- Reports Fourth Quarter Revenues of $7.9 Billion; $26.1
Billion for Full Year
- Posts Fourth Quarter GAAP Loss Per Share of $0.55 and
Non-GAAP EPS of $1.22
- Completes Acquisition of Celgene; Integration and Synergy
Capture on Track
- Presents Important New Data from Leading Hematology
Portfolio at ASH Annual Meeting
- Announces Two U.S. FDA Filing Acceptances for Opdivo plus
Yervoy Regimen
- Announces $5 Billion Increase to Share Repurchase
Authorization
- Provides Financial Guidance for 2020 and 2021
Bristol-Myers Squibb Company (NYSE:BMY) today reports results
for the fourth quarter and full year of 2019, which highlight
continued strong sales and robust operating performance, along with
the ongoing advancement of the company’s pipeline.
“By all measures, 2019 was a transformative year for
Bristol-Myers Squibb as we progressed our strategy through the
acquisition of Celgene, delivered strong operational and financial
performance, and continued to drive important science for
patients,” said Giovanni Caforio, M.D., chairman and chief
executive officer, Bristol-Myers Squibb. “With an expanded
portfolio of high-performing brands, eight potential commercial
launch opportunities, a deep and broad early pipeline, and the
financial flexibility to continue to invest in innovation, the
company enters 2020 uniquely positioned to transform patients’
lives through science and create long-term sustainable growth.”
Fourth
Quarter
$ amounts in millions, except per share
amounts
2019*
2018
Change
Total Revenues
$7,945
$5,973
33%
GAAP Diluted EPS
(0.55)
0.71
N/A
Non-GAAP Diluted EPS
1.22
0.94
30%
Full
Year
$ amounts in millions, except per share
amounts
2019*
2018
Change
Total Revenues
$26,145
$22,561
16%
GAAP Diluted EPS
2.01
3.01
(33)%
Non-GAAP Diluted EPS
4.69
3.98
18%
*Includes Celgene results from November
20, 2019 through December 31, 2019.
FOURTH QUARTER FINANCIAL
RESULTS
All comparisons are made versus the same period in 2018
unless otherwise stated.
- Bristol-Myers Squibb posted fourth quarter revenues of $7.9
billion, an increase of 33%, primarily due to the Celgene
acquisition (closed on November 20, 2019). Revenues increased 34%
when adjusted for foreign exchange impact.
- U.S. revenues increased 42% to $4.8 billion in the quarter.
International revenues increased 21% to $3.2 billion in the
quarter. When adjusted for foreign exchange impact, international
revenues increased 23%.
- Gross margin as a percentage of revenue decreased from 72.0% to
68.6% in the quarter primarily due to unwinding of inventory
purchase price accounting adjustments, partially offset by product
mix.
- Marketing, selling and administrative expenses increased 30% to
$1.7 billion in the quarter primarily due to $400 million costs
associated with the Celgene acquisition.
- Research and development expenses increased 52% to $2.1 billion
in the quarter primarily due $500 million related to the Celgene
acquisition.
- Amortization of acquired intangible assets was $1.1 billion in
the quarter primarily due to the Celgene acquisition.
- Income taxes were $931 million despite pre-tax loss of $129
million in the current quarter primarily due to the Otezla®
(apremilast) divestiture, certain non-deductible expenses and
purchase price adjustments. The effective tax rate was 23.1% in the
same period a year ago.
- The company reported net loss attributable to Bristol-Myers
Squibb of $1.1 billion, or $0.55 per share, in the fourth quarter,
compared to net earnings of $1.2 billion, or $0.71 per share, for
the same period a year ago. The results in the current quarter
include costs and expenses resulting from purchase price
accounting, contingent value right fair value adjustments and other
acquisition and integration expenses.
- The company reported non-GAAP net earnings attributable to
Bristol-Myers Squibb of $2.4 billion, or $1.22 per share, in the
fourth quarter, compared to net earnings of $1.5 billion, or $0.94
per share, for the same period a year ago. A discussion of the
non-GAAP financial measures is included under the “Use of Non-GAAP
Financial Information” section.
- Cash, cash equivalents and marketable debt securities were
$16.2 billion and debt was $46.7 billion as of December 31,
2019.
ACQUISITION OF CELGENE
CORPORATION
- In November, the company announced the completion of its
acquisition of Celgene Corporation following the receipt of
regulatory approval from all government authorities required by the
merger agreement. (link)
- As announced in August 2019, in connection with the regulatory
approval process of the acquisition of Celgene, Celgene entered
into an agreement to divest the global rights to Otezla® to Amgen
Inc. for $13.4 billion in cash. On November 21, 2019, the Otezla®
divestiture was completed.
