||||||||||||||||||||||
Baraclude | 225 | 282 | (20 | )% | 10 | 14 | (29 | )% | ||||||||||||||
Sustiva Franchise | 84 | 184 | (54 | )% | 10 | 153 | (93 | )% | ||||||||||||||
Reyataz Franchise | 124 | 193 | (36 | )% | 51 | 88 | (42 | )% | ||||||||||||||
Hepatitis C Franchise | 3 | 162 | (98 | )% | 5 | 42 | (88 | )% | ||||||||||||||
Other Brands | 405 | 499 | (19 | )% | 81 | 93 | (13 | )% | ||||||||||||||
Total | $ | 5,193 | $ | 4,929 | 5 | % | $ | 2,778 | $ | 2,738 | 1 | % |
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
Net product sales | $ | 4,972 | $ | 4,580 | ||||
Alliance and other revenues | 221 | 349 | ||||||
Total Revenues | 5,193 | 4,929 | ||||||
Cost of products sold | 1,584 | 1,265 | ||||||
Marketing, selling and administrative | 980 | 1,085 | ||||||
Research and development | 1,250 | 1,303 | ||||||
Other income (net) | (400 | ) | (679 | ) | ||||
Total Expenses | 3,414 | 2,974 | ||||||
Earnings Before Income Taxes | 1,779 | 1,955 | ||||||
Provision for Income Taxes | 284 | 429 | ||||||
Net Earnings | 1,495 | 1,526 | ||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | 9 | (48 | ) | |||||
Net Earnings Attributable to BMS | $ | 1,486 | $ | 1,574 | ||||
Average Common Shares Outstanding: | ||||||||
Basic | 1,633 | 1,662 | ||||||
Diluted | 1,640 | 1,671 | ||||||
Earnings per Common Share | ||||||||
Basic | $ | 0.91 | $ | 0.95 | ||||
Diluted | $ | 0.91 | $ | 0.94 | ||||
Other income (net) | ||||||||
Interest expense | $ | 46 | $ | 45 | ||||
Investment income | (36 | ) | (26 | ) | ||||
Equity investment gains | (15 | ) | (7 | ) | ||||
Provision for restructuring | 20 | 164 | ||||||
Litigation and other settlements | — | (484 | ) | |||||
Equity in net income of affiliates | (24 | ) | (18 | ) | ||||
Divestiture gains | (45 | ) | (127 | ) | ||||
Royalties and licensing income | (367 | ) | (199 | ) | ||||
Transition and other service fees | (4 | ) | (7 | ) | ||||
Pension and postretirement | (11 | ) | 1 | |||||
Intangible asset impairment | 64 | — | ||||||
Other | (28 | ) | (21 | ) | ||||
Other income (net) | $ | (400 | ) | $ | (679 | ) |
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
Impairment charges | $ | 10 | $ | — | ||||
Accelerated depreciation and other shutdown costs | 3 | — | ||||||
Cost of products sold | 13 | — | ||||||
Marketing, selling and administrative | 1 | — | ||||||
License and asset acquisition charges | 60 | 50 | ||||||
IPRD impairments | — | 75 | ||||||
Site exit costs and other | 20 | 72 | ||||||
Research and development | 80 | 197 | ||||||
Equity investment gains | (15 | ) | — | |||||
Provision for restructuring | 20 | 164 | ||||||
Litigation and other settlements | — | (481 | ) | |||||
Divestiture gains | (43 | ) | (100 | ) | ||||
Royalties and licensing income | (50 | ) | — | |||||
Pension charges | 31 | 33 | ||||||
Intangible asset impairment | 64 | — | ||||||
Other income (net) | 7 | (384 | ) | |||||
Increase/(decrease) to pretax income | 101 | (187 | ) | |||||
Income taxes on specified items | (8 | ) | 72 | |||||
U.S. tax reform provisional amount adjustment | (32 | ) | — | |||||
Income taxes | (40 | ) | 72 | |||||
Increase/(decrease) to net earnings | 61 | (115 | ) | |||||
Noncontrolling interest | — | (59 | ) | |||||
Increase/(decrease) to net earnings used for diluted Non-GAAP EPS calculation | $ | 61 | $ | (174 | ) |
Three Months Ended March 31, 2018 | |||||||||||
GAAP | Specified Items(a) | Non- GAAP | |||||||||
Gross Profit | $ | 3,609 | $ | 13 | $ | 3,622 | |||||
Marketing, selling and administrative | 980 | (1 | ) | 979 | |||||||
Research and development | 1,250 | (80 | ) | 1,170 | |||||||
Other income (net) | (400 | ) | (7 | ) | (407 | ) | |||||
Earnings Before Income Taxes | 1,779 | 101 | 1,880 | ||||||||
Provision for Income Taxes | 284 | (40 | ) | 324 | |||||||
