Delaware | 1-1136 | 22-0790350 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition. |
Item 9.01. Financial Statements and Exhibits. |
BRISTOL-MYERS SQUIBB COMPANY | |||||
Dated: July 26, 2018 | By: | /s/ Katherine R. Kelly | |||
Name: | Katherine R. Kelly | ||||
Title: | Corporate Secretary |
• | Increases Second Quarter Revenues 11% to $5.7 Billion |
• | Posts Second Quarter GAAP EPS of $0.23 and Non-GAAP EPS of $1.01 |
• | Achieves Significant Regulatory Milestones in Oncology |
• | Presents Important New Data on Immuno-Oncology Portfolio at ASCO |
• | Updates 2018 GAAP and Non-GAAP EPS Guidance |
Second Quarter | ||||||||||
$ amounts in millions, except per share amounts | ||||||||||
2018 | 2017 | Change | ||||||||
Total Revenues | $ | 5,704 | $ | 5,144 | 11 | % | ||||
GAAP Diluted EPS | 0.23 | 0.56 | (59 | )% | ||||||
Non-GAAP Diluted EPS | 1.01 | 0.74 | 36 | % |
• | Bristol-Myers Squibb posted second quarter 2018 revenues of $5.7 billion, an increase of 11% compared with the same period a year ago. Revenues increased 9% when adjusted for foreign exchange impact. |
• | U.S. revenues increased 13% to $3.2 billion in the quarter compared to the same period a year ago. International revenues increased 9%. When adjusted for foreign exchange impact, international revenues increased 4%. |
• | Gross margin as a percentage of revenue increased from 69.5% to 71.5% in the quarter primarily due to an impairment charge for a manufacturing site in the prior period. |
• | Marketing, selling and administrative expenses decreased 5% to $1.1 billion in the quarter. |
• | Research and development expenses increased 45% to $2.4 billion in the quarter, which includes a $1.1 billion charge resulting from the Nektar collaboration in the second quarter of 2018. |
• | The effective tax rate was 26.1% in the quarter, compared to 28.8% in the second quarter last year. The effective tax rate includes a nondeductible equity investment loss in the second quarter of 2018. |
• | The company reported net earnings attributable to Bristol-Myers Squibb of $373 million, or $0.23 per share, in the second quarter compared to net earnings of $916 million, or $0.56 per share, for the same period in 2017. |
• | The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $1.6 billion, or $1.01 per share, in the second quarter, compared to $1.2 billion, or $0.74 per share, for the same period in 2017. An overview of specified items is provided under the “Use of Non-GAAP Financial Information” section. |
• | Cash, cash equivalents and marketable securities were $8.2 billion, with a net cash position of $805 million, as of June 30, 2018. |
• | Eliquis, which grew by $474 million or a 40% increase |
• | Opdivo, which grew by $432 million or a 36% increase |
• | Orencia, which grew by 9% |
• | Sprycel, which grew by 6% |
• | Yervoy, which decreased by 2% |
• | In July, the company announced the U.S. Food and Drug Administration (FDA) approved Opdivo plus low-dose Yervoy (injections for intravenous use) for the treatment of adult and pediatric patients 12 years and older with microsatellite instability high or mismatch repair deficient metastatic colorectal cancer that has progressed following treatment with a fluoropyrimidine, oxaliplatin and irinotecan. |
