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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.10 Par Value | BMY | New York Stock Exchange |
1.000% Notes due 2025 | New York Stock Exchange | |
1.750% Notes due 2035 | New York Stock Exchange |
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 July 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: July 25, 2019 | By: | /s/ Katherine R. Kelly | |||
Name: | Katherine R. Kelly | ||||
Title: | Corporate Secretary | ||||
• | Increases Second Quarter Revenues 10% to $6.3 Billion |
• | Posts Second Quarter GAAP EPS of $0.87 and Non-GAAP EPS of $1.18 |
• | Announces Topline Results for CheckMate -227 Part 1a and Part 2 |
• | Continues to Advance Celgene Integration Planning and Transaction Closing |
• | Updates 2019 GAAP and Non-GAAP EPS Guidance |
Second Quarter | ||||||||||
$ amounts in millions, except per share amounts | ||||||||||
2019 | 2018 | Change | ||||||||
Total Revenues | $ | 6,273 | $ | 5,704 | 10 | % | ||||
GAAP Diluted EPS | 0.87 | 0.23 | ** | |||||||
Non-GAAP Diluted EPS | 1.18 | 1.01 | 17 | % |
• | Bristol-Myers Squibb posted second quarter 2019 revenues of $6.3 billion, an increase of 10% compared to the same period a year ago. Revenues increased 13% when adjusted for foreign exchange impact. |
• | U.S. revenues increased 14% to $3.7 billion in the quarter compared to the same period a year ago. International revenues increased 5%. When adjusted for foreign exchange impact, international revenues increased 12%. |
• | Gross margin as a percentage of revenue decreased from 71.5% to 68.2% in the quarter primarily due to product mix and a $109 million impairment charge in connection with the expected sale of manufacturing and packaging operations in Anagni, Italy. |
• | Marketing, selling and administrative expenses decreased 5% to $1.1 billion in the quarter. |
• | Research and development expenses decreased 45% to $1.3 billion in the quarter primarily due to a $1.1 billion charge resulting from the Nektar collaboration in the second quarter last year. |
• | The effective tax rate was 19.0% in the quarter, compared to 26.1% in the second quarter last year. The lower tax rate was due to a non-deductible equity investment loss in the second quarter last year. |
• | The company reported net earnings attributable to Bristol-Myers Squibb of $1.4 billion, or $0.87 per share, in the second quarter, compared to net earnings of $373 million, or $0.23 per share, for the same period in 2018. The results for the second quarter of 2019 include $409 million of Celgene-related acquisition and integration expenses. |
• | The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $1.9 billion, or $1.18 per share, in the second quarter, compared to net earnings of $1.6 billion, or $1.01 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 $30.4 billion as of June 30, 2019, which includes $18.8 billion of net proceeds from the issuance of new notes in May 2019. The net cash position was $5.4 billion as of June 30, 2019. |
• | In June, the company announced plans to divest OTEZLA® in light of concerns expressed by the U.S. Federal Trade Commission. The company expects to close the Celgene transaction by the end of 2019 or beginning of 2020. (link) |
• | In June, the company announced the future leadership team of the combined company effective upon completion of the company’s pending acquisition of Celgene. (link) |
• | Eliquis, which grew by $392 million or 24% increase |
• | Opdivo, which grew by $196 million or 12% increase |
• | Orencia, which grew by 9% |
• | Sprycel, which grew by 2% |
• | Yervoy, which grew by 17% |
• | In July, the company announced Part 1a of the Phase 3 Checkmate -227 study evaluating Opdivo plus low dose Yervoy vs. chemotherapy met the co-primary endpoint of overall survival in first-line non-small cell lung cancer (NSCLC) patients whose tumors express PD-L1 ≥1%. (link) |
• | In July, the company announced Part 2 of the Phase 3 Checkmate -227 study evaluating Opdivo plus chemotherapy versus chemotherapy did not meet its primary endpoint of overall survival in first-line non-squamous NSCLC patients regardless of PD-L1 status. (link) |
• | In June, the company announced results of the Phase 3 Checkmate -459 study evaluating Opdivo versus sorafenib as a first-line treatment in patients with unresectable hepatocellular carcinoma (HCC). (link) |
• | In June, at the American Society of Clinical Oncology Annual Meeting 2019, the company announced important new data and analysis from three studies evaluating Opdivo as monotherapy and in combination with Yervoy (ipilimumab): |
◦ | Checkmate -040: Results from the Phase 1/2 study evaluating Opdivo plus Yervoy in patients with advanced HCC previously treated with sorafenib. (link) |
◦ | CA209-004: Results from the Phase 1 study evaluating Opdivo plus Yervoy in patients with previously treated or untreated advanced melanoma. (link) |
◦ | Checkmate -067: Results from the Phase 3 study evaluating patient reported quality of life during extended therapy and following the discontinuation of therapy with Opdivo or Opdivo plus Yervoy in patients with previously untreated unresectable or metastatic melanoma. (link) |
• | In May, the company announced results of the Phase 3 CheckMate -498 trial evaluating Opdivo plus radiation versus temozolomide plus radiation in patients with newly diagnosed O6-methylguanine-DNA methyltransferase-unmethylated glioblastoma multiforme. (link) |
• | In June, at the Annual European Congress of Rheumatology, the company announced results from the Phase 4 mechanistic study exploring differences in the cellular and molecular mechanisms by which Orencia (abatacept) and adalimumab interfere with disease progression in moderate-to-severe early rheumatoid arthritis patients seropositive for certain autoantibodies. (link) |
