Delaware (State or Other Jurisdiction of Incorporation) | 1-1136 (Commission File Number) 430 East 29th Street, 14th Floor New York, NY, 10016 (Address of Principal Executive Office) | 22-0790350 (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. |
Exhibit No. | Description | |
99.1 | Press release of Bristol-Myers Squibb Company dated April 25, 2019. | |
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 25, 2019 | By: | /s/ Katherine R. Kelly | |||
Name: | Katherine R. Kelly | ||||
Title: | Corporate Secretary | ||||
• | Increases First Quarter Revenues 14% to $5.9 Billion |
• | Posts First Quarter GAAP EPS of $1.04 and Non-GAAP EPS of $1.10 |
• | Announces Shareholder Approval of Celgene Acquisition |
• | Presents Important New Data at American Association for Cancer Research and American College of Cardiology Annual Meetings |
• | Reaffirms Non-GAAP EPS Guidance Range of $4.10-$4.20 and Increases GAAP EPS Guidance Range to $3.84-$3.94 |
First Quarter | ||||||||||
$ amounts in millions, except per share amounts | ||||||||||
2019 | 2018 | Change | ||||||||
Total Revenues | $ | 5,920 | $ | 5,193 | 14 | % | ||||
GAAP Diluted EPS | 1.04 | 0.91 | 14 | % | ||||||
Non-GAAP Diluted EPS | 1.10 | 0.94 | 17 | % |
• | Bristol-Myers Squibb posted first quarter 2019 revenues of $5.9 billion, an increase of 14% compared to the same period a year ago. Revenues increased 18% when adjusted for foreign exchange impact. |
• | U.S. revenues increased 24% to $3.4 billion in the quarter compared to the same period a year ago. International revenues increased 2%. When adjusted for foreign exchange impact, international revenues increased 10%. |
• | Gross margin as a percentage of revenue decreased from 69.5% to 68.9% in the quarter primarily due to product mix and higher excise tax, partially offset by favorable foreign exchange. |
• | Marketing, selling and administrative expenses increased 3% to $1.0 billion in the quarter. |
• | Research and development expenses increased 8% to $1.4 billion in the quarter. |
• | The effective tax rate was 13.3% in the quarter, compared to 16.0% in the first quarter last year. |
• | The company reported net earnings attributable to Bristol-Myers Squibb of $1.7 billion, or $1.04 per share, in the first quarter, compared to net earnings of $1.5 billion, or $0.91 per share, for the same period in 2018. The results for the first quarter of 2019 include $187 million of Celgene-related acquisition and integration expenses. |
• | The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $1.8 billion, or $1.10 per share, in the first quarter, compared to net earnings of $1.5 billion, or $0.94 per share, for the same period in 2018. An overview of specified items is discussed under the “Use of Non-GAAP Financial Information” section. |
• | Cash, cash equivalents and marketable securities were $10.0 billion, with a net cash position of $4.0 billion, as of March 31, 2019. |
• | Eliquis, which grew by $419 million or 28% increase |
• | Opdivo, which grew by $290 million or 19% increase |
• | Yervoy, which grew by $135 million or 54% increase |
• | Orencia, which grew by 8% |
• | Sprycel, which grew by 5% |
• | The company today announced topline results from the Phase 2 CheckMate -714 trial evaluating Opdivo versus Opdivo plus Yervoy (ipilimumab) in patients with recurrent or metastatic squamous cell carcinoma of the head and neck. The study did not meet its primary endpoints. |
• | In April, at the American Association for Cancer Research Annual Meeting 2019, the company announced four-year survival results from pooled analyses of four studies (CheckMate -017, -057, -063 and -003) in patients with previously-treated advanced non-small cell lung cancer who were treated with Opdivo. (link) |
• | In February, at the American Society of Clinical Oncology 2019 Genitourinary Cancers Symposium, the company announced new data and analysis from studies evaluating Opdivo plus Yervoy: |
◦ | CheckMate -650: Results from the Phase 2 study evaluating Opdivo in combination with Yervoy in patients with metastatic castration-resistant prostate cancer. (link) |
◦ | CheckMate -214: Results from the Phase 3 study evaluating Opdivo plus low-dose Yervoy in patients with previously untreated advanced or metastatic renal cell carcinoma. (link) |