• | In June, the company announced the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) recommended expanded approval of the current indications for Opdivo to include the adjuvant treatment of adult patients with melanoma with involvement of lymph nodes or metastatic disease who have undergone complete resection. The CHMP recommendation will be reviewed by the European Commission (EC), which has the authority to approve medicines for the European Union. |
• | In June, the company announced the FDA accepted its supplemental Biologics License Application for Opdivo plus low-dose Yervoy for the treatment of first-line advanced non-small cell lung cancer (NSCLC) in patients with tumor mutational burden (TMB) ≥10 mutations per megabase (mut/Mb). |
• | In June, the China National Drug Administration approved Opdivo for the treatment of locally advanced or metastatic NSCLC after prior platinum-based chemotherapy in adult patients without EGFR or ALK genomic tumor aberrations. |
• | In May, the EMA validated a type II variation application for the Opdivo plus Yervoy combination for treatment in adult patients with first-line metastatic NSCLC who have TMB ≥10 mut/Mb. |
• | In June, at the 2018 American Society of Clinical Oncology, the company announced important new data and analysis from four studies evaluating Opdivo as monotherapy and in combination with Yervoy, chemotherapy or NKTR-214: |
◦ | CheckMate -227: Results from a part of the Phase 3 trial evaluating Opdivo plus low-dose Yervoy and Opdivo plus chemotherapy versus chemotherapy in patients with first-line advanced NSCLC with PD-L1 expression <1%, across squamous and non-squamous tumor histologies (Part 1b). (link) |
◦ | CheckMate -238: Results from the Phase 3 trial evaluating Opdivo versus Yervoy in patients with stage IIIB/C or stage IV melanoma who are at high risk of recurrence following complete surgical resection. (link) |
◦ | CheckMate -214: Patient-reported outcomes from the Phase 3 trial evaluating Opdivo plus low-dose Yervoy versus sunitinib over a two-year follow-up period in intermediate- and poor-risk patients with advanced renal cell carcinoma. (link) |
◦ | Results from the Phase 1/2 dose-escalation study with Nektar Therapeutics, evaluating the safety, efficacy and biomarker data of NKTR-214 in combination with Opdivo for patients enrolled in the Phase 1 dose-escalation stage of the study and for the first patients consecutively enrolled in select dose expansion cohorts in Phase 2. (link) |
• | In July, the company announced the EC has expanded the indication for Sprycel to include the treatment of children and adolescents aged 1 year to 18 years with Philadelphia chromosome-positive chronic myeloid leukemia in chronic phase, and to include a powder for oral suspension formulation. |
• | In June, the company announced the Phase 2 study evaluating the addition of Empliciti to pomalidomide and low-dose dexamethasone in patients with relapsed/refractory multiple myeloma showed a statistically significant and clinically meaningful improvement in progression free survival for patients treated with EPd compared with pomalidomide and dexamethasone alone. (link) |
