UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act Of 1934
Date of Report (Date of earliest event reported): January 24, 2013
BRISTOL-MYERS SQUIBB COMPANY
(Exact Name of Registrant as Specified in its Charter)
Delaware | 1-1136 | 22-079-0350 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) |
345 Park Avenue
New York, NY, 10154
(Address of Principal Executive Office)
Registrants telephone number, including area code: (212) 546-4000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | 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.
On January 24, 2013, Bristol-Myers Squibb Company (the Company) issued a press release announcing its financial results for the fourth quarter and twelve months of 2012. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference. Also furnished and incorporated by reference as Exhibit 99.2 is certain supplemental information posted on the Companys website at www.bms.com.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 | Press release of Bristol-Myers Squibb Company dated January 24, 2013. | |
99.2 | Certain supplemental information posted on Bristol-Myers Squibb Companys website at www.bms.com not included in the press release. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BRISTOL-MYERS SQUIBB COMPANY | ||||||||
Dated: January 24, 2013 | By: | /s/ SANDRA LEUNG | ||||||
Name: | Sandra Leung | |||||||
Title: | General Counsel and Corporate Secretary |
EXHIBIT INDEX
Exhibit No. |
Description | |
99.1 | Press release of Bristol-Myers Squibb Company dated January 24, 2013. | |
99.2 | Certain supplemental information posted on Bristol-Myers Squibb Companys website at www.bms.com not included in the press release. |
Exhibit 99.1
Bristol-Myers Squibb Reports Fourth Quarter and Full Year 2012 Financial Results
| Significant Regulatory Approvals Gained in Fourth Quarter |
|
Eliquis® Approved in the U.S., Europe, Japan, Canada and South Korea to Reduce the Risk of Stroke in Patients with Nonvalvular Atrial Fibrillation |
|
Forxiga® Approved in Europe for Type 2 Diabetes |
| GAAP EPS Increased 12% to $0.56; Non-GAAP EPS Decreased 11% to $0.47 in the Fourth Quarter |
| Company Provided 2013 GAAP EPS Guidance Range of $1.54 to $1.64; non-GAAP EPS Guidance Range of $1.78 to $1.88 |
(NEW YORK, January 24, 2013) Bristol-Myers Squibb Company (NYSE: BMY) today announced results for the fourth quarter of 2012 highlighted by regulatory approvals for Eliquis® and Forxiga®. This concluded a year in which the Company delivered growth of its key products as it transitioned to its promising future portfolio. In addition, the company provided financial guidance for 2013.
With regulatory approvals for Eliquis and Forxiga and good operating performance in the fourth quarter, Bristol-Myers Squibb had a strong finish to an important year of transition, said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb. In 2012 we continued to effectively execute our strategy, and continued to build the post-Plavix portfolio and operating structure that provide a solid foundation for our future growth. As we begin 2013, I am looking forward to our many opportunities, including the growth of the existing key brands, the execution of the new launches, and the continued delivery of a diverse and sustainable R&D pipeline.
Fourth Quarter | ||||||||||||
$ amounts in millions, except per share amounts | 2012 | 2011 | Change | |||||||||
Net Sales |
$ | 4,191 | $ | 5,454 | (23)% | |||||||
GAAP Diluted EPS |
0.56 | 0.50 | 12% | |||||||||
Non-GAAP Diluted EPS |
0.47 | 0.53 | (11)% | |||||||||
Full Year | ||||||||||||
$ amounts in millions, except per share amounts | 2012 | 2011 | Change | |||||||||
Net Sales |
$ | 17,621 | $ | 21,244 | (17)% | |||||||
GAAP Diluted EPS |
1.16 | 2.16 | (46)% | |||||||||
Non-GAAP Diluted EPS |
1.99 | 2.28 | (13)% |
1
FOURTH QUARTER FINANCIAL RESULTS
| Bristol-Myers Squibb posted fourth quarter 2012 net sales of $4.2 billion, a decrease of 23% compared to the same period a year ago, following the U.S. patent expiration of Avapro®/Avalide® in March 2012 and Plavix® in May 2012. Excluding Plavix and Avapro/Avalide, net sales grew by 13% compared to the fourth quarter of 2011. |
| U.S. net sales decreased 38% to $2.2 billion in the quarter, compared to the same period a year ago. International net sales increased 6% to $2.0 billion. |
| Gross margin as a percentage of net sales was 74.3% in the quarter, compared to 74.9% in the same period a year ago. |
| Marketing, selling and administrative expenses decreased 6% to $1.1 billion in the quarter. |
| Advertising and product promotion spending decreased 26% to $212 million in the quarter. |
| Research and development expenses increased 7% to $1.1 billion in the quarter. |
| The Company reported an overall tax benefit rate of 80.1% attributed to a capital loss deduction in the quarter. The effective tax rate on earnings before income taxes was 22.8% in the fourth quarter last year. |
| The Company reported net earnings attributable to Bristol-Myers Squibb of $925 million, or $0.56 per share, in the quarter compared to $852 million, or $0.50 per share, a year ago. |
| The Company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $777 million, or $0.47 per share, in the fourth quarter, compared to $906 million, or $0.53 per share, for the same period in 2011. An overview of specified items is discussed under the Use of Non-GAAP Financial Information section. |
| Cash, cash equivalents and marketable securities were $6.4 billion, with a net debt position of $1.0 billion, as of December 31, 2012. |
2
FOURTH QUARTER PRODUCT AND PIPELINE UPDATE
Bristol-Myers Squibbs global sales in the fourth quarter included Orencia®, which grew 26%, Yervoy®, which grew 47%, Sprycel®, which grew 24%, Onglyza®/Kombiglyze, which grew 29%, and Baraclude®, which grew 13%.
Eliquis
| In December, the U.S. Food and Drug Administration (FDA) approved Eliquis to reduce the risk of stroke and systemic embolism in patients with nonvalvular atrial fibrillation. Eliquis also received regulatory approval for this indication in Japan and Canada in December, in Europe in November, and in South Korea in January. The Company co-develops and co-commercializes Eliquis with its partner, Pfizer. |
| In December, at the 54th Annual Meeting of the American Society of Hematology in Atlanta, results of the Phase III AMPLIFY-EXT trial were announced in which Eliquis demonstrated superiority versus placebo in reducing symptomatic, recurrent venous thromboembolism and all-cause death versus placebo without increasing the rate of major bleeding during one year of extended treatment. The data were also published in The New England Journal of Medicine. |
Forxiga
| In November, the European Commission approved Forxiga for the treatment of type 2 diabetes in the European Union. The Company co-develops and co-commercializes Forxiga with its partner, AstraZeneca. |
Orencia
| In November, at the 2012 American College of Rheumatology Annual Scientific Meeting in Washington, D.C., results were presented showing the subcutaneous formulation of Orencia, on a background of methotrexate (MTX), was similar to Humira® (adalimumab) plus MTX in demonstrating clinical improvements in patient-reported outcomes that were sustained for one year among adults with moderate to severe rheumatoid arthritis. |
3
Elotuzumab
| In December, at the 54th Annual Meeting of the American Society of Hematology in Atlanta, the Company and its partner, Abbott, presented encouraging results from a small, randomized, Phase II open-label study of patients with previously treated multiple myeloma which showed that in patients treated with elotuzumab 10mg/kg plus lenalidomide and low-dose dexamethasone progression-free survival was not reached after 20.8 months of follow up and the objective response rate was 92%. |
Hepatitis C
| In November, at the American Association for the Study of Liver Diseases congress in Boston, data from several Phase II clinical trials involving various investigational compounds for the treatment of hepatitis C virus (HCV) within the Companys pipeline were presented, including: |
| An investigational treatment regimen of three direct-acting antiviralsdaclatasvir, an NS5A replication complex inhibitor, asunaprevir, an NS3 protease inhibitor, and BMS-791325, an NS5B non-nucleoside polymerase inhibitorachieved sustained virologic response 12 weeks post-treatment in 94 percent of treatment-naïve, genotype 1 chronic HCV patients. |
| The investigational dual regimen of daclatasvir and asunaprevir, without interferon or ribavirin, achieved high rates of sustained virologic response 12 weeks post-treatment in patients with genotype 1b hepatitis C virus who were prior null responders to alfa interferon and ribavirin. |
Phase II data on an investigational quadruple therapy regimen combining daclatasvir, asunaprevir, alfa interferon and ribarvirin, and first-time interim Phase IIb results on peginterferon lambda-1a in combination with daclatasvir and ribavirin were also presented.
4
FOURTH QUARTER BUSINESS DEVELOPMENT UPDATE
| In November, the Company and its partner, Pfizer, announced a clinical collaboration agreement with Portola Pharmaceuticals to conduct a proof-of-concept study of PRT4445, a universal Factor Xa inhibitor antidote, and Eliquis, an oral Factor Xa inhibitor. |
| In December, the Company announced a global license agreement and two-year collaboration with The Medicines Company under which The Medicines Company will assume responsibility for the worldwide sales, distribution, marketing, and regulatory activities for Recothrom®, the surgical hemostat product Bristol-Myers Squibb acquired in 2010 through its acquisition of ZymoGenetics. |
2013 FINANCIAL GUIDANCE
Bristol-Myers Squibb is setting its 2013 GAAP EPS guidance range from $1.54 to $1.64 and its non-GAAP EPS guidance range from $1.78 to $1.88. Both GAAP and non-GAAP guidance assume current exchange rates. Key 2013 non-GAAP guidance assumptions include:
| Worldwide sales between $16.2 billion and $17.0 billion. |
| Full-year gross margin as a percentage of sales between 72% and 73%. |
| Advertising and promotion expense increasing in the high single digit range. |
| Marketing, sales and administrative expenses remaining flat versus last year. |
| Research and development expenses growing in the low-single-digit range. |
| An effective tax rate of approximately 16%. |
It is estimated that 30% to 40% of the research and development expenses in 2013 will be incurred on late-stage development programs. Total research and development expenses include the costs of discovery research, preclinical development, early- and late-clinical development and drug formulation, as well as clinical trials and medical support of marketed products, proportionate allocations of enterprise-wide costs, and other appropriate costs. Late-stage development expenses refer to our investigational compounds that are in Phase III clinical development and our marketed products that are in Phase III development for additional indications or formulations.
5
The financial guidance for 2013 excludes the impact of any potential strategic acquisitions and divestitures, and any specified items that have not yet been identified and quantified. The non-GAAP 2013 guidance also excludes other specified items as discussed under Use of Non-GAAP Financial Information. Details reconciling adjusted non-GAAP amounts with the amounts reflecting specified items are provided in supplemental materials available on the Companys website.
Use of Non-GAAP Financial Information
This press release contains non-GAAP financial measures, including non-GAAP earnings and related earnings per share information. These measures are adjusted to exclude certain costs, expenses, significant gains and losses and other specified items. Among the items in GAAP measures but excluded for purposes of determining adjusted earnings and other adjusted measures are: restructuring and other exit costs; accelerated depreciation charges; IPRD and asset impairments; charges and recoveries relating to significant legal proceedings; upfront, milestone and other licensing payments for in-licensing of products that have not achieved regulatory approval which are immediately expensed; net amortization of acquired intangible assets and deferred income related to Amylin; pension settlement charges; and significant tax events. This information is intended to enhance an investors overall understanding of the companys past financial performance and prospects for the future. Non-GAAP financial measures provide the company and its investors with an indication of the companys baseline performance before items that are considered by the company not to be reflective of the companys ongoing results. The company uses non-GAAP gross profit, non-GAAP marketing, selling and administrative expense, non-GAAP research and development expense, and non-GAAP other income and expense measures to set internal budgets, manage costs, allocate resources, and plan and forecast future periods. Non-GAAP effective tax rate measures are primarily used to plan and forecast future periods. Non-GAAP earnings and earnings per share measures are primary indicators the company uses as a basis for evaluating company performance, setting incentive compensation targets, and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.