Noncontrolling interest | 9 | — | 9 | ||||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation | $ | 1,486 | $ | 61 | $ | 1,547 | |||||
Average Common Shares Outstanding - Diluted | 1,640 | 1,640 | 1,640 | ||||||||
Diluted Earnings Per Share | $ | 0.91 | $ | 0.03 | $ | 0.94 | |||||
Effective Tax Rate | 16.0 | % | 1.2 | % | 17.2 | % | |||||
Three Months Ended March 31, 2017 | |||||||||||
GAAP | Specified Items(a) | Non- GAAP | |||||||||
Gross Profit | $ | 3,664 | $ | — | $ | 3,664 | |||||
Marketing, selling and administrative | 1,085 | — | 1,085 | ||||||||
Research and development | 1,303 | (197 | ) | 1,106 | |||||||
Other income (net) | (679 | ) | 384 | (295 | ) | ||||||
Earnings Before Income Taxes | 1,955 | (187 | ) | 1,768 | |||||||
Provision for Income Taxes | 429 | 72 | 357 | ||||||||
Noncontrolling interest | (48 | ) | (59 | ) | 11 | ||||||
Net Earnings/(Loss) 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/(Loss) Per Share | $ | 0.94 | $ | (0.10 | ) | $ | 0.84 | ||||
Effective Tax Rate | 21.9 | % | (1.7 | )% | 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, 2018 | December 31, 2017 | |||||||
Cash and cash equivalents | $ | 5,342 | $ | 5,421 | ||||
Marketable securities - current | 1,428 | 1,391 | ||||||
Marketable securities - non-current | 2,252 | 2,480 | ||||||
Cash, cash equivalents and marketable securities | 9,022 | 9,292 | ||||||
Short-term debt obligations | (1,925 | ) | (987 | ) | ||||
Long-term debt | (5,775 | ) | (6,975 | ) | ||||
Net cash position | $ | 1,322 | $ | 1,330 |
Revenues | 2017 | 2018 | % 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 | $ | 2,738 | $ | 2,865 | $ | 5,603 | $ | 2,864 | $ | 8,467 | $ | 2,891 | $ | 11,358 | $ | 2,778 | 1 | % | 1 | % | — | — | ||||||||||||||||||||||||||||||||||
Europe | 1,146 | 1,188 | 2,334 | 1,262 | 3,596 | 1,392 | 4,988 | 1,406 | 23 | % | 23 | % | 15 | % | 15 | % | ||||||||||||||||||||||||||||||||||||||||
Rest of the World | 925 | 963 | 1,888 | 970 | 2,858 | 1,019 | 3,877 | 873 | (6 | )% | (6 | )% | 3 | % | 3 | % | ||||||||||||||||||||||||||||||||||||||||
Other | 120 | 128 | 248 | 158 | 406 | 147 | 553 | 136 | 13 | % | 13 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,929 | $ | 5,144 | $ | 10,073 | $ | 5,254 | $ | 15,327 | $ | 5,449 | $ | 20,776 | $ | 5,193 | 5 | % | 5 | % | 4 | % | 4 | % | ||||||||||||||||||||||||||||||||
% of Revenues | 2017 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 55.5 | % | 55.7 | % | 55.6 | % | 54.5 | % | 55.2 | % | 53.1 | % | 54.7 | % | 53.5 | % | ||||||||||||||||||||||||||||||||||||||||
Europe | 23.3 | % | 23.1 | % | 23.2 | % | 24.0 | % | 23.5 | % | 25.5 | % | 24.0 | % | 27.1 | % | ||||||||||||||||||||||||||||||||||||||||
Rest of the World | 18.8 | % | 18.7 | % | 18.7 | % | 18.5 | % | 18.6 | % | 18.7 | % | 18.7 | % | 16.8 | % | ||||||||||||||||||||||||||||||||||||||||
Other | 2.4 | % | 2.5 | % | 2.5 | % | 3.0 | % | 2.7 | % | 2.7 | % | 2.6 | % | 2.6 | % | ||||||||||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
2017 | 2018 | % 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 | $ | 4,580 | $ | 4,770 | $ | 9,350 | $ | 4,862 | $ | 14,212 | $ | 5,046 | $ | 19,258 | $ | 4,972 | 9 | % | 9 | % | ||||||||||||||||||||||||||||||
Alliance and other revenues | 349 | 374 | 723 | 392 | 1,115 | 403 | 1,518 | 221 | (37 | )% | (37 | )% | ||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 4,929 | $ | 5,144 | $ | 10,073 | $ | 5,254 | $ | 15,327 | $ | 5,449 | $ | 20,776 | $ | 5,193 | 5 | % | 5 | % | ||||||||||||||||||||||||||||||
Cost of products sold | 1,265 | 1,568 | 2,833 | 1,579 | 4,412 | 1,680 | 6,092 | 1,584 | 25 | % | 25 | % | ||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 1,085 | 1,178 | 2,263 | 1,158 | 3,421 | 1,312 | 4,733 | 980 | (10 | )% | (10 | )% | ||||||||||||||||||||||||||||||||||||||
Research and development | 1,303 | 1,675 | 2,978 | 1,559 | 4,537 | 1,937 | 6,474 | 1,250 | (4 | )% | (4 | )% | ||||||||||||||||||||||||||||||||||||||
