- Increases Third Quarter Revenues 21%
to $4.9 Billion
- Posts Third Quarter GAAP EPS of
$0.72 and Non-GAAP EPS of $0.77
- Achieves Key Regulatory Milestones
for Opdivo
- Positive Advisory Opinion for the
Treatment of Classical Hodgkin Lymphoma in Europe
- Application for Advanced Form of
Bladder Cancer Accepted for Priority Review in U.S., Validated in
Europe
- Announces Approval of $3 Billion
Share Repurchase Authorization
- Announces Operating Model Evolution
for Sustained Growth
- Increases 2016 GAAP and Non-GAAP EPS
Guidance, Provides 2017 Guidance
Bristol-Myers Squibb Company (NYSE:BMY) today reported results
for the third quarter of 2016 which were highlighted by strong
sales and operating performance, and continued growth for key
products including Opdivo and Eliquis. The company raised full-year
guidance for 2016 and provided guidance expectations for 2017,
announced a new $3 billion share repurchase authorization, and
announced an evolution of the company’s operating model to focus
resources behind the company’s highest priorities, accelerate its
pipeline and simplify infrastructure.
“Our third quarter was marked by strong commercial execution and
solid trends across our products and geographies,” said Giovanni
Caforio, M.D., chief executive officer, Bristol-Myers Squibb.
“While we are disappointed with the results of CheckMate -026, a
setback in first-line lung in the short term, our overall strategic
focus does not change. Going forward, we see growth in both
the near and long term to continue to be driven by Opdivo, Eliquis
and Orencia, and by an exciting pipeline of specialty medicines
over time. As we focus on the future, we are evolving our operating
model to more effectively focus resources on key priorities and
simplify execution to deliver sustainable growth and to speed
transformational medicines to patients.”
Third
Quarter
$ amounts in millions, except per share amounts
2016
2015
Change
Total Revenues $4,922 $4,069 21% GAAP Diluted EPS 0.72 0.42 71%
Non-GAAP Diluted EPS 0.77 0.39 97%
THIRD QUARTER FINANCIAL
RESULTS
- Bristol-Myers Squibb posted third
quarter 2016 revenues of $4.9 billion, an increase of 21% compared
to the same period a year ago. Global revenues increased 22%
adjusted for foreign exchange impact. Excluding Erbitux, global
revenues increased 26% or 27% adjusted for foreign exchange
impact.
- U.S. revenues increased 36% to $2.8
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 7%.
- Gross margin as a percentage of
revenues was 73.5% in the quarter compared to 73.0% in the same
period a year ago.
- Marketing, selling and administrative
expenses decreased 3% to $1.1 billion in the quarter.
- Research and development expenses
increased 1% to $1.1 billion in the quarter.
- The effective tax rate was 22.1% in the
quarter, compared to 26.0% in the third quarter last year.
- The company reported net earnings
attributable to Bristol-Myers Squibb of $1.2 billion, or $0.72 per
share, in the quarter compared to $706 million, or $0.42 per share,
a year ago.
- The company reported non-GAAP net
earnings attributable to Bristol-Myers Squibb of $1.3 billion, or
$0.77 per share, in the third quarter, compared to $648 million, or
$0.39 per share, for the same period in 2015. An overview of
specified items is discussed under the “Use of Non-GAAP Financial
Information” section.
- Cash, cash equivalents and marketable
securities were $8.6 billion, with a net cash position of $1.8
billion, as of September 30, 2016.
THIRD QUARTER PRODUCT AND PIPELINE
UPDATE
Global revenues for the third quarter of 2016, compared to the
third quarter of 2015, were driven by Opdivo, which grew by $615
million; Eliquis, which grew 90%; Yervoy, which grew 19%; Orencia,
which grew 18%; and Sprycel, which grew 15%.
Opdivo
- In October, the Committee for Medicinal
Products for Human Use (CHMP) of the European Medicines Agency
(EMA) recommended the approval of Opdivo for the treatment of adult
patients with relapsed or refractory classical Hodgkin lymphoma
(cHL) after autologous stem cell transplant (ASCT) and treatment
with brentuximab vedotin, making Opdivo the first PD-1 inhibitor in
a hematologic malignancy to receive positive CHMP opinion. The
decision was based on overall response rate demonstrated by data
from two trials, CheckMate -205 and CheckMate -039. The CHMP
recommendation will now be reviewed by the European Commission
(EC), which has the authority to approve medicines for the European
Union (EU).