• | In June, at the Congress of the European Hematology Association, the company announced results from the Phase 2 study evaluating Empliciti (elotuzumab) plus pomalidomide and dexamethasone versus pomalidomide and dexamethasone alone in patients with relapsed or refractory multiple myeloma. (link) |
• | In July, the company, Bayer and Ono Pharmaceutical Co., Ltd. announced a clinical trial collaboration to evaluate Opdivo in combination with Bayer’s Stivarga® in patients with micro-satellite stable metastatic colorectal cancer. |
• | In July, the company announced the completion of its previously announced sale of its consumer health business, UPSA, to Taisho Pharmaceutical Co., Ltd. |
• | In June, the company announced Catalent, Inc. has agreed to purchase its oral solid, biologics, and sterile product manufacturing and packaging facility in Anagni, Italy. |
• | Research and development expenses decreasing in the low-double digits for GAAP and increasing in the mid-single digits for non-GAAP. |
Worldwide Revenues | U.S. Revenues(b) | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Prioritized Brands | |||||||||||||||||||||
Opdivo | $ | 1,823 | $ | 1,627 | 12 | % | $ | 1,112 | $ | 1,024 | 9 | % | |||||||||
Eliquis | 2,042 | 1,650 | 24 | % | 1,269 | 979 | 30 | % | |||||||||||||
Orencia | 778 | 711 | 9 | % | 566 | 501 | 13 | % | |||||||||||||
Sprycel | 544 | 535 | 2 | % | 307 | 310 | (1 | )% | |||||||||||||
Yervoy | 367 | 315 | 17 | % | 253 | 228 | 11 | % | |||||||||||||
Empliciti | 91 | 64 | 42 | % | 63 | 41 | 54 | % | |||||||||||||
Established Brands | |||||||||||||||||||||
Baraclude | 147 | 179 | (18 | )% | 7 | 9 | (22 | )% | |||||||||||||
Other Brands(a) | 481 | 623 | (23 | )% | 90 | 138 | (35 | )% | |||||||||||||
Total | $ | 6,273 | $ | 5,704 | 10 | % | $ | 3,667 | $ | 3,230 | 14 | % |
(a) | Includes Sustiva, Reyataz, Daklinza and all other products that lost exclusivity in major markets, over-the-counter brands and royalty revenue. |
(b) | Includes United States and Puerto Rico. |
Worldwide Revenues | U.S. Revenues(b) | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Prioritized Brands | |||||||||||||||||||||
Opdivo | $ | 3,624 | $ | 3,138 | 15 | % | $ | 2,236 | $ | 1,962 | 14 | % | |||||||||
Eliquis | 3,967 | 3,156 | 26 | % | 2,475 | 1,864 | 33 | % | |||||||||||||
Orencia | 1,418 | 1,304 | 9 | % | 1,015 | 886 | 15 | % | |||||||||||||
Sprycel | 1,003 | 973 | 3 | % | 547 | 524 | 4 | % | |||||||||||||
Yervoy | 751 | 564 | 33 | % | 528 | 390 | 35 | % | |||||||||||||
Empliciti | 174 | 119 | 46 | % | 121 | 78 | 55 | % | |||||||||||||
Established Brands | |||||||||||||||||||||
Baraclude | 288 | 404 | (29 | )% | 14 | 19 | (26 | )% | |||||||||||||
Other Brands(a) | 968 | 1,239 | (22 | )% | 180 | 285 | (37 | )% | |||||||||||||
Total | $ | 12,193 | $ | 10,897 | 12 | % | $ | 7,116 | $ | 6,008 | 18 | % |
(a) | Includes Sustiva, Reyataz, Daklinza and all other products that lost exclusivity in major markets, over-the-counter brands and royalty revenue. |
(b) | Includes United States and Puerto Rico. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net product sales | $ | 6,031 | $ | 5,461 | $ | 11,744 | $ | 10,433 | |||||||
Alliance and other revenues | 242 | 243 | 449 | 464 | |||||||||||
Total Revenues | 6,273 | 5,704 | 12,193 | 10,897 | |||||||||||
Cost of products sold | 1,992 | 1,625 | 3,836 | 3,209 | |||||||||||
Marketing, selling and administrative | 1,076 | 1,131 | 2,082 | 2,111 | |||||||||||
Research and development | 1,328 | 2,435 | 2,679 | 3,685 | |||||||||||
Other income (net) | 101 | (4 | ) | (159 | ) | (404 | ) | ||||||||
Total Expenses | 4,497 | 5,187 | 8,438 | 8,601 | |||||||||||
Earnings Before Income Taxes | 1,776 | 517 | 3,755 | 2,296 | |||||||||||
Provision for Income Taxes | 337 | 135 | 601 | 419 | |||||||||||
Net Earnings | 1,439 | 382 | 3,154 | 1,877 | |||||||||||
Noncontrolling Interest | 7 | 9 | 12 | 18 | |||||||||||
Net Earnings Attributable to BMS | $ | 1,432 | $ | 373 | $ | 3,142 | $ | 1,859 | |||||||
Average Common Shares Outstanding: | |||||||||||||||
Basic | 1,636 | 1,633 | 1,635 | 1,633 | |||||||||||
Diluted | 1,637 | 1,636 | 1,637 | 1,638 | |||||||||||
Earnings per Common Share: | |||||||||||||||
Basic | $ | 0.88 | $ | 0.23 | $ | 1.92 | $ | 1.14 | |||||||
Diluted | 0.87 | 0.23 | 1.92 | 1.13 | |||||||||||
Other income (net) | |||||||||||||||
Interest expense | $ | 123 | $ | 45 | $ | 168 | $ | 91 | |||||||
Investment income | (119 | ) | (38 | ) | (175 | ) | (74 | ) | |||||||
Equity investment (gains)/losses | (71 | ) | 356 | (246 | ) | 341 | |||||||||
Provision for restructuring | 10 | 37 | 22 | 57 | |||||||||||
Acquisition expenses | 303 | — | 468 | — | |||||||||||
Integration expenses | 106 | — | 128 | — | |||||||||||
Litigation and other settlements | — | (1 | ) | 1 | (1 | ) | |||||||||
Equity in net income of affiliates | — | (27 | ) | — | (51 | ) | |||||||||
Divestiture losses/(gains) | 8 | (25 | ) | 8 | (70 | ) | |||||||||
Royalties and licensing income | (303 | ) | (353 | ) | (611 | ) | (720 | ) | |||||||
Transition and other service fees | (2 | ) | (1 | ) | (4 | ) | (5 | ) | |||||||
Pension and postretirement | 26 | (19 | ) | 70 | (30 | ) | |||||||||
Intangible asset impairment | 15 | — | 15 | 64 | |||||||||||
Other | 5 | 22 | (3 | ) | (6 | ) | |||||||||
Other income (net) | $ | 101 | $ | (4 | ) | $ | (159 | ) | $ | (404 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Impairment charges | $ | 109 | $ | — | $ | 109 | $ | 10 | |||||||