Otezla® is a trademark of Amgen Inc.
FOURTH QUARTER PRODUCT AND PIPELINE
UPDATE
Product Revenue Highlights
Global product revenue increases in the fourth quarter of 2019,
as compared to the fourth quarter of 2018, drove revenue
increases.
Product
Quarter Ended December 31,
2019
% Change from Quarter Ended
December 31, 2018
Eliquis
$2,034
19%
Opdivo
$1,763
(2)%
Revlimid*
$1,299
N/A
Orencia
$792
8%
Pomalyst/Imnovid*
$322
N/A
Sprycel
$549
2%
Yervoy
$385
Unchanged
Abraxane*
$166
N/A
Empliciti
$94
36%
* Represents product revenues for Celgene products only
from November 20, 2019, which was the date of the closing of the
acquisition, through December 31, 2019. See “Worldwide Product
Revenue,” which is available on bms.com/investors, for information
on the revenue for these products and other products of the company
and Celgene presented on a quarterly basis for 2018 and 2019.
Oncology
Opdivo
Regulatory
- In January, the company announced that the U.S. Food and Drug
Administration (U.S. FDA) has accepted for priority review its
supplemental Biologics License Application (sBLA) for Opdivo plus
Yervoy for the first-line treatment of patients with metastatic or
recurrent NSCLC with no EGFR or ALK genomic tumor aberrations with
an FDA action date of May 15, 2020.
- In January, the company announced that it has withdrawn its
European application for Opdivo (nivolumab) plus Yervoy
(ipilimumab) for the first-line treatment of advanced non-small
cell lung cancer (NSCLC).
- In November, the company announced that the U.S. FDA accepted
its sBLA and granted Breakthrough Therapy Designation for Opdivo
plus Yervoy for the treatment of patients with advanced
hepatocellular carcinoma (HCC) previously treated with sorafenib
with an FDA action date of March 10, 2020.
Clinical
- In November, the company announced results from CheckMate -915,
a randomized Phase 3 study evaluating Opdivo plus Yervoy versus
Opdivo alone for the adjuvant treatment of patients who have had a
complete surgical removal of stage IIIb/c/d or stage IV (no
evidence of disease) melanoma. The study did not meet one of its
co-primary endpoints of recurrence-free survival (RFS) in patients
whose tumors expressed PD-L1 <1%. The study will continue to
assess the other co-primary endpoint of RFS in the intent-to-treat
population. (link)
Cardiovascular
Eliquis
Clinical
- In November, the company and its alliance partner Pfizer
announced the initiation of a new randomized, controlled study,
GUARD-AF (ReducinG stroke by screening for UndiAgnosed atRial
fibrillation in elderly inDividuals). (link)
Immunology
Orencia
Regulatory
- In December, the company announced that the U.S. FDA granted
Breakthrough Therapy Designation for Orencia (abatacept) for the
prevention of moderate to severe acute graft-versus-host disease in
hematopoietic stem cell transplants from unrelated donors.
Clinical
- In November, at the 2019 American College of Rheumatology and
Association of Rheumatology Professionals Annual Meeting, the
company announced new data from the randomized Phase IIIb
Assessing Very Early
Rheumatoid arthritis Treatment (AVERT)-2 trial exploring de-escalation
of therapy in early, seropositive rheumatoid arthritis patients who
achieved sustained Simplified Disease Activity Index remission
following induction with Orencia and methotrexate. (link)
Hematology
Conferences
In December, at the 2019 American Society of Hematology (ASH)
Annual Meeting, the company announced important new data and
analysis from its hematology portfolio:
- QUAZAR AML-001: a study evaluating investigational agent CC-486
as maintenance therapy in a broad population of patients with
front-line, newly diagnosed acute myeloid leukemia who have
achieved complete remission with intensive induction chemotherapy.