• | In July, the company and Tsinghua University announced a collaboration to discover therapeutic agents against novel targets for autoimmune diseases and cancers. The collaboration brings together the respective scientific expertise and capabilities of both organizations with a focus on validating new targets and generating early drug candidates for clinical development. |
• | In April, the company and Nektar Therapeutics completed the agreement for the development and commercialization of NKTR-214 with Opdivo and Opdivo plus Yervoy, originally announced in February 2018. |
• | In April, the company and Flatiron Health announced a three-year agreement to curate regulatory-grade real-world data for cancer research and real-world evidence generation. |
• | Worldwide revenues increasing in the mid- to high-single digits. |
Worldwide Revenues | U.S. Revenues | |||||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | |||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||
Prioritized Brands | ||||||||||||||||||||||
Opdivo | $ | 1,627 | $ | 1,195 | 36 | % | $ | 1,024 | $ | 768 | 33 | % | ||||||||||
Eliquis | 1,650 | 1,176 | 40 | % | 979 | 703 | 39 | % | ||||||||||||||
Orencia | 711 | 650 | 9 | % | 501 | 449 | 12 | % | ||||||||||||||
Sprycel | 535 | 506 | 6 | % | 310 | 281 | 10 | % | ||||||||||||||
Yervoy | 315 | 322 | (2 | )% | 228 | 245 | (7 | )% | ||||||||||||||
Empliciti | 64 | 55 | 16 | % | 41 | 37 | 11 | % | ||||||||||||||
Established Brands | ||||||||||||||||||||||
Baraclude | 179 | 273 | (34 | )% | 9 | 12 | (25 | )% | ||||||||||||||
Sustiva Franchise | 73 | 188 | (61 | )% | 8 | 161 | (95 | )% | ||||||||||||||
Reyataz Franchise | 117 | 188 | (38 | )% | 54 | 87 | (38 | )% | ||||||||||||||
Hepatitis C Franchise | 12 | 112 | (89 | )% | (2 | ) | 30 | ** | ||||||||||||||
Other Brands | 421 | 479 | (12 | )% | 78 | 92 | (15 | )% | ||||||||||||||
Total | $ | 5,704 | $ | 5,144 | 11 | % | $ | 3,230 | $ | 2,865 | 13 | % |
Worldwide Revenues | U.S. Revenues | |||||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | |||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||
Prioritized Brands | ||||||||||||||||||||||
Opdivo | $ | 3,138 | $ | 2,322 | 35 | % | $ | 1,962 | $ | 1,529 | 28 | % | ||||||||||
Eliquis | 3,156 | 2,277 | 39 | % | 1,864 | 1,402 | 33 | % | ||||||||||||||
Orencia | 1,304 | 1,185 | 10 | % | 886 | 811 | 9 | % | ||||||||||||||
Sprycel | 973 | 969 | — | 524 | 528 | (1 | )% | |||||||||||||||
Yervoy | 564 | 652 | (13 | )% | 390 | 488 | (20 | )% | ||||||||||||||
Empliciti | 119 | 108 | 10 | % | 78 | 73 | 7 | % | ||||||||||||||
Established Brands | ||||||||||||||||||||||
Baraclude | 404 | 555 | (27 | )% | 19 | 26 | (27 | )% | ||||||||||||||
Sustiva Franchise | 157 | 372 | (58 | )% | 18 | 314 | (94 | )% | ||||||||||||||
Reyataz Franchise | 241 | 381 | (37 | )% | 105 | 175 | (40 | )% | ||||||||||||||
Hepatitis C Franchise | 15 | 274 | (95 | )% | 3 | 72 | (96 | )% | ||||||||||||||
Other Brands | 826 | 978 | (16 | )% | 159 | 185 | (14 | )% | ||||||||||||||
Total | $ | 10,897 | $ | 10,073 | 8 | % | $ | 6,008 | $ | 5,603 | 7 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net product sales | $ | 5,461 | $ | 4,770 | $ | 10,433 | $ | 9,350 | ||||||||
Alliance and other revenues | 243 | 374 | 464 | 723 | ||||||||||||
Total Revenues | 5,704 | 5,144 | 10,897 | 10,073 | ||||||||||||
Cost of products sold | 1,625 | 1,569 | 3,209 | 2,834 | ||||||||||||
Marketing, selling and administrative | 1,131 | 1,187 | 2,111 | 2,272 | ||||||||||||