Other income (net) | (679 | ) | (572 | ) | (1,251 | ) | (225 | ) | (1,476 | ) | (178 | ) | (1,654 | ) | (400 | ) | (41 | )% | (41 | )% | ||||||||||||||||||||||||||||||
Total Expenses | 2,974 | 3,849 | 6,823 | 4,071 | 10,894 | 4,751 | 15,645 | 3,414 | 15 | % | 15 | % | ||||||||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | $ | 1,955 | $ | 1,295 | $ | 3,250 | $ | 1,183 | $ | 4,433 | $ | 698 | $ | 5,131 | $ | 1,779 | (9 | )% | (9 | )% | ||||||||||||||||||||||||||||||
Provision for Income Taxes | 429 | 373 | 802 | 327 | 1,129 | 3,027 | 4,156 | 284 | (34 | )% | (34 | )% | ||||||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) | $ | 1,526 | $ | 922 | $ | 2,448 | $ | 856 | $ | 3,304 | $ | (2,329 | ) | $ | 975 | $ | 1,495 | (2 | )% | (2 | )% | |||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | (48 | ) | 6 | (42 | ) | 11 | (31 | ) | (1 | ) | (32 | ) | 9 | ** | ** | |||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to BMS | $ | 1,574 | $ | 916 | $ | 2,490 | $ | 845 | $ | 3,335 | $ | (2,328 | ) | $ | 1,007 | $ | 1,486 | (6 | )% | (6 | )% | |||||||||||||||||||||||||||||
Diluted Earnings/(Loss) per Common Share* | $ | 0.94 | $ | 0.56 | $ | 1.50 | $ | 0.51 | $ | 2.02 | $ | (1.42 | ) | $ | 0.61 | $ | 0.91 | (3 | )% | (3 | )% | |||||||||||||||||||||||||||||
Average Common Shares Outstanding - Diluted | 1,671 | 1,650 | 1,660 | 1,645 | 1,655 | 1,635 | 1,652 | 1,640 | (2 | )% | (2 | )% | ||||||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.39 | $ | 0.39 | $ | 0.78 | $ | 0.39 | $ | 1.17 | $ | 0.40 | $ | 1.57 | $ | 0.40 | 3 | % | 3 | % | ||||||||||||||||||||||||||||||
2017 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
% 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 | 74.3 | % | 69.5 | % | 71.9 | % | 69.9 | % | 71.2 | % | 69.2 | % | 70.7 | % | 69.5 | % | ||||||||||||||||||||||||||||||||||
Other Ratios | ||||||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 21.9 | % | 28.8 | % | 24.7 | % | 27.6 | % | 25.5 | % | 433.7 | % | 81.0 | % | 16.0 | % | ||||||||||||||||||||||||||||||||||
Other income (net) | 2017 | 2018 | % 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 | $ | 45 | $ | 52 | $ | 97 | $ | 48 | $ | 145 | $ | 51 | $ | 196 | $ | 46 | 2 | % | 2 | % | ||||||||||||||||||||||||||||||
Investment income | (26 | ) | (29 | ) | (55 | ) | (32 | ) | (87 | ) | (39 | ) | (126 | ) | (36 | ) | 38 | % | 38 | % | ||||||||||||||||||||||||||||||
Equity investment gains | (7 | ) | (5 | ) | (12 | ) | (5 | ) | (17 | ) | (11 | ) | (28 | ) | (15 | ) | ** | ** | ||||||||||||||||||||||||||||||||
Provision for restructuring | 164 | 15 | 179 | 28 | 207 | 86 | 293 | 20 | (88 | )% | (88 | )% | ||||||||||||||||||||||||||||||||||||||
Litigation and other settlements | (484 | ) | (5 | ) | (489 | ) | — | (489 | ) | 2 | (487 | ) | — | (100 | )% | (100 | )% | |||||||||||||||||||||||||||||||||
Equity in net income of affiliates | (18 | ) | (20 | ) | (38 | ) | (21 | ) | (59 | ) | (16 | ) | (75 | ) | (24 | ) | 33 | % | 33 | % | ||||||||||||||||||||||||||||||
Divestiture (gains)/losses | (127 | ) | — | (127 | ) | 1 | (126 | ) | (38 | ) | (164 | ) | (45 | ) | (65 | )% | (65 | )% | ||||||||||||||||||||||||||||||||
Royalties and licensing income | (199 | ) | (685 | ) | (884 | ) | (209 | ) | (1,093 | ) | (258 | ) | (1,351 | ) | (367 | ) | 84 | % | 84 | % | ||||||||||||||||||||||||||||||
Transition and other service fees | (7 | ) | (13 | ) | (20 | ) | (12 | ) | (32 | ) | (5 | ) | (37 | ) | (4 | ) | (43 | )% | (43 | )% | ||||||||||||||||||||||||||||||
Pension and postretirement | 1 | 3 | 4 | (12 | ) | (8 | ) | 35 | 27 | (11 | ) | ** | ** | |||||||||||||||||||||||||||||||||||||