(link)
- TRANSCEND NHL 001: an evaluation of lisocabtagene maraleucel
(liso-cel) in patients with in relapsed/refractory large B-cell
lymphomas. (link)
- TRANSCEND CLL 004: a study evaluating liso-cel in relapsed or
refractory chronic lymphocytic leukemia or small lymphocytic
lymphoma. (link)
- PILOT: a study evaluating liso-cel in second-line patients with
relapsed or refractory large B-cell non-Hodgkin’s lymphoma patients
who were ineligible for high-dose chemotherapy and hematopoietic
stem cell transplant. (link)
- An analysis of patients with relapsed/refractory large B-cell
non-Hodgkin lymphoma who received liso-cel in the outpatient
setting across three studies. (link)
The following data were also presented at the ASH Annual Meeting
by the company and its partners:
- The company and its partner Acceleron Pharma Inc. presented
data evaluating Reblozyl in patients with anemia associated with a
range of serious and rare blood diseases. Data included the initial
results from a Phase 2 study in myelofibrosis-associated anemia,
and long-term results from two pivotal Phase 3 studies—the MEDALIST
study in adult patients with anemia associated with very low to
intermediate-risk myelodysplastic syndromes (MDS) who have ring
sideroblasts and require red blood cell (RBC) transfusions, and the
BELIEVE study in adult patients with anemia associated with beta
thalassemia who require regular RBC transfusions. (link)
- The company and its partner bluebird bio, Inc. presented
updated safety and efficacy results from the ongoing Phase 1 study,
CRB-402, evaluating bb21217, an investigational BCMA-targeted
chimeric antigen receptor (CAR) T cell therapy being studied in
patients with relapsed/refractory multiple myeloma. (link)
- The company and its alliance partner Pfizer announced results
from retrospective real-world data analyses reporting outcomes on
the safety and effectiveness of Eliquis (apixaban) compared to low
molecular weight heparin or warfarin for the treatment of venous
thromboembolism in patients with active cancer. (link)
Revlimid
Regulatory
- In December, the company announced that the European Commission
approved a new indication for Revlimid (lenalidomide), in
combination with rituximab, for the treatment of adult patients
with previously treated follicular lymphoma.
Reblozyl
Regulatory
- In November, Celgene and partner Acceleron Pharma Inc.
announced the FDA approved Reblozyl for the treatment of anemia in
adult patients with beta thalassemia who require regular red blood
cell transfusions. The company is also seeking approval of Reblozyl
for the treatment of anemia in adult patients with very low- to
intermediate-risk myelodysplastic syndromes (MDS) who have ring
sideroblasts and require red blood cell (RBC) transfusions and has
an FDA action date of April 4, 2020.
Clinical
- In January, the company and its partner Acceleron Pharma Inc.
announced that the New England Journal of Medicine published
results from MEDALIST, the pivotal Phase 3 study evaluating the use
of Reblozyl to treat anemia in patients with very low- to
intermediate-risk MDS who have ring sideroblasts and require RBC
transfusions, and who had failed, were intolerant to, or ineligible
for/unlikely to respond to treatment with
erythropoiesis-stimulating agents. (link)
ide-cel
Clinical
- In December, the company and its partner bluebird bio, Inc.
announced that KarMMa, a pivotal, open-label, single arm,
multicenter, Phase 2 study evaluating ide-cel (bb2121) in patients
with R/RMM, met its primary endpoint and key secondary endpoint.
(link)
liso-cel
Regulatory
- In December, the company announced the submission of its
Biologics License Application (BLA) to the U.S. FDA for liso-cel,
its autologous anti-CD19 CAR T-cell immunotherapy for the treatment
of adult patients with relapsed or refractory large B-cell lymphoma
after at least two prior therapies.
BUSINESS DEVELOPMENT
UPDATE
- In February, the company and its partner BioMotiv announced the
launch of Anteros Pharmaceuticals, a biotechnology company focused
on developing a new class of drugs for fibrotic and other
inflammatory diseases, as part of its strategic partnership
agreement.
- In January, the company and its partner Nektar Therapeutics
announced that the companies amended the strategic collaboration
agreement for bempegaldesleukin plus Opdivo.
- In January, the company announced that it completed the
divestiture of its oral solid, biologics, and sterile product
manufacturing and packaging facility in Anagni, Italy, to Catalent
Inc.
CAPITAL ALLOCATION
Bristol-Myers Squibb maintains a balanced approach to capital
allocation focused on future business development and sourcing
external innovation as a priority, de-leveraging in the near term
to maintain strong investment grade credit ratings and less than
1.5x debt/EBITDA by 2023, planning for annual dividend increases,
subject to board approval, and disciplined share repurchases.
In that context, the company today announced its board of
directors approved an increase of $5 billion to the share
repurchase authorization for the company’s common stock. This is
incremental to the current share repurchase program announced in
October 2016 under which the company has approximately $1 billion
remaining and increases the company’s total outstanding share
repurchase authorization under the company’s share repurchase
program to approximately $6 billion.