Research and development | 2,435 | 1,679 | 3,685 | 2,982 | ||||||||||||
Other income (net) | (4 | ) | (586 | ) | (404 | ) | (1,265 | ) | ||||||||
Total Expenses | 5,187 | 3,849 | 8,601 | 6,823 | ||||||||||||
Earnings Before Income Taxes | 517 | 1,295 | 2,296 | 3,250 | ||||||||||||
Provision for Income Taxes | 135 | 373 | 419 | 802 | ||||||||||||
Net Earnings | 382 | 922 | 1,877 | 2,448 | ||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | 9 | 6 | 18 | (42 | ) | |||||||||||
Net Earnings Attributable to BMS | $ | 373 | $ | 916 | $ | 1,859 | $ | 2,490 | ||||||||
Average Common Shares Outstanding: | ||||||||||||||||
Basic | 1,633 | 1,644 | 1,633 | 1,653 | ||||||||||||
Diluted | 1,636 | 1,650 | 1,638 | 1,660 | ||||||||||||
Earnings per Common Share | ||||||||||||||||
Basic | $ | 0.23 | $ | 0.56 | $ | 1.14 | $ | 1.51 | ||||||||
Diluted | 0.23 | 0.56 | 1.13 | 1.50 | ||||||||||||
Other income (net) | ||||||||||||||||
Interest expense | $ | 45 | $ | 52 | $ | 91 | $ | 97 | ||||||||
Investment income | (38 | ) | (29 | ) | (74 | ) | (55 | ) | ||||||||
Loss/(gain) on equity investments | 356 | (5 | ) | 341 | (12 | ) | ||||||||||
Provision for restructuring | 37 | 15 | 57 | 179 | ||||||||||||
Litigation and other settlements | (1 | ) | (5 | ) | (1 | ) | (489 | ) | ||||||||
Equity in net income of affiliates | (27 | ) | (20 | ) | (51 | ) | (38 | ) | ||||||||
Divestiture gains | (25 | ) | — | (70 | ) | (127 | ) | |||||||||
Royalties and licensing income | (353 | ) | (685 | ) | (720 | ) | (884 | ) | ||||||||
Transition and other service fees | (1 | ) | (13 | ) | (5 | ) | (20 | ) | ||||||||
Pension and postretirement | (19 | ) | (11 | ) | (30 | ) | (10 | ) | ||||||||
Intangible asset impairment | — | — | 64 | — | ||||||||||||
Loss on debt redemption | — | 109 | — | 109 | ||||||||||||
Other | 22 | 6 | (6 | ) | (15 | ) | ||||||||||
Other income (net) | $ | (4 | ) | $ | (586 | ) | $ | (404 | ) | $ | (1,265 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Impairment charges | $ | — | $ | 127 | $ | 10 | $ | 127 | ||||||||
Accelerated depreciation and other shutdown costs | 14 | 3 | 17 | 3 | ||||||||||||
Cost of products sold | 14 | 130 | 27 | 130 | ||||||||||||
Marketing, selling and administrative | — | — | 1 | — | ||||||||||||
License and asset acquisition charges | 1,075 | 393 | 1,135 | 443 | ||||||||||||
IPRD impairments | — | — | — | 75 | ||||||||||||
Site exit costs and other | 19 | 96 | 39 | 168 | ||||||||||||
Research and development | 1,094 | 489 | 1,174 | 686 | ||||||||||||
Loss/(gain) on equity investments | 356 | — | 341 | — | ||||||||||||
Provision for restructuring | 37 | 15 | 57 | 179 | ||||||||||||
Litigation and other settlements | — | — | — | (481 | ) | |||||||||||
Divestiture gains | (25 | ) | — | (68 | ) | (100 | ) | |||||||||
Royalties and licensing income | (25 | ) | (497 | ) | (75 | ) | (497 | ) | ||||||||
Pension and postretirement | 37 | 36 | 68 | 69 | ||||||||||||
Intangible asset impairment | — | — | 64 | — | ||||||||||||
Loss on debt redemption | — | 109 | — | 109 | ||||||||||||
Other income (net) | 380 | (337 | ) | 387 | (721 | ) | ||||||||||
Increase to pretax income | 1,488 | 282 | 1,589 | 95 | ||||||||||||
Income taxes on specified items | (218 | ) | 20 | (226 | ) | 92 | ||||||||||
Income taxes attributed to U.S. tax reform | 3 | — | (29 | ) | — | |||||||||||