Accelerated depreciation and other shutdown costs | 30 | 14 | 42 | 17 | |||||||||||
Cost of products sold | 139 | 14 | 151 | 27 | |||||||||||
Marketing, selling and administrative | — | — | 1 | 1 | |||||||||||
License and asset acquisition charges | 25 | 1,075 | 25 | 1,135 | |||||||||||
IPRD impairments | — | — | 32 | — | |||||||||||
Site exit costs and other | 19 | 19 | 38 | 39 | |||||||||||
Research and development | 44 | 1,094 | 95 | 1,174 | |||||||||||
Interest expense | 83 | — | 83 | — | |||||||||||
Investment income | (54 | ) | — | (54 | ) | — | |||||||||
Equity investment (gains)/losses | (71 | ) | 356 | (246 | ) | 341 | |||||||||
Provision for restructuring | 10 | 37 | 22 | 57 | |||||||||||
Acquisition expenses | 303 | — | 468 | — | |||||||||||
Integration expenses | 106 | — | 128 | — | |||||||||||
Divestiture losses/(gains) | 8 | (25 | ) | 8 | (68 | ) | |||||||||
Royalties and licensing income | — | (25 | ) | — | (75 | ) | |||||||||
Pension and postretirement | 44 | 37 | 93 | 68 | |||||||||||
Intangible asset impairment | — | — | — | 64 | |||||||||||
Other income (net) | 429 | 380 | 502 | 387 | |||||||||||
Increase to pretax income | 612 | 1,488 | 749 | 1,589 | |||||||||||
Income taxes on items above | (105 | ) | (218 | ) | (148 | ) | (226 | ) | |||||||
Income taxes attributed to U.S. tax reform | — | 3 | — | (29 | ) | ||||||||||
Income taxes | (105 | ) | (215 | ) | (148 | ) | (255 | ) | |||||||
Increase to net earnings | $ | 507 | $ | 1,273 | $ | 601 | $ | 1,334 |
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||||||||||||||||||
GAAP | Specified Items(a) | Non- GAAP | GAAP | Specified Items(a) | Non- GAAP | ||||||||||||||||||
Gross Profit | $ | 4,281 | $ | 139 | $ | 4,420 | $ | 8,357 | $ | 151 | $ | 8,508 | |||||||||||
Marketing, selling and administrative | 1,076 | — | 1,076 | 2,082 | (1 | ) | 2,081 | ||||||||||||||||
Research and development | 1,328 | (44 | ) | 1,284 | 2,679 | (95 | ) | 2,584 | |||||||||||||||
Other income (net) | 101 | (429 | ) | (328 | ) | (159 | ) | (502 | ) | (661 | ) | ||||||||||||
Earnings Before Income Taxes | 1,776 | 612 | 2,388 | 3,755 | 749 | 4,504 | |||||||||||||||||
Provision for Income Taxes | 337 | (105 | ) | 442 | 601 | (148 | ) | 749 | |||||||||||||||
Noncontrolling Interest | 7 | — | 7 | 12 | — | 12 | |||||||||||||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation | $ | 1,432 | $ | 507 | $ | 1,939 | $ | 3,142 | $ | 601 | $ | 3,743 | |||||||||||
Average Common Shares Outstanding - Diluted | 1,637 | 1,637 | 1,637 | 1,637 | 1,637 | 1,637 | |||||||||||||||||
Diluted Earnings Per Share | $ | 0.87 | $ | 0.31 | $ | 1.18 | $ | 1.92 | $ | 0.37 | $ | 2.29 | |||||||||||
Effective Tax Rate | 19.0 | % | (0.5 | )% | 18.5 | % | 16.0 | % | 0.6 | % | 16.6 | % | |||||||||||
Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | ||||||||||||||||||||||
GAAP | Specified Items(a) | Non- GAAP | GAAP | Specified Items(a) | Non- GAAP | ||||||||||||||||||
Gross Profit | $ | 4,079 | $ | 14 | $ | 4,093 | $ | 7,688 | $ | 27 | $ | 7,715 | |||||||||||
Marketing, selling and administrative | 1,131 | — | 1,131 | 2,111 | (1 | ) | 2,110 | ||||||||||||||||
Research and development | 2,435 | (1,094 | ) | 1,341 | 3,685 | (1,174 | ) | 2,511 | |||||||||||||||
Other income (net) | (4 | ) | (380 | ) | (384 | ) | (404 | ) | (387 | ) | (791 | ) | |||||||||||
Earnings Before Income Taxes | 517 | 1,488 | 2,005 | 2,296 | 1,589 | 3,885 | |||||||||||||||||
Provision for Income Taxes | 135 | (215 | ) | 350 | 419 | (255 | ) | 674 | |||||||||||||||
Noncontrolling Interest | 9 | — | 9 | 18 | — | 18 | |||||||||||||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation | $ | 373 | $ | 1,273 | $ | 1,646 | $ | 1,859 | $ | 1,334 | $ | 3,193 | |||||||||||
Average Common Shares Outstanding - Diluted | 1,636 | 1,636 | 1,636 | 1,638 | 1,638 | 1,638 | |||||||||||||||||
Diluted Earnings Per Share | $ | 0.23 | $ | 0.78 | $ | 1.01 | $ | 1.13 | $ | 0.82 | $ | 1.95 | |||||||||||
Effective Tax Rate | 26.1 | % | (8.6 | )% | 17.5 | % | 18.2 | % | (0.9 | )% | 17.3 | % |
(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. |
June 30, 2019 | December 31, 2018 | ||||||
Cash and cash equivalents | $ | 28,404 | $ | 6,911 | |||
Marketable securities - current | 953 | 1,973 | |||||
Marketable securities - non-current | 994 | 1,775 | |||||
Cash, cash equivalents and marketable securities | 30,351 | 10,659 | |||||
Short-term debt obligations | (545 | ) | (1,703 | ) | |||
Long-term debt | (24,433 | ) | (5,646 | ) | |||
Net cash position | $ | 5,373 | $ | 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 | $ | 3,667 | $ | 7,116 | 14 | % | 18 | % | — | — | |||||||||||||||||||||||||||||||||
Europe | 1,406 | 1,408 | 2,814 | 1,365 | 4,179 | 1,479 | 5,658 | 1,480 | 1,491 | 2,971 | 6 | % | 6 | % | (7 | )% | (7 | )% | |||||||||||||||||||||||||||||||||||||||||
Rest of the World | 873 | 923 | 1,796 | 932 | 2,728 | 1,005 | 3,733 | 874 | 988 | 1,862 | 7 | % | 4 | % | (7 | )% | (7 | )% | |||||||||||||||||||||||||||||||||||||||||
Other | 136 | 143 | 279 | 159 | 438 | 146 | 584 | 117 | 127 | 244 | (11 | )% | (13 | )% | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 5,193 | $ | 5,704 | $ | 10,897 | $ | 5,691 | $ | 16,588 | $ | 5,973 | $ | 22,561 | $ | 5,920 | $ | 6,273 | $ | 12,193 | 10 | % | 12 | % | (3 | )% | (3 | )% | |||||||||||||||||||||||||||||||
% 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 | % | 58.4 | % | 58.3 | % | |||||||||||||||||||||||||||||||||||||||
Europe | 27.1 | % | 24.7 | % | 25.8 | % | 24.0 | % | 25.2 | % | 24.8 | % | 25.1 | % | 25.0 | % | 23.8 | % | 24.4 | % | |||||||||||||||||||||||||||||||||||||||
Rest of the World | 16.8 | % | 16.2 | % | 16.5 | % | 16.4 | % | 16.5 | % | 16.8 | % | 16.5 | % | 14.8 | % | 15.8 | % | 15.3 | % | |||||||||||||||||||||||||||||||||||||||