- In October, the U.S. Food and Drug
Administration (FDA) accepted a supplemental Biologics License
Application (sBLA), which seeks to expand the use of Opdivo to
adult patients with locally advanced unresectable or metastatic
urothelial carcinoma (mUC) after failure of prior
platinum-containing therapy. The FDA granted the application a
priority review and previously granted Opdivo Breakthrough Therapy
Designation for mUC in June 2016. The FDA action date is March 2,
2017.
- In September, the EMA validated the
company’s type II variation application, seeking to extend the
current indications for Opdivo to include the treatment of mUC in
adults after failure of prior platinum-containing therapy.
Validation of the application confirms the submission is complete
and begins the EMA’s centralized review process. The application
primarily included data from CheckMate -275, a Phase 2, open-label,
single-arm study assessing the safety and efficacy of Opdivo in
patients with locally advanced unresectable or mUC that has
progressed after a platinum-containing therapy.
- In October, during the European Society
for Medical Oncology Congress in Copenhagen, Denmark, the company
announced results from eight studies for Opdivo and the Opdivo +
Yervoy regimen:
- CheckMate -057 and CheckMate -017:
Updated results from these two pivotal Phase 3 studies showed more
than one-third of previously treated metastatic non-small cell lung
cancer (NSCLC) patients experienced ongoing responses
with Opdivo, compared to no ongoing responses in the docetaxel
arm. The median duration of response (DOR) with Opdivo versus
docetaxel in CheckMate -057 was 17.2 months and 5.6 months,
respectively, and in CheckMate -017 it was 25.2 months and 8.4
months, respectively. In CheckMate -057, patients with PD-L1 ≥1%
had a median DOR of 17.2 months and in patients with PD-L1 <1%,
it was 18.3 months. In both studies, durability of response was
observed in both PD-L1 expressors and non-expressors, and in
CheckMate -057, one out of the four complete responses occurred in
a patient with <1% PD-L1 expression. There were no new safety
signals identified for Opdivo in the pooled safety
analysis from both studies.
- CheckMate -016: Updated results from
this Phase 1 trial evaluating the safety and tolerability
of the Opdivo + Yervoy regimen in previously treated and
treatment-naïve patients with metastatic renal cell carcinoma
showed a confirmed objective response rate (ORR) for the
combination regimen of 40%. In the updated analysis, durable
responses were observed with the combination regimen. The safety
profile of the Opdivo + Yervoy combination in metastatic renal cell
carcinoma patients is consistent with previous reports of the
regimen in other studies.
- CheckMate -026: The final primary
analysis from this trial investigating the use
of Opdivo monotherapy as first-line therapy in patients
with advanced NSCLC whose tumors expressed PD-L1 ≥1% showed it did
not meet the primary endpoint of superior progression-free survival
(PFS) compared to chemotherapy. In patients with ≥5% PD-L1
expression, the median PFS was 4.2 months with Opdivo and 5.9
months with platinum-based doublet chemotherapy (stratified hazard
ratio [HR]=1.15 [95% CI: 0.91, 1.45, p=0.25]). The topline results
from this study were disclosed on August 5, 2016.
- CheckMate -141: New patient-centered
quality-of-life data from an exploratory endpoint in this pivotal
Phase 3 trial evaluating Opdivo in patients with
recurrent or metastatic squamous cell carcinoma of the head and
neck after platinum therapy compared to investigator’s choice of
therapy showed Opdivo stabilized patients’ symptoms and
functioning, including physical, role and social functioning across
three separate instruments. Both PD-L1 expressors and
non-expressors treated with investigator’s choice of therapy
experienced statistically significant worsening of patient-reported
outcomes from baseline to week 15 versus Opdivo. In
addition, Opdivo more than doubled the time to
deterioration for most functional domains measured and
significantly delayed the time to worsening symptoms of fatigue,
dyspnea and insomnia, compared to investigator’s choice of
therapy.
- CheckMate -275: In results from the
trial, Opdivo had a confirmed ORR, the primary endpoint, of
19.6% in platinum-refractory patients with metastatic urothelial
carcinoma. Responses were observed in both PD-L1 expressors and
non-expressors. The confirmed ORR in patients expressing PD-L1 ≥1%
was 23.8% and 16.1% in patients expressing PD-L1 <1%. In
patients expressing PD-L1 ≥5%, the confirmed ORR was 28.4% and
15.8% in patients expressing PD-L1 <5%. The safety profile of
Opdivo in this study was consistent with the safety profile of
Opdivo in other tumor types.