Income taxes | (215 | ) | 20 | (255 | ) | 92 | ||||||||||
Increase to net earnings | 1,273 | 302 | 1,334 | 187 | ||||||||||||
Noncontrolling interest | — | — | — | (59 | ) | |||||||||||
Increase to net earnings used for diluted Non-GAAP EPS calculation | $ | 1,273 | $ | 302 | $ | 1,334 | $ | 128 |
Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | ||||||||||||||||||||||
GAAP | Specified Items(a) | Non- GAAP | GAAP | Specified Items(a) | Non- GAAP | ||||||||||||||||||
Gross Profit | $ | 4,079 | $ | 14 | $ | 4,093 | $ | 7,688 | $ | 27 | $ | 7,715 | |||||||||||
Marketing, selling and administrative | 1,131 | — | 1,131 | 2,111 | (1 | ) | 2,110 | ||||||||||||||||
Research and development | 2,435 | (1,094 | ) | 1,341 | 3,685 | (1,174 | ) | 2,511 | |||||||||||||||
Other income (net) | (4 | ) | (380 | ) | (384 | ) | (404 | ) | (387 | ) | (791 | ) | |||||||||||
Earnings Before Income Taxes | 517 | 1,488 | 2,005 | 2,296 | 1,589 | 3,885 | |||||||||||||||||
Provision for Income Taxes | 135 | (215 | ) | 350 | 419 | (255 | ) | 674 | |||||||||||||||
Noncontrolling interest | 9 | — | 9 | 18 | — | 18 | |||||||||||||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation | $ | 373 | $ | 1,273 | $ | 1,646 | $ | 1,859 | $ | 1,334 | $ | 3,193 | |||||||||||
Average Common Shares Outstanding - Diluted | 1,636 | 1,636 | 1,636 | 1,638 | 1,638 | 1,638 | |||||||||||||||||
Diluted Earnings Per Share | $ | 0.23 | $ | 0.78 | $ | 1.01 | $ | 1.13 | $ | 0.82 | $ | 1.95 | |||||||||||
Effective Tax Rate | 26.1 | % | (8.6 | )% | 17.5 | % | 18.2 | % | (0.9 | )% | 17.3 | % | |||||||||||
Three Months Ended June 30, 2017 | Six Months Ended June 30, 2017 | ||||||||||||||||||||||
GAAP | Specified Items(a) | Non- GAAP | GAAP | Specified Items(a) | Non- GAAP | ||||||||||||||||||
Gross Profit | $ | 3,575 | $ | 130 | $ | 3,705 | $ | 7,239 | $ | 130 | $ | 7,369 | |||||||||||
Marketing, selling and administrative | 1,187 | — | 1,187 | 2,272 | — | 2,272 | |||||||||||||||||
Research and development | 1,679 | (489 | ) | 1,190 | 2,982 | (686 | ) | 2,296 | |||||||||||||||
Other income (net) | (586 | ) | 337 | (249 | ) | (1,265 | ) | 721 | (544 | ) | |||||||||||||
Earnings Before Income Taxes | 1,295 | 282 | 1,577 | 3,250 | 95 | 3,345 | |||||||||||||||||
Provision for Income Taxes | 373 | 20 | 353 | 802 | 92 | 710 | |||||||||||||||||
Noncontrolling interest | 6 | — | 6 | (42 | ) | (59 | ) | 17 | |||||||||||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation | $ | 916 | $ | 302 | $ | 1,218 | $ | 2,490 | $ | 128 | $ | 2,618 | |||||||||||
Average Common Shares Outstanding - Diluted | 1,650 | 1,650 | 1,650 | 1,660 | 1,660 | 1,660 | |||||||||||||||||
Diluted Earnings Per Share | $ | 0.56 | $ | 0.18 | $ | 0.74 | $ | 1.50 | $ | 0.08 | $ | 1.58 | |||||||||||
Effective Tax Rate | 28.8 | % | (6.4 | )% | 22.4 | % | 24.7 | % | (3.5 | )% | 21.2 | % |
(a) | Refer to the Specified Items schedule for further details. Effective tax rate on the Specified Items represents the difference between the GAAP and Non-GAAP effective tax rate. |
June 30, 2018 | March 31, 2018 | |||||||
Cash and cash equivalents | $ | 4,999 | $ | 5,342 | ||||
Marketable securities - current | 1,076 | 1,428 | ||||||
Marketable securities - non-current | 2,117 | 2,252 | ||||||
Cash, cash equivalents and marketable securities | 8,192 | 9,022 | ||||||