Other | 2.6 | % | 2.5 | % | 2.6 | % | 2.8 | % | 2.6 | % | 2.4 | % | 2.6 | % | 2.0 | % | 2.0 | % | 2.0 | % | |||||||||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 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 | $ | 6,031 | $ | 11,744 | 10 | % | 13 | % | |||||||||||||||||||||||||||||
Alliance and other revenues | 221 | 243 | 464 | 258 | 722 | 258 | 980 | 207 | 242 | 449 | — | (3 | )% | ||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 5,193 | $ | 5,704 | $ | 10,897 | $ | 5,691 | $ | 16,588 | $ | 5,973 | $ | 22,561 | $ | 5,920 | $ | 6,273 | $ | 12,193 | 10 | % | 12 | % | |||||||||||||||||||||||||||||
Cost of products sold | 1,584 | 1,625 | 3,209 | 1,648 | 4,857 | 1,690 | 6,547 | 1,844 | 1,992 | 3,836 | 23 | % | 20 | % | |||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 980 | 1,131 | 2,111 | 1,104 | 3,215 | 1,336 | 4,551 | 1,006 | 1,076 | 2,082 | (5 | ) | (1 | )% | |||||||||||||||||||||||||||||||||||||||
Research and development | 1,250 | 2,435 | 3,685 | 1,280 | 4,965 | 1,380 | 6,345 | 1,351 | 1,328 | 2,679 | (45 | )% | (27 | )% | |||||||||||||||||||||||||||||||||||||||
Other income (net) | (400 | ) | (4 | ) | (404 | ) | (508 | ) | (912 | ) | 62 | (850 | ) | (260 | ) | 101 | (159 | ) | ** | (61 | )% | ||||||||||||||||||||||||||||||||
Total Expenses | 3,414 | 5,187 | 8,601 | 3,524 | 12,125 | 4,468 | 16,593 | 3,941 | 4,497 | 8,438 | (13 | )% | (2 | )% | |||||||||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | $ | 1,779 | $ | 517 | $ | 2,296 | $ | 2,167 | $ | 4,463 | $ | 1,505 | $ | 5,968 | $ | 1,979 | $ | 1,776 | $ | 3,755 | ** | 64 | % | ||||||||||||||||||||||||||||||
Provision for Income Taxes | 284 | 135 | 419 | 255 | 674 | 347 | 1,021 | 264 | 337 | 601 | ** | 43 | % | ||||||||||||||||||||||||||||||||||||||||
Net Earnings | $ | 1,495 | $ | 382 | $ | 1,877 | $ | 1,912 | $ | 3,789 | $ | 1,158 | $ | 4,947 | $ | 1,715 | $ | 1,439 | $ | 3,154 | ** | 68 | % | ||||||||||||||||||||||||||||||
Noncontrolling Interest | 9 | 9 | 18 | 11 | 29 | (2 | ) | 27 | 5 | 7 | 12 | (22 | )% | (33 | )% | ||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to BMS | $ | 1,486 | $ | 373 | $ | 1,859 | $ | 1,901 | $ | 3,760 | $ | 1,160 | $ | 4,920 | $ | 1,710 | $ | 1,432 | $ | 3,142 | ** | 69 | % | ||||||||||||||||||||||||||||||
Diluted Earnings per Common Share* | $ | 0.91 | $ | 0.23 | $ | 1.13 | $ | 1.16 | $ | 2.30 | $ | 0.71 | $ | 3.01 | $ | 1.04 | $ | 0.87 | $ | 1.92 | ** | 70 | % | ||||||||||||||||||||||||||||||
Average Common Shares Outstanding - Diluted | 1,640 | 1,636 | 1,638 | 1,636 | 1,637 | 1,637 | 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 | $ | 0.41 | $ | 0.82 | 3 | % | 3 | % | |||||||||||||||||||||||||||||
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 | % | 68.2 | % | 68.5 | % | |||||||||||||||||||||||||||||||||
Other Ratios | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 16.0 | % | 26.1 | % | 18.2 | % | 11.8 | % | 15.1 | % | 23.1 | % | 17.1 | % | 13.3 | % | 19.0 | % | 16.0 | % | |||||||||||||||||||||||||||||||||
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 | $ | 123 | $ | 168 | ** | 85 | % | ||||||||||||||||||||||||||||||
Investment income | (36 | ) | (38 | ) | (74 | ) | (44 | ) | (118 | ) | (55 | ) | (173 | ) | (56 | ) | (119 | ) | (175 | ) | ** | ** | |||||||||||||||||||||||||||||||
Equity investments (gains)/losses | (15 | ) | 356 | 341 | (97 | ) | 244 | 268 | 512 | (175 | ) | (71 | ) | (246 | ) | ** | ** | ||||||||||||||||||||||||||||||||||||
Provision for restructuring | 20 | 37 | 57 | 45 | 102 | 29 | 131 | 12 | 10 | 22 | (73 | )% | (61 | )% | |||||||||||||||||||||||||||||||||||||||
Acquisition expenses | — | — | — | — | — | — | — | 165 | 303 | 468 | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Integration expenses | — | — | — | — | — | — | — | 22 | 106 | 128 | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Litigation and other settlements | — | (1 | ) | (1 | ) | 11 | 10 | 66 | 76 | 1 | — | 1 | (100 | )% | ** | ||||||||||||||||||||||||||||||||||||||
Equity in net income of affiliates | (24 | ) | (27 | ) | (51 | ) | (22 | ) | (73 | ) | (20 | ) | (93 | ) | — | — | — | (100 | )% | (100 | )% | ||||||||||||||||||||||||||||||||
Divestiture losses/(gains) | (45 | ) | (25 | ) | (70 | ) | (108 | ) | (178 | ) | — | (178 | ) | — | 8 | 8 | ** | ** | |||||||||||||||||||||||||||||||||||
Royalties and licensing income | (367 | ) | (353 | ) | (720 | ) | (338 | ) | (1,058 | ) | (295 | ) | (1,353 | ) | (308 | ) | (303 | ) | (611 | ) | (14 | )% | (15 | )% | |||||||||||||||||||||||||||||
Transition and other service fees | (4 | ) | (1 | ) | (5 | ) | — | (5 | ) | (7 | ) | (12 | ) | (2 | ) | (2 | ) | (4 | ) | 100 | % | (20 | )% | ||||||||||||||||||||||||||||||
Pension and postretirement | (11 | ) | (19 | ) | (30 | ) | (10 | ) | (40 | ) | 13 | (27 | ) | 44 | 26 | 70 | ** | ** | |||||||||||||||||||||||||||||||||||
Intangible asset impairment | 64 | — | 64 | — | 64 | — | 64 | — | 15 | 15 | N/A | (77 | )% | ||||||||||||||||||||||||||||||||||||||||
Other | (28 | ) | 22 | (6 | ) | 11 | 5 | 15 | 20 | (8 | ) | 5 | (3 | ) | (77 | )% | (50 | )% | |||||||||||||||||||||||||||||||||||
$ | (400 | ) | $ | (4 | ) | $ | (404 | ) | $ | (508 | ) | $ | (912 | ) | $ | 62 | $ | (850 | ) | $ | (260 | ) | $ | 101 | $ | (159 | ) | ** | (61 | )% |
* | 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 | $ | 6,273 | $ | 5,704 | $ | 569 | 10 | % | $ | (163 | ) | $ | 6,436 | (3 | )% | 13 | % | |||||||||||
Gross profit | 4,281 | 4,079 | 202 | 5 | % | N/A | N/A | N/A | N/A | |||||||||||||||||||
Gross profit excluding specified items(a) | 4,420 | 4,093 | 327 | 8 | % | N/A | N/A | N/A | N/A | |||||||||||||||||||