- Two Phase 1 Studies: In these two Phase
1 studies testing lirilumab in combination with Opdivo or Yervoy,
respectively, in patients with advanced refractory solid tumors,
the safety profile of the combination of lirilumab and Opdivo
therapy was similar to that of Opdivo monotherapy, with the
exception of an increased frequency of low grade infusion-related
reactions in patients treated with the lirilumab combinations.
Based on these data, further evaluation of lirilumab in combination
with Opdivo is warranted.
- In October, during the International
Symposium on Hodgkin Lymphoma in Cologne, Germany, the company
announced new results from CheckMate -205, a multi-cohort,
single-arm, Phase 2 trial evaluating Opdivo in patients with cHL.
These results from cohort C of the trial included patients with cHL
who had received brentuximab vedotin before and/or after autologous
hematopoietic stem cell transplantation (auto-HSCT). After a median
follow-up of 8.8 months, Opdivo demonstrated an ORR as assessed by
an independent radiologic review committee of 73% overall and
median progression-free survival of 11.2 months. The safety profile
of Opdivo was consistent with previously reported data in this
tumor type, and no new clinically meaningful safety signals were
identified.
Yervoy
- In October, during the European Society
for Medical Oncology Congress in Copenhagen, Denmark, the company
announced results of CA184-029 (EORTC 18071), a Phase 3 trial
evaluating stage III melanoma patients who are at high risk of
recurrence following complete surgical resection. Yervoy 10 mg/kg
compared with placebo significantly improved overall survival (OS)
(HR=0.72), a secondary endpoint, with five-year OS rates at 65.4%
in the Yervoy group and 54.4% in the placebo group. In this updated
five-year analysis, the recurrence-free survival (primary endpoint)
benefit observed previously with Yervoy was maintained. The safety
profile remained consistent with the initial analysis with no new
safety signals.
Orencia
- In September, the EC approved Orencia
intravenous (IV) infusion and subcutaneous (SC) injection, in
combination with methotrexate (MTX), for the treatment of highly
active and progressive disease in adult patients with rheumatoid
arthritis (RA) not previously treated with MTX. Orencia is the
first biologic therapy with an indication in the EU specifically
applicable to the treatment of MTX-naive RA patients with highly
active and progressive disease. The approval allows for the
expanded marketing of Orencia in all 28 Member States of the
EU.
BUSINESS DEVELOPMENT
UPDATE
- In September, the company entered into
a clinical collaboration to evaluate Nektar Therapeutics
investigational medicine, NKTR-214 as a potential combination
treatment regimen with Opdivo in five tumor types and seven
potential indications. The Phase 1/2 clinical trials will evaluate
the potential for the combination of Opdivo and NKTR-214 to show
improved and sustained efficacy and tolerability above the current
standard of care in melanoma, kidney, colorectal, bladder and
NSCLC. An initial dose-escalation trial is underway with Opdivo and
NKTR-214.
NEW SHARE REPURCHASE
Bristol-Myers Squibb today announced its Board of Directors
approved a new $3 billion repurchase authorization for the
Company’s common stock. This is incremental to the current
repurchase program, announced in June 2012, under which the Company
has approximately $1.1 billion remaining.
The stock repurchase program does not have an expiration date.
The repurchases may be made either in the open market or through
private transactions and may be suspended or discontinued at any
time.
The decision reflects the Company’s strong financial position
and its balanced approach to capital allocation, including a
commitment to its dividend and a disciplined approach to business
development.
OPERATING MODEL
Bristol-Myers Squibb announced an evolution of its operating
model to drive the company’s continued success in the near and long
term through a more focused investment in commercial opportunities
against key brands and markets, a competitive and more agile
R&D organization that can accelerate the pipeline, streamlined
operations and realigned manufacturing capabilities that broaden
biologics capabilities to reflect current and future portfolio. The
new operating model will enable the company to deliver the
strategic, financial and operational flexibility necessary to
invest in the highest priorities across the company.
Although GAAP operating expenses may increase initially as
charges are incurred related to this evolution, the company expects
non-GAAP operating expenses to be roughly flat with 2016 levels
through 2020.
2016 & 2017 FINANCIAL
GUIDANCE
Bristol-Myers Squibb is increasing its 2016 GAAP EPS guidance
range from $2.43 - $2.53 to $2.62 - $2.72. The company is
increasing its non-GAAP EPS guidance range from $2.55 - $2.65 to
$2.80 - $2.90. Both GAAP and non-GAAP guidance assume current
exchange rates. Revised 2016 GAAP and non-GAAP line-item guidance
assumptions include:
- Worldwide revenues increasing in the
high-teens.