The specific timing and number of shares repurchased will be
determined by the company’s management at its discretion and will
vary based on market conditions, securities law limitations and
other factors. The share repurchase program does not obligate the
company to repurchase any specific number of shares, does not have
a specific expiration date and may be suspended or discontinued at
any time. The repurchases may be effected through a combination of
one or more open market repurchases, privately negotiated
transactions, transactions structured through investment banking
institutions and other derivative transactions.
FINANCIAL GUIDANCE
Bristol-Myers Squibb is providing 2020 GAAP EPS guidance range
of $0.75 to $0.95 and non-GAAP EPS guidance range of $6.00 to
$6.20. In addition, the company is providing for 2021, a non-GAAP
EPS guidance range of $7.15 to $7.45. Both GAAP and non-GAAP
guidance for 2020 and non-GAAP guidance for 2021 includes the
impact of the Celgene acquisition and the Otezla divestiture and
assume current exchange rates. Key 2020 GAAP and non-GAAP line-item
guidance assumptions are:
GAAP
non-GAAP
Revenue
$40.5B - $42.5B
$40.5B - $42.5B
Gross margin as a percentage of
revenue
Approximately 74%
Approximately 80%
Marketing, selling, and administrative
expenses
$6.8B - $7.0B
$6.8B - $7.0B
Research and development expenses
$10.1B - $10.3B
$9.6B - $9.8B
Other (income)/expense
$0.6B - $0.7B
($0.1B) - ($0.2B)
Effective tax rate
Approximately 43%
Approximately 17%
Weighted average diluted shares
Approximately 2.3 Billion
Approximately 2.3 Billion
EPS guidance
$0.75 - $0.95
$6.00 - $6.20
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 2020
and 2021 non-GAAP EPS guidance further excludes other specified
items as discussed under “Use of Non-GAAP Financial Information.” A
reconciliation of non-GAAP financial measures to the most
comparable GAAP measure and the reasons why management believes the
use of these measures is important are provided in supplemental
materials available on the company’s website. For 2021 non-GAAP EPS
guidance, there is no reliable or reasonably estimable comparable
GAAP measure as discussed below. The financial guidance is subject
to risks and uncertainties applicable to all forward-looking
statements as described elsewhere in this press release.
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, Facebook, and
Instagram.
There will be a conference call on February 6 at 8:30 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 calling the U.S. toll free
888-204-4368 or international 786-789-4797, confirmation code:
5605395. 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 11:45 a.m. ET on February 6, 2019
through 11:45 a.m. ET on February 20, 2020. The replay will also be
available through http://investor.bms.com or by calling the U.S.
toll free 888-203-1112 or international 719-457-0820, confirmation
code: 5605395.
Use of Non-GAAP Financial
Information
This earnings 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.
Reconciliations of these non-GAAP financial measures to the most
comparable GAAP measures are available on the company’s website at
www.bms.com.
These non-GAAP 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 amortization
of acquired intangible assets beginning in the fourth quarter of
2019, including product rights that generate a significant portion
of our ongoing revenue, unwind of inventory fair value adjustments,
acquisition and integration expenses, restructuring costs,
accelerated depreciation and impairment of property, plant and
equipment and intangible assets, R&D charges or other income
resulting from up-front or contingent milestone payments in
connection with the acquisition or licensing of third-party
intellectual property rights, costs of acquiring a priority review
voucher, divestiture gains or losses, stock compensation resulting
from accelerated vesting of Celgene awards, certain
retention-related compensation charges related to the Celgene
acquisition, pension, legal and other contractual settlement
charges, interest expense on the notes issued in May 2019 prior to
our acquisition of Celgene and interest income earned on the net
proceeds of those notes and amortization of fair value adjustments
of debt assumed from Celgene, 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. This earnings release
also provides international revenues excluding the impact of
foreign exchange.
Non-GAAP information is intended to portray the results of the
company’s baseline performance, supplement or enhance management,
analysts and investors overall understanding of the company’s
underlying financial performance and facilitate comparisons among
current, past and future periods. For example, non-GAAP earnings
and EPS information is an indication of the company’s baseline
performance before items that are considered by us to not be
reflective of the company’s ongoing results. In addition, this
information is among the primary indicators that 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 and may not be the same as or
comparable to similarly titled measures presented by other
companies due to possible differences in method and in the items
being adjusted. We encourage investors to review our financial
statements and publicly-filed reports in their entirety and not to
rely on any single financial measure.
Amortization of acquired intangible assets were previously
included in non-GAAP earnings and EPS information. These amounts
have become significant to the financial results subsequent to the
Celgene acquisition and as a result, have been excluded in the
non-GAAP results to better reflect our core operating performance.