Statement on Cautionary Factors
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to goals, plans and projections regarding the companys financial position, results of operations, market position, product development and business strategy. These statements may be identified by the fact that they use words such as anticipate, estimates, should, expect, guidance, project, intend, plan, believe and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. These factors include, among other things, effects of the continuing implementation of governmental laws and regulations related to Medicare, Medicaid, Medicaid managed care organizations and entities under the Public Health Service 340B program, pharmaceutical rebates and reimbursement, market factors, competitive product development and approvals, pricing controls and pressures (including changes in rules and practices of managed care groups and institutional and governmental purchasers), economic conditions such as interest rate and currency exchange rate fluctuations, judicial decisions, claims and concerns that may arise regarding the safety and efficacy of in-line products and product candidates, changes to wholesaler inventory levels, variability in data provided by third parties, changes in, and interpretation of, governmental regulations and legislation affecting domestic or foreign operations, including tax obligations, changes to business or tax planning strategies, difficulties and delays in product development, manufacturing or sales including any potential future recalls, patent positions and the ultimate outcome of any litigation matter. These factors also include the companys ability to execute successfully its strategic plans, including its String of Pearls strategy, the expiration of patents or data protection on certain products, and the impact and result of governmental investigations. There can be no guarantees with respect to pipeline products that future clinical studies will support the data described in this release, that the products will receive necessary regulatory approvals, or that they will prove to be commercially successful; nor are there guarantees that regulatory approvals will be sought, or sought within currently expected timeframes, or that contractual milestones will be achieved. For further details and a discussion of these and other risks and uncertainties, see the companys periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
6
Company and Conference Call Information
Bristol-Myers Squibb is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. For more information, please visit http://www.bms.com or follow us on Twitter at http://twitter.com/bmsnews.
There will be a conference call on January 24, 2013, at 10:30 a.m. ET during which company executives will review financial information and address inquiries from investors and analysts. Investors and the general public are invited to listen to a live webcast of the call at http://investor.bms.com or by dialing 913-981-5581, confirmation code: 8041448. Materials related to the call will be available at the same website prior to the call.
For more information, contact: Jennifer Fron Mauer, 609-252-6579, Communications; or John Elicker, 609-252-4611, Investor Relations.
Abilify® is a trademark of Otsuka Pharmaceutical Co., Ltd.
Atripla® is a trademark of Bristol-Myers Squibb Co. and Gilead Sciences, Inc.
Avapro®, Avalide®, and Plavix® are trademarks of Sanofi.
Byetta® and Bydureon® are trademarks of Amylin Pharmaceuticals, LLC and AstraZeneca Pharmaceuticals LP.
Erbitux® is a trademark of ImClone LLC. ImClone Systems is a wholly-owned subsidiary of Eli Lilly and Company.
Humira® is a trademark of Abbott Biotechnology Ltd.
All | other brand names are registered trademarks of the Company or one of its subsidiaries. |
7
BRISTOL-MYERS SQUIBB COMPANY
SELECTED PRODUCTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2012 AND 2011
(Unaudited, dollars in millions)
The following table sets forth worldwide and U.S. reported net sales for selected products. In addition, the table includes, where applicable, the estimated total U.S. prescription change for the retail and mail-order channels for the comparative periods presented for certain of the companys U.S. pharmaceutical products based on third-party data. A significant portion of the companys U.S. pharmaceutical sales is made to wholesalers. Where changes in reported net sales differ from prescription growth, this change in net sales may not reflect underlying prescriber demand.
Worldwide Net Sales | U.S. Net Sales | |||||||||||||||||||||||||||
2012 | 2011 | % Change |
2012 | 2011 | % Change |
% Change in U.S. Total Prescriptions vs. 2011 |
||||||||||||||||||||||
Three Months Ended December 31, |
||||||||||||||||||||||||||||
Key Products |
||||||||||||||||||||||||||||
Plavix |
$ | 49 | $ | 1,672 | (97)% | $ | 20 | $ | 1,582 | (99)% | (96)% | |||||||||||||||||
Avapro/Avalide |
84 | 195 | (57)% | 16 | 114 | (86)% | (91)% | |||||||||||||||||||||
Eliquis |
1 | | N/A | | | N/A | N/A | |||||||||||||||||||||
Abilify |
819 | 737 | 11% | 617 | 559 | 10% | | |||||||||||||||||||||
Reyataz |
394 | 416 | (5)% | 199 | 209 | (5)% | (8)% | |||||||||||||||||||||
Sustiva Franchise |
383 | 412 | (7)% | 253 | 278 | (9)% | (3)% | |||||||||||||||||||||
Baraclude |
360 | 318 | 13% | 65 | 58 | 12% | 11% | |||||||||||||||||||||
Erbitux |
171 | 181 | (6)% | 167 | 178 | (6)% | N/A | |||||||||||||||||||||
Sprycel |
281 | 227 | 24% | 109 | 88 | 24% | 20% | |||||||||||||||||||||
Yervoy |
211 | 144 | 47% | 141 | 119 | 18% | N/A | |||||||||||||||||||||
Orencia |
325 | 257 | 26% | 216 | 172 | 26% | N/A | |||||||||||||||||||||
Nulojix |
4 | 1 | * | 3 | 1 | * | N/A | |||||||||||||||||||||
Onglyza/Kombiglyze |
198 | 153 | 29% | 140 | 114 | 23% | 28% | |||||||||||||||||||||
Byetta |
94 | | N/A | 92 | | N/A | N/A | |||||||||||||||||||||
Bydureon |
58 | | N/A | 55 | | N/A | N/A | |||||||||||||||||||||
Mature Products and All Other |
759 | 741 | 2% | 145 | 132 | 10% | N/A | |||||||||||||||||||||
Total |
4,191 | 5,454 | (23)% | 2,238 | 3,604 | (38)% | N/A | |||||||||||||||||||||
Total excluding Plavix and Avapro/Avalide |
4,058 | 3,587 | 13% | 2,202 | 1,908 | 15% | N/A |
* | In excess of +/- 100% |
8
BRISTOL-MYERS SQUIBB COMPANY
SELECTED PRODUCTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011
(Unaudited, dollars in millions)
Worldwide Net Sales | U.S. Net Sales | |||||||||||||||||||||||||||
2012 | 2011 | % Change |
2012 | 2011 | % Change |
% Change in U.S.
Total Prescriptions vs. 2011 |
||||||||||||||||||||||
Twelve Months Ended December 31, |
||||||||||||||||||||||||||||
Key Products |
||||||||||||||||||||||||||||
Plavix |
$ | 2,547 | $ | 7,087 | (64)% | $ | 2,424 | $ | 6,709 | (64)% | (60)% | |||||||||||||||||
Avapro/Avalide |
503 | 952 | (47)% | 155 | 549 | (72)% | (71)% | |||||||||||||||||||||
Eliquis |
2 | | N/A | | | N/A | N/A | |||||||||||||||||||||
Abilify |
2,827 | 2,758 | 3% | 2,102 | 2,052 | 2% | 1% | |||||||||||||||||||||
Reyataz |
1,521 | 1,569 | (3)% | 783 | 771 | 2% | (5)% | |||||||||||||||||||||
Sustiva Franchise |
1,527 | 1,485 | 3% | 1,016 | 950 | 7% | (1)% | |||||||||||||||||||||
Baraclude |
1,388 | 1,196 | 16% | 241 | 208 | 16% | 11% | |||||||||||||||||||||
Erbitux |
702 | 691 | 2% | 688 | 681 | 1% | N/A | |||||||||||||||||||||
Sprycel |
1,019 | 803 | 27% | 404 | 299 | 35% | 29% | |||||||||||||||||||||
Yervoy |
706 | 360 | 96% | 503 | 323 | 56% | N/A | |||||||||||||||||||||
Orencia |
1,176 | 917 | 28% | 797 | 621 | 28% | N/A | |||||||||||||||||||||
Nulojix |
11 | 3 | * | 9 | 3 | * | N/A | |||||||||||||||||||||
Onglyza/Kombiglyze |
709 | 473 | 50% | 516 | 346 | 49% | 47% | |||||||||||||||||||||
Byetta |
149 | | N/A | 147 | | N/A | N/A | |||||||||||||||||||||
Bydureon |
78 | | N/A | 75 | | N/A | N/A | |||||||||||||||||||||
Mature Products and All Other |
2,756 | 2,950 | (7)% | 524 | 527 | (1)% | N/A | |||||||||||||||||||||
Total |
17,621 | 21,244 | (17)% | 10,384 | 14,039 | (26)% | N/A | |||||||||||||||||||||
Total excluding Plavix and Avapro/Avalide |
14,571 | 13,205 | 10% | 7,805 | 6,781 | 15% | N/A |
* | In excess of +/- 100% |
9
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011
(Unaudited, amounts in millions except per share data)
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net Sales |
$ | 4,191 | $ | 5,454 | $ | 17,621 | $ | 21,244 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost of products sold |
1,075 | 1,367 | 4,610 | 5,598 | ||||||||||||
Marketing, selling and administrative |
1,143 | 1,216 | 4,220 | 4,203 | ||||||||||||
Advertising and product promotion |
212 | 285 | 797 | 957 | ||||||||||||
Research and development |
1,082 | 1,008 | 3,904 | 3,839 | ||||||||||||
Impairment charge for BMS-986094 intangible asset |
| | 1,830 | | ||||||||||||
Other (income)/expense |
166 | (16 | ) | (80 | ) | (334 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
3,678 | 3,860 | 15,281 | 14,263 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings before Income Taxes |
513 | 1,594 | 2,340 | 6,981 | ||||||||||||
Provision for/ (benefit from) income taxes |
(411 | ) | 363 | (161 | ) | 1,721 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Earnings |
924 | 1,231 | 2,501 | 5,260 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Earnings/ (Loss) Attributable to Noncontrolling Interest |
(1 | ) | 379 | 541 | 1,551 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Earnings Attributable to BMS |
$ | 925 | $ | 852 | $ | 1,960 | $ | 3,709 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings per Common Share Attributable to BMS: |
||||||||||||||||
Basic |
$ | 0.56 | $ | 0.50 | $ | 1.17 | $ | 2.18 | ||||||||