• | In March, at the American College of Cardiology’s 68th Annual Scientific Session 2019, the company and its alliance partner Pfizer announced results from the Phase 4 AUGUSTUS trial evaluating Eliquis versus vitamin K antagonists in patients with non-valvular atrial fibrillation and recent acute coronary syndrome and/or undergoing percutaneous coronary intervention. The data was simultaneously published in the New England Journal of Medicine. (link) |
• | In February, the company announced the European Commission approved Sprycel (dasatinib) in combination with chemotherapy for the treatment of pediatric patients with newly diagnosed Philadelphia chromosome-positive acute lymphoblastic leukemia. |
• | Worldwide revenues increasing in the mid-single digits. |
• | Gross margin as a percentage of revenue to be approximately 70% for both GAAP and non-GAAP. |
• | Marketing, selling and administrative expenses decreasing in the mid-single digit range for both GAAP and non-GAAP. |
• | Research and development expenses decreasing in the high-single digits for GAAP and increasing in the high-single digits for non-GAAP. |
• | An effective tax rate of approximately 14% for GAAP and approximately 16% for non-GAAP. |
Worldwide Revenues | U.S. Revenues | |||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
Prioritized Brands | ||||||||||||||||||||||
Opdivo | $ | 1,801 | $ | 1,511 | 19 | % | $ | 1,124 | $ | 938 | 20 | % | ||||||||||
Eliquis | 1,925 | 1,506 | 28 | % | 1,206 | 885 | 36 | % | ||||||||||||||
Orencia | 640 | 593 | 8 | % | 449 | 385 | 17 | % | ||||||||||||||
Sprycel | 459 | 438 | 5 | % | 240 | 214 | 12 | % | ||||||||||||||
Yervoy | 384 | 249 | 54 | % | 275 | 162 | 70 | % | ||||||||||||||
Empliciti | 83 | 55 | 51 | % | 58 | 37 | 57 | % | ||||||||||||||
Established Brands | ||||||||||||||||||||||
Baraclude | 141 | 225 | (37 | )% | 7 | 10 | (30 | )% | ||||||||||||||
Other Brands(a) | 487 | 616 | (21 | )% | 90 | 147 | (39 | )% | ||||||||||||||
Total | $ | 5,920 | $ | 5,193 | 14 | % | $ | 3,449 | $ | 2,778 | 24 | % |
(a) | Includes Sustiva, Reyataz, Daklinza and all other products that have lost exclusivity in major markets, over-the-counter brands and royalty revenue. |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Net product sales | $ | 5,713 | $ | 4,972 | ||||
Alliance and other revenues | 207 | 221 | ||||||
Total Revenues | 5,920 | 5,193 | ||||||
Cost of products sold | 1,844 | 1,584 | ||||||
Marketing, selling and administrative | 1,006 | 980 | ||||||
Research and development | 1,351 | 1,250 | ||||||
Other income (net) | (260 | ) | (400 | ) | ||||
Total Expenses | 3,941 | 3,414 | ||||||
Earnings Before Income Taxes | 1,979 | 1,779 | ||||||
Provision for Income Taxes | 264 | 284 | ||||||
Net Earnings | 1,715 | 1,495 | ||||||
Net Earnings Attributable to Noncontrolling Interest | 5 | 9 | ||||||
Net Earnings Attributable to BMS | $ | 1,710 | $ | 1,486 | ||||
Average Common Shares Outstanding: | ||||||||
Basic | 1,634 | 1,633 | ||||||
Diluted | 1,637 | 1,640 | ||||||
Earnings per Common Share | ||||||||
Basic | $ | 1.05 | $ | 0.91 | ||||
Diluted | 1.04 | 0.91 | ||||||
Other income (net) | ||||||||
Interest expense | $ | 45 | $ | 46 | ||||
Investment income | (56 | ) | (36 | ) | ||||
Equity investment gains | (175 | ) | (15 | ) | ||||
Provision for restructuring | 12 | 20 | ||||||
Acquisition and integration expenses | 187 | — | ||||||
Litigation and other settlements | 1 | — | ||||||
Equity in net income of affiliates | — | (24 | ) | |||||
Divestiture gains | — | (45 | ) | |||||
Royalties and licensing income | (308 | ) | (367 | ) | ||||
Transition and other service fees | (2 | ) | (4 | ) | ||||
Pension and postretirement | 44 | (11 | ) | |||||
Intangible asset impairment | — | 64 | ||||||
Other | (8 | ) | (28 | ) | ||||
Other income (net) | $ | (260 | ) | $ | (400 | ) |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Impairment charges | $ | — | $ | 10 | ||||
Accelerated depreciation and other shutdown costs | 12 | 3 | ||||||
Cost of products sold | 12 | 13 | ||||||
Marketing, selling and administrative | 1 | 1 | ||||||
License and asset acquisition charges | — | 60 | ||||||
IPRD impairments | 32 | — | ||||||
Site exit costs and other | 19 | 20 | ||||||