Comparable prior period non-GAAP results have not been revised to
include this adjustment as the related amounts were insignificant
($97 million in 2018).
In connection with presenting our outlook, we are also providing
non-GAAP EPS guidance for 2021. There is no reliable or reasonably
estimable comparable GAAP measure for this because we are not able
to reliably predict the impact of specified items beyond the next
twelve months. As a result, the reconciliation of this non-GAAP
measure to the most directly comparable GAAP measure is not
available without unreasonable effort. In addition, the company
believes such a reconciliation would imply a degree of precision
and certainty that could be confusing to investors. The variability
of the specified items may have a significant and unpredictable
impact on our future GAAP results.
Website Information
We routinely post important information for investors on our
website, BMS.com, in the “Investors” section. We may use this
website as a means of disclosing material, non-public information
and for complying with our disclosure obligations under Regulation
FD. Accordingly, investors should monitor the Investors section of
our website, in addition to following our press releases, SEC
filings, public conference calls, presentations and webcasts. We
may also use social media channels to communicate with our
investors and the public about our company, our products and other
matters, and those communications could be deemed to be material
information. The information contained on, or that may be accessed
through, our website or social media channels are not incorporated
by reference into, and are not a part of, this document.
Cautionary Statement Regarding
Forward-Looking Statements
This earnings release and the related attachments (as well as
the oral statements made with respect to information contained in
this release and the attachments) contain certain “forward-looking”
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, 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 they use words such as “should,” “could,”
“expect,” “anticipate,” “estimate,” “target,” “may,” “project,”
“guidance,” “intend,” “plan,” “believe,” “will” and other words and
terms of similar meaning and expression in connection with any
discussion of future operating or financial performance, although
not all forward-looking statements contain such terms. One can also
identify forward-looking statements by the fact that they do not
relate strictly to historical or current facts. These statements
are likely to relate to, among other things, the company’s ability
to execute successfully its strategic plans, including its business
development strategy generally and in relation to its ability to
realize the projected benefits of the company’s acquisition of
Celgene, 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. No forward-looking statement
can be guaranteed, including that the company’s future clinical
studies will support the data described in this release, product
candidates will receive necessary clinical and manufacturing
regulatory approvals, pipeline products will prove to be
commercially successful, clinical and manufacturing regulatory
approvals will be sought or obtained within currently expected
timeframes or contractual milestones will be achieved.
Such forward-looking statements are based on historical
performance and current expectations and projections about the
company’s future financial results, goals, plans and objectives and
involve inherent risks, assumptions and uncertainties, including
internal or external factors that could delay, divert or change any
of them in the next several years, that are difficult to predict,
may be beyond the company’s control and could cause the company’s
future financial results, goals, plans and objectives to differ
materially from those expressed in, or implied by, the statements.
Such risks, uncertainties and other matters include, but are not
limited to, risks relating to our integrating the Celgene business
and operations, including human capital management, portfolio
rationalization, finance and accounting systems, sales operations
and product distribution, pricing systems and methodologies,
expected cost saving and avoidance from synergies, and other
integration-related activities; challenges inherent in new product
development, including obtaining and maintaining regulatory
approval; pricing controls and pressures (including changes in
rules and practices of managed care organizations and institutional
and governmental purchasers); the impact of any U.S. healthcare
reform and legislation or regulatory action in the U.S. and markets
outside the U.S. affecting pharmaceutical product pricing,
reimbursement or access; competitive developments affecting current
products; difficulties and delays in product introduction and
commercialization; the company’s ability to obtain and protect
market exclusivity rights and enforce patents and other
intellectual property rights; the risk of certain novel approaches
to disease treatment (such as CAR T therapy); industry competition
from other manufacturers; the risk of an adverse patent litigation
decision or settlement and exposure to other litigation and/or
regulatory actions; changes in tax law and regulations; any decline
in our future royalty streams; any significant issues that may
arise related to the company’s joint ventures and other third-party
business arrangements; the company’s ability to execute its
financial, strategic and operational plans or initiatives and to
identify potential strategic acquisitions, licensing opportunities
or other beneficial transactions; the ability to attract and retain
key personnel; the company’s ability to effectively manage
acquisitions, divestitures, alliances and other portfolio actions
and to successfully realize the expected benefits of such
transactions; difficulties or delays in manufacturing, distribution
or sale of products, including without limitation, interruptions
caused by damage to the company’s and the company’s suppliers’
manufacturing sites; regulatory decisions impacting labeling,
manufacturing processes and/or other matters; the impact on the
company’s competitive position from counterfeit or unregistered
versions of its products or stolen products; the impact of our
significant additional indebtedness that we incurred in connection
with the financing of the acquisition on our ability to operate the
combined company; the adverse impact of cyber-attacks on the
company’s information systems or products, including unauthorized
disclosure of trade secrets or other confidential data stored in
the company’s information systems and networks; interest rate and
currency exchange rate fluctuations, credit and foreign exchange
risk management; political and financial instability of
international economies and sovereign risk; and issuance of new or
revised accounting standards.