Diluted |
$ | 0.56 | $ | 0.50 | $ | 1.16 | $ | 2.16 | ||||||||
Average Common Shares Outstanding: |
||||||||||||||||
Basic |
1,644 | 1,692 | 1,670 | 1,700 | ||||||||||||
Diluted |
1,662 | 1,712 | 1,688 | 1,717 | ||||||||||||
Other (income)/expense |
||||||||||||||||
Interest expense |
$ | 51 | $ | 42 | $ | 182 | $ | 145 | ||||||||
Investment income |
(21 | ) | (22 | ) | (106 | ) | (91 | ) | ||||||||
Provision for restructuring |
103 | 24 | 174 | 116 | ||||||||||||
Litigation charges/(recoveries) |
55 | 75 | (45 | ) | 6 | |||||||||||
Equity in net income of affiliates |
(33 | ) | (66 | ) | (183 | ) | (281 | ) | ||||||||
Out-licensed intangible asset impairment |
| | 38 | | ||||||||||||
Gain on sale of product lines, businesses and assets |
(50 | ) | (1 | ) | (53 | ) | (37 | ) | ||||||||
Other income received from alliance partners, net |
(87 | ) | (33 | ) | (312 | ) | (140 | ) | ||||||||
Pension curtailments and settlements |
155 | 11 | 158 | 10 | ||||||||||||
Other |
(7 | ) | (46 | ) | 67 | (62 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Other (income)/expense |
$ | 166 | $ | (16 | ) | $ | (80 | ) | $ | (334 | ) | |||||
|
|
|
|
|
|
|
|
10
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011
(Unaudited, dollars in millions)
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Accelerated depreciation, asset impairment and other shutdown costs |
$ | | $ | 15 | $ | 147 | $ | 75 | ||||||||
Amortization of acquired Amylin intangible assets |
138 | | 229 | | ||||||||||||
Amortization of Amylin collaboration proceeds |
(68 | ) | | (114 | ) | | ||||||||||
Amortization of inventory fair value adjustment |
14 | | 23 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost of products sold |
84 | 15 | 285 | 75 | ||||||||||||
Stock compensation expense from accelerated vesting of Amylin awards |
| | 67 | | ||||||||||||
Process standardization implementation costs |
2 | 10 | 18 | 29 | ||||||||||||
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|
|
|||||||||
Marketing, selling and administrative |
2 | 10 | 85 | 29 | ||||||||||||
Stock compensation expense from accelerated vesting of Amylin awards |
| | 27 | | ||||||||||||
Upfront, milestone and other licensing payments |
26 | | 47 | 207 | ||||||||||||
IPRD impairment |
39 | | 142 | 28 | ||||||||||||
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|
|||||||||
Research and development |
65 | | 216 | 235 | ||||||||||||
Impairment charge for BMS-986094 intangible asset |
| | 1,830 | | ||||||||||||
Provision for restructuring |
103 | 24 | 174 | 116 | ||||||||||||
Gain on sale of product lines, businesses and assets |
(51 | ) | | (51 | ) | (12 | ) | |||||||||
Pension curtailments and settlements |
151 | 13 | 151 | 13 | ||||||||||||
Out-licensed intangible asset impairment |
| | 38 | | ||||||||||||
Loss on debt repurchase |
| | 27 | | ||||||||||||
Acquisition related items |
1 | | 43 | | ||||||||||||
Litigation charges/(recoveries) |
55 | 75 | (45 | ) | 9 | |||||||||||
Upfront, milestone and other licensing receipts |
(10 | ) | (20 | ) | (10 | ) | (20 | ) | ||||||||
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Other (income)/expense |
249 | 92 | 327 | 106 | ||||||||||||
Increase/(Decrease) to pretax income |
400 | 117 | 2,743 | 445 | ||||||||||||
Income tax on items above |
(156 | ) | (37 | ) | (947 | ) | (136 | ) | ||||||||
Specified tax (benefit)* |
(392 | ) | (26 | ) | (392 | ) | (97 | ) | ||||||||
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Income taxes |
(548 | ) | (63 | ) | (1,339 | ) | (233 | ) | ||||||||
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Increase/(Decrease) to net earnings |
$ | (148 | ) | $ | 54 | $ | 1,404 | $ | 212 | |||||||
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* | The 2012 specified tax benefit relates to a capital loss deduction. The 2011 specified tax benefit relates to releases of tax reserves that were specified in prior periods. |
11
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO GAAP LINE ITEMS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2012 AND 2011
(Unaudited, dollars in millions)
Three months ended December 31, 2012 | GAAP | Specified Items* |
Non GAAP |
|||||||||
Gross Profit |
$ | 3,116 | 84 | $ | 3,200 | |||||||
Marketing, Selling and Administrative |
1,143 | (2 | ) | 1,141 | ||||||||
Research and Development |
1,082 | (65 | ) | 1,017 | ||||||||
Other (income)/expense |
166 | (249 | ) | (83) | ||||||||
Effective Tax Rate |
(80.1)% | 95.1% | 15.0% | |||||||||
Three months ended December 31, 2011 | GAAP | Specified Items* |
Non GAAP |
|||||||||
Gross Profit |
$ | 4,087 | 15 | $ | 4,102 | |||||||
Marketing, Selling and Administrative |
1,216 | (10) | 1,206 | |||||||||
Research and Development |
1,008 | | 1,008 | |||||||||
Other (income)/expense |
(16) | (92) | (108) | |||||||||
Effective Tax Rate |
22.8% | 2.1% | 24.9% |
* | Refer to the Specified Items schedules for further details. |
12
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO GAAP LINE ITEMS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011
(Unaudited, dollars in millions)
Twelve months ended December 31, 2012 | GAAP | Specified Items* |
Non GAAP |
|||||||||
Gross Profit |
$ | 13,011 | 285 | $ | 13,296 | |||||||
Marketing, Selling and Administrative |
4,220 | (85) | 4,135 | |||||||||
Research and Development |
3,904 | (216) | 3,688 | |||||||||
Other (income)/expense |
(80) | (327) | (407) | |||||||||
Effective Tax Rate |
(6.9)% | 30.1% | 23.2% | |||||||||
Twelve months ended December 31, 2011 | GAAP | Specified Items* |
Non GAAP |
|||||||||
Gross Profit |
$ | 15,646 | 75 | $ | 15,721 | |||||||
Marketing, Selling and Administrative |
4,203 | (29) | 4,174 | |||||||||
Research and Development |
3,839 | (235) | 3,604 | |||||||||
Other (income)/expense |
(334) | (106) | (440) | |||||||||
Effective Tax Rate |
24.7% | 1.6% | 26.3% |
* | Refer to the Specified Items schedules for further details. |
13
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF NON-GAAP EPS TO GAAP EPS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011
(Unaudited, amounts in millions except per share data)
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net Earnings Attributable to BMS GAAP |
$ | 925 | $ | 852 | $ | 1,960 | $ | 3,709 | ||||||||
Earnings attributable to unvested restricted shares |
(1 | ) | (1 | ) | (1 | ) | (8 | ) | ||||||||
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Net Earnings used for Diluted EPS Calculation GAAP |
$ | 924 | $ | 851 | $ | 1,959 | $ | 3,701 | ||||||||
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Net Earnings Attributable to BMS GAAP |
$ | 925 | $ | 852 | $ | 1,960 | $ | 3,709 | ||||||||
Specified Items* |
(148 | ) | 54 | 1,404 | 212 | |||||||||||
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Net Earnings - Non-GAAP |
777 | 906 | 3,364 | 3,921 | ||||||||||||
Earnings attributable to unvested restricted shares |
(1 | ) | (1 | ) | (1 | ) | (8 | ) | ||||||||
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Net Earnings used for Diluted EPS Calculation - Non-GAAP |
$ | 776 | $ | 905 | $ | 3,363 | $ | 3,913 | ||||||||
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Average Common Shares Outstanding - Diluted |
1,662 | 1,712 | 1,688 | 1,717 | ||||||||||||
Diluted EPS - GAAP |
$ | 0.56 | $ | 0.50 | $ | 1.16 | $ | 2.16 | ||||||||
Diluted EPS Attributable to Specified Items |
(0.09) | 0.03 | 0.83 | 0.12 | ||||||||||||
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Diluted EPS - Non-GAAP |
$ | 0.47 | $ | 0.53 | $ | 1.99 | $ | 2.28 | ||||||||
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* | Refer to the Specified Items schedules for further details. |
14
BRISTOL-MYERS SQUIBB COMPANY
NET DEBT CALCULATION
AS OF DECEMBER 31, 2012 AND SEPTEMBER 30, 2012
(Unaudited, dollars in millions)
December 31, 2012 |
September 30, 2012 |
|||||||
Cash and cash equivalents |
$ | 1,656 | $ | 1,503 | ||||
Marketable securitiescurrent |
1,173 | 1,427 | ||||||
Marketable securitieslong-term |
3,523 | 3,698 | ||||||
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|
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Cash, cash equivalents and marketable securities |
6,352 | 6,628 | ||||||
Short-term borrowings |
(826 | ) | (751 | ) | ||||
Long-term debt |
(6,568 | ) | (6,608 | ) | ||||
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Net debt position |
$ | (1,042 | ) | $ | (731 | ) | ||
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15
Exhibit 99.2
BRISTOL-MYERS SQUIBB COMPANY
QUARTERLY TREND ANALYSIS OF SALES
($ in millions)
Net Sales | 2011 | 2012 | % 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 | |||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 5,011 | $ | 5,434 | $ | 10,445 | $ | 5,345 | $ | 15,790 | $ | 5,454 | $ | 21,244 | $ | 5,251 | $ | 4,443 | $ | 9,694 | $ | 3,736 | $ | 13,430 | $ | 4,191 | $ | 17,621 | (23)% | (17)% | (1)% | (2)% | ||||||||||||||||||||||||||||||||
US and Puerto Rico |
3,295 | 3,614 | 6,909 | 3,526 | 10,435 | 3,604 | 14,039 | 3,501 | 2,629 | 6,130 | 2,016 | 8,146 | 2,238 | 10,384 | (38)% | (26)% | | | ||||||||||||||||||||||||||||||||||||||||||||||
Europe |
907 | 1,004 | 1,911 | 996 | 2,907 | 972 | 3,879 | 922 | 926 | 1,848 | 858 | 2,706 | 1,000 | 3,706 | 3% | (4)% | (3)% | (7)% | ||||||||||||||||||||||||||||||||||||||||||||||
Rest of the World |
785 | 795 | 1,580 | 803 | 2,383 | 854 | 3,237 | 748 | 811 | 1,559 | 787 | 2,346 | 858 | 3,204 | | (1)% | (1)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Other |
24 | 21 | 45 | 20 | 65 | 24 | 89 | 80 | 77 | 157 | 75 | 232 | 95 | 327 | * | * | | | ||||||||||||||||||||||||||||||||||||||||||||||