Gross profit excluding specified items as a % of revenues | 70.5 | % | 71.8 | % | ||||||||||||||||||||||||
Marketing, selling and administrative | 1,076 | 1,131 | (55 | ) | (5 | )% | 33 | 1,109 | 3 | % | (2 | )% | ||||||||||||||||
Marketing, selling and administrative excluding specified items(a) | 1,076 | 1,131 | (55 | ) | (5 | )% | 33 | 1,109 | 3 | % | (2 | )% | ||||||||||||||||
Marketing, selling and administrative excluding specified items as a % of revenues | 17.2 | % | 19.8 | % | ||||||||||||||||||||||||
Research and development | 1,328 | 2,435 | (1,107 | ) | (45 | )% | 12 | 1,340 | — | (45 | )% | |||||||||||||||||
Research and development excluding specified items(a) | 1,284 | 1,341 | (57 | ) | (4 | )% | 12 | 1,296 | 1 | % | (3 | )% | ||||||||||||||||
Research and development excluding specified items as a % of revenues | 20.5 | % | 23.5 | % | ||||||||||||||||||||||||
YEAR-TO-DATE | 2019 | 2018 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2019 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | ||||||||||||||||||||
Revenues | $ | 12,193 | $ | 10,897 | $ | 1,296 | 12 | % | $ | (351 | ) | $ | 12,544 | (3 | )% | 15 | % | |||||||||||
Gross profit | 8,357 | 7,688 | 669 | 9 | % | N/A | N/A | N/A | N/A | |||||||||||||||||||
Gross profit excluding specified items(a) | 8,508 | 7,715 | 793 | 10 | % | N/A | N/A | N/A | N/A | |||||||||||||||||||
Gross profit excluding specified items as a % of revenues | 69.8 | % | 70.8 | % | ||||||||||||||||||||||||
Marketing, selling and administrative | 2,082 | 2,111 | (29 | ) | (1 | )% | 65 | 2,147 | 3 | % | 2 | % | ||||||||||||||||
Marketing, selling and administrative excluding specified items(a) | 2,081 | 2,110 | (29 | ) | (1 | )% | 65 | 2,146 | 3 | % | 2 | % | ||||||||||||||||
Marketing, selling and administrative excluding specified items as a % of revenues | 17.1 | % | 19.4 | % | ||||||||||||||||||||||||
Research and development | 2,679 | 3,685 | (1,006 | ) | (27 | )% | 24 | 2,703 | — | (27 | )% | |||||||||||||||||
Research and development excluding specified items(a) | 2,584 | 2,511 | 73 | 3 | % | 24 | 2,608 | 1 | % | 4 | % | |||||||||||||||||
Research and development excluding specified items as a % of revenues | 21.2 | % | 23.0 | % |
(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 | $ | 1,823 | $ | 3,624 | $ | 196 | $ | 486 | 12 | % | 15 | % | |||||||||||||||||||||||||||||||||
Eliquis | 1,506 | 1,650 | 3,156 | 1,577 | 4,733 | 1,705 | 6,438 | 1,925 | 2,042 | 3,967 | 392 | 811 | 24 | % | 26 | % | |||||||||||||||||||||||||||||||||||||||||||||
Orencia | 593 | 711 | 1,304 | 675 | 1,979 | 731 | 2,710 | 640 | 778 | 1,418 | 67 | 114 | 9 | % | 9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Sprycel | 438 | 535 | 973 | 491 | 1,464 | 536 | 2,000 | 459 | 544 | 1,003 | 9 | 30 | 2 | % | 3 | % | |||||||||||||||||||||||||||||||||||||||||||||
Yervoy | 249 | 315 | 564 | 382 | 946 | 384 | 1,330 | 384 | 367 | 751 | 52 | 187 | 17 | % | 33 | % | |||||||||||||||||||||||||||||||||||||||||||||
Empliciti | 55 | 64 | 119 | 59 | 178 | 69 | 247 | 83 | 91 | 174 | 27 | 55 | 42 | % | 46 | % | |||||||||||||||||||||||||||||||||||||||||||||
Established Brands | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 225 | 179 | 404 | 175 | 579 | 165 | 744 | 141 | 147 | 288 | (32 | ) | (116 | ) | (18 | )% | (29 | )% | |||||||||||||||||||||||||||||||||||||||||||
Other Brands(a) | 616 | 623 | 1,239 | 539 | 1,778 | 579 | 2,357 | 487 | 481 | 968 | (142 | ) | (271 | ) | (23 | )% | (22 | )% | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 5,193 | $ | 5,704 | $ | 10,897 | $ | 5,691 | $ | 16,588 | $ | 5,973 | $ | 22,561 | $ | 5,920 | $ | 6,273 | $ | 12,193 | $ | 569 | $ | 1,296 | 10 | % | 12 | % |
(a) | Includes Sustiva, Reyataz, Daklinza and all other products that 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 | $ | 1,112 | $ | 2,236 | 9 | % | 14 | % | |||||||||||||||||||||||||||||
Eliquis | 885 | 979 | 1,864 | 917 | 2,781 | 979 | 3,760 | 1,206 | 1,269 | 2,475 | 30 | % | 33 | % | |||||||||||||||||||||||||||||||||||||||
Orencia | 385 | 501 | 886 | 474 | 1,360 | 515 | 1,875 | 449 | 566 | 1,015 | 13 | % | 15 | % | |||||||||||||||||||||||||||||||||||||||
Sprycel | 214 | 310 | 524 | 267 | 791 | 300 | 1,091 | 240 | 307 | 547 | (1 | )% | 4 | % | |||||||||||||||||||||||||||||||||||||||
Yervoy | 162 | 228 | 390 | 278 | 668 | 273 | 941 | 275 | 253 | 528 | 11 | % | 35 | % | |||||||||||||||||||||||||||||||||||||||
Empliciti | 37 | 41 | 78 | 41 | 119 | 45 | 164 | 58 | 63 | 121 | 54 | % | 55 | % | |||||||||||||||||||||||||||||||||||||||
Established Brands | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 10 | 9 | 19 | 6 | 25 | 7 | 32 | 7 | 7 | 14 | (22 | )% | (26 | )% | |||||||||||||||||||||||||||||||||||||||
Other Brands(a) | 147 | 138 | 285 | 111 | 396 | 88 | 484 | 90 | 90 | 180 | (35 | )% | (37 | )% | |||||||||||||||||||||||||||||||||||||||
Total(b) | $ | 2,778 | $ | 3,230 | $ | 6,008 | $ | 3,235 | $ | 9,243 | $ | 3,343 | $ | 12,586 | $ | 3,449 | $ | 3,667 | $ | 7,116 | 14 | % | 18 | % |
(a) | Includes Sustiva, Reyataz, Daklinza and all other products that 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 | $ | 711 | $ | 1,388 | 18 | % | 18 | % | |||||||||||||||||||||||||||||
Eliquis | 621 | 671 | 1,292 | 660 | 1,952 | 726 | 2,678 | 719 | 773 | 1,492 | 15 | % | 15 | % | |||||||||||||||||||||||||||||||||||||||
Orencia | 208 | 210 | 418 | 201 | 619 | 216 | 835 | 191 | 212 | 403 | 1 | % | (4 | )% | |||||||||||||||||||||||||||||||||||||||
Sprycel | 224 | 225 | 449 | 224 | 673 | 236 | 909 | 219 | 237 | 456 | 5 | % | 2 | % | |||||||||||||||||||||||||||||||||||||||
Yervoy | 87 | 87 | 174 | 104 | 278 | 111 | 389 | 109 | 114 | 223 | 31 | % | 28 | % | |||||||||||||||||||||||||||||||||||||||