Forward-looking statements in this earnings release should be
evaluated together with the many risks and uncertainties that
affect the company’s business and market, particularly those
identified in the cautionary statement and risk factors discussion
in the company’s Annual Report on Form 10-K for the year ended
December 31, 2018, as updated by the company’s subsequent Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K and other filings
with the Securities and Exchange Commission. The forward-looking
statements included in this document are made only as of the date
of this document and except as otherwise required by applicable
law, the company undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, changed circumstances or otherwise.
BRISTOL-MYERS SQUIBB COMPANY
PRODUCT REVENUES
FOR THE THREE MONTHS ENDED
DECEMBER 31, 2019 AND 2018
(Unaudited, dollars in
millions)
Worldwide Revenues
U.S. Revenues(c)
2019(b)
2018
% Change
2019(b)
2018
% Change
Prioritized Brands
Revlimid
$
1,299
$
—
N/A
$
899
$
—
N/A
Eliquis
2,034
1,705
19%
1,156
979
18%
Opdivo
1,763
1,804
(2)%
1,020
1,136
(10)%
Orencia
792
731
8%
577
515
12%
Pomalyst/Imnovid
322
—
N/A
226
—
N/A
Sprycel
549
536
2%
319
300
6%
Yervoy
385
384
—
254
273
(7)%
Abraxane
166
—
N/A
122
—
N/A
Empliciti
94
69
36%
63
45
40%
Inrebic
5
—
N/A
5
—
N/A
Established Brands
Baraclude
122
165
(26)%
4
7
(43)%
Vidaza
58
—
N/A
1
—
N/A
Other Brands(a)
356
579
(39)%
108
88
23%
Total
$
7,945
$
5,973
33%
$
4,754
$
3,343
42%
(a)
Includes Sustiva, Reyataz, Daklinza and
all other BMS and Celgene products acquired as part of the Celgene
acquisition that have lost exclusivity in major markets,
over-the-counter (OTC) brands and royalty revenue. Other Brands
includes $37 million worldwide revenues and $27 million U.S.
revenues relating to Celgene products from November 20, 2019
through December 31, 2019.
(b)
Includes Celgene product revenues from
November 20, 2019 through December 31, 2019.
(c)
Includes United States and Puerto
Rico.
BRISTOL-MYERS SQUIBB COMPANY
PRODUCT REVENUES
FOR THE TWELVE MONTHS ENDED
DECEMBER 31, 2019 AND 2018
(Unaudited, dollars in
millions)
Worldwide Revenues
U.S. Revenues(c)
2019(b)
2018
% Change
2019(b)
2018
% Change
Prioritized Brands
Revlimid
$
1,299
$
—
N/A
$
899
$
—
N/A
Eliquis
7,929
6,438
23%
4,755
3,760
26%
Opdivo
7,204
6,735
7%
4,344
4,239
2%
Orencia
2,977
2,710
10%
2,146
1,875
14%
Pomalyst/Imnovid
322
—
N/A
226
—
N/A
Sprycel
2,110
2,000
6%
1,191
1,091
9%
Yervoy
1,489
1,330
12%
1,004
941
7%
Abraxane
166
—
N/A
122
—
N/A
Empliciti
357
247
45%
246
164
50%
Inrebic
5
—
N/A
5
—
N/A
Established Brands
Baraclude
555
744
(25)%
20
32
(38)%
Vidaza
58
—
N/A
1
—
N/A
Other Brands(a)
1,674
2,357
(29)%
383
484
(21)%
Total
$
26,145
$
22,561
16%
$
15,342
$
12,586
22%
(a)
Includes Sustiva, Reyataz, Daklinza and
all other BMS and Celgene products acquired as part of the Celgene
acquisition that have lost exclusivity in major markets,
over-the-counter (OTC) brands and royalty revenue. Other Brands
includes $37 million worldwide revenues and $27 million U.S.
revenues relating to Celgene products from November 20, 2019
through December 31, 2019.
(b)
Includes Celgene product revenues from
November 20, 2019 through December 31, 2019.
(c)
Includes United States and Puerto
Rico.