Intangible asset impairment | — | — | — | — | — | — | — | 64 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Equity investment impairment | — | — | — | — | — | 5 | 5 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Loss on debt redemption | — | 109 | 109 | — | 109 | — | 109 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other | (21 | ) | 6 | (15 | ) | (11 | ) | (26 | ) | 10 | (16 | ) | (28 | ) | 33 | % | 33 | % | ||||||||||||||||||||||||||||||||
$ | (679 | ) | $ | (572 | ) | $ | (1,251 | ) | $ | (225 | ) | $ | (1,476 | ) | $ | (178 | ) | $ | (1,654 | ) | $ | (400 | ) | (41 | )% | (41 | )% |
* | Quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations. | |||||||||||
** | In excess of +/- 100% |
QUARTER-TO-DATE | 2018 | 2017 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2018 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | |||||||||||||||||||||
Revenues | $ | 5,193 | $ | 4,929 | $ | 264 | 5 | % | $ | 201 | $ | 4,992 | 4 | % | 1 | % | |||||||||||||
Gross profit | 3,609 | 3,664 | (55 | ) | (2 | )% | N/A | N/A | N/A | N/A | |||||||||||||||||||
Gross profit excluding specified items (a) | 3,622 | 3,664 | (42 | ) | (1 | )% | N/A | N/A | N/A | N/A | |||||||||||||||||||
Gross profit excluding specified items as a % of revenues | 69.7 | % | 74.3 | % | |||||||||||||||||||||||||
Marketing, selling and administrative | 980 | 1,085 | (105 | ) | (10 | )% | (35 | ) | 945 | (3 | )% | (13 | )% | ||||||||||||||||
Marketing, selling and administrative excluding specified items (a) | 979 | 1,085 | (106 | ) | (10 | )% | (35 | ) | 944 | (3 | )% | (13 | )% | ||||||||||||||||
Marketing, selling and administrative excluding specified items as a % of revenues | 18.9 | % | 22.0 | % | |||||||||||||||||||||||||
Research and development | 1,250 | 1,303 | (53 | ) | (4 | )% | (22 | ) | 1,228 | (2 | )% | (6 | )% | ||||||||||||||||
Research and development excluding specified items (a) | 1,170 | 1,106 | 64 | 6 | % | (16 | ) | 1,154 | (2 | )% | 4 | % | |||||||||||||||||
Research and development excluding specified items as a % of revenues | 22.5 | % | 22.4 | % | |||||||||||||||||||||||||
(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. |
2017 | 2018 | 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 | $ | 1,127 | $ | 1,195 | $ | 2,322 | $ | 1,265 | $ | 3,587 | $ | 1,361 | $ | 4,948 | $ | 1,511 | $ | 384 | $ | 384 | 34 | % | 34 | % | ||||||||||||||||||||||||||||||||||
Eliquis | 1,101 | 1,176 | 2,277 | 1,232 | 3,509 | 1,363 | 4,872 | 1,506 | 405 | 405 | 37 | % | 37 | % | ||||||||||||||||||||||||||||||||||||||||||||
Orencia(a) | 535 | 650 | 1,185 | 632 | 1,817 | 662 | 2,479 | 593 | 58 | 58 | 11 | % | 11 | % | ||||||||||||||||||||||||||||||||||||||||||||
Sprycel | 463 | 506 | 969 | 509 | 1,478 | 527 | 2,005 | 438 | (25 | ) | (25 | ) | (5 | )% | (5 | )% | ||||||||||||||||||||||||||||||||||||||||||
Yervoy | 330 | 322 | 652 | 323 | 975 | 269 | 1,244 | 249 | (81 | ) | (81 | ) | (25 | )% | (25 | )% | ||||||||||||||||||||||||||||||||||||||||||
Empliciti | 53 | 55 | 108 | 60 | 168 | 63 | 231 | 55 | 2 | 2 | 4 | % | 4 | % | ||||||||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 282 | 273 | 555 | 264 | 819 | 233 | 1,052 | 225 | (57 | ) | (57 | ) | (20 | )% | (20 | )% | ||||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(b) | 184 | 188 | 372 | 183 | 555 | 174 | 729 | 84 | (100 | ) | (100 | ) | (54 | )% | (54 | )% | ||||||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 193 | 188 | 381 | 174 | 555 | 143 | 698 | 124 | (69 | ) | (69 | ) | (36 | )% | (36 | )% | ||||||||||||||||||||||||||||||||||||||||||
Hepatitis C Franchise(c) | 162 | 112 | 274 | 73 | 347 | 59 | 406 | 3 | (159 | ) | (159 | ) | (98 | )% | (98 | )% | ||||||||||||||||||||||||||||||||||||||||||
Other Brands | 499 | 479 | 978 | 539 | 1,517 | 595 | 2,112 | 405 | (94 | ) | (94 | ) | (19 | )% | (19 | )% | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,929 | $ | 5,144 | $ | 10,073 | $ | 5,254 | $ | 15,327 | $ | 5,449 | $ | 20,776 | $ | 5,193 | $ | 264 | $ | 264 | 5 | % | 5 | % |