% of Total Sales | 2011 | 2012 | Basis Point 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 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total |
100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | | | ||||||||||||||||||||||||||||||||||||||||||||||||
US and Puerto Rico |
65.7% | 66.5% | 66.1% | 66.0% | 66.1% | 66.1% | 66.1% | 66.7% | 59.2% | 63.2% | 54.0% | 60.7% | 53.4% | 58.9% | (1270) | (720) | ||||||||||||||||||||||||||||||||||||||||||||||||
Europe |
18.1% | 18.5% | 18.3% | 18.6% | 18.4% | 17.8% | 18.3% | 17.6% | 20.8% | 19.1% | 23.0% | 20.1% | 23.9% | 21.0% | 610 | 270 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of the World |
15.7% | 14.6% | 15.1% | 15.0% | 15.1% | 15.6% | 15.2% | 14.2% | 18.3% | 16.1% | 21.0% | 17.5% | 20.5% | 18.2% | 490 | 300 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other |
0.5% | 0.4% | 0.5% | 0.4% | 0.4% | 0.5% | 0.4% | 1.5% | 1.7% | 1.6% | 2.0% | 1.7% | 2.2% | 1.9% | 170 | 150 |
* | in excess of +/- 100% |
1
BRISTOL-MYERS SQUIBB COMPANY
SALES AND COMPOSITION OF CHANGE IN SALES
FOR THE PERIOD ENDED DECEMBER 31, 2012
($ in millions)
QUARTER-TO-DATE |
Net Sales | Analysis of % Change | ||||||||||||||||||||||
2012 | 2011 | Total Change | Volume | Price | Foreign Exchange | |||||||||||||||||||
US and Puerto Rico |
$ | 2,238 | $ | 3,604 | (38)% | (39)% | 1% | | ||||||||||||||||
Europe |
1,000 | 972 | 3% | 7% | (1)% | (3)% | ||||||||||||||||||
Rest of the World |
858 | 854 | | 3% | (2)% | (1)% | ||||||||||||||||||
Other |
95 | 24 | * | N/A | N/A | | ||||||||||||||||||
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Total |
$ | 4,191 | $ | 5,454 | (23)% | (23)% | 1% | (1)% | ||||||||||||||||
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YEAR-TO-DATE |
Net Sales | Analysis of % Change | ||||||||||||||||||||||
2012 | 2011 | Total Change | Volume | Price | Foreign Exchange | |||||||||||||||||||
US and Puerto Rico |
$ | 10,384 | $ | 14,039 | (26)% | (30)% | 4% | | ||||||||||||||||
Europe |
3,706 | 3,879 | (4)% | 6% | (3)% | (7)% | ||||||||||||||||||
Rest of the World |
3,204 | 3,237 | (1)% | 2% | (1)% | (2)% | ||||||||||||||||||
Other |
327 | 89 | * | N/A | N/A | | ||||||||||||||||||
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Total |
$ | 17,621 | $ | 21,244 | (17)% | (17)% | 2% | (2)% | ||||||||||||||||
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* | in excess of +/- 100% |
2
BRISTOL-MYERS SQUIBB COMPANY
EARNINGS FROM OPERATIONS
($ in millions, except per share amounts)
2011 | 2012 | % 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 Sales |
$ | 5,011 | $ | 5,434 | $ | 10,445 | $ | 5,345 | $ | 15,790 | $ | 5,454 | $ | 21,244 | $ | 5,251 | $ | 4,443 | $ | 9,694 | $ | 3,736 | $ | 13,430 | $ | 4,191 | $ | 17,621 | (23)% | (17)% | ||||||||||||||||||||||||||||||||||
Cost of products sold |
1,343 | 1,481 | 2,824 | 1,407 | 4,231 | 1,367 | 5,598 | 1,303 | 1,245 | 2,548 | 987 | 3,535 | 1,075 | 4,610 | (21)% | (18)% | ||||||||||||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative |
928 | 1,040 | 1,968 | 1,019 | 2,987 | 1,216 | 4,203 | 1,002 | 1,004 | 2,006 | 1,071 | 3,077 | 1,143 | 4,220 | (6)% | | ||||||||||||||||||||||||||||||||||||||||||||||||
Advertising and product promotion |
214 | 253 | 467 | 205 | 672 | 285 | 957 | 194 | 224 | 418 | 167 | 585 | 212 | 797 | (26)% | (17)% | ||||||||||||||||||||||||||||||||||||||||||||||||
Research and development |
935 | 923 | 1,858 | 973 | 2,831 | 1,008 | 3,839 | 909 | 962 | 1,871 | 951 | 2,822 | 1,082 | 3,904 | 7% | 2% | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charge for BMS-986094 intangible asset |
| | | | | | | | | | 1,830 | 1,830 | | 1,830 | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Other (income)/expense |
(176) | (53) | (229) | (89) | (318) | (16) | (334) | (184) | (51) | (235) | (11) | (246) | 166 | (80) | * | (76)% | ||||||||||||||||||||||||||||||||||||||||||||||||
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Total expenses |
3,244 | 3,644 | 6,888 | 3,515 | 10,403 | 3,860 | 14,263 | 3,224 | 3,384 | 6,608 | 4,995 | 11,603 | 3,678 | 15,281 | (5)% | 7% | ||||||||||||||||||||||||||||||||||||||||||||||||
Earnings/(Loss) from Operations Before Income Taxes |
$ | 1,767 | $ | 1,790 | $ | 3,557 | $ | 1,830 | $ | 5,387 | $ | 1,594 | $ | 6,981 | $ | 2,027 | $ | 1,059 | $ | 3,086 | ($ | 1,259) | $ | 1,827 | $ | 513 | $ | 2,340 | (68)% | (66)% | ||||||||||||||||||||||||||||||||||
Provision for/(benefit from) income taxes |
400 | 483 | 883 | 475 | 1,358 | 363 | 1,721 | 545 | 251 | 796 | (546) | 250 | (411) | (161) | * | * | ||||||||||||||||||||||||||||||||||||||||||||||||
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Net Earnings/(Loss) from Operations |
$ | 1,367 | $ | 1,307 | $ | 2,674 | $ | 1,355 | $ | 4,029 | $ | 1,231 | $ | 5,260 | $ | 1,482 | $ | 808 | $ | 2,290 | ($ | 713) | $ | 1,577 | $ | 924 | $ | 2,501 | (25)% | (52)% | ||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest |
381 | 405 | 786 | 386 | 1,172 | 379 | 1,551 | 381 | 163 | 544 | (2) | 542 | (1) | 541 | (100)% | (65)% | ||||||||||||||||||||||||||||||||||||||||||||||||
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Net Earnings/(Loss) from Operations Attributable to BMS |
$ | 986 | $ | 902 | $ | 1,888 | $ | 969 | $ | 2,857 | $ | 852 | $ | 3,709 | $ | 1,101 | $ | 645 | $ | 1,746 | ($ | 711) | $ | 1,035 | $ | 925 | $ | 1,960 | 9% | (47)% | ||||||||||||||||||||||||||||||||||
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Earnings attributable to unvested restricted shares |
(2) | (2) | (4) | (2) | (6) | (1) | (8) | (1) | | (2) | | (1) | (1) | (1) | | (88)% | ||||||||||||||||||||||||||||||||||||||||||||||||
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Net Earnings/(Loss) used for Diluted EPS Calculation |
$ | 984 | $ | 900 | $ | 1,884 | $ | 967 | $ | 2,851 | $ | 851 | $ | 3,701 | $ | 1,100 | $ | 645 | $ | 1,744 | ($ | 711) | $ | 1,034 | $ | 924 | $ | 1,959 | 9% | (47)% | ||||||||||||||||||||||||||||||||||
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Diluted Earnings/(Loss) Attributable to BMS per Common Share** |
$ | 0.57 | $ | 0.52 | $ | 1.10 | $ | 0.56 | $ | 1.66 | $ | 0.50 | $ | 2.16 | $ | 0.64 | $ | 0.38 | $ | 1.02 | $ | (0.43) | $ | 0.61 | $ | 0.56 | $ | 1.16 | 12% | (46)% | ||||||||||||||||||||||||||||||||||
Average Common Shares OutstandingDiluted |
1,714 | 1,722 | 1,718 | 1,715 | 1,717 | 1,712 | 1,717 | 1,706 | 1,701 | 1,704 | 1,666 | 1,697 | 1,662 | 1,688 | (3)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share |
$ | 0.33 | $ | 0.33 | $ | 0.66 | $ | 0.33 | $ | 0.99 | $ | 0.34 | $ | 1.33 | $ | 0.34 | $ | 0.34 | $ | 0.68 | $ | 0.34 | $ | 1.02 | $ | 0.35 | $ | 1.37 | 3% | 3% | ||||||||||||||||||||||||||||||||||
2011 | 2012 | Basis Point Change |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
% of Net Sales |
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 | ||||||||||||||||||||||||||||||||||||||||||||||||
Gross Margin |
73.2% | 72.7% | 73.0% | 73.7% | 73.2% | 74.9% | 73.6% | 75.2% | 72.0% | 73.7% | 73.6% | 73.7% | 74.3% | 73.8% | (60) | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cost of products sold |
26.8% | 27.3% | 27.0% | 26.3% | 26.8% | 25.1% | 26.4% | 24.8% | 28.0% | 26.3% | 26.4% | 26.3% | 25.7% | 26.2% | 60 | (20) | ||||||||||||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative |
18.5% | 19.1% | 18.8% | 19.1% | 18.9% | 22.3% | 19.8% | 19.1% | 22.6% | 20.7% | 28.7% | 22.9% | 27.3% | 23.9% | 500 | 410 | ||||||||||||||||||||||||||||||||||||||||||||||||
Advertising and product promotion |
4.3% | 4.7% | 4.5% | 3.8% | 4.3% | 5.2% | 4.5% | 3.7% | 5.0% | 4.3% | 4.5% | 4.4% | 5.1% | 4.5% | (10) | | ||||||||||||||||||||||||||||||||||||||||||||||||
Research and development |
18.7% | 17.0% | 17.8% | 18.2% | 17.9% | 18.5% | 18.1% | 17.3% | 21.7% | 19.3% | 25.5% | 21.0% | 25.8% | 22.2% | 730 | 410 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses |
64.7% | 67.1% | 65.9% | 65.8% | 65.9% | 70.8% | 67.1% | 61.4% | 76.2% | 68.2% | * | 86.4% | 87.8% | 86.7% | 1,700 | 1,960 | ||||||||||||||||||||||||||||||||||||||||||||||||
Earnings/ (Loss) from Operations Before Income Taxes |
35.3% | 32.9% | 34.1% | 34.2% | 34.1% | 29.2% | 32.9% | 38.6% | 23.8% | 31.8% | (33.7)% | 13.6% | 12.2% | 13.3% | (1,700) | (1,960) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings/ (Loss) from Operations Attributable to BMS |
19.7% | 16.6% | 18.1% | 18.1% | 18.1% | 15.6% | 17.5% | 21.0% | 14.5% | 18.0% | (19.0)% | 7.7% | 22.1% | 11.1% | 650 | (640) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Ratios |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective Tax Rate |
22.6% | 27.0% | 24.8% | 26.0% | 25.2% | 22.8% | 24.7% | 26.9% | 23.7% | 25.8% | 43.4% | 13.7% | (80.1)% | (6.9)% | (10,290) | (3,160) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other (Income)/Expense | 2011 | 2012 | % 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 |
$ | 31 | $ | 32 | $ | 63 | $ | 40 | $ | 103 | $ | 42 | $ | 145 | $ | 42 | $ | 41 | $ | 83 | $ | 48 | $ | 131 | $ | 51 | $ | 182 | 21% | 26% | ||||||||||||||||||||||||||||||||||
Investment income |
(21) | (25) | (46) | (23) | (69) | (22) | (91) | (36) | (22) | (58) | (27) | (85) | (21) | (106) | (5)% | 16% | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for restructuring |
44 | 40 | 84 | 8 | 92 | 24 | 116 | 22 | 20 | 42 | 29 | 71 | 103 | 174 | * | 50% | ||||||||||||||||||||||||||||||||||||||||||||||||
Litigation charges/(recoveries) |
(76) | (4) | (80) | 11 | (69) | 75 | 6 | (172) | 22 | (150) | 50 | (100) | 55 | (45) | (27)% | * | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity in net income of affiliates |