Empliciti | 18 | 23 | 41 | 18 | 59 | 24 | 83 | 25 | 28 | 53 | 22 | % | 29 | % | |||||||||||||||||||||||||||||||||||||||
Established Brands | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 215 | 170 | 385 | 169 | 554 | 158 | 712 | 134 | 140 | 274 | (18 | )% | (29 | )% | |||||||||||||||||||||||||||||||||||||||
Other Brands(a) | 469 | 485 | 954 | 428 | 1,382 | 491 | 1,873 | 397 | 391 | 788 | (19 | )% | (17 | )% | |||||||||||||||||||||||||||||||||||||||
Total(b) | $ | 2,415 | $ | 2,474 | $ | 4,889 | $ | 2,456 | $ | 7,345 | $ | 2,630 | $ | 9,975 | $ | 2,471 | $ | 2,606 | $ | 5,077 | 5 | % | 4 | % |
(a) | Includes Sustiva, Reyataz, Daklinza and all other products that lost exclusivity in major markets, OTC brands and royalty revenue. |
(b) | The foreign exchange impact on international revenues was unfavorable 7% for the second quarter and year-to-date. 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 | % | (8 | )% | 26 | % | 18 | % | (10 | )% | 28 | % | |
Eliquis | 15 | % | (6 | )% | 21 | % | 15 | % | (7 | )% | 22 | % | |
Orencia | 1 | % | (6 | )% | 7 | % | (4 | )% | (7 | )% | 3 | % | |
Sprycel | 5 | % | (5 | )% | 10 | % | 2 | % | (5 | )% | 7 | % | |
Yervoy | 31 | % | (8 | )% | 39 | % | 28 | % | (9 | )% | 37 | % |
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 | $ | — | $ | 109 | $ | 109 | |||||||||||||||||||||||||||
Accelerated depreciation and other shutdown costs | 3 | 14 | 17 | 13 | 30 | 11 | 41 | 12 | 30 | 42 | |||||||||||||||||||||||||||||||||||||
Cost of products sold | 13 | 14 | 27 | 13 | 40 | 18 | 58 | 12 | 139 | 151 | |||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 1 | — | 1 | — | 1 | 1 | 2 | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||
License and asset acquisition charges | 60 | 1,075 | 1,135 | — | 1,135 | — | 1,135 | — | 25 | 25 | |||||||||||||||||||||||||||||||||||||
IPRD impairments | — | — | — | — | — | — | — | 32 | — | 32 | |||||||||||||||||||||||||||||||||||||
Site exit costs and other | 20 | 19 | 39 | 18 | 57 | 22 | 79 | 19 | 19 | 38 | |||||||||||||||||||||||||||||||||||||
Research and development | 80 | 1,094 | 1,174 | 18 | 1,192 | 22 | 1,214 | 51 | 44 | 95 | |||||||||||||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | — | 83 | 83 | |||||||||||||||||||||||||||||||||||||
Investment income | — | — | — | — | — | — | — | — | (54 | ) | (54 | ) | |||||||||||||||||||||||||||||||||||
Equity investment (gains)/losses | (15 | ) | 356 | 341 | (97 | ) | 244 | 268 | 512 | (175 | ) | (71 | ) | (246 | ) | ||||||||||||||||||||||||||||||||
Provision for restructuring | 20 | 37 | 57 | 45 | 102 | 29 | 131 | 12 | 10 | 22 | |||||||||||||||||||||||||||||||||||||
Acquisition expenses | — | — | — | — | — | — | — | 165 | 303 | 468 | |||||||||||||||||||||||||||||||||||||
Integration expenses | — | — | — | — | — | — | — | 22 | 106 | 128 | |||||||||||||||||||||||||||||||||||||
Litigation and other settlements | — | — | — | — | — | 70 | 70 | — | — | — | |||||||||||||||||||||||||||||||||||||
Divestiture losses/(gains) | (43 | ) | (25 | ) | (68 | ) | (108 | ) | (176 | ) | (1 | ) | (177 | ) | — | 8 | 8 | ||||||||||||||||||||||||||||||
Royalties and licensing income | (50 | ) | (25 | ) | (75 | ) | — | (75 | ) | — | (75 | ) | — | — | — | ||||||||||||||||||||||||||||||||
Pension and postretirement | 31 | 37 | 68 | 27 | 95 | 26 | 121 | 49 | 44 | 93 | |||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 64 | — | 64 | — | 64 | — | 64 | — | — | — | |||||||||||||||||||||||||||||||||||||
Other income (net) | 7 | 380 | 387 | (133 | ) | 254 | 392 | 646 | 73 | 429 | 502 | ||||||||||||||||||||||||||||||||||||
Increase/(decrease) to pretax income | 101 | 1,488 | 1,589 | (102 | ) | 1,487 | 433 | 1,920 | 137 | 612 | 749 | ||||||||||||||||||||||||||||||||||||
Income taxes on items above | (8 | ) | (218 | ) | (226 | ) | 1 | (225 | ) | (43 | ) | (268 | ) | (43 | ) | (105 | ) | (148 | ) | ||||||||||||||||||||||||||||
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 | ) | (105 | ) | (148 | ) | |||||||||||||||||||||||||||
Increase/(decrease) to net earnings | $ | 61 | $ | 1,273 | $ | 1,334 | $ | (121 | ) | $ | 1,213 | $ | 383 | $ | 1,596 | $ | 94 | $ | 507 | $ | 601 |
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 | $ | 4,281 | $ | 8,357 | |||||||||||||||||||||||||||
Specified items(a) | 13 | 14 | 27 | 13 | 40 | 18 | 58 | 12 | 139 | 151 | ||||||||||||||||||||||||||||||||||||
Gross profit excluding specified items | 3,622 | 4,093 | 7,715 | 4,056 | 11,771 | 4,301 | 16,072 | 4,088 | 4,420 | 8,508 | ||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 980 | 1,131 | 2,111 | 1,104 | 3,215 | 1,336 | 4,551 | 1,006 | 1,076 | 2,082 | ||||||||||||||||||||||||||||||||||||
Specified items(a) | (1 | ) | — | (1 | ) | — | (1 | ) | (1 | ) | (2 | ) | (1 | ) | — | (1 | ) | |||||||||||||||||||||||||||||
Marketing, selling and administrative excluding specified items | 979 | 1,131 | 2,110 | 1,104 | 3,214 | 1,335 | 4,549 | 1,005 | 1,076 | 2,081 | ||||||||||||||||||||||||||||||||||||
Research and development | 1,250 | 2,435 | 3,685 | 1,280 | 4,965 | 1,380 | 6,345 | 1,351 | 1,328 | 2,679 | ||||||||||||||||||||||||||||||||||||
Specified items(a) | (80 | ) | (1,094 | ) | (1,174 | ) | (18 | ) | (1,192 | ) | (22 | ) | (1,214 | ) | (51 | ) | (44 | ) | (95 | ) | ||||||||||||||||||||||||||
Research and development excluding specified items | 1,170 | 1,341 | 2,511 | 1,262 | 3,773 | 1,358 | 5,131 | 1,300 | 1,284 | 2,584 | ||||||||||||||||||||||||||||||||||||
Other income (net) | (400 | ) | (4 | ) | (404 | ) | (508 | ) | (912 | ) | 62 | (850 | ) | (260 | ) | 101 | (159 | ) | ||||||||||||||||||||||||||||