Research and development | 51 | 80 | ||||||
Equity investment gains | (175 | ) | (15 | ) | ||||
Provision for restructuring | 12 | 20 | ||||||
Acquisition and integration expenses | 187 | — | ||||||
Divestiture gains | — | (43 | ) | |||||
Royalties and licensing income | — | (50 | ) | |||||
Pension and postretirement | 49 | 31 | ||||||
Intangible asset impairment | — | 64 | ||||||
Other income (net) | 73 | 7 | ||||||
Increase to pretax income | 137 | 101 | ||||||
Income taxes on specified items | (43 | ) | (8 | ) | ||||
Income taxes attributed to U.S. tax reform | — | (32 | ) | |||||
Income taxes | (43 | ) | (40 | ) | ||||
Increase to net earnings | $ | 94 | $ | 61 |
Three Months Ended March 31, 2019 | |||||||||||
GAAP | Specified Items(a) | Non- GAAP | |||||||||
Gross Profit | $ | 4,076 | $ | 12 | $ | 4,088 | |||||
Marketing, selling and administrative | 1,006 | (1 | ) | 1,005 | |||||||
Research and development | 1,351 | (51 | ) | 1,300 | |||||||
Other income (net) | (260 | ) | (73 | ) | (333 | ) | |||||
Earnings Before Income Taxes | 1,979 | 137 | 2,116 | ||||||||
Provision for Income Taxes | 264 | (43 | ) | 307 | |||||||
Noncontrolling interest | 5 | — | 5 | ||||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation | $ | 1,710 | $ | 94 | $ | 1,804 | |||||
Average Common Shares Outstanding - Diluted | 1,637 | 1,637 | 1,637 | ||||||||
Diluted Earnings Per Share | $ | 1.04 | $ | 0.06 | $ | 1.10 | |||||
Effective Tax Rate | 13.3 | % | 1.2 | % | 14.5 | % | |||||
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 | % |
(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, 2019 | December 31, 2018 | |||||||
Cash and cash equivalents | $ | 7,335 | $ | 6,911 | ||||
Marketable securities - current | 1,429 | 1,973 | ||||||
Marketable securities - non-current | 1,233 | 1,775 | ||||||
Cash, cash equivalents and marketable securities | 9,997 | 10,659 | ||||||
Short-term debt obligations | (381 | ) | (1,703 | ) | ||||
Long-term debt | (5,635 | ) | (5,646 | ) | ||||
Net cash position | $ | 3,981 | $ | 3,310 |
Revenues | 2018 | 2019 | % 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 | $ | 2,778 | $ | 3,230 | $ | 6,008 | $ | 3,235 | $ | 9,243 | $ | 3,343 | $ | 12,586 | $ | 3,449 | 24 | % | 24 | % | — | — | ||||||||||||||||||||||||||||||||||
Europe | 1,406 | 1,408 | 2,814 | 1,365 | 4,179 | 1,479 | 5,658 | 1,480 | 5 | % | 5 | % | (9 | )% | (9 | )% | ||||||||||||||||||||||||||||||||||||||||
Rest of the World | 873 | 923 | 1,796 | 932 | 2,728 | 1,005 | 3,733 | 874 | — | — | (8 | )% | (8 | )% | ||||||||||||||||||||||||||||||||||||||||||
Other | 136 | 143 | 279 | 159 | 438 | 146 | 584 | 117 | (14 | )% | (14 | )% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 5,193 | $ | 5,704 | $ | 10,897 | $ | 5,691 | $ | 16,588 | $ | 5,973 | $ | 22,561 | $ | 5,920 | 14 | % | 14 | % | (4 | )% | (4 | )% | ||||||||||||||||||||||||||||||||
% of Revenues | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 53.5 | % | 56.6 | % | 55.1 | % | 56.8 | % | 55.7 | % | 56.0 | % | 55.8 | % | 58.2 | % | ||||||||||||||||||||||||||||||||||||||||
Europe | 27.1 | % | 24.7 | % | 25.8 | % | 24.0 | % | 25.2 | % | 24.8 | % | 25.1 | % | 25.0 | % | ||||||||||||||||||||||||||||||||||||||||
Rest of the World | 16.8 | % | 16.2 | % | 16.5 | % | 16.4 | % | 16.5 | % | 16.8 | % | 16.5 | % | 14.8 | % | ||||||||||||||||||||||||||||||||||||||||
Other | 2.6 | % | 2.5 | % | 2.6 | % | 2.8 | % | 2.6 | % | 2.4 | % | 2.6 | % | 2.0 | % | ||||||||||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
2018 | 2019 | % 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 | $ | 4,972 | $ | 5,461 | $ | 10,433 | $ | 5,433 | $ | 15,866 | $ | 5,715 | $ | 21,581 | $ | 5,713 | 15 | % | 15 | % | ||||||||||||||||||||||||||||||
Alliance and other revenues | 221 | 243 | 464 | 258 | 722 | 258 | 980 | 207 | (6 | )% | (6 | )% | ||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 5,193 | $ | 5,704 | $ | 10,897 | $ | 5,691 | $ | 16,588 | $ | 5,973 | $ | 22,561 | $ | 5,920 | 14 | % | 14 | % | ||||||||||||||||||||||||||||||
Cost of products sold | 1,584 | 1,625 | 3,209 | 1,648 | 4,857 | 1,690 | 6,547 | 1,844 | 16 | % | 16 | % | ||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 980 | 1,131 | 2,111 | 1,104 | 3,215 | 1,336 | 4,551 | 1,006 | 3 | % | 3 | % | ||||||||||||||||||||||||||||||||||||||