(82) | (62) | (144) | (71) | (215) | (66) | (281) | (57) | (53) | (110) | (40) | (150) | (33) | (183) | (50)% | (35)% | ||||||||||||||||||||||||||||||||||||||||||||||||
Out-licensed intangible asset impairment |
| | | | | | | 38 | | 38 | | 38 | | 38 | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of received product lines, businesses and assets |
(9) | (2) | (11) | (25) | (36) | (1) | (37) | | (3) | (3) | | (3) | (50) | (53) | * | 43% | ||||||||||||||||||||||||||||||||||||||||||||||||
Other income received from alliance partners, net |
(22) | (41) | (63) | (44) | (107) | (33) | (140) | (46) | (83) | (129) | (96) | (225) | (87) | (312) | * | * | ||||||||||||||||||||||||||||||||||||||||||||||||
Pension curtailments and settlements |
(3) | | (3) | 2 | (1) | 11 | 10 | | | | 3 | 3 | 155 | 158 | * | * | ||||||||||||||||||||||||||||||||||||||||||||||||
Other |
(38) | 9 | (29) | 13 | (16) | (46) | (62) | 25 | 27 | 52 | 22 | 74 | (7) | 67 | (85)% | * | ||||||||||||||||||||||||||||||||||||||||||||||||
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$ | (176) | $ | (53) | $ | (229) | $ | (89) | $ | (318) | $ | (16) | $ | (334) | $ | (184) | $ | (51) | $ | (235) | $ | (11) | $ | (246) | $ | 166 | $ | (80) | * | (76)% | |||||||||||||||||||||||||||||||||||
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* | in excess of +/- 100% |
** | quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations. |
3
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
FOR THE PERIOD ENDED DECEMBER 31, 2012
(Unaudited, amounts in millions except per share data)
QUARTER-TO-DATE |
||||||||||||||||||||||||||||||||
2012 | 2011 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * |
2012 Excluding FX |
Favorable / (Unfavorable) FX Impact % * |
Growth % Excluding FX |
|||||||||||||||||||||||||
Net sales |
$ | 4,191 | $ | 5,454 | (1,263) | (23)% | ($ 34) | $ 4,225 | (1)% | (22)% | ||||||||||||||||||||||
Gross profit |
3,116 | 4,087 | (971) | (24)% | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Gross profit excluding specified items (a) |
3,200 | 4,102 | (902) | (22)% | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Gross profit excluding specified items as a % of sales |
76.4% | 75.2% | ||||||||||||||||||||||||||||||
Marketing, selling and administrative |
1,143 | 1,216 | (73) | (6)% | 9 | 1,152 | 1% | (5)% | ||||||||||||||||||||||||
Marketing, selling and administrative excluding specified items (a) |
1,141 | 1,206 | (65) | (5)% | 8 | 1,149 | | (5)% | ||||||||||||||||||||||||
Advertising and product promotion |
212 | 285 | (73) | (26)% | 2 | 214 | 1% | (25)% | ||||||||||||||||||||||||
SG&A excluding specified items as a % of sales |
32.3% | 27.3% | ||||||||||||||||||||||||||||||
Research and development |
1,082 | 1,008 | 74 | 7% | 9 | 1,091 | 1% | 8% | ||||||||||||||||||||||||
Research and development excluding specified items (a) |
1,017 | 1,008 | 9 | 1% | 9 | 1,026 | 1% | 2% | ||||||||||||||||||||||||
Research and development excluding specified items as a % of sales |
24.3% | 18.5% | ||||||||||||||||||||||||||||||
YEAR-TO-DATE |
||||||||||||||||||||||||||||||||
2012 | 2011 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * |
2012 Excluding FX |
Favorable / (Unfavorable) FX Impact % * |
Growth % Excluding FX |
|||||||||||||||||||||||||
Net sales |
$ | 17,621 | $ | 21,244 | (3,623) | (17)% | ($ 331) | $ 17,952 | (2)% | (15)% | ||||||||||||||||||||||
Gross profit |
13,011 | 15,646 | (2,635) | (17)% | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Gross profit excluding specified items (a) |
13,296 | 15,721 | (2,425) | (15)% | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Gross profit excluding specified items as a % of sales |
75.5% | 74.0% | ||||||||||||||||||||||||||||||
Marketing, selling and administrative |
4,220 | 4,203 | 17 | | 93 | 4,313 | 3% | 3% | ||||||||||||||||||||||||
Marketing, selling and administrative excluding specified items (a) |
4,135 | 4,174 | (39) | (1)% | 94 | 4,229 | 2% | 1% | ||||||||||||||||||||||||
Advertising and product promotion |
797 | 957 | (160) | (17)% | 16 | 813 | 2% | (15)% | ||||||||||||||||||||||||
SG&A excluding specified items as a % of sales |
28.0% | 24.2% | ||||||||||||||||||||||||||||||
Research and development |
3,904 | 3,839 | 65 | 2% | 37 | 3,941 | 1% | 3% | ||||||||||||||||||||||||
Research and development excluding specified items (a) |
3,688 | 3,604 | 84 | 2% | 47 | 3,735 | 2% | 4% | ||||||||||||||||||||||||
Research and development excluding specified items as a % of sales |
20.9% | 17.0% |
(a) | Refer to the Specified Items tab for detail of specified items. |
* | Foreign exchange (FX) impact determined by the change in a line item's current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact. |
4
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
FOR THE PERIOD ENDED DECEMBER 31, 2012
(Unaudited, amounts in millions except per share data)
QUARTER-TO-DATE |
||||||||||||||||||||||||||||||||
2012 | 2011 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ ** |
2012 Excluding FX |
Favorable / (Unfavorable) FX Impact % ** |
Growth % Excluding FX |
|||||||||||||||||||||||||
Plavix |
49 | 1,672 | (1,623) | (97)% | (3) | 52 | | (97)% | ||||||||||||||||||||||||
Avapro/Avalide |
84 | 195 | (111) | (57)% | (2) | 86 | (1)% | (56)% | ||||||||||||||||||||||||
Eliquis |
1 | | 1 | N/A | | 1 | N/A | N/A | ||||||||||||||||||||||||
Abilify |
819 | 737 | 82 | 11% | (4) | 823 | (1)% | 12% | ||||||||||||||||||||||||
Reyataz |
394 | 416 | (22) | (5)% | (6) | 400 | (1)% | (4)% | ||||||||||||||||||||||||
Sustiva Franchise |
383 | 412 | (29) | (7)% | (4) | 387 | (1)% | (6)% | ||||||||||||||||||||||||
Baraclude |
360 | 318 | 42 | 13% | (1) | 361 | (1)% | 14% | ||||||||||||||||||||||||
Erbitux |
171 | 181 | (10) | (6)% | | 171 | | (6)% | ||||||||||||||||||||||||
Sprycel |
281 | 227 | 54 | 24% | (4) | 285 | (2)% | 26% | ||||||||||||||||||||||||
Yervoy |
211 | 144 | 67 | 47% | (4) | 215 | (3)% | 50% | ||||||||||||||||||||||||
Orencia |
325 | 257 | 68 | 26% | (4) | 329 | (2)% | 28% | ||||||||||||||||||||||||
Nulojix |
4 | 1 | 3 | * | | 4 | N/A | * | ||||||||||||||||||||||||
Onglyza/Kombiglyze |
198 | 153 | 45 | 29% | (2) | 200 | (1)% | 30% | ||||||||||||||||||||||||
Byetta |
94 | | 94 | N/A | | 94 | N/A | N/A | ||||||||||||||||||||||||
Bydureon |
58 | | 58 | N/A | | 58 | N/A | N/A | ||||||||||||||||||||||||
Mature Products and All Other |
759 | 741 | 18 | 2% | | 759 | | 2% | ||||||||||||||||||||||||
Total |
4,191 | 5,454 | (1,263) | (23)% | (34) | 4,225 | (1)% | (22)% | ||||||||||||||||||||||||
Total excluding Plavix and Avapro/Avalide |
4,058 | 3,587 | 471 | 13% | (29) | 4,087 | (1)% | 14% | ||||||||||||||||||||||||
YEAR-TO-DATE |
||||||||||||||||||||||||||||||||
2012 | 2011 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ ** |
2012 Excluding FX |
Favorable / (Unfavorable) FX Impact % ** |
Growth % Excluding FX |
|||||||||||||||||||||||||
Plavix |
2,547 | 7,087 | (4,540) | (64)% | (4) | 2,551 | | (64)% | ||||||||||||||||||||||||
Avapro/Avalide |
503 | 952 | (449) | (47)% | (14) | 517 | (1)% | (46)% | ||||||||||||||||||||||||
Eliquis |
2 | | 2 | N/A | | 2 | N/A | N/A | ||||||||||||||||||||||||
Abilify |
2,827 | 2,758 | 69 | 3% | (52) | 2,879 | (1)% | 4% | ||||||||||||||||||||||||
Reyataz |
1,521 | 1,569 | (48) | (3)% | (46) | 1,567 | (3)% | | ||||||||||||||||||||||||
Sustiva Franchise |
1,527 | 1,485 | 42 | 3% | (31) | 1,558 | (2)% | 5% | ||||||||||||||||||||||||
Baraclude |
1,388 | 1,196 | 192 | 16% | (21) | 1,409 | (2)% | 18% | ||||||||||||||||||||||||
Erbitux |
702 | 691 | 11 | 2% | | 702 | | 2% | ||||||||||||||||||||||||
Sprycel |
1,019 | 803 | 216 | 27% | (30) | 1,049 | (4)% | 31% | ||||||||||||||||||||||||
Yervoy |
706 | 360 | 346 | 96% | (16) | 722 | (5)% | * | ||||||||||||||||||||||||
Orencia |
1,176 | 917 | 259 | 28% | (18) | 1,194 | (2)% | 30% | ||||||||||||||||||||||||
Nulojix |
11 | 3 | 8 | * | | 11 | N/A | * | ||||||||||||||||||||||||
Onglyza/Kombiglyze |
709 | 473 | 236 | 50% | (12) | 721 | (2)% | 52% | ||||||||||||||||||||||||
Byetta |
149 | | 149 | N/A | | 149 | N/A | N/A | ||||||||||||||||||||||||
Bydureon |
78 | | 78 | N/A | | 78 | N/A | N/A | ||||||||||||||||||||||||
Mature Products and All Other |
2,756 | 2,950 | (194) | (7)% | (87) | 2,843 | (3)% | (4)% | ||||||||||||||||||||||||
Total |
17,621 | 21,244 | (3,623) | (17)% | (331) | 17,952 | (2)% | (15)% | ||||||||||||||||||||||||
Total excluding Plavix and Avapro/Avalide |
14,571 | 13,205 | 1,366 | 10% | (313) | 14,884 | (3)% | 13% |
* | In excess of +/- 100% |
** | Foreign exchange (FX) impact determined by the change in a line item's current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact. |
5
BRISTOL-MYERS SQUIBB COMPANY
WORLDWIDE NET SALES FROM OPERATIONS BY PRODUCT
QUARTERLY SALES TREND ANALYSIS
($ in millions)
2011 | 2012 | % 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 | |||||||||||||||||||||||||||||||||||||||||||||||
TOTAL |
5,011 | 5,434 | 10,445 | 5,345 | 15,790 | 5,454 | 21,244 | 5,251 | 4,443 | 9,694 | 3,736 | 13,430 | 4,191 | 17,621 | (23)% | (17)% | (1)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Key Products |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plavix |
1,762 | 1,865 | 3,627 | 1,788 | 5,415 | 1,672 | 7,087 | 1,693 | 741 | 2,434 | 64 | 2,498 | 49 | 2,547 | (97)% | (64)% | | | ||||||||||||||||||||||||||||||||||||||||||||||
Avapro/Avalide |
290 | 251 | 541 | 216 | 757 | 195 | 952 | 207 | 117 | 324 | 95 | 419 | 84 | 503 | (57)% | (47)% | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||||||||||
Eliquis |
| | | | | | | | 1 | 1 | | 1 | 1 | 2 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Abilify (a) |