Short-term debt obligations | (1,716 | ) | (1,925 | ) | ||||
Long-term debt | (5,671 | ) | (5,775 | ) | ||||
Net cash position | $ | 805 | $ | 1,322 |
Revenues | 2017 | 2018 | % Change | FX Impact | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||
United States | $ | 2,738 | $ | 2,865 | $ | 5,603 | $ | 2,864 | $ | 8,467 | $ | 2,891 | $ | 11,358 | $ | 2,778 | $ | 3,230 | $ | 6,008 | 13 | % | 7 | % | — | — | ||||||||||||||||||||||||||||||||||
Europe | 1,146 | 1,188 | 2,334 | 1,262 | 3,596 | 1,392 | 4,988 | 1,406 | 1,408 | 2,814 | 19 | % | 21 | % | 9 | % | 12 | % | ||||||||||||||||||||||||||||||||||||||||||
Rest of the World | 925 | 963 | 1,888 | 970 | 2,858 | 1,019 | 3,877 | 873 | 923 | 1,796 | (4 | )% | (5 | )% | 1 | % | 2 | % | ||||||||||||||||||||||||||||||||||||||||||
Other | 120 | 128 | 248 | 158 | 406 | 147 | 553 | 136 | 143 | 279 | 12 | % | 13 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,929 | $ | 5,144 | $ | 10,073 | $ | 5,254 | $ | 15,327 | $ | 5,449 | $ | 20,776 | $ | 5,193 | $ | 5,704 | $ | 10,897 | 11 | % | 8 | % | 2 | % | 3 | % | ||||||||||||||||||||||||||||||||
% of Revenues | 2017 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | |||||||||||||||||||||||||||||||||||||||||||||||
United States | 55.5 | % | 55.7 | % | 55.6 | % | 54.5 | % | 55.2 | % | 53.1 | % | 54.7 | % | 53.5 | % | 56.6 | % | 55.1 | % | ||||||||||||||||||||||||||||||||||||||||
Europe | 23.3 | % | 23.1 | % | 23.2 | % | 24.0 | % | 23.5 | % | 25.5 | % | 24.0 | % | 27.1 | % | 24.7 | % | 25.8 | % | ||||||||||||||||||||||||||||||||||||||||
Rest of the World | 18.8 | % | 18.7 | % | 18.7 | % | 18.5 | % | 18.6 | % | 18.7 | % | 18.7 | % | 16.8 | % | 16.2 | % | 16.5 | % | ||||||||||||||||||||||||||||||||||||||||
Other | 2.4 | % | 2.5 | % | 2.5 | % | 3.0 | % | 2.7 | % | 2.7 | % | 2.6 | % | 2.6 | % | 2.5 | % | 2.6 | % | ||||||||||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
2017 | 2018 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||
Net product sales | $ | 4,580 | $ | 4,770 | $ | 9,350 | $ | 4,862 | $ | 14,212 | $ | 5,046 | $ | 19,258 | $ | 4,972 | $ | 5,461 | $ | 10,433 | 14 | % | 12 | % | ||||||||||||||||||||||||||||||
Alliance and other revenues | 349 | 374 | 723 | 392 | 1,115 | 403 | 1,518 | 221 | 243 | 464 | (35 | )% | (36 | )% | ||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 4,929 | $ | 5,144 | $ | 10,073 | $ | 5,254 | $ | 15,327 | $ | 5,449 | $ | 20,776 | $ | 5,193 | $ | 5,704 | $ | 10,897 | 11 | % | 8 | % | ||||||||||||||||||||||||||||||
Cost of products sold | 1,265 | 1,569 | 2,834 | 1,579 | 4,413 | 1,681 | 6,094 | 1,584 | 1,625 | 3,209 | 4 | % | 13 | % | ||||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 1,085 | 1,187 | 2,272 | 1,163 | 3,435 | 1,316 | 4,751 | 980 | 1,131 | 2,111 | (5 | )% | (7 | )% | ||||||||||||||||||||||||||||||||||||||||
Research and development | 1,303 | 1,679 | 2,982 | 1,561 | 4,543 | 1,939 | 6,482 | 1,250 | 2,435 | 3,685 | 45 | % | 24 | % | ||||||||||||||||||||||||||||||||||||||||
Other income (net) | (679 | ) | (586 | ) | (1,265 | ) | (232 | ) | (1,497 | ) | (185 | ) | (1,682 | ) | (400 | ) | (4 | ) | (404 | ) | (99 | )% | (68 | )% | ||||||||||||||||||||||||||||||