- Gross margin as a percentage of
revenues to be approximately 75%.
- Marketing, selling and administrative
expenses to remain flat.
- Research and development expenses
decreasing 30% to 35% for GAAP and increasing in the high-single
digit range for non-GAAP.
- An effective tax rate between 25% to
26% for GAAP and 22% to 23% for non-GAAP.
Bristol-Myers Squibb expects 2017 GAAP EPS between $2.47 and
$2.67 and non-GAAP EPS between $2.85 and $3.05.
The financial guidance excludes the impact of any potential
future strategic acquisitions and divestitures, and any specified
items that have not yet been identified and quantified. The
non-GAAP 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
company’s website.
Use of Non-GAAP Financial
Information
This press release contains non-GAAP financial measures,
including non-GAAP earnings and related EPS information, that are
adjusted to exclude certain costs, expenses, gains and losses and
other specified items that are evaluated on an individual basis.
These items are adjusted after considering their quantitative and
qualitative aspects and typically have one or more of the following
characteristics, such as being highly variable, difficult to
project, unusual in nature, significant to the results of a
particular period or not indicative of future operating results.
Similar charges or gains were recognized in prior periods and will
likely reoccur in future periods including restructuring costs,
accelerated depreciation and impairment of property, plant and
equipment and intangible assets, R&D charges in connection with
the acquisition or licensing of third party intellectual property
rights, divestiture gains or losses, pension, legal and other
contractual settlement charges and debt redemption gains or losses,
among other items. Deferred and current income taxes attributed to
these items are also adjusted for considering their individual
impact to the overall tax expense, deductibility and jurisdictional
tax rates. Non-GAAP information is intended to portray the results
of our baseline performance, supplement or enhance management,
analysts and investors overall understanding of our underlying
financial performance and facilitate comparisons among current,
past and future periods. For example, non-GAAP earnings and EPS
information is an indication of our baseline performance before
items that are considered by us to not be reflective of our ongoing
results. In addition, this information is among the primary
indicators we use as a basis for evaluating performance, allocating
resources, setting incentive compensation targets and planning and
forecasting for future periods. This information is not intended to
be considered in isolation or as a substitute for net earnings or
diluted EPS 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 company’s 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 company’s ability to execute successfully its strategic
plans, including its business development strategy, the expiration
of patents or data protection on certain products, including
assumptions about the company’s ability to retain patent
exclusivity of 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 compounds 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 company's 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.
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 about Bristol-Myers Squibb, visit us
at BMS.com or follow us on LinkedIn, Twitter,
YouTube and Facebook.
There will be a conference call on October 27, 2016, at 10:30
a.m. EDT 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 calling the
U.S. toll free 877-258-2708 or international 647-252-4456,
confirmation code: 91351854. Materials related to the call will be
available at the same website prior to the conference call. A
replay of the call will be available beginning at 1:30 p.m. EDT on
October 27 through 11:59 p.m. EST on November 10, 2016. The replay
will also be available through http://investor.bms.com or by
calling the U.S. toll free 855-859-2056 or international
404-537-3406, confirmation code: 91351854.
For more information, contact: Ken Dominski, 609-252-5251,
ken.dominski@bms.com, Communications; John Elicker, 609-252-4611,
john.elicker@bms.com, or Bill Szablewski, 609-252-5894,
william.szablewski@bms.com, Investor Relations.
BRISTOL-MYERS SQUIBB COMPANY
PRODUCT REVENUE
FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
(Unaudited, dollars in millions)
Worldwide Revenues U.S. Revenues
2016 2015 %
Change
2016 2015 %
Change
Three Months Ended
September 30,
Key Products
Oncology Empliciti $ 41 $ — N/A $ 36 $ — N/A
Erbitux(a) — 167 (100 )% — 165 (100 )% Opdivo 920 305 ** 712 268 **
Sprycel 472 411 15 % 259 215 20 % Yervoy 285 240 19 % 222 121 83 %
Cardiovascular Eliquis 884 466 90 % 512 245 **
Immunoscience Orencia 572 484 18 % 387 330 17 %
Virology Baraclude 306 320 (4 )% 17 25 (32 )% Hepatitis C
Franchise 379 402 (6 )% 192 111 73 % Reyataz Franchise 238 270 (12
)% 125 149 (16 )% Sustiva Franchise 275 333 (17 )% 234 280 (16 )%
Neuroscience Abilify(b) 29 46 (37 )% — 18 (100 )%
Mature Products and All Other 521 625 (17 )% 94 117 (20 )%
Total $ 4,922 $ 4,069 21 % $ 2,790 $ 2,044 36 % ** In
excess of +/- 100% (a) Erbitux is a trademark of ImClone
LLC. ImClone LLC is a wholly-owned subsidiary of Eli Lilly and
Company. (b) Abilify is a trademark of Otsuka Pharmaceutical Co.,
Ltd.