Research and development | 1,250 | 2,435 | 3,685 | 1,280 | 4,965 | 1,380 | 6,345 | 1,351 | 8 | % | 8 | % | ||||||||||||||||||||||||||||||||||||||
Other income (net) | (400 | ) | (4 | ) | (404 | ) | (508 | ) | (912 | ) | 62 | (850 | ) | (260 | ) | (35 | )% | (35 | )% | |||||||||||||||||||||||||||||||
Total Expenses | 3,414 | 5,187 | 8,601 | 3,524 | 12,125 | 4,468 | 16,593 | 3,941 | 15 | % | 15 | % | ||||||||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | $ | 1,779 | $ | 517 | $ | 2,296 | $ | 2,167 | $ | 4,463 | $ | 1,505 | $ | 5,968 | $ | 1,979 | 11 | % | 11 | % | ||||||||||||||||||||||||||||||
Provision for Income Taxes | 284 | 135 | 419 | 255 | 674 | 347 | 1,021 | 264 | (7 | )% | (7 | )% | ||||||||||||||||||||||||||||||||||||||
Net Earnings | $ | 1,495 | $ | 382 | $ | 1,877 | $ | 1,912 | $ | 3,789 | $ | 1,158 | $ | 4,947 | $ | 1,715 | 15 | % | 15 | % | ||||||||||||||||||||||||||||||
Net Earnings Attributable to Noncontrolling Interest | 9 | 9 | 18 | 11 | 29 | (2 | ) | 27 | 5 | (44 | )% | (44 | )% | |||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to BMS | $ | 1,486 | $ | 373 | $ | 1,859 | $ | 1,901 | $ | 3,760 | $ | 1,160 | $ | 4,920 | $ | 1,710 | 15 | % | 15 | % | ||||||||||||||||||||||||||||||
Diluted Earnings per Common Share* | $ | 0.91 | $ | 0.23 | $ | 1.13 | $ | 1.16 | $ | 2.30 | $ | 0.71 | $ | 3.01 | $ | 1.04 | 14 | % | 14 | % | ||||||||||||||||||||||||||||||
Average Common Shares Outstanding - Diluted | 1,640 | 1,636 | 1,638 | 1,636 | 1,637 | 1,637 | 1,637 | 1,637 | — | — | ||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.40 | $ | 0.40 | $ | 0.80 | $ | 0.40 | $ | 1.20 | $ | 0.41 | $ | 1.61 | $ | 0.41 | 2 | % | 2 | % | ||||||||||||||||||||||||||||||
2018 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
% 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 | 69.5 | % | 71.5 | % | 70.6 | % | 71.0 | % | 70.7 | % | 71.7 | % | 71.0 | % | 68.9 | % | ||||||||||||||||||||||||||||||||||
Other Ratios | ||||||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 16.0 | % | 26.1 | % | 18.2 | % | 11.8 | % | 15.1 | % | 23.1 | % | 17.1 | % | 13.3 | % | ||||||||||||||||||||||||||||||||||
Other income (net) | 2018 | 2019 | % 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 | $ | 46 | $ | 45 | $ | 91 | $ | 44 | $ | 135 | $ | 48 | $ | 183 | $ | 45 | (2 | )% | (2 | )% | ||||||||||||||||||||||||||||||
Investment income | (36 | ) | (38 | ) | (74 | ) | (44 | ) | (118 | ) | (55 | ) | (173 | ) | (56 | ) | 56 | % | 56 | % | ||||||||||||||||||||||||||||||
Equity investments (gain)/loss | (15 | ) | 356 | 341 | (97 | ) | 244 | 268 | 512 | (175 | ) | ** | ** | |||||||||||||||||||||||||||||||||||||
Provision for restructuring | 20 | 37 | 57 | 45 | 102 | 29 | 131 | 12 | (40 | )% | (40 | )% | ||||||||||||||||||||||||||||||||||||||
Acquisition and integration expenses | — | — | — | — | — | — | — | 187 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Litigation and other settlements | — | (1 | ) | (1 | ) | 11 | 10 | 66 | 76 | 1 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Equity in net income of affiliates | (24 | ) | (27 | ) | (51 | ) | (22 | ) | (73 | ) | (20 | ) | (93 | ) | — | (100 | )% | (100 | )% | |||||||||||||||||||||||||||||||
Divestiture gains | (45 | ) | (25 | ) | (70 | ) | (108 | ) | (178 | ) | — | (178 | ) | — | (100 | )% | (100 | )% | ||||||||||||||||||||||||||||||||
Royalties and licensing income | (367 | ) | (353 | ) | (720 | ) | (338 | ) | (1,058 | ) | (295 | ) | (1,353 | ) | (308 | ) | (16 | )% | (16 | )% | ||||||||||||||||||||||||||||||
Transition and other service fees | (4 | ) | (1 | ) | (5 | ) | — | (5 | ) | (7 | ) | (12 | ) | (2 | ) | (50 | )% | (50 | )% | |||||||||||||||||||||||||||||||
Pension and postretirement | (11 | ) | (19 | ) | (30 | ) | (10 | ) | (40 | ) | 13 | (27 | ) | 44 | ** | ** | ||||||||||||||||||||||||||||||||||
Intangible asset impairment | 64 | — | 64 | — | 64 | — | 64 | — | (100 | )% | (100 | )% | ||||||||||||||||||||||||||||||||||||||
Other | (28 | ) | 22 | (6 | ) | 11 | 5 | 15 | 20 | (8 | ) | (71 | )% | (71 | )% | |||||||||||||||||||||||||||||||||||
$ | (400 | ) | $ | (4 | ) | $ | (404 | ) | $ | (508 | ) | $ | (912 | ) | $ | 62 | $ | (850 | ) | $ | (260 | ) | (35 | )% | (35 | )% |
* | Quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations. | |||||||||||