(a) | Includes Orencia SubQ revenues of $295 million and $244 million for the three months ended March 31, 2018 and 2017, respectively. |
(b) | The Sustiva Franchise includes sales of Sustiva, BMS's share of Atripla revenues in Europe, and U.S. Atripla royalty revenue beginning January 1, 2018. |
(c) | Includes Daklinza (daclatasvir) and Sunvepra (asunaprevir) revenues. |
2017 | 2018 | % 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 | $ | 761 | $ | 768 | $ | 1,529 | $ | 778 | $ | 2,307 | $ | 795 | $ | 3,102 | $ | 938 | 23 | % | 23 | % | ||||||||||||||||||||||||||||||
Eliquis | 699 | 703 | 1,402 | 717 | 2,119 | 768 | 2,887 | 885 | 27 | % | 27 | % | ||||||||||||||||||||||||||||||||||||||
Orencia(a) | 362 | 449 | 811 | 432 | 1,243 | 461 | 1,704 | 385 | 6 | % | 6 | % | ||||||||||||||||||||||||||||||||||||||
Sprycel | 247 | 281 | 528 | 278 | 806 | 299 | 1,105 | 214 | (13 | )% | (13 | )% | ||||||||||||||||||||||||||||||||||||||
Yervoy | 243 | 245 | 488 | 239 | 727 | 181 | 908 | 162 | (33 | )% | (33 | )% | ||||||||||||||||||||||||||||||||||||||
Empliciti | 36 | 37 | 73 | 39 | 112 | 39 | 151 | 37 | 3 | % | 3 | % | ||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 14 | 12 | 26 | 14 | 40 | 13 | 53 | 10 | (29 | )% | (29 | )% | ||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(b) | 153 | 161 | 314 | 157 | 471 | 151 | 622 | 10 | (93 | )% | (93 | )% | ||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 88 | 87 | 175 | 85 | 260 | 67 | 327 | 51 | (42 | )% | (42 | )% | ||||||||||||||||||||||||||||||||||||||
Hepatitis C Franchise(c) | 42 | 30 | 72 | 24 | 96 | 13 | 109 | 5 | (88 | )% | (88 | )% | ||||||||||||||||||||||||||||||||||||||
Other Brands | 93 | 92 | 185 | 101 | 286 | 104 | 390 | 81 | (13 | )% | (13 | )% | ||||||||||||||||||||||||||||||||||||||
Total(d) | $ | 2,738 | $ | 2,865 | $ | 5,603 | $ | 2,864 | $ | 8,467 | $ | 2,891 | $ | 11,358 | $ | 2,778 | 1 | % | 1 | % |
(a) | Includes Orencia SubQ revenues of $165 million and $146 million for the three months ended March 31, 2018 and 2017, respectively. |
(b) | In 2018, U.S. Sustiva Franchise revenues include sales of Sustiva only. |
(c) | Includes revenues of Daklinza (daclastasvir) only. |
(d) | Includes United States and Puerto Rico. |
2017 | 2018 | % 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 | $ | 366 | $ | 427 | $ | 793 | $ | 487 | $ | 1,280 | $ | 566 | $ | 1,846 | $ | 573 | 57 | % | 57 | % | ||||||||||||||||||||||||||||||
Eliquis | 402 | 473 | 875 | 515 | 1,390 | 595 | 1,985 | 621 | 54 | % | 54 | % | ||||||||||||||||||||||||||||||||||||||
Orencia | 173 | 201 | 374 | 200 | 574 | 201 | 775 | 208 | 20 | % | 20 | % | ||||||||||||||||||||||||||||||||||||||
Sprycel | 216 | 225 | 441 | 231 | 672 | 228 | 900 | 224 | 4 | % | 4 | % | ||||||||||||||||||||||||||||||||||||||
Yervoy | 87 | 77 | 164 | 84 | 248 | 88 | 336 | 87 | — | — | ||||||||||||||||||||||||||||||||||||||||
Empliciti | 17 | 18 | 35 | 21 | 56 | 24 | 80 | 18 | 6 | % | 6 | % | ||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 268 | 261 | 529 | 250 | 779 | 220 | 999 | 215 | (20 | )% | (20 | )% | ||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(a) | 31 | 27 | 58 | 26 | 84 | 23 | 107 | 74 | ** | ** | ||||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 105 | 101 | 206 | 89 | 295 | 76 | 371 | 73 | (30 | )% | (30 | )% | ||||||||||||||||||||||||||||||||||||||
Hepatitis C Franchise(b) | 120 | 82 | 202 | 49 | 251 | 46 | 297 | (2 | ) | ** | ** | |||||||||||||||||||||||||||||||||||||||
Other Brands | 406 | 387 | 793 | 438 | 1,231 | 491 | 1,722 | 324 | (20 | )% | (20 | )% | ||||||||||||||||||||||||||||||||||||||
Total(c) | $ | 2,191 | $ | 2,279 | $ | 4,470 | $ | 2,390 | $ | 6,860 | $ | 2,558 | $ | 9,418 | $ | 2,415 | 10 | % | 10 | % |