BRISTOL-MYERS SQUIBB COMPANY
PRODUCT REVENUE
FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
(Unaudited, dollars in millions)
Worldwide Revenues U.S. Revenues
2016 2015 %
Change
2016 2015 %
Change
Nine Months Ended
September 30,
Key Products
Oncology Empliciti $ 103 $ — N/A $ 97 $ — N/A
Erbitux — 501 (100 )% — 487 (100 )% Opdivo 2,464 467 ** 1,949 413
** Sprycel 1,330 1,191 12 % 702 601 17 % Yervoy 789 861 (8 )% 600
438 37 %
Cardiovascular Eliquis 2,395 1,258 90 % 1,424 688
**
Immunoscience Orencia 1,640 1,345 22 % 1,109 899 23 %
Virology Baraclude 896 1,003 (11 )% 49 108 (55 )% Hepatitis
C Franchise 1,352 1,145 18 % 745 111 ** Reyataz Franchise 706 867
(19 )% 367 449 (18 )% Sustiva Franchise 819 940 (13 )% 689 772 (11
)%
Neuroscience Abilify 97 707 (86 )% — 593 (100 )%
Mature Products and All Other 1,593 1,988 (20 )% 284 366 (22 )%
Total $ 14,184 $ 12,273 16 % $ 8,015 $ 5,925 35 % **
In excess of +/- 100%
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
(Unaudited, dollars and shares in millions
except per share data)
Three Months Ended
September 30,
Nine Months EndedSeptember 30,
2016 2015 2016 2015 Net product sales $ 4,492 $ 3,552
$ 12,888 $ 10,183 Alliance and other revenues 430 517
1,296 2,090 Total Revenues 4,922 4,069
14,184 12,273 Cost of products sold 1,305
1,097 3,563 2,957 Marketing, selling and administrative 1,144 1,176
3,450 3,340 Research and development 1,138 1,132 3,540 4,004 Other
(income)/expense (224 ) (323 ) (1,198 ) (515 ) Total Expenses 3,363
3,082 9,355 9,786 Earnings
Before Income Taxes 1,559 987 4,829 2,487 Provision for Income
Taxes 344 257 1,220 668 Net
Earnings 1,215 730 3,609 1,819 Net Earnings Attributable to
Noncontrolling Interest 13 24 46 57 Net
Earnings Attributable to BMS $ 1,202 $ 706 $ 3,563
$ 1,762 Average Common Shares Outstanding:
Basic 1,671 1,668 1,670 1,666 Diluted 1,679 1,678 1,679 1,677
Earnings per Common Share Basic $ 0.72 $ 0.42 $ 2.13 $ 1.06
Diluted $ 0.72 $ 0.42 $ 2.12 $ 1.05 Other (Income)/Expense
Interest expense $ 42 $ 41 $ 127 $ 141 Investment income (32 ) (18
) (81 ) (74 ) Provision for restructuring 19 10 41 50 Litigation
and other settlements (1 ) (2 ) 48 14 Equity in net income of
affiliates (19 ) (19 ) (65 ) (67 ) Divestiture gains (21 ) (208 )
(574 ) (370 ) Royalties and licensing income (158 ) (63 ) (579 )
(258 ) Transition and other service fees (57 ) (37 ) (184 ) (91 )
Pension charges 19 48 66 111 Intangible asset impairment — — 15 13
Equity investment impairment — — 45 — Written option adjustment —
(87 ) — (123 ) Loss on debt redemption — — — 180 Other (16 ) 12
(57 ) (41 ) Other (income)/expense $ (224 ) $ (323 ) $
(1,198 ) $ (515 )
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
(Unaudited, dollars in millions)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2016 2015 2016 2015
Cost of products
sold(a) $ 7 $ 15 $ 15 $ 74
Marketing, selling
and administrative — 2 — 6 License and asset acquisition
charges 45 94 309 1,125 Other 14 15 40 17
Research and development 59 109 349 1,142
Provision for restructuring 19 10 41 50 Divestiture gains (13 )
(198 ) (559 ) (358 ) Pension charges 19 48 66 111 Written option
adjustment — (87 ) — (123 ) Litigation and other settlements (3 ) —
40 15 Intangible asset impairment — — 15 13 Loss on debt redemption
— — — 180
Other (income)/expense
22 (227 ) (397 ) (112 )
Increase/(decrease) to pretax
income 88 (101 ) (33 ) 1,110 Income tax on items above
(3 ) 43 156 (141 )
Increase/(decrease) to net earnings $ 85 $ (58 ) $
123 $ 969 (a) Specified items in cost
of products sold are accelerated depreciation, asset impairment and
other shutdown costs.