Specified items(a) | (7 | ) | (380 | ) | (387 | ) | 133 | (254 | ) | (392 | ) | (646 | ) | (73 | ) | (429 | ) | (502 | ) | |||||||||||||||||||||||||||
Other income (net) excluding specified items | (407 | ) | (384 | ) | (791 | ) | (375 | ) | (1,166 | ) | (330 | ) | (1,496 | ) | (333 | ) | (328 | ) | (661 | ) |
(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 | $ | 1,776 | $ | 3,755 | |||||||||||||||||||||||||||
Specified items(a) | 101 | 1,488 | 1,589 | (102 | ) | 1,487 | 433 | 1,920 | 137 | 612 | 749 | ||||||||||||||||||||||||||||||||||||
Earnings before income taxes excluding specified items | 1,880 | 2,005 | 3,885 | 2,065 | 5,950 | 1,938 | 7,888 | 2,116 | 2,388 | 4,504 | |||||||||||||||||||||||||||||||||||||
Provision for income taxes | 284 | 135 | 419 | 255 | 674 | 347 | 1,021 | 264 | 337 | 601 | |||||||||||||||||||||||||||||||||||||
Tax on specified items(a) | (8 | ) | (218 | ) | (226 | ) | 1 | (225 | ) | (43 | ) | (268 | ) | (43 | ) | (105 | ) | (148 | ) | ||||||||||||||||||||||||||||
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 | 442 | 749 | |||||||||||||||||||||||||||||||||||||
Noncontrolling Interest | 9 | 9 | 18 | 11 | 29 | (2 | ) | 27 | 5 | 7 | 12 | ||||||||||||||||||||||||||||||||||||
Specified items(a) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Noncontrolling Interest excluding specified items | 9 | 9 | 18 | 11 | 29 | (2 | ) | 27 | 5 | 7 | 12 | ||||||||||||||||||||||||||||||||||||
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 | 1,432 | 3,142 | |||||||||||||||||||||||||||||||||||||
Specified items(a) | 61 | 1,273 | 1,334 | (121 | ) | 1,213 | 383 | 1,596 | 94 | 507 | 601 | ||||||||||||||||||||||||||||||||||||
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 | 1,939 | 3,743 | |||||||||||||||||||||||||||||||||||||
Weighted-average Common Shares Outstanding - Diluted- GAAP | 1,640 | 1,636 | 1,638 | 1,636 | 1,637 | 1,637 | 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 | 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 | $ | 0.87 | $ | 1.92 | |||||||||||||||||||||||||||
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 | 0.31 | 0.37 | ||||||||||||||||||||||||||||||||||||
Diluted Earnings Per Share - Non-GAAP | $ | 0.94 | $ | 1.01 | $ | 1.95 | $ | 1.09 | $ | 3.04 | $ | 0.94 | $ | 3.98 | $ | 1.10 | $ | 1.18 | $ | 2.29 | |||||||||||||||||||||||||||
Effective Tax Rate | 16.0 | % | 26.1 | % | 18.2 | % | 11.8 | % | 15.1 | % | 23.1 | % | 17.1 | % | 13.3 | % | 19.0 | % | 16.0 | % | |||||||||||||||||||||||||||
Specified items(a) | 1.2 | % | (8.6 | )% | (0.9 | )% | 1.5 | % | 0.8 | % | (2.6 | )% | — | 1.2 | % | (0.5 | )% | 0.6 | % | ||||||||||||||||||||||||||||
Effective Tax Rate excluding specified items | 17.2 | % | 17.5 | % | 17.3 | % | 13.3 | % | 15.9 | % | 20.5 | % | 17.1 | % | 14.5 | % | 18.5 | % | 16.6 | % |
(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 | $ | 28,404 | |||||||||||||||
Marketable securities - current | 1,428 | 1,076 | 1,422 | 1,973 | 1,429 | 953 | |||||||||||||||||||||
Marketable securities - non-current | 2,252 | 2,117 | 2,017 | 1,775 | 1,233 | 994 | |||||||||||||||||||||
Cash, cash equivalents and marketable securities | 9,022 | 8,192 | 8,847 | 10,659 | 9,997 | 30,351 | |||||||||||||||||||||
Short-term debt obligations | (1,925 | ) | (1,716 | ) | (1,620 | ) | (1,703 | ) | (381 | ) | (545 | ) | |||||||||||||||
Long-term debt | (5,775 | ) | (5,671 | ) | (5,687 | ) | (5,646 | ) | (5,635 | ) | (24,433 | ) | |||||||||||||||
Net cash position | $ | 1,322 | $ | 805 | $ | 1,540 | $ | 3,310 | $ | 3,981 | $ | 5,373 |
Full Year 2019 | ||||||||
Pre-tax | Tax | After-tax | ||||||
Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP | $3.73 to $3.83 | |||||||
Projected Specified Items: | ||||||||
Restructuring, accelerated depreciation and other exit costs(1) | 0.18 | 0.02 | 0.16 | |||||
Divestiture gains and licensing income | (0.79 | ) | (0.11 | ) | (0.68 | ) | ||
Research and development license and asset acquisition charges | 0.03 | — | 0.03 | |||||
Pension charges | 0.95 | 0.21 | 0.74 | |||||
Equity investment gains | (0.10 | ) | (0.02 | ) | (0.08 | ) | ||
Acquisition and integration expenses(2) | 0.39 | 0.09 | 0.30 | |||||
Total | 0.66 | 0.19 | 0.47 | |||||
Projected Diluted Earnings Attributable to Shareholders per Common Share - Non-GAAP | $4.20 to $4.30 | |||||||
(1) Includes items recognized in Cost of products sold, Research and development and Other income (net). | ||||||||
(2) Includes acquisition-related financing, transaction and integration expenses. | ||||||||
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 low-double digits | Increasing in the mid-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, research and development license and asset acquisition charges, pension charges, interest expense on the new notes issued in May 2019 in connection with our pending acquisition of Celgene and interest income earned on the net proceeds of those notes, among other items. 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 2019, and other specified items that have not yet been identified and quantified, including litigation and other settlements, licensed asset impairments and equity investment gains or losses, 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 Second Quarter Financial Results on July 25, 2019, including “2019 Financial Guidance” and “Use of non-GAAP Financial Information” therein. |
G)E4WI.5&-Z:V,Y9"(_/@H\
M>#IX;7!M971A('AM;&YS.G@](F%D;V)E.FYS.FUE=&$O(B!X.GAM<'1K/2(S
M+C$N,2TQ,3$B/@H@(" \ ;.X86#2*ES'7ME@)HX8<"R@EXSQ5P#P)!V_/Y_
M!HZ[^6SO2LC$%5%_I$ZEK:"ITI*%\^Y88TJJ:0@Z&EI*EU#+8F.0CZ$^\+ON
MZZX_=&Q0U!^FN 1]B<#^8_:.L\/O/>'+[1;A(*,/J[8J?MD&1]H)_(]5+?\
M"9[J[;F?[C^27;64QE'6[@ZXV1L7:^UJVIBBFFPQ[%R>Z)\Y5X_R*S4M;4T.