** | In excess of +/- 100% |
(a) | The Sustiva Franchise includes BMS's share of Atripla revenues in Europe, and U.S. Atripla royalty revenue beginning January 1, 2018. |
(b) | Includes Daklinza (daclatasvir) and Sunvepra (asunaprevir) revenues. |
(c) | When adjusted for foreign exchange impact, total revenues increased 1% for the first quarter. |
2017 | 2018 | |||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Impairment charges | $ | — | $ | 127 | $ | 127 | $ | 1 | $ | 128 | $ | 18 | $ | 146 | $ | 10 | ||||||||||||||||||||||||||||
Accelerated depreciation and other shutdown costs | — | 3 | 3 | — | 3 | — | 3 | 3 | ||||||||||||||||||||||||||||||||||||
Cost of products sold | — | 130 | 130 | 1 | 131 | 18 | 149 | 13 | ||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | — | — | — | — | — | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||
License and asset acquisition charges | 50 | 393 | 443 | 310 | 753 | 377 | 1,130 | 60 | ||||||||||||||||||||||||||||||||||||
IPRD impairments | 75 | — | 75 | — | 75 | — | 75 | — | ||||||||||||||||||||||||||||||||||||
Site exit costs and other | 72 | 96 | 168 | 64 | 232 | 151 | 383 | 20 | ||||||||||||||||||||||||||||||||||||
Research and development | 197 | 489 | 686 | 374 | 1,060 | 528 | 1,588 | 80 | ||||||||||||||||||||||||||||||||||||
Equity investment gains | — | — | — | — | — | — | — | (15 | ) | |||||||||||||||||||||||||||||||||||
Provision for restructuring | 164 | 15 | 179 | 28 | 207 | 86 | 293 | 20 | ||||||||||||||||||||||||||||||||||||
Litigation and other settlements | (481 | ) | — | (481 | ) | — | (481 | ) | — | (481 | ) | — | ||||||||||||||||||||||||||||||||
Divestiture gains | (100 | ) | — | (100 | ) | — | (100 | ) | (26 | ) | (126 | ) | (43 | ) | ||||||||||||||||||||||||||||||
Royalties and licensing income | — | (497 | ) | (497 | ) | — | (497 | ) | — | (497 | ) | (50 | ) | |||||||||||||||||||||||||||||||
Pension charges | 33 | 36 | 69 | 22 | 91 | 71 | 162 | 31 | ||||||||||||||||||||||||||||||||||||
Intangible asset impairment | — | — | — | — | — | — | — | 64 | ||||||||||||||||||||||||||||||||||||
Loss on debt redemption | — | 109 | 109 | — | 109 | — | 109 | — | ||||||||||||||||||||||||||||||||||||
Other income (net) | (384 | ) | (337 | ) | (721 | ) | 50 | (671 | ) | 131 | (540 | ) | 7 | |||||||||||||||||||||||||||||||
Increase/(decrease) to pretax income | (187 | ) | 282 | 95 | 425 | 520 | 678 | 1,198 | 101 | |||||||||||||||||||||||||||||||||||
Income taxes on specified items | 72 | 20 | 92 | (41 | ) | 51 | (138 | ) | (87 | ) | (8 | ) | ||||||||||||||||||||||||||||||||
Income taxes attributed to U.S. tax reform | — | — | — | — | — | 2,911 | 2,911 | — | ||||||||||||||||||||||||||||||||||||
U.S. tax reform provisional amount adjustment | — | — | — | — | — | — | — | (32 | ) | |||||||||||||||||||||||||||||||||||
Income taxes | 72 | 20 | 92 | (41 | ) | 51 | 2,773 | 2,824 | (40 | ) | ||||||||||||||||||||||||||||||||||
Increase/(decrease) to net earnings | (115 | ) | 302 | 187 | 384 | 571 | 3,451 | 4,022 | 61 | |||||||||||||||||||||||||||||||||||
Noncontrolling interest | (59 | ) | — | (59 | ) | — | (59 | ) | — | (59 | ) | — | ||||||||||||||||||||||||||||||||
Increase/(decrease) to net earnings used for diluted Non-GAAP EPS calculation | $ | (174 | ) | $ | 302 | $ | 128 | $ | 384 | $ | 512 | $ | 3,451 | $ | 3,963 | $ | 61 |
2017 | 2018 | |||||||||||||||||||||||||||||||||||||||||||
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 | $ | 3,664 | $ | 3,576 | $ | 7,240 | $ | 3,675 | $ | 10,915 | $ | 3,769 | $ | 14,684 | $ | 3,609 | ||||||||||||||||||||||||||||
Specified items (a) | — | 130 | 130 | 1 | 131 | 18 | 149 | 13 | ||||||||||||||||||||||||||||||||||||
Gross profit excluding specified items | 3,664 | 3,706 | 7,370 | 3,676 | 11,046 | 3,787 | 14,833 | 3,622 | ||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 1,085 | 1,178 | 2,263 | 1,158 | 3,421 | 1,312 | 4,733 | 980 | ||||||||||||||||||||||||||||||||||||