624 | 706 | 1,330 | 691 | 2,021 | 737 | 2,758 | 621 | 711 | 1,332 | 676 | 2,008 | 819 | 2,827 | 11% | 3% | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||||||||||
Reyataz |
366 | 396 | 762 | 391 | 1,153 | 416 | 1,569 | 358 | 406 | 764 | 363 | 1,127 | 394 | 1,521 | (5)% | (3)% | (1)% | (3)% | ||||||||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise (b) |
343 | 371 | 714 | 359 | 1,073 | 412 | 1,485 | 386 | 388 | 774 | 370 | 1,144 | 383 | 1,527 | (7)% | 3% | (1)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Baraclude |
275 | 292 | 567 | 311 | 878 | 318 | 1,196 | 325 | 357 | 682 | 346 | 1,028 | 360 | 1,388 | 13% | 16% | (1)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Erbitux |
165 | 173 | 338 | 172 | 510 | 181 | 691 | 179 | 179 | 358 | 173 | 531 | 171 | 702 | (6)% | 2% | | | ||||||||||||||||||||||||||||||||||||||||||||||
Sprycel |
172 | 193 | 365 | 211 | 576 | 227 | 803 | 231 | 244 | 475 | 263 | 738 | 281 | 1,019 | 24% | 27% | (2)% | (4)% | ||||||||||||||||||||||||||||||||||||||||||||||
Yervoy |
| 95 | 95 | 121 | 216 | 144 | 360 | 154 | 162 | 316 | 179 | 495 | 211 | 706 | 47% | 96% | (3)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||||||
Orencia (c) |
199 | 228 | 427 | 233 | 660 | 257 | 917 | 254 | 290 | 544 | 307 | 851 | 325 | 1,176 | 26% | 28% | (2)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Nulojix |
| 2 | 2 | | 2 | 1 | 3 | 1 | 3 | 4 | 3 | 7 | 4 | 11 | * | * | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Onglyza/Kombiglyze (d) |
81 | 112 | 193 | 127 | 320 | 153 | 473 | 161 | 172 | 333 | 178 | 511 | 198 | 709 | 29% | 50% | (1)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Byetta |
| | | | | | | | | | 55 | 55 | 94 | 149 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Bydureon |
| | | | | | | | | | 20 | 20 | 58 | 78 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Mature Products and All Other (e) |
734 | 750 | 1,484 | 725 | 2,209 | 741 | 2,950 | 681 | 672 | 1,353 | 644 | 1,997 | 759 | 2,756 | 2% | (7)% | | (3)% | ||||||||||||||||||||||||||||||||||||||||||||||
2011 | 2012 | % 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 | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Therapeutic Area: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cardiovascular |
2,162 | 2,236 | 4,398 | 2,114 | 6,512 | 1,972 | 8,484 | 1,991 | 958 | 2,949 | 243 | 3,192 | 223 | 3,415 | (89)% | (60)% | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||||||||||
Virology |
997 | 1,075 | 2,072 | 1,080 | 3,152 | 1,158 | 4,310 | 1,077 | 1,165 | 2,242 | 1,089 | 3,331 | 1,145 | 4,476 | (1)% | 4% | (1)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Oncology |
466 | 591 | 1,057 | 629 | 1,686 | 684 | 2,370 | 679 | 707 | 1,386 | 728 | 2,114 | 777 | 2,891 | 14% | 22% | (1)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Neuroscience |
631 | 714 | 1,345 | 698 | 2,043 | 742 | 2,785 | 627 | 716 | 1,343 | 680 | 2,023 | 823 | 2,846 | 11% | 2% | (1)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Immunoscience |
199 | 230 | 429 | 233 | 662 | 258 | 920 | 255 | 292 | 547 | 311 | 858 | 329 | 1,187 | 28% | 29% | (1)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Metabolics |
107 | 139 | 246 | 158 | 404 | 181 | 585 | 194 | 206 | 400 | 299 | 699 | 409 | 1,108 | * | 89% | | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Other Therapeutic Areas |
449 | 449 | 898 | 433 | 1,331 | 459 | 1,790 | 428 | 399 | 827 | 386 | 1,213 | 485 | 1,698 | 6% | (5)% | 1% | (3)% |
* | In excess of +/- 100% |
(a) | Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. |
(b) | The Sustiva Franchise includes sales of Sustiva and revenue of bulk efavirenz included in the combination therapy, Atripla. |
(c) | Orencia SubQ was launched in Q4 2011. Includes SubQ sales of $15M in 2011, $75M for the three months ended December 31, 2012 and $213M for the twelve months ended December 31, 2012. |
(d) | Includes Kombiglyze sales of $48M and $164M for the three and twelve months ended December 31, 2012 and $29M and $68M for the three and twelve months ended December 31, 2011 respectively. |
(e) | Represents all other products, including those which have lost their exclusivity in major markets, over the counter brands and royalty-related revenue. Includes Symlin sales of $23M and $36M for the three and twelve months ended December 31, 2012 respectively. |
6
BRISTOL-MYERS SQUIBB COMPANY
DOMESTIC NET SALES FROM OPERATIONS BY PRODUCT
QUARTERLY SALES TREND ANALYSIS
($ in millions)
2011 | 2012 | % Change | % Change in U.S. Total Prescription** | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||
TOTAL (a) |
3,295 | 3,614 | 6,909 | 3,526 | 10,435 | 3,604 | 14,039 | 3,501 | 2,629 | 6,130 | 2,016 | 8,146 | 2,238 | 10,384 | (38)% | (26)% | ||||||||||||||||||||||||||||||||||||||||||||||||
Key Products |
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Plavix |
1,663 | 1,771 | 3,434 | 1,693 | 5,127 | 1,582 | 6,709 | 1,648 | 713 | 2,361 | 43 | 2,404 | 20 | 2,424 | (99)% | (64)% | (96)% | (60)% | ||||||||||||||||||||||||||||||||||||||||||||||
Avapro/Avalide |
168 | 140 | 308 | 127 | 435 | 114 | 549 | 108 | 22 | 130 | 9 | 139 | 16 | 155 | (86)% | (72)% | (91)% | (71)% | ||||||||||||||||||||||||||||||||||||||||||||||
Abilify (b) |
464 | 520 | 984 | 509 | 1,493 | 559 | 2,052 | 445 | 533 | 978 | 507 | 1,485 | 617 | 2,102 | 10% | 2% | | 1% | ||||||||||||||||||||||||||||||||||||||||||||||
Reyataz |
183 | 192 | 375 | 187 | 562 | 209 | 771 | 188 | 199 | 387 | 197 | 584 | 199 | 783 | (5)% | 2% | (8)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise (c) |
216 | 232 | 448 | 224 | 672 | 278 | 950 | 254 | 259 | 513 | 250 | 763 | 253 | 1,016 | (9)% | 7% | (3)% | (1)% | ||||||||||||||||||||||||||||||||||||||||||||||
Baraclude |
48 | 51 | 99 | 51 | 150 | 58 | 208 | 56 | 59 | 115 | 61 | 176 | 65 | 241 | 12% | 16% | 11% | 11% | ||||||||||||||||||||||||||||||||||||||||||||||
Erbitux |
163 | 171 | 334 | 169 | 503 | 178 | 681 | 176 | 176 | 352 | 169 | 521 | 167 | 688 | (6)% | 1% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Sprycel |
63 | 69 | 132 | 79 | 211 | 88 | 299 | 95 | 91 | 186 | 109 | 295 | 109 | 404 | 24% | 35% | 20% | 29% | ||||||||||||||||||||||||||||||||||||||||||||||
Yervoy |
| 95 | 95 | 109 | 204 | 119 | 323 | 117 | 122 | 239 | 123 | 362 | 141 | 503 | 18% | 56% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Orencia(d) |
140 | 154 | 294 | 155 | 449 | 172 | 621 | 171 | 199 | 370 | 211 | 581 | 216 | 797 | 26% | 28% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Nulojix |
| 2 | 2 | | 2 | 1 | 3 | 1 | 2 | 3 | 3 | 6 | 3 | 9 | * | * | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Onglyza/Kombiglyze (e) |
58 | 81 | 139 | 93 | 232 | 114 | 346 | 120 | 126 | 246 | 130 | 376 | 140 | 516 | 23% | 49% | 28% | 47% | ||||||||||||||||||||||||||||||||||||||||||||||
Byetta |
| | | | | | | | | | 55 | 55 | 92 | 147 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Bydureon |
| | | | | | | | | | 20 | 20 | 55 | 75 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Mature Products and All Other (f) |
129 | 136 | 265 | 130 | 395 | 132 | 527 | 122 | 128 | 250 | 129 | 379 | 145 | 524 | 10% | (1)% | ||||||||||||||||||||||||||||||||||||||||||||||||
Total excluding Plavix and Avapro/Avalide |
1,464 | 1,703 | 3,167 | 1,706 | 4,873 | 1,908 | 6,781 | 1,745 | 1,894 | 3,639 | 1,964 | 5,603 | 2,202 | 7,805 | 15% | 15% | ||||||||||||||||||||||||||||||||||||||||||||||||
2011 | 2012 | % 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 Sales by Therapeutic Area: |
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Cardiovascular |
1,863 | 1,950 | 3,813 | 1,854 | 5,667 | 1,729 | 7,396 | 1,784 | 766 | 2,550 | 79 | 2,629 | 61 | 2,690 | (96)% | (64)% | ||||||||||||||||||||||||||||||||||||||||||||||||
Virology |
449 | 477 | 926 | 463 | 1,389 | 545 | 1,934 | 498 | 519 | 1,017 | 509 | 1,526 | 518 | 2,044 | (5)% | 6% | ||||||||||||||||||||||||||||||||||||||||||||||||
Oncology |
252 | 361 | 613 | 381 | 994 | 413 | 1,407 | 412 | 414 | 826 | 423 | 1,249 | 438 | 1,687 | 6% | 20% | ||||||||||||||||||||||||||||||||||||||||||||||||
Neuroscience |
464 | 521 | 985 | 511 | 1,496 | 559 | 2,055 | 445 | 534 | 979 | 506 | 1,485 | 617 | 2,102 | 10% | 2% | ||||||||||||||||||||||||||||||||||||||||||||||||
Immunoscience |
140 | 155 | 295 | 156 | 451 | 173 | 624 | 172 | 201 | 373 | 214 | 587 | 219 | 806 | 27% | 29% | ||||||||||||||||||||||||||||||||||||||||||||||||
Metabolics |
66 | 88 | 154 | 101 | 255 | 121 | 376 | 127 | 132 | 259 | 224 | 483 | 316 | 799 | * | * | ||||||||||||||||||||||||||||||||||||||||||||||||
Other Therapeutic Areas |
61 | 62 | 123 | 60 | 183 | 64 | 247 | 63 | 63 | 126 | 61 | 187 | 69 | 256 | 8% | 4% |
* | In excess of +/- 100% |
** | The estimated U.S. prescription change data provided throughout this report includes information only from the retail and mail order channels and does not reflect product demand within other channels such as hospitals, home health care, clinics, federal facilities including Veterans Administration hospitals, and long-term care, among others. The data is provided by Wolters Kluwer Health (WK), except for SPRYCEL, and based on the Source Prescription Audit. As of December 31, 2011, SPRYCEL demand is based upon information from the Next-Generation Prescription Service (NGPS) version 2.0 of the National Prescription Audit provided by the IMS Health (IMS). The data is a product of each respective service providers own recordkeeping and projection processes and therefore subject to the inherent limitations of estimates based on sampling and may include a margin of error. |
(a) | Domestic net sales include United States and Puerto Rico. |