** | In excess of +/- 100% |
QUARTER-TO-DATE | 2019 | 2018 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2019 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | |||||||||||||||||||||
Revenues | $ | 5,920 | $ | 5,193 | $ | 727 | 14 | % | $ | (188 | ) | $ | 6,108 | (4 | )% | 18 | % | ||||||||||||
Gross profit | 4,076 | 3,609 | 467 | 13 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Gross profit excluding specified items(a) | 4,088 | 3,622 | 466 | 13 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Gross profit excluding specified items as a % of revenues | 69.1 | % | 69.7 | % | |||||||||||||||||||||||||
Marketing, selling and administrative | 1,006 | 980 | 26 | 3 | % | 32 | 1,038 | 3 | % | 6 | % | ||||||||||||||||||
Marketing, selling and administrative excluding specified items(a) | 1,005 | 979 | 26 | 3 | % | 32 | 1,037 | 3 | % | 6 | % | ||||||||||||||||||
Marketing, selling and administrative excluding specified items as a % of revenues | 17.0 | % | 18.9 | % | |||||||||||||||||||||||||
Research and development | 1,351 | 1,250 | 101 | 8 | % | 12 | 1,363 | 1 | % | 9 | % | ||||||||||||||||||
Research and development excluding specified items(a) | 1,300 | 1,170 | 130 | 11 | % | 12 | 1,312 | 1 | % | 12 | % | ||||||||||||||||||
Research and development excluding specified items as a % of revenues | 22.0 | % | 22.5 | % |
(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. |
2018 | 2019 | 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 | $ | 1,511 | $ | 1,627 | $ | 3,138 | $ | 1,793 | $ | 4,931 | $ | 1,804 | $ | 6,735 | $ | 1,801 | $ | 290 | $ | 290 | 19 | % | 19 | % | ||||||||||||||||||||||||||||||||||
Eliquis | 1,506 | 1,650 | 3,156 | 1,577 | 4,733 | 1,705 | 6,438 | 1,925 | 419 | 419 | 28 | % | 28 | % | ||||||||||||||||||||||||||||||||||||||||||||
Orencia | 593 | 711 | 1,304 | 675 | 1,979 | 731 | 2,710 | 640 | 47 | 47 | 8 | % | 8 | % | ||||||||||||||||||||||||||||||||||||||||||||
Sprycel | 438 | 535 | 973 | 491 | 1,464 | 536 | 2,000 | 459 | 21 | 21 | 5 | % | 5 | % | ||||||||||||||||||||||||||||||||||||||||||||
Yervoy | 249 | 315 | 564 | 382 | 946 | 384 | 1,330 | 384 | 135 | 135 | 54 | % | 54 | % | ||||||||||||||||||||||||||||||||||||||||||||
Empliciti | 55 | 64 | 119 | 59 | 178 | 69 | 247 | 83 | 28 | 28 | 51 | % | 51 | % | ||||||||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 225 | 179 | 404 | 175 | 579 | 165 | 744 | 141 | (84 | ) | (84 | ) | (37 | )% | (37 | )% | ||||||||||||||||||||||||||||||||||||||||||
Other Brands(a) | 616 | 623 | 1,239 | 539 | 1,778 | 579 | 2,357 | 487 | (129 | ) | (129 | ) | (21 | )% | (21 | )% | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 5,193 | $ | 5,704 | $ | 10,897 | $ | 5,691 | $ | 16,588 | $ | 5,973 | $ | 22,561 | $ | 5,920 | $ | 727 | $ | 727 | 14 | % | 14 | % |
(a) | Includes Sustiva, Reyataz, Daklinza and all other products that have lost exclusivity in major markets, over-the-counter (OTC) brands and royalty revenue. |
2018 | 2019 | % 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 | $ | 938 | $ | 1,024 | $ | 1,962 | $ | 1,141 | $ | 3,103 | $ | 1,136 | $ | 4,239 | $ | 1,124 | 20 | % | 20 | % | ||||||||||||||||||||||||||||||
Eliquis | 885 | 979 | 1,864 | 917 | 2,781 | 979 | 3,760 | 1,206 | 36 | % | 36 | % | ||||||||||||||||||||||||||||||||||||||
Orencia | 385 | 501 | 886 | 474 | 1,360 | 515 | 1,875 | 449 | 17 | % | 17 | % | ||||||||||||||||||||||||||||||||||||||
Sprycel | 214 | 310 | 524 | 267 | 791 | 300 | 1,091 | 240 | 12 | % | 12 | % | ||||||||||||||||||||||||||||||||||||||
Yervoy | 162 | 228 | 390 | 278 | 668 | 273 | 941 | 275 | 70 | % | 70 | % | ||||||||||||||||||||||||||||||||||||||
Empliciti | 37 | 41 | 78 | 41 | 119 | 45 | 164 | 58 | 57 | % | 57 | % | ||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 10 | 9 | 19 | 6 | 25 | 7 | 32 | 7 | (30 | )% | (30 | )% | ||||||||||||||||||||||||||||||||||||||
Other Brands(a) | 147 | 138 | 285 | 111 | 396 | 88 | 484 | 90 | (39 | )% | (39 | )% | ||||||||||||||||||||||||||||||||||||||
Total(b) | $ | 2,778 | $ | 3,230 | $ | 6,008 | $ | 3,235 | $ | 9,243 | $ | 3,343 | $ | 12,586 | $ | 3,449 | 24 | % | 24 | % |
(a) | Includes Sustiva, Reyataz, Daklinza and all other products that have lost exclusivity. |
(b) | Includes United States and Puerto Rico. |