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENTS OF
EARNINGS
FOR THE THREE AND TWELVE MONTHS
ENDED DECEMBER 31, 2019 AND 2018
(Unaudited, dollars and shares in
millions except per share data)
Three Months Ended December
31,
Twelve Months Ended December
31,
2019(b)
2018
2019(b)
2018
Net product sales
$
7,662
$
5,715
$
25,174
$
21,581
Alliance and other revenues
283
258
971
980
Total Revenues
7,945
5,973
26,145
22,561
Cost of products sold(a)
2,492
1,670
8,078
6,467
Marketing, selling and administrative
1,734
1,336
4,871
4,551
Research and development
2,097
1,376
6,148
6,332
Amortization of acquired intangible
assets
1,062
25
1,135
97
Other (income)/expense, net
689
61
938
(854
)
Total Expenses
8,074
4,468
21,170
16,593
Earnings/(Loss) Before Income Taxes
(129
)
1,505
4,975
5,968
Provision for Income Taxes
931
347
1,515
1,021
Net Earnings/(Loss)
(1,060
)
1,158
3,460
4,947
Noncontrolling Interest
(4
)
(2
)
21
27
Net Earnings/(Loss) Attributable to
BMS
$
(1,056
)
$
1,160
$
3,439
$
4,920
Weighted-Average Common Shares
Outstanding:
Basic
1,918
1,632
1,705
1,633
Diluted
1,918
1,637
1,712
1,637
Earnings/(Loss) per Common Share:
Basic
$
(0.55
)
$
0.71
$
2.02
$
3.01
Diluted
(0.55
)
0.71
2.01
3.01
Other (income)/expense, net
Interest expense
$
279
$
48
$
656
$
183
Pension and postretirement
(8
)
13
1,599
(27
)
Royalties and licensing income
(393
)
(295
)
(1,360
)
(1,353
)
Divestiture (gains)/losses
3
—
(1,168
)
(178
)
Acquisition expenses
182
—
657
—
Contingent value right
523
—
523
—
Investment income
(116
)
(55
)
(464
)
(173
)
Integration expenses
191
—
415
—
Provision for restructuring
269
29
301
131
Equity investment (gains)/losses
(294
)
268
(279
)
512
Litigation and other settlements
77
66
77
76
Transition and other service fees
(26
)
(7
)
(37
)
(12
)
Intangible asset impairment
—
—
15
64
Equity in net income of affiliates
4
(20
)
4
(93
)
Other
(2
)
14
(1
)
16
Other (income)/expense, net
$
689
$
61
$
938
$
(854
)
(a)
Excludes amortization of acquired
intangible assets.
(b)
Includes Celgene results of operations
from November 20, 2019 through December 31, 2019.
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE AND TWELVE MONTHS
ENDED DECEMBER 31, 2019 AND 2018
(Unaudited, dollars in
millions)
Three Months Ended December
31,
Twelve Months Ended December
31,
2019(a)
2018
2019(a)
2018
Impairment charges
$
8
$
7
$
126
$
17
Inventory purchase price accounting
adjustments
660
—
660
—
Employee compensation charges
1
—
1
—
Site exit and other costs
16
11
71
41
Cost of products sold
685
18
858
58
Employee compensation charges
27
—
27
—
Site exit and other costs
8
1
9
2
Marketing, selling and administrative
35
1
36
2
License and asset acquisition charges
—
—
25
1,135
IPRD impairments
—
—
32
—
Employee compensation charges
33
—
33
—
Site exit and other costs
109
22
167
79
Research and development
142
22
257
1,214
Amortization of acquired intangible
assets
1,062
—
1,062
—
Interest expense
73
—
322
—
Pension and postretirement
(3
)
26
1,635
121
Royalties and licensing income
(15
)
—
(24
)
(75
)
Divestiture (gains)/losses
3
(1
)
(1,168
)
(177
)
Acquisition expenses
182
—
657
—
Contingent value right
523
—
523
—
Investment income
(44
)
—
(197
)
—
Integration expenses
191
—
415
—
Provision for restructuring
269
29
301
131
Equity investment (gains)/losses
(294
)
268
(279
)
512
Litigation and other settlements
75
70
75
70
Intangible asset impairment
—
—
—
64
Other
2
—
2
—
Other (income)/expense, net
962
392
2,262
646
Increase to pretax income
2,886
433
4,475
1,920
Income taxes on items above
(264
)
(43
)
(687
)
(268
)
Income taxes attributed to Otezla®
divestiture
808
—
808
—
Income taxes attributed to U.S. tax
reform
—
(7
)
—
(56
)
Income taxes
544
(50
)
121
(324
)
Increase to net earnings
$
3,430
$
383
$
4,596
$
1,596
(a)
Includes Celgene results of operations
from November 20, 2019 through December 31, 2019.