(b) | Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. The following table provides a reconciliation of the impact for extending the term of the commercialization and manufacturing agreement. |
2012 | 2011 | % Change | ||||||||||||||||||||||
4th Qtr | 12 Months | 4th Qtr | 12 Months | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||
Abilify Net Sales As Reported |
617 | 2,102 | 559 | 2,052 | 10% | 2% | ||||||||||||||||||
Contractual share change from 53.5% to 51.5% |
24 | 82 | | | N/A | N/A | ||||||||||||||||||
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Abilify Net SalesAdjusted |
641 | 2,184 | 559 | 2,052 | 15% | 6% | ||||||||||||||||||
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(c) | The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. The change in U.S. total prescriptions growth for the Sustiva Franchise includes both branded Sustiva and Atripla prescription units. |
(d) | Orencia SubQ was launched in Q4 2011. Includes SubQ sales of $15M in 2011, and $67 and $201M for the three and twelve months ended December 31, 2012, respectively. |
(e) | Includes Kombiglyze sales of $45M and $160M for the three and twelve months ended December 31, 2012 and $29M and $68M for the three and twelve months ended December 31, 2011 respectively. |
(f) | Represents all other products sold in the U.S., including those which have lost their exclusivity in major markets. Includes Symlin sales of $23M and $36 for the three and twelve months ended December 31, 2012 respectively. |
7
BRISTOL-MYERS SQUIBB COMPANY
INTERNATIONAL NET SALES FROM OPERATIONS BY PRODUCT
QUARTERLY SALES TREND ANALYSIS
($ in millions)
2011 | 2012 | % 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 | |||||||||||||||||||||||||||||||||||||||||||||||
TOTAL |
1,716 | 1,820 | 3,536 | 1,819 | 5,355 | 1,850 | 7,205 | 1,750 | 1,814 | 3,564 | 1,720 | 5,284 | 1,953 | 7,237 | 6% | | (1)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||||||
Key Products |
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Plavix |
99 | 94 | 193 | 95 | 288 | 90 | 378 | 45 | 28 | 73 | 21 | 94 | 29 | 123 | (68)% | (67)% | | (1)% | ||||||||||||||||||||||||||||||||||||||||||||||
Avapro/Avalide |
122 | 111 | 233 | 89 | 322 | 81 | 403 | 99 | 95 | 194 | 86 | 280 | 68 | 348 | (16)% | (14)% | (1)% | (3)% | ||||||||||||||||||||||||||||||||||||||||||||||
Eliquis |
| | | | | | | | 1 | 1 | | 1 | 1 | 2 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Abilify (a) |
160 | 186 | 346 | 182 | 528 | 178 | 706 | 176 | 178 | 354 | 169 | 523 | 202 | 725 | 13% | 3% | (3)% | (7)% | ||||||||||||||||||||||||||||||||||||||||||||||
Reyataz |
183 | 204 | 387 | 204 | 591 | 207 | 798 | 170 | 207 | 377 | 166 | 543 | 195 | 738 | (6)% | (8)% | (3)% | (6)% | ||||||||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise (b) |
127 | 139 | 266 | 135 | 401 | 134 | 535 | 132 | 129 | 261 | 120 | 381 | 130 | 511 | (3)% | (4)% | (1)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||||||
Baraclude |
227 | 241 | 468 | 260 | 728 | 260 | 988 | 269 | 298 | 567 | 285 | 852 | 295 | 1,147 | 13% | 16% | (1)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Erbitux |
2 | 2 | 4 | 3 | 7 | 3 | 10 | 3 | 3 | 6 | 4 | 10 | 4 | 14 | 33% | 40% | 4% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Sprycel |
109 | 124 | 233 | 132 | 365 | 139 | 504 | 136 | 153 | 289 | 154 | 443 | 172 | 615 | 24% | 22% | (3)% | (6)% | ||||||||||||||||||||||||||||||||||||||||||||||
Yervoy |
| | | 12 | 12 | 25 | 37 | 37 | 40 | 77 | 56 | 133 | 70 | 203 | * | * | (8)% | (25)% | ||||||||||||||||||||||||||||||||||||||||||||||
Orencia |
59 | 74 | 133 | 78 | 211 | 85 | 296 | 83 | 91 | 174 | 96 | 270 | 109 | 379 | 28% | 28% | (5)% | (6)% | ||||||||||||||||||||||||||||||||||||||||||||||
Nulojix |
| | | | | | | | 1 | 1 | | 1 | 1 | 2 | | | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Onglyza/Kombiglyze |
23 | 31 | 54 | 34 | 88 | 39 | 127 | 41 | 46 | 87 | 48 | 135 | 58 | 193 | 49% | 52% | (2)% | (9)% | ||||||||||||||||||||||||||||||||||||||||||||||
Byetta |
| | | | | | | | | | | | 2 | 2 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Bydureon |
| | | | | | | | | | | | 3 | 3 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Mature Products and All Other (c) |
605 | 614 | 1,219 | 595 | 1,814 | 609 | 2,423 | 559 | 544 | 1,103 | 515 | 1,618 | 614 | 2,232 | 1% | (8)% | 1% | (3)% | ||||||||||||||||||||||||||||||||||||||||||||||
2011 | 2012 | % 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 | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Therapeutic Area: |
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Cardiovascular |
299 | 286 | 585 | 260 | 845 | 243 | 1,088 | 207 | 192 | 399 | 164 | 563 | 162 | 725 | (33)% | (33)% | (1)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||||||
Virology |
548 | 598 | 1,146 | 617 | 1,763 | 613 | 2,376 | 579 | 646 | 1,225 | 580 | 1,805 | 627 | 2,432 | 2% | 2% | (2)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||||||
Oncology |
214 | 230 | 444 | 248 | 692 | 271 | 963 | 267 | 293 | 560 | 305 | 865 | 339 | 1,204 | 25% | 25% | (5)% | (6)% | ||||||||||||||||||||||||||||||||||||||||||||||
Neuroscience |
167 | 193 | 360 | 187 | 547 | 183 | 730 | 182 | 182 | 364 | 174 | 538 | 206 | 744 | 13% | 2% | (2)% | (7)% | ||||||||||||||||||||||||||||||||||||||||||||||
Immunoscience |
59 | 75 | 134 | 77 | 211 | 85 | 296 | 83 | 91 | 174 | 97 | 271 | 110 | 381 | 29% | 29% | (5)% | (6)% | ||||||||||||||||||||||||||||||||||||||||||||||
Metabolics |
41 | 51 | 92 | 57 | 149 | 60 | 209 | 67 | 74 | 141 | 75 | 216 | 93 | 309 | 55% | 48% | | (3)% | ||||||||||||||||||||||||||||||||||||||||||||||
Other Therapeutic Areas |
388 | 387 | 775 | 373 | 1,148 | 395 | 1,543 | 365 | 336 | 701 | 325 | 1,026 | 416 | 1,442 | 5% | (7)% | 1% | (3)% |
* | In excess of +/- 100% |
(a) | Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. |
(b) | The Sustiva Franchise includes sales of Sustiva and revenue of bulk efavirenz included in the combination therapy, Atripla. |
(c) | Represents all other products, including those which have lost their exclusivity in major markets, over the counter brands and royalty-related revenue. |
8
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO CERTAIN GAAP LINE ITEMS
(Unaudited, amounts in millions except per share data)
2011 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
$ | 3,668 | $ | 3,953 | $ | 7,621 | $ | 3,938 | $ | 11,559 | $ | 4,087 | $ | 15,646 | $ | 3,948 | $ | 3,198 | $ | 7,146 | $ | 2,749 | $ | 9,895 | $ | 3,116 | $ | 13,011 | ||||||||||||||||||||||||||||
Specified items (a) |
23 | 18 | 41 | 19 | 60 | 15 | 75 | | 147 | 147 | 54 | 201 | 84 | 285 | ||||||||||||||||||||||||||||||||||||||||||
Gross profit excluding specified items |
3,691 | 3,971 | 7,662 | 3,957 | 11,619 | 4,102 | 15,721 | 3,948 | 3,345 | 7,293 | 2,803 | 10,096 | 3,200 | 13,296 | ||||||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative |
928 | 1,040 | 1,968 | 1,019 | 2,987 | 1,216 | 4,203 | 1,002 | 1,004 | 2,006 | 1,071 | 3,077 | 1,143 | 4,220 | ||||||||||||||||||||||||||||||||||||||||||
Specified items (a) |
(4) | (10) | (14) | (5) | (19) | (10) | (29) | (8) | (5) | (13) | (70) | (83) | (2) | (85) | ||||||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative excluding specified items |
924 | 1,030 | 1,954 | 1,014 | 2,968 | 1,206 | 4,174 | 994 | 999 | 1,993 | 1,001 | 2,994 | 1,141 | 4,135 | ||||||||||||||||||||||||||||||||||||||||||
Research and development |
935 | 923 | 1,858 | 973 | 2,831 | 1,008 | 3,839 | 909 | 962 | 1,871 | 951 | 2,822 | 1,082 | 3,904 | ||||||||||||||||||||||||||||||||||||||||||
Specified items (a) |
(103) | (50) | (153) | (82) | (235) | | (235) | (58) | (45) | (103) | (48) | (151) | (65) | (216) | ||||||||||||||||||||||||||||||||||||||||||
Research and development excluding specified items |
832 | 873 | 1,705 | 891 | 2,596 | 1,008 | 3,604 | 851 | 917 | 1,768 | 903 | 2,671 | 1,017 | 3,688 | ||||||||||||||||||||||||||||||||||||||||||
Other (income)/expense |
(176) | (53) | (229) | (89) | (318) | (16) | (334) | (184) | (51) | (235) | (11) | (246) | 166 | (80) | ||||||||||||||||||||||||||||||||||||||||||
Specified items (a) |
32 | (40) | (8) | (6) | (14) | (92) | (106) | 81 | (43) | 38 | (116) | (78) | (249) | (327) | ||||||||||||||||||||||||||||||||||||||||||
Other (income)/expense excluding specified items |
(144) | (93) | (237) | (95) | (332) | (108) | (440) | (103) | (94) | (197) | (127) | (324) | (83) | (407) | ||||||||||||||||||||||||||||||||||||||||||
Effective Tax Rate |
22.6% | 27.0% | 24.8% | 26.0% | 25.2% | 22.8% | 24.7% | 26.9% | 23.7% | 25.8% | 43.4% | 13.7% | (80.1)% | (6.9)% | ||||||||||||||||||||||||||||||||||||||||||
Specified items (a) |
3.4% | 0.9% | 2.1% | 0.4% | 1.5% | 2.1% | 1.6% | (0.2%) | 1.6% | 0.3% | (22.9)% | 11.3% | 95.1% | 30.1% | ||||||||||||||||||||||||||||||||||||||||||
Effective Tax Rate excluding specified items |
26.0% | 27.9% | 26.9% | 26.4% | 26.7% | 24.9% | 26.3% | 26.7% | 25.3% | 26.1% | 20.5% | 25.0% | 15.0% | 23.2% |
(a) | Refer to the Specified Items tab for detail of specified items. |
9
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
($ in millions)
2011 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars in Millions | 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 | ||||||||||||||||||||||||||||||||||||||||||
Accelerated depreciation, asset impairment and other shutdown costs |
$ | 23 | $ | 18 | $ | 41 | $ | 19 | $ | 60 | $ | 15 | $ | 75 | $ | | $ | 147 | $ | 147 | $ | | $ | 147 | $ | | $ | 147 | ||||||||||||||||||||||||||||
Amortization of acquired Amylin intangible assets |
| | | | | | | | | | 91 | 91 | 138 | 229 | ||||||||||||||||||||||||||||||||||||||||||
Amortization of Amylin collaboration proceeds |