2018 | 2019 | % 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 | $ | 573 | $ | 603 | $ | 1,176 | $ | 652 | $ | 1,828 | $ | 668 | $ | 2,496 | $ | 677 | 18 | % | 18 | % | ||||||||||||||||||||||||||||||
Eliquis | 621 | 671 | 1,292 | 660 | 1,952 | 726 | 2,678 | 719 | 16 | % | 16 | % | ||||||||||||||||||||||||||||||||||||||
Orencia | 208 | 210 | 418 | 201 | 619 | 216 | 835 | 191 | (8 | )% | (8 | )% | ||||||||||||||||||||||||||||||||||||||
Sprycel | 224 | 225 | 449 | 224 | 673 | 236 | 909 | 219 | (2 | )% | (2 | )% | ||||||||||||||||||||||||||||||||||||||
Yervoy | 87 | 87 | 174 | 104 | 278 | 111 | 389 | 109 | 25 | % | 25 | % | ||||||||||||||||||||||||||||||||||||||
Empliciti | 18 | 23 | 41 | 18 | 59 | 24 | 83 | 25 | 39 | % | 39 | % | ||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 215 | 170 | 385 | 169 | 554 | 158 | 712 | 134 | (38 | )% | (38 | )% | ||||||||||||||||||||||||||||||||||||||
Other Brands(a) | 469 | 485 | 954 | 428 | 1,382 | 491 | 1,873 | 397 | (15 | )% | (15 | )% | ||||||||||||||||||||||||||||||||||||||
Total(b) | $ | 2,415 | $ | 2,474 | $ | 4,889 | $ | 2,456 | $ | 7,345 | $ | 2,630 | $ | 9,975 | $ | 2,471 | 2 | % | 2 | % |
(a) | Includes Sustiva, Reyataz, Daklinza and all other products that have lost exclusivity in major markets, OTC brands and royalty revenue. |
(b) | The foreign exchange impact on international revenues was unfavorable 8% for the first quarter. The foreign exchange impact on Prioritized Brands is included below. |
Quarter-to-Date | Year-to-Date | |||||||||||||
Revenue Change % | Favorable/ (Unfavorable) FX Impact % | Revenue Change % Excluding FX | Revenue Change % | Favorable/ (Unfavorable) FX Impact % | Revenue Change % Excluding FX | |||||||||
Opdivo | 18 | % | (11 | )% | 29 | % | 18 | % | (11 | )% | 29 | % | ||
Eliquis | 16 | % | (7 | )% | 23 | % | 16 | % | (7 | )% | 23 | % | ||
Orencia | (8 | )% | (8 | )% | — | (8 | )% | (8 | )% | — | ||||
Sprycel | (2 | )% | (6 | )% | 4 | % | (2 | )% | (6 | )% | 4 | % | ||
Yervoy | 25 | % | (11 | )% | 36 | % | 25 | % | (11 | )% | 36 | % |
2018 | 2019 | |||||||||||||||||||||||||||||||||||||||||||
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 | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | $ | 7 | $ | 17 | $ | — | ||||||||||||||||||||||||||||
Accelerated depreciation and other shutdown costs | 3 | 14 | 17 | 13 | 30 | 11 | 41 | 12 | ||||||||||||||||||||||||||||||||||||
Cost of products sold | 13 | 14 | 27 | 13 | 40 | 18 | 58 | 12 | ||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 1 | — | 1 | — | 1 | 1 | 2 | 1 | ||||||||||||||||||||||||||||||||||||
License and asset acquisition charges | 60 | 1,075 | 1,135 | — | 1,135 | — | 1,135 | — | ||||||||||||||||||||||||||||||||||||
IPRD impairments | — | — | — | — | — | — | — | 32 | ||||||||||||||||||||||||||||||||||||
Site exit costs and other | 20 | 19 | 39 | 18 | 57 | 22 | 79 | 19 | ||||||||||||||||||||||||||||||||||||
Research and development | 80 | 1,094 | 1,174 | 18 | 1,192 | 22 | 1,214 | 51 | ||||||||||||||||||||||||||||||||||||
Equity investment (gains)/losses | (15 | ) | 356 | 341 | (97 | ) | 244 | 268 | 512 | (175 | ) | |||||||||||||||||||||||||||||||||
Provision for restructuring | 20 | 37 | 57 | 45 | 102 | 29 | 131 | 12 | ||||||||||||||||||||||||||||||||||||
Acquisition and integration expenses | — | — | — | — | — | — | — | 187 | ||||||||||||||||||||||||||||||||||||
Litigation and other settlements | — | — | — | — | — | 70 | 70 | — | ||||||||||||||||||||||||||||||||||||
Divestiture gains | (43 | ) | (25 | ) | (68 | ) | (108 | ) | (176 | ) | (1 | ) | (177 | ) | — | |||||||||||||||||||||||||||||
Royalties and licensing income | (50 | ) | (25 | ) | (75 | ) | — | (75 | ) | — | (75 | ) | — | |||||||||||||||||||||||||||||||
Pension and postretirement | 31 | 37 | 68 | 27 | 95 | 26 | 121 | 49 | ||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 64 | — | 64 | — | 64 | — | 64 | — | ||||||||||||||||||||||||||||||||||||
Other income (net) | 7 | 380 | 387 | (133 | ) | 254 | 392 | 646 | 73 | |||||||||||||||||||||||||||||||||||
Increase/(decrease) to pretax income | 101 | 1,488 | 1,589 | (102 | ) | 1,487 | 433 | 1,920 | 137 | |||||||||||||||||||||||||||||||||||
Income taxes on specified items | (8 | ) | (218 | ) | (226 | ) | 1 | (225 | ) | (43 | ) | (268 | ) | (43 | ) | |||||||||||||||||||||||||||||