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF CERTAIN GAAP LINE ITEMS
TO CERTAIN NON-GAAP LINE ITEMS
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
(Unaudited, dollars in millions)
Three Months Ended September 30, 2016 Nine Months Ended
September 30, 2016 GAAP Specified
Items(a)
Non-
GAAP
GAAP Specified
Items(a)
Non-
GAAP
Gross Profit $ 3,617 $ 7 $ 3,624 $ 10,621 $ 15 $ 10,636 Marketing,
selling and administrative 1,144 — 1,144 3,450 — 3,450 Research and
development 1,138 (59 ) 1,079 3,540 (349 ) 3,191 Other
(income)/expense (224 ) (22 ) (246 ) (1,198 ) 397 (801 ) Effective
Tax Rate 22.1 % (1.0 )% 21.1 % 25.3 % (3.1 )% 22.2 % Three
Months Ended September 30, 2015 Nine Months Ended September 30,
2015 GAAP SpecifiedItems(a) Non-GAAP GAAP SpecifiedItems(a)
Non-GAAP Gross Profit $ 2,972 $ 15 $ 2,987 $ 9,316 $ 74 $ 9,390
Marketing, selling and administrative 1,176 (2 ) 1,174 3,340 (6 )
3,334 Research and development 1,132 (109 ) 1,023 4,004 (1,142 )
2,862 Other (income)/expense (323 ) 227 (96 ) (515 ) 112 (403 )
Effective Tax Rate 26.0 % (1.8 )% 24.2 % 26.9 % (4.4 )% 22.5 %
(a) Refer to the Specified Items schedule for further
details. Effective tax rate on the Specified Items represents the
difference between the GAAP and Non-GAAP effective tax rate.
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP EPS TO NON-GAAP
EPS
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
(Unaudited, dollars and shares in millions
except per share data)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2016 2015 2016 2015 Net Earnings Attributable to BMS
used for Diluted EPS Calculation - GAAP $ 1,202 $ 706 $ 3,563 $
1,762 Less Specified Items* 85 (58 ) 123 969 Net
Earnings used for Diluted EPS Calculation – Non-GAAP $ 1,287
$ 648 $ 3,686 $ 2,731 Average Common Shares
Outstanding Diluted 1,679 1,678 1,679 1,677 Diluted Earnings
Per Share — GAAP $ 0.72 $ 0.42 $ 2.12 $ 1.05 Diluted EPS
Attributable to Specified Items 0.05 (0.03 ) 0.08
0.58 Diluted Earnings Per Share — Non-GAAP $ 0.77 $ 0.39
$ 2.20 $ 1.63 * Refer to the Specified
Items schedule for further details.
BRISTOL-MYERS SQUIBB COMPANY
NET CASH/(DEBT) CALCULATION
AS OF SEPTEMBER 30, 2016 AND JUNE 30,
2016
(Unaudited, dollars in millions)
September 30, 2016 June 30, 2016 Cash and cash equivalents $
3,432 $ 2,934 Marketable securities - current 2,128 1,717
Marketable securities - non-current 3,035 3,281
Cash, cash equivalents and marketable securities 8,595 7,932
Short-term borrowings and current portion of long-term debt (990 )
(155 ) Long-term debt (5,836 ) (6,581 )
Net cash position $
1,769 $ 1,196
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161027005357/en/
Bristol-Myers Squibb CompanyFor more
information:CommunicationsKen Dominski,
609-252-5251ken.dominski@bms.comorInvestor RelationsJohn Elicker,
609-252-4611john.elicker@bms.comorBill Szablewski,
609-252-5894william.szablewski@bms.com
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