Total Expenses | 2,974 | 3,849 | 6,823 | 4,071 | 10,894 | 4,751 | 15,645 | 3,414 | 5,187 | 8,601 | 35 | % | 26 | % | ||||||||||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | $ | 1,955 | $ | 1,295 | $ | 3,250 | $ | 1,183 | $ | 4,433 | $ | 698 | $ | 5,131 | $ | 1,779 | $ | 517 | $ | 2,296 | (60 | )% | (29 | )% | ||||||||||||||||||||||||||||||
Provision for Income Taxes | 429 | 373 | 802 | 327 | 1,129 | 3,027 | 4,156 | 284 | 135 | 419 | (64 | )% | (48 | )% | ||||||||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) | $ | 1,526 | $ | 922 | $ | 2,448 | $ | 856 | $ | 3,304 | $ | (2,329 | ) | $ | 975 | $ | 1,495 | $ | 382 | $ | 1,877 | (59 | )% | (23 | )% | |||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | (48 | ) | 6 | (42 | ) | 11 | (31 | ) | (1 | ) | (32 | ) | 9 | 9 | 18 | 50 | % | ** | ||||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to BMS | $ | 1,574 | $ | 916 | $ | 2,490 | $ | 845 | $ | 3,335 | $ | (2,328 | ) | $ | 1,007 | $ | 1,486 | $ | 373 | $ | 1,859 | (59 | )% | (25 | )% | |||||||||||||||||||||||||||||
Diluted Earnings/(Loss) per Common Share* | $ | 0.94 | $ | 0.56 | $ | 1.50 | $ | 0.51 | $ | 2.02 | $ | (1.42 | ) | $ | 0.61 | $ | 0.91 | $ | 0.23 | $ | 1.13 | (59 | )% | (25 | )% | |||||||||||||||||||||||||||||
Average Common Shares Outstanding - Diluted | 1,671 | 1,650 | 1,660 | 1,645 | 1,655 | 1,635 | 1,652 | 1,640 | 1,636 | 1,638 | (1 | )% | (1 | )% | ||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.39 | $ | 0.39 | $ | 0.78 | $ | 0.39 | $ | 1.17 | $ | 0.40 | $ | 1.57 | $ | 0.40 | $ | 0.40 | $ | 0.80 | 3 | % | 3 | % | ||||||||||||||||||||||||||||||
2017 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
% of Total Revenues | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | ||||||||||||||||||||||||||||||||||||||||
Gross Margin | 74.3 | % | 69.5 | % | 71.9 | % | 69.9 | % | 71.2 | % | 69.2 | % | 70.7 | % | 69.5 | % | 71.5 | % | 70.6 | % | ||||||||||||||||||||||||||||||||||
Other Ratios | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 21.9 | % | 28.8 | % | 24.7 | % | 27.6 | % | 25.5 | % | 433.7 | % | 81.0 | % | 16.0 | % | 26.1 | % | 18.2 | % | ||||||||||||||||||||||||||||||||||
Other income (net) | 2017 | 2018 | % 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 | $ | 45 | $ | 52 | $ | 97 | $ | 48 | $ | 145 | $ | 51 | $ | 196 | $ | 46 | $ | 45 | $ | 91 | (13 | )% | (6 | )% | ||||||||||||||||||||||||||||||
Investment income | (26 | ) | (29 | ) | (55 | ) | (32 | ) | (87 | ) | (39 | ) | (126 | ) | (36 | ) | (38 | ) | (74 | ) | 31 | % | 35 | % | ||||||||||||||||||||||||||||||
Loss/(gain) on equity investments | (7 | ) | (5 | ) | (12 | ) | (5 | ) | (17 | ) | (11 | ) | (28 | ) | (15 | ) | 356 | 341 | ** | ** | ||||||||||||||||||||||||||||||||||
Provision for restructuring | 164 | 15 | 179 | 28 | 207 | 86 | 293 | 20 | 37 | 57 | ** | (68 | )% | |||||||||||||||||||||||||||||||||||||||||
Litigation and other settlements | (484 | ) | (5 | ) | (489 | ) | — | (489 | ) | 2 | (487 | ) | — | (1 | ) | (1 | ) | (80 | )% | (100 | )% | |||||||||||||||||||||||||||||||||
Equity in net income of affiliates | (18 | ) | (20 | ) | (38 | ) | (21 | ) | (59 | ) | (16 | ) | (75 | ) | (24 | ) | (27 | ) | (51 | ) | 35 | % | 34 | % | ||||||||||||||||||||||||||||||
Divestiture (gains)/losses | (127 | ) | — | (127 | ) | 1 | (126 | ) | (38 | ) | (164 | ) | (45 | ) | (25 | ) | (70 | ) | N/A | (45 | )% | |||||||||||||||||||||||||||||||||