Income taxes attributed to U.S. tax reform | (32 | ) | 3 | (29 | ) | (20 | ) | (49 | ) | (7 | ) | (56 | ) | — | ||||||||||||||||||||||||||||||
Income taxes | (40 | ) | (215 | ) | (255 | ) | (19 | ) | (274 | ) | (50 | ) | (324 | ) | (43 | ) | ||||||||||||||||||||||||||||
Increase/(decrease) to net earnings | $ | 61 | $ | 1,273 | $ | 1,334 | $ | (121 | ) | $ | 1,213 | $ | 383 | $ | 1,596 | $ | 94 |
2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
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 | $ | 3,609 | 4,079 | $ | 7,688 | $ | 4,043 | $ | 11,731 | $ | 4,283 | $ | 16,014 | $ | 4,076 | ||||||||||||||||||||||||||||
Specified items(a) | 13 | 14 | 27 | 13 | 40 | 18 | 58 | 12 | |||||||||||||||||||||||||||||||||||
Gross profit excluding specified items | 3,622 | 4,093 | 7,715 | 4,056 | 11,771 | 4,301 | 16,072 | 4,088 | |||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 980 | 1,131 | 2,111 | 1,104 | 3,215 | 1,336 | 4,551 | 1,006 | |||||||||||||||||||||||||||||||||||
Specified items(a) | (1 | ) | — | (1 | ) | — | (1 | ) | (1 | ) | (2 | ) | (1 | ) | |||||||||||||||||||||||||||||
Marketing, selling and administrative excluding specified items | 979 | 1,131 | 2,110 | 1,104 | 3,214 | 1,335 | 4,549 | 1,005 | |||||||||||||||||||||||||||||||||||
Research and development | 1,250 | 2,435 | 3,685 | 1,280 | 4,965 | 1,380 | 6,345 | 1,351 | |||||||||||||||||||||||||||||||||||
Specified items(a) | (80 | ) | (1,094 | ) | (1,174 | ) | (18 | ) | (1,192 | ) | (22 | ) | (1,214 | ) | (51 | ) | |||||||||||||||||||||||||||
Research and development excluding specified items | 1,170 | 1,341 | 2,511 | 1,262 | 3,773 | 1,358 | 5,131 | 1,300 | |||||||||||||||||||||||||||||||||||
Other income (net) | (400 | ) | (4 | ) | (404 | ) | (508 | ) | (912 | ) | 62 | (850 | ) | (260 | ) | ||||||||||||||||||||||||||||
Specified items(a) | (7 | ) | (380 | ) | (387 | ) | 133 | (254 | ) | (392 | ) | (646 | ) | (73 | ) | ||||||||||||||||||||||||||||
Other income (net) excluding specified items | (407 | ) | (384 | ) | (791 | ) | (375 | ) | (1,166 | ) | (330 | ) | (1,496 | ) | (333 | ) |
(a) | Refer to the Specified Items schedule for further details. |
2018 | 2019 | |||||||||||||||||||||||||||||||||||||||||||
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 | $ | 1,779 | $ | 517 | $ | 2,296 | $ | 2,167 | $ | 4,463 | $ | 1,505 | $ | 5,968 | $ | 1,979 | ||||||||||||||||||||||||||||
Specified items(a) | 101 | 1,488 | 1,589 | (102 | ) | 1,487 | 433 | 1,920 | 137 | |||||||||||||||||||||||||||||||||||
Earnings before income taxes excluding specified items | 1,880 | 2,005 | 3,885 | 2,065 | 5,950 | 1,938 | 7,888 | 2,116 | ||||||||||||||||||||||||||||||||||||
Provision for income taxes | 284 | 135 | 419 | 255 | 674 | 347 | 1,021 | 264 | ||||||||||||||||||||||||||||||||||||
Tax on specified items(a) | (8 | ) | (218 | ) | (226 | ) | 1 | (225 | ) | (43 | ) | (268 | ) | (43 | ) | |||||||||||||||||||||||||||||
Income taxes attributed to U.S. tax reform(a) | (32 | ) | 3 | (29 | ) | (20 | ) | (49 | ) | (7 | ) | (56 | ) | — | ||||||||||||||||||||||||||||||
Provision for income taxes excluding tax on specified items and income taxes attributed to U.S. tax reform | 324 | 350 | 674 | 274 | 948 | 397 | 1,345 | 307 | ||||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | 9 | 9 | 18 | 11 | 29 | (2 | ) | 27 | 5 | |||||||||||||||||||||||||||||||||||
Specified items(a) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest excluding specified items | 9 | 9 | 18 | 11 | 29 | (2 | ) | 27 | 5 | |||||||||||||||||||||||||||||||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation - GAAP | 1,486 | 373 | 1,859 | 1,901 | 3,760 | 1,160 | 4,920 | 1,710 | ||||||||||||||||||||||||||||||||||||
Specified items(a) | 61 | 1,273 | 1,334 | (121 | ) | 1,213 | 383 | 1,596 | 94 | |||||||||||||||||||||||||||||||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation excluding specified items - Non-GAAP | 1,547 | 1,646 | 3,193 | 1,780 | 4,973 | 1,543 | 6,516 | 1,804 | ||||||||||||||||||||||||||||||||||||
Weighted-average Common Shares Outstanding - Diluted- GAAP | 1,640 | 1,636 | 1,638 | 1,636 | 1,637 | 1,637 | 1,637 | 1,637 | ||||||||||||||||||||||||||||||||||||
Weighted-average Common Shares Outstanding - Diluted- Non-GAAP | 1,640 | 1,636 | 1,638 | 1,636 | 1,637 | 1,637 | 1,637 | 1,637 | ||||||||||||||||||||||||||||||||||||
