ALLIANCES

9 Months Ended

Sep. 30, 2021

ALLIANCES [Abstract]

Collaborative Arrangement Disclosure [Text Block]

ALLIANCESBMS enters into collaboration arrangements with third parties for the development and commercialization of certain products. Although each of these arrangements is unique in nature, both parties are active participants in the operating activities of the collaboration and exposed to significant risks and rewards depending on the commercial success of the activities. BMS may either in-license intellectual property owned by the other party or out-license its intellectual property to the other party. These arrangements also typically include research, development, manufacturing, and/or commercial activities and can cover a single investigational compound or commercial product or multiple compounds and/or products in various life cycle stages. The rights and obligations of the parties can be global or limited to geographic regions. BMS refers to these collaborations as alliances and its partners as alliance partners.

Selected financial information pertaining to alliances was as follows, including net product sales when BMS is the principal in the third-party customer sale for products subject to the alliance. Expenses summarized below do not include all amounts attributed to the activities for the products in the alliance, but only the payments between the alliance partners or the related amortization if the payments were deferred or capitalized.

	Three Months Ended September 30,				Nine Months Ended September 30,
Dollars in Millions	2021		2020		2021		2020
Revenues from alliances:
Net product sales	$	2,452	$	2,116	$	8,139	$	7,040
Alliance revenues	194		184		495		452
Total Revenues	$	2,646	$	2,300	$	8,634	$	7,492
Payments to/(from) alliance partners:
Cost of products sold	$	1,181	$	1,007	$	3,924	$	3,363
Marketing, selling and administrative	(43)		(25)		(140)		(103)
Research and development	10		48		753		327
Other (income)/expense, net	1		(28)		(18)		(59)

Dollars in Millions	September 30, 2021		December 31, 2020
Selected Alliance Balance Sheet information:
Receivables – from alliance partners	$	314	$	343
Accounts payable – to alliance partners	1,101		1,093
Deferred income from alliances(a)	344		366

(a)    Includes unamortized upfront and milestone payments.

Specific information pertaining to significant alliances including their nature and purpose; the significant rights and obligations of the parties; and specific accounting policy elections are discussed in the 2020 Form 10-K.

Eisai

In the second quarter of 2021, BMS and Eisai commenced an exclusive global strategic collaboration for the co-development and co-commercialization of MORAb-202, a selective folate receptor alpha antibody-drug conjugate being investigated in endometrial, ovarian, lung and breast cancers. MORAb-202 is currently in Phase I/II clinical trials for solid tumors.

BMS and Eisai will jointly develop and commercialize MORAb-202 in the U.S., Canada, Europe, Russia, Japan, China and certain other countries in the Asia-Pacific region (the “collaboration territory”). Eisai will be responsible for the global manufacturing and supply. Profits, research and development and commercialization costs are shared in the collaboration territories. BMS will be responsible for development and commercialization outside of the collaboration territory and will pay a royalty on those sales.

A $650 million up-front collaboration fee was included in Research and development expense in the second quarter of 2021. BMS is also obligated to pay up to $2.5 billion upon the achievement of contingent development, regulatory and sales-based milestones.