Specified items (a) | — | — | — | — | — | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||||||||||
Marketing, selling and administrative excluding specified items | 1,085 | 1,178 | 2,263 | 1,158 | 3,421 | 1,311 | 4,732 | 979 | ||||||||||||||||||||||||||||||||||||
Research and development | 1,303 | 1,675 | 2,978 | 1,559 | 4,537 | 1,937 | 6,474 | 1,250 | ||||||||||||||||||||||||||||||||||||
Specified items (a) | (197 | ) | (489 | ) | (686 | ) | (374 | ) | (1,060 | ) | (528 | ) | (1,588 | ) | (80 | ) | ||||||||||||||||||||||||||||
Research and development excluding specified items | 1,106 | 1,186 | 2,292 | 1,185 | 3,477 | 1,409 | 4,886 | 1,170 | ||||||||||||||||||||||||||||||||||||
Other income (net) | (679 | ) | (572 | ) | (1,251 | ) | (225 | ) | (1,476 | ) | (178 | ) | (1,654 | ) | (400 | ) | ||||||||||||||||||||||||||||
Specified items (a) | 384 | 337 | 721 | (50 | ) | 671 | (131 | ) | 540 | (7 | ) | |||||||||||||||||||||||||||||||||
Other income (net) excluding specified items | (295 | ) | (235 | ) | (530 | ) | (275 | ) | (805 | ) | (309 | ) | (1,114 | ) | (407 | ) |
(a) | Refer to the Specified Items schedule for further details. |
2017 | 2018 | |||||||||||||||||||||||||||||||||||||||||||
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 | $ | 1,955 | $ | 1,295 | $ | 3,250 | $ | 1,183 | $ | 4,433 | $ | 698 | $ | 5,131 | $ | 1,779 | ||||||||||||||||||||||||||||
Specified items(a) | (187 | ) | 282 | 95 | 425 | 520 | 678 | 1,198 | 101 | |||||||||||||||||||||||||||||||||||
Earnings before income taxes excluding specified items | 1,768 | 1,577 | 3,345 | 1,608 | 4,953 | 1,376 | 6,329 | 1,880 | ||||||||||||||||||||||||||||||||||||
Provision for income taxes | 429 | 373 | 802 | 327 | 1,129 | 3,027 | 4,156 | 284 | ||||||||||||||||||||||||||||||||||||
Tax on specified items(a) | 72 | 20 | 92 | (41 | ) | 51 | (138 | ) | (87 | ) | (8 | ) | ||||||||||||||||||||||||||||||||
Income taxes attributed to U.S. tax reform(a) | — | — | — | — | — | 2,911 | 2,911 | — | ||||||||||||||||||||||||||||||||||||
U.S. tax reform provisional amount adjustment(a) | — | — | — | — | — | — | — | (32 | ) | |||||||||||||||||||||||||||||||||||
Provision for income taxes excluding tax on specified items and income taxes attributed to U.S. tax reform | 357 | 353 | 710 | 368 | 1,078 | 254 | 1,332 | 324 | ||||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | (48 | ) | 6 | (42 | ) | 11 | (31 | ) | (1 | ) | (32 | ) | 9 | |||||||||||||||||||||||||||||||
Specified items(a) | (59 | ) | — | (59 | ) | — | (59 | ) | — | (59 | ) | — | ||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest excluding specified items | 11 | 6 | 17 | 11 | 28 | (1 | ) | 27 | 9 | |||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to BMS used for Diluted EPS Calculation - GAAP | 1,574 | 916 | 2,490 | 845 | 3,335 | (2,328 | ) | 1,007 | 1,486 | |||||||||||||||||||||||||||||||||||
Specified items(a) | (174 | ) | 302 | 128 | 384 | 512 | 3,451 | 3,963 | 61 | |||||||||||||||||||||||||||||||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation excluding specified items - Non-GAAP | 1,400 | 1,218 | 2,618 | 1,229 | 3,847 | 1,123 | 4,970 | 1,547 | ||||||||||||||||||||||||||||||||||||
Weighted-average Common Shares Outstanding - Diluted- GAAP | 1,671 | 1,650 | 1,660 | 1,645 | 1,655 | 1,635 | 1,652 | 1,640 | ||||||||||||||||||||||||||||||||||||
Weighted-average Common Shares Outstanding - Diluted- Non-GAAP | 1,671 | 1,650 | 1,660 | 1,645 | 1,655 | 1,642 | 1,652 | 1,640 | ||||||||||||||||||||||||||||||||||||
Diluted Earnings/(Loss) Per Share - GAAP | $ | 0.94 | $ | 0.56 | $ | 1.50 | $ | 0.51 | $ | 2.02 | $ | (1.42 | ) | $ | 0.61 | $ | 0.91 | |||||||||||||||||||||||||||
Diluted Earnings/(Loss) Per Share Attributable to Specified Items | (0.10 | ) | 0.18 | 0.08 | 0.24 | 0.30 | 2.10 | 2.40 | 0.03 | |||||||||||||||||||||||||||||||||||