Diluted Earnings Per Share - GAAP | $ | 0.91 | $ | 0.23 | $ | 1.13 | $ | 1.16 | $ | 2.30 | $ | 0.71 | $ | 3.01 | $ | 1.04 | ||||||||||||||||||||||||||||
Diluted Earnings/(Loss) Per Share Attributable to Specified Items | 0.03 | 0.78 | 0.82 | (0.07 | ) | 0.74 | 0.23 | 0.97 | 0.06 | |||||||||||||||||||||||||||||||||||
Diluted Earnings Per Share - Non-GAAP | $ | 0.94 | $ | 1.01 | $ | 1.95 | $ | 1.09 | $ | 3.04 | $ | 0.94 | $ | 3.98 | $ | 1.10 | ||||||||||||||||||||||||||||
Effective Tax Rate | 16.0 | % | 26.1 | % | 18.2 | % | 11.8 | % | 15.1 | % | 23.1 | % | 17.1 | % | 13.3 | % | ||||||||||||||||||||||||||||
Specified items(a) | 1.2 | % | (8.6 | )% | (0.9 | )% | 1.5 | % | 0.8 | % | (2.6 | )% | — | 1.2 | % | |||||||||||||||||||||||||||||
Effective Tax Rate excluding specified items | 17.2 | % | 17.5 | % | 17.3 | % | 13.3 | % | 15.9 | % | 20.5 | % | 17.1 | % | 14.5 | % |
(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 | June 30, 2018 | September 30, 2018 | December 31, 2018 | March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | |||||||||||||||||||
Cash and cash equivalents | $ | 5,342 | $ | 4,999 | $ | 5,408 | $ | 6,911 | $ | 7,335 | ||||||||||||||||
Marketable securities - current | 1,428 | 1,076 | 1,422 | 1,973 | 1,429 | |||||||||||||||||||||
Marketable securities - non-current | 2,252 | 2,117 | 2,017 | 1,775 | 1,233 | |||||||||||||||||||||
Cash, cash equivalents and marketable securities | 9,022 | 8,192 | 8,847 | 10,659 | 9,997 | |||||||||||||||||||||
Short-term debt obligations | (1,925 | ) | (1,716 | ) | (1,620 | ) | (1,703 | ) | (381 | ) | ||||||||||||||||
Long-term debt | (5,775 | ) | (5,671 | ) | (5,687 | ) | (5,646 | ) | (5,635 | ) | ||||||||||||||||
Net cash position | $ | 1,322 | $ | 805 | $ | 1,540 | $ | 3,310 | $ | 3,981 |
Full Year 2019 | ||||||||
Pre-tax | Tax | After-tax | ||||||
Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP | $3.84 to $3.94 | |||||||
Projected Specified Items: | ||||||||
Restructuring, accelerated depreciation and other exit costs(1) | 0.10 | 0.01 | 0.09 | |||||
Divestiture gains and licensing income | (0.80 | ) | (0.10 | ) | (0.70 | ) | ||
Research and development license and asset acquisition charges | 0.10 | 0.01 | 0.09 | |||||
Pension charges | 0.96 | 0.22 | 0.74 | |||||
Equity investment gains | (0.07 | ) | (0.02 | ) | (0.05 | ) | ||
Acquisition and integration expenses | 0.11 | 0.02 | 0.09 | |||||
Total | 0.40 | 0.14 | 0.26 | |||||
Projected Diluted Earnings Attributable to Shareholders per Common Share - Non-GAAP | $4.10 to $4.20 | |||||||
(1) Includes items recognized in Cost of products sold, Research and development and Other income (net). |
The following table summarizes the company's 2019 financial guidance: | ||||
Line item | GAAP | Non-GAAP | ||
Worldwide revenues | Increasing in the mid-single digits | Increasing in the mid-single digits | ||
Gross margin as a percent of revenue | Approximately 70% | Approximately 70% | ||
Marketing, selling and administrative expense | Decreasing in the mid-single digit range | Decreasing in the mid-single digit range | ||
Research and development expense | Decreasing in the high-single digits | Increasing in the high-single digits | ||
Effective tax rate | Approximately 14% | Approximately 16% |
The GAAP financial results for the full year of 2019 will include specified items, including acquisition and integration expenses, charges associated with restructuring, downsizing and streamlining worldwide operations, divestiture gains or losses, license and asset acquisition charges and pension charges. The financial guidance for 2019 excludes the impact of any potential future strategic acquisitions and divestitures, including any impact of the Celgene acquisition other than expenses incurred in the first quarter of 2019, and other specified items that have not yet been identified and quantified, including litigation and other settlements, licensed asset impairments and gains/losses on equity investments, 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 Financial Results on April 25, 2019, including “2019 Financial Guidance” and “Use of non-GAAP Financial Information” therein. |
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