| | | | | | | | | | (46) | (46) | (68) | (114) | ||||||||||||||||||||||||||||||||||||||||||
Amortization of inventory fair value adjustment |
| | | | | | | | | | 9 | 9 | 14 | 23 | ||||||||||||||||||||||||||||||||||||||||||
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Cost of products sold |
23 | 18 | 41 | 19 | 60 | 15 | 75 | | 147 | 147 | 54 | 201 | 84 | 285 | ||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense from accelerated vesting of Amylin awards |
| | | | | | | | | | 67 | 67 | | 67 | ||||||||||||||||||||||||||||||||||||||||||
Process standardization implementation costs |
4 | 10 | 14 | 5 | 19 | 10 | 29 | 8 | 5 | 13 | 3 | 16 | 2 | 18 | ||||||||||||||||||||||||||||||||||||||||||
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Marketing, selling and administrative |
4 | 10 | 14 | 5 | 19 | 10 | 29 | 8 | 5 | 13 | 70 | 83 | 2 | 85 | ||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense from accelerated vesting of Amylin awards |
| | | | | | | | | | 27 | 27 | | 27 | ||||||||||||||||||||||||||||||||||||||||||
Upfront, milestone and other licensing payments |
88 | 50 | 138 | 69 | 207 | | 207 | | | | 21 | 21 | 26 | 47 | ||||||||||||||||||||||||||||||||||||||||||
IPRD impairment |
15 | | 15 | 13 | 28 | | 28 | 58 | 45 | 103 | | 103 | 39 | 142 | ||||||||||||||||||||||||||||||||||||||||||
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Research and development |
103 | 50 | 153 | 82 | 235 | | 235 | 58 | 45 | 103 | 48 | 151 | 65 | 216 | ||||||||||||||||||||||||||||||||||||||||||
Impairment charge for BMS-986094 intangible asset |
| | | | | | | | | | 1,830 | 1,830 | | 1,830 | ||||||||||||||||||||||||||||||||||||||||||
Provision for restructuring |
44 | 40 | 84 | 8 | 92 | 24 | 116 | 22 | 20 | 42 | 29 | 71 | 103 | 174 | ||||||||||||||||||||||||||||||||||||||||||
Gain on sale of product lines, businesses and assets |
| | | (12) | (12) | | (12) | | | | | | (51) | (51) | ||||||||||||||||||||||||||||||||||||||||||
Pension curtailments and settlements |
| | | | | 13 | 13 | | | | | | 151 | 151 | ||||||||||||||||||||||||||||||||||||||||||
Acquisition related expenses |
| | | | | | | 12 | 1 | 13 | 29 | 42 | 1 | 43 | ||||||||||||||||||||||||||||||||||||||||||
Litigation charges/(recoveries) |
(76) | | (76) | 10 | (66) | 75 | 9 | (172) | 22 | (150) | 50 | (100) | 55 | (45) | ||||||||||||||||||||||||||||||||||||||||||
Out-licensed intangible asset impairment |
| | | | | | | 38 | | 38 | | 38 | | 38 | ||||||||||||||||||||||||||||||||||||||||||
Loss on debt repurchase |
| | | | | | | 19 | | 19 | 8 | 27 | | 27 | ||||||||||||||||||||||||||||||||||||||||||
Upfront, milestone and other licensing receipts |
| | | | | (20) | (20) | | | | | | (10) | (10) | ||||||||||||||||||||||||||||||||||||||||||
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Other (income)/expense |
(32) | 40 | 8 | 6 | 14 | 92 | 106 | (81) | 43 | (38) | 116 | 78 | 249 | 327 | ||||||||||||||||||||||||||||||||||||||||||
Increase/(Decrease) to pretax income |
98 | 118 | 216 | 112 | 328 | 117 | 445 | (15) | 240 | 225 | 2,118 | 2,343 | 400 | 2,743 | ||||||||||||||||||||||||||||||||||||||||||
Income tax on items above |
(28) | (34) | (62) | (37) | (99) | (37) | (136) | 8 | (77) | (69) | (722) | (791) | (156) | (947) | ||||||||||||||||||||||||||||||||||||||||||
Specified tax benefit* |
(56) | (15) | (71) | | (71) | (26) | (97) | | | | | | (392) | (392) | ||||||||||||||||||||||||||||||||||||||||||
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Income taxes |
(84) | (49) | (133) | (37) | (170) | (63) | (233) | 8 | (77) | (69) | (722) | (791) | (548) | (1,339) | ||||||||||||||||||||||||||||||||||||||||||
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Increase/(Decrease) to net earnings |
$ | 14 | $ | 69 | $ | 83 | $ | 75 | $ | 158 | $ | 54 | $ | 212 | ($ | 7) | $ | 163 | $ | 156 | $ | 1,396 | $ | 1,552 | ($ | 148) | $ | 1,404 | ||||||||||||||||||||||||||||
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* | The 2012 specified tax benefit relates to a capital loss deduction. The 2011 specified tax benefit relates to releases of tax reserves that were specified in prior periods. |
10
BRISTOL-MYERS SQUIBB COMPANY
SELECTED BALANCE SHEET INFORMATION
($ in millions)
March 31, 2011 |
June 30, 2011 |
September 30, 2011 |
December 31, 2011 |
March 31, 2012 |
June 30, 2012 |
September 30, 2012 |
December 31, 2012 |
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Cash and cash equivalents |
$ | 3,405 | $ | 3,665 | $ | 4,471 | $ | 5,776 | $ | 2,307 | $ | 2,801 | $ | 1,503 | $ | 1,656 | ||||||||||||||||
Marketable securitiescurrent |
3,388 | 4,005 | 3,722 | 2,957 | 2,722 | 2,236 | 1,427 | 1,173 | ||||||||||||||||||||||||
Marketable securitieslong term |
3,065 | 2,734 | 2,819 | 2,909 | 3,585 | 3,732 | 3,698 | 3,523 | ||||||||||||||||||||||||
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Cash, cash equivalents and marketable securities |
9,858 | 10,404 | 11,012 | 11,642 | 8,614 | 8,769 | 6,628 | 6,352 | ||||||||||||||||||||||||
Short-term borrowings and current portion of long-term debt |
135 | 187 | 182 | 115 | 145 | 236 | 751 | 826 | ||||||||||||||||||||||||
Long-term debt |
5,276 | 5,332 | 5,437 | 5,376 | 5,270 | 5,209 | 6,608 | 6,568 | ||||||||||||||||||||||||
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Net cash/(debt) position |
$ | 4,447 | $ | 4,885 | $ | 5,393 | $ | 6,151 | $ | 3,199 | $ | 3,324 | $ | (731 | ) | $ | (1,042 | ) | ||||||||||||||
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11
BRISTOL-MYERS SQUIBB COMPANY
2013 FULL YEAR PROJECTED DILUTED EPS FROM OPERATIONS
EXCLUDING PROJECTED SPECIFIED ITEMS
Full Year 2013 | ||||
Projected Diluted Earnings Attributable to Shareholders per Common Share GAAP |
$ | 1.54 to $1.64 | ||
Projected Specified Items: |
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Downsizing and streamlining of worldwide operations |
0.12 | |||
Upfront, milestone and other |
0.01 | |||
Amortization of Amylin intangible assets and collaboration proceeds |
0.11 | |||
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Total |
0.24 | |||
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Projected Diluted Earnings Attributable to Shareholders per Common Share Non-GAAP |
$ | 1.78 to $1.88 | ||
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Gross margin as a percentage of sales on a GAAP and non-GAAP basis for the three months ended December 31, 2012 was 74.3% and 76.4%, respectively. On a non-GAAP basis, the Company projects gross margin as a percentage of sales for the full year 2013 between 72% and 73%. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on gross margin. See Reconciliation of GAAP and NON-GAAP Growth Dollars and Percentages Excluding Foreign Exchange Impact.
Research and development expenses on a GAAP basis for the three months ended December 31, 2012 were $1.1 billion, which included specified items of $65 million. On a non-GAAP basis, for the three months ended December 31, 2012 research and development expenses were $1.0 billion. On a non-GAAP basis, the Company projects research and development expense for the full year 2013 to grow in the low single digit range compared to 2012. It is estimated that 30% to 40% of the research and development expenses in 2013 will be incurred on late-stage development programs. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on research and development. See Reconciliation of Certain NON-GAAP Line Items to Certain GAAP Line Items.
Marketing, selling and administrative expenses, on a GAAP basis for the three months ended December 31, 2012 were $1.1 billion, which included specified items of $2 million. On a non-GAAP basis, for the three months ended December 31, 2012 marketing, selling and administrative expenses were $1.1 billion. On a non-GAAP basis, the Company projects marketing, selling and administrative expenses for the full year 2013 to remain flat compared to 2012. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on marketing, selling and administrative expense. See Reconciliation of Certain NON-GAAP Line Items to Certain GAAP Line Items.
The effective tax benefit rate on a GAAP basis for the three months ended December 31, 2012 was 80.1%, which included specified items of $548 million. On a non-GAAP basis, for the three months ended December 31, 2012 the effective tax rate was 15.0%. On a non-GAAP basis, the Company projects an annual effective tax rate of approximately 16%. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on the tax rate. See Reconciliation of Certain NON-GAAP Line Items to Certain GAAP Line Items.
The GAAP financial results for the full year 2013 will include specified items that may occur and impact results, including expected charges associated with downsizing and streamlining worldwide operations, impairment charges, milestone payments, and net amortization of acquired intangible assets and deferred income related to Amylin. The GAAP financial results for the full year 2013 could also include other specified items that have not yet been identified and quantified, including any gains or losses from acquisitions or divestitures, additional upfront, milestone and other licensing payments, charges for in-process research and development and licensed asset impairments, charges and recoveries relating to significant legal proceedings, restructuring activities, pension settlement charges and significant tax events. For a fuller discussion of certain litigation and other matters that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Reports Fourth Quarter 2012 Financial Results, January 24, 2013 including 2013 Financial Guidance and Use of Non-GAAP Financial Information therein.
12