Diluted Earnings Per Share - Non-GAAP | $ | 0.84 | $ | 0.74 | $ | 1.58 | $ | 0.75 | $ | 2.32 | $ | 0.68 | $ | 3.01 | $ | 0.94 | ||||||||||||||||||||||||||||
Effective Tax Rate | 21.9 | % | 28.8 | % | 24.7 | % | 27.6 | % | 25.5 | % | 433.7 | % | 81.0 | % | 16.0 | % | ||||||||||||||||||||||||||||
Specified items (a) | (1.7 | )% | (6.4 | )% | (3.5 | )% | (4.7 | )% | (3.7 | )% | (415.2 | )% | (60.0 | )% | 1.2 | % | ||||||||||||||||||||||||||||
Effective Tax Rate excluding specified items | 20.2 | % | 22.4 | % | 21.2 | % | 22.9 | % | 21.8 | % | 18.5 | % | 21.0 | % | 17.2 | % | ||||||||||||||||||||||||||||
(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, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | |||||||||||||||||||
Cash and cash equivalents | $ | 3,910 | $ | 3,470 | $ | 4,644 | $ | 5,421 | $ | 5,342 | ||||||||||||||||
Marketable securities - current | 2,199 | 3,035 | 2,478 | 1,391 | 1,428 | |||||||||||||||||||||
Marketable securities - non-current | 2,685 | 2,580 | 2,526 | 2,480 | 2,252 | |||||||||||||||||||||
Cash, cash equivalents and marketable securities | 8,794 | 9,085 | 9,648 | 9,292 | 9,022 | |||||||||||||||||||||
Short-term debt obligations | (1,197 | ) | (1,306 | ) | (1,461 | ) | (987 | ) | (1,925 | ) | ||||||||||||||||
Long-term debt | (7,237 | ) | (6,911 | ) | (6,982 | ) | (6,975 | ) | (5,775 | ) | ||||||||||||||||
Net cash position | $ | 360 | $ | 868 | $ | 1,205 | $ | 1,330 | $ | 1,322 |
BRISTOL-MYERS SQUIBB COMPANY | ||||
2018 FULL YEAR PROJECTED DILUTED EPS FROM OPERATIONS | ||||
EXCLUDING PROJECTED SPECIFIED ITEMS |
Full Year 2018 | |||||||||||
Pre-tax | Tax | After-tax | |||||||||
Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP | $2.70 to $2.80 | ||||||||||
Projected Specified Items: | |||||||||||
Restructuring, accelerated depreciation and other exit costs (1) | 0.14 | 0.03 | 0.11 | ||||||||
Divestiture gains and licensing income | (0.14 | ) | (0.04 | ) | (0.10 | ) | |||||
Research and development license and asset acquisition charges | 0.71 | 0.13 | 0.58 | ||||||||
Pension charges | 0.07 | 0.01 | 0.06 | ||||||||
Other | 0.03 | 0.03 | — | ||||||||
Total | 0.81 | 0.16 | 0.65 | ||||||||
Projected Diluted Earnings Attributable to Shareholders per Common Share - Non-GAAP | $3.35 to $3.45 | ||||||||||
(1) Includes items recognized in Cost of products sold, Research and development and Other income (net). |
The following table summarizes the company's 2018 financial guidance: | ||||||||||||||||||||||
Line item | GAAP | Non-GAAP | ||||||||||||||||||||
Gross margin as a percent of revenue | Approximately 70% | Approximately 70% | ||||||||||||||||||||
Marketing, selling and administrative expense | Decreasing in the low- to mid-single digit range | Decreasing in the low- to mid-single digit range | ||||||||||||||||||||
Research and development expense | Increasing in the low-single digits | Increasing in the high-single digits | ||||||||||||||||||||
Effective tax rate | Between 17%-18% | Between 17%-18% |
The GAAP financial results for the full year 2018 will include specified items, including charges associated with restructuring, downsizing and streamlining worldwide operations, gains on divestitures and equity investments, license and asset acquisition charges, pension charges and other specified items that have not yet been identified and quantified, including litigation and other settlements, licensed asset impairments and finalization of the deemed repatriation tax, among other items. For a fuller discussion of items that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Reports First Quarter 2018 Financial Results, April 26, 2018 including “2018 Financial Guidance” and “Use of non-GAAP Financial Information” therein. |
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