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF CERTAIN GAAP
LINE ITEMS TO CERTAIN NON-GAAP LINE ITEMS
FOR THE THREE AND TWELVE MONTHS
ENDED DECEMBER 31, 2019 AND 2018
(Unaudited, dollars and shares in
millions except per share data)
Three Months Ended December 31,
2019
Twelve Months Ended December 31,
2019
GAAP(a)
Specified Items(a)(b)
Non- GAAP(a)
GAAP(a)
Specified Items(a)(b)
Non- GAAP(a)
Gross Profit
$
5,453
$
685
$
6,138
$
18,067
$
858
$
18,925
Marketing, selling and administrative
1,734
(35
)
1,699
4,871
(36
)
4,835
Research and development
2,097
(142
)
1,955
6,148
(257
)
5,891
Amortization of acquired intangible
assets
1,062
(1,062
)
—
1,135
(1,062
)
73
Other (income)/expense, net
689
(962
)
(273
)
938
(2,262
)
(1,324
)
Earnings/(Loss) Before Income Taxes
(129
)
2,886
2,757
4,975
4,475
9,450
Provision for Income Taxes
931
(544
)
387
1,515
(121
)
1,394
Noncontrolling interest
(4
)
—
(4
)
21
—
21
Net Earnings/(Loss) Attributable to BMS
used for Diluted EPS Calculation
$
(1,056
)
$
3,430
$
2,374
$
3,439
$
4,596
$
8,035
Weighted-Average Common Shares Outstanding
- Diluted
1,918
1,941
1,941
1,712
1,712
1,712
Diluted Earnings/(Loss) Per Share
$
(0.55
)
$
1.77
$
1.22
$
2.01
$
2.68
$
4.69
Effective Tax Rate
(721.7
)%
735.7
%
14.0
%
30.5
%
(15.7
)%
14.8
%
Three Months Ended December 31,
2018
Twelve Months Ended December 31,
2018
GAAP
Specified Items(b)
Non- GAAP
GAAP
Specified Items(b)
Non- GAAP
Gross Profit
$
4,303
$
18
$
4,321
$
16,094
$
58
$
16,152
Marketing, selling and administrative
1,336
(1
)
1,335
4,551
(2
)
4,549
Research and development
1,376
(22
)
1,354
6,332
(1,214
)
5,118
Amortization of acquired intangible
assets
25
—
25
97
—
97
Other (income)/expense, net
61
(392
)
(331
)
(854
)
(646
)
(1,500
)
Earnings Before Income Taxes
1,505
433
1,938
5,968
1,920
7,888
Provision for Income Taxes
347
50
397
1,021
324
1,345
Noncontrolling interest
(2
)
—
(2
)
27
—
27
Net Earnings Attributable to BMS used for
Diluted EPS Calculation
$
1,160
$
383
$
1,543
$
4,920
$
1,596
$
6,516
Weighted-Average Common Shares Outstanding
- Diluted
1,637
1,637
1,637
1,637
1,637
1,637
Diluted Earnings Per Share
$
0.71
$
0.23
$
0.94
$
3.01
$
0.97
$
3.98
Effective Tax Rate
23.1
%
(2.6
)%
20.5
%
17.1
%
—
17.1
%
(a)
Includes Celgene results of operations
from November 20, 2019 through December 31, 2019.
(b)
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
NET (DEBT)/CASH CALCULATION
AS OF DECEMBER 31, 2019 AND
DECEMBER 31, 2018
(Unaudited, dollars in
millions)
December 31, 2019(a)
December 31, 2018
Cash and cash equivalents
$
12,346
$
6,911
Marketable debt securities - current
3,047
1,848
Marketable debt securities -
non-current
767
1,775
Cash, cash equivalents and marketable
debt securities
16,160
10,534
Short-term debt obligations
(3,346
)
(1,703
)
Long-term debt
(43,387
)
(5,646
)
Net (debt)/cash position
$
(30,573
)
$
3,185
(a)
Includes Celgene balances as of December
31, 2019.
Prior period amounts were conformed to current period
presentation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200206005479/en/
Media: 609-252-3345, media@bms.com Investor Relations: Tim
Power, 609-252-7509, timothy.power@bms.com;Nina Goworek,
908-673-9711, ngoworek@celgene.com
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