MRTIC,EG%/-+'?1*X:8OO3[M=6VR ^+]?E*Q,/@-U)F\+28#(&M:3-0
M]:=B+CZ^@QC2UU3B7;KJ%9(V'FK"HJ/(C@
MP.58$'(Z(1_*R_YD_P#(/_Q>?Y??^_;RON0_=O\ Y+7+?_BO[=_VCKU&7LM_
MR0>:?_%DW3_M*;H _GSW-LGM'M?)=/[SR/C^*?PQP6#^3?S;KX2DM+O/
QM_]E[MJ,D],6WEN/+9ZH@KWG--]E04E=52TN-19CXT@ITBB3]*J!Q[Z9;1
MLNP;!9+%LFV6UK9A:_I(J BE:D@5;&:DDGS/7*#>]^YCYDOFFW_=KJ\OB]/U
M9&
V.M
_=>Z][]U[KWOW7NO>_=>Z]
M[]U[I ]K;_H>J.K^Q^T
$G,%RGZ+S1%HPX5RJBK"*>9.>]TY2YLV#F[FW8&VOF&!?I;PQ$RV.
MXV+M4R6TXX7%J_ZR03!92A>,,QHIV.L/E\7N#$XO/8/(4F6PN;QU%E\1E*">
M.IH->[=RX1=[A([%_K][D%+>
MTU&NJ*U)":1VHJR50!J]11:PR;HMLG+5BMCN?- :SVV*- G[NV")JW-YI &B
M6[ ,FINYV>/2Y*TZ"GI7IW8?1>R.P\KFL?4TGPO[]^2GR(^#_P DZ.&QG_ $ZOE/\ YIR_
M]I$O4'?>$_Z?#SG_ ,U(?^T:'K93^(&X?F;M;^4+\1\Y\)]E]1[^[ Q^"W?5
M;DVUVM69JE;);:I]Z[_E6EV:F-RV H*G<=1DDB0)75U-"8R0I+$6Q
2!K_:R(Z'):W>I
MB/S"T:*GDJK7CUAY]Y_DAN6.>H^9K&,IMV[J9:C 6YCH)A4<"]4EKQ+.].'6
MU-_++^5^-GCC(L&?QH/3P9:LH'^D.J,GU0]9J^SW.PY]Y
M V/>Y) VY*G@W/J)X@%
)9;_Q#G6'_ %IS7OH1]VW_ *=I#_SVS_X5ZYH?>G_Z>M/_
M ,\%O_@?K<"_E\?]D*_#_P#\5NZ<_P#>#P?O"SW(_P"G@&"MBB<256+R--#]U3G0T;
MYRW4W*7OOR'<6-CN(220*],&:UG7(UQU!(!)4D461&;0V:CGS9P\Z?=V]Q;;
M<-PVQGCC9TU9$%Y;OAO#DH0"0 X!JT
_
M_"E/XNT>P:C(]>=,=U9[LJ;'R?P_:^ZZ79^W-JT>6: ^/^+[IQFZMP5\N-AJ
M2+FFQSRRH+6C)N,0[#[KG-C[BL6Y;Y81[6&S)&9'D*U_#&T:#41_$X /KUFQ
MN/WN^3(]K:7:N7]QEW
H'>G"CJIKT"N?^5&YNY=GL;2?P-[@=;BS
MF\X;N$ZH7!]">Q^-8W84Z"_K;Y&0_)WX-=D;_P AB/[J=AX7K;MOK[NGK^8E
M:_KGN79&V,QAM_[/K87=YH4I,M$:BC+DO+CZFGE/Z_9MNG+++,0!D]:KW\IFAWK_,4_F5]T?/[MRA=\
M'U3$]7LW$S:ZG%;>W%N>FKMM=:[2QK2Z89H-C;$HZZ=W10YR(@JG DF+'+CW
MBDL?;/VMV+VYV:3_ !B\-)6&&=(R'GD;S!EE*@ XT:D&%ZPL]CH]Q]U_=[F'
MW0WV.MM9"L2G*I)(#';Q+7!$,(=B1G7I
9N;8[)UCYKYFW&Y@AD/_$3;(W/UEVQKV^)I9%)H=",
M5:IIU$^S
VW.VW>W.\\PP-#8;HJ;7OT3+H:WO%'^)[D4(!0L0&9B JNL@
MRQZBV[VFZV6Y78^6;A9MRVAGW?EV56#K=6+G_'MK$@)#A02J*"6:-HF[5'25
MP?RFR_>O<'S$VK\4LK+2=E?S%-W_ !)VEUWFRROD^J.O8?C!19+OWL;-T]+,
MLU+6=38&HFQK%'CD3-3Q>(L\>DK+CE&'E_9>2;SF^(':^68=QDF7\-Q,;\K:
M0H2*$7#@/D$>$#7!KTBMN=)^9=^Y^LN29RN[\US[9% _XK: ;<&O9W -0;9"
M8\$$2E=-2*=;(?3'4>R>A>J=@]-=