Royalties and licensing income | (199 | ) | (685 | ) | (884 | ) | (209 | ) | (1,093 | ) | (258 | ) | (1,351 | ) | (367 | ) | (353 | ) | (720 | ) | (48 | )% | (19 | )% | ||||||||||||||||||||||||||||||
Transition and other service fees | (7 | ) | (13 | ) | (20 | ) | (12 | ) | (32 | ) | (5 | ) | (37 | ) | (4 | ) | (1 | ) | (5 | ) | (92 | )% | (75 | )% | ||||||||||||||||||||||||||||||
Pension and postretirement | 1 | (11 | ) | (10 | ) | (19 | ) | (29 | ) | 28 | (1 | ) | (11 | ) | (19 | ) | (30 | ) | 73 | ** | ||||||||||||||||||||||||||||||||||
Intangible asset impairment | — | — | — | — | — | — | — | 64 | — | 64 | — | N/A | ||||||||||||||||||||||||||||||||||||||||||
Equity investment impairment | — | — | — | — | — | 5 | 5 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Loss on debt redemption | — | 109 | 109 | — | 109 | — | 109 | — | — | — | (100 | )% | (100 | )% | ||||||||||||||||||||||||||||||||||||||||
Other | (21 | ) | 6 | (15 | ) | (11 | ) | (26 | ) | 10 | (16 | ) | (28 | ) | 22 | (6 | ) | ** | (60 | )% | ||||||||||||||||||||||||||||||||||
$ | (679 | ) | $ | (586 | ) | $ | (1,265 | ) | $ | (232 | ) | $ | (1,497 | ) | $ | (185 | ) | $ | (1,682 | ) | $ | (400 | ) | $ | (4 | ) | $ | (404 | ) | (99 | )% | (68 | )% |
* | Quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations. | |||||||||||
** | In excess of +/- 100% |
QUARTER-TO-DATE | 2018 | 2017 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2018 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | |||||||||||||||||||||
Revenues | $ | 5,704 | $ | 5,144 | $ | 560 | 11 | % | $ | 107 | $ | 5,597 | 2 | % | 9 | % | |||||||||||||
Gross profit | 4,079 | 3,575 | 504 | 14 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Gross profit excluding specified items (a) | 4,093 | 3,705 | 388 | 10 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Gross profit excluding specified items as a % of revenues | 71.8 | % | 72.0 | % | |||||||||||||||||||||||||
Marketing, selling and administrative | 1,131 | 1,187 | (56 | ) | (5 | )% | (20 | ) | 1,111 | (1 | )% | (6 | )% | ||||||||||||||||
Marketing, selling and administrative excluding specified items (a) | 1,131 | 1,187 | (56 | ) | (5 | )% | (20 | ) | 1,111 | (1 | )% | (6 | )% | ||||||||||||||||
Marketing, selling and administrative excluding specified items as a % of revenues | 19.8 | % | 23.1 | % | |||||||||||||||||||||||||
Research and development | 2,435 | 1,679 | 756 | 45 | % | (9 | ) | 2,426 | (1 | )% | 44 | % | |||||||||||||||||
Research and development excluding specified items (a) | 1,341 | 1,190 | 151 | 13 | % | (9 | ) | 1,332 | (1 | )% | 12 | % | |||||||||||||||||
Research and development excluding specified items as a % of revenues | 23.5 | % | 23.1 | % | |||||||||||||||||||||||||
YEAR-TO-DATE | 2018 | 2017 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2018 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | |||||||||||||||||||||
Revenues | $ | 10,897 | $ | 10,073 | $ | 824 | 8 | % | $ | 308 | $ | 10,589 | 3 | % | 5 | % | |||||||||||||
Gross profit | 7,688 | 7,239 | 449 | 6 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Gross profit excluding specified items (a) | 7,715 | 7,369 | 346 | 5 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Gross profit excluding specified items as a % of revenues | 70.8 | % | 73.2 | % | |||||||||||||||||||||||||
Marketing, selling and administrative | 2,111 | 2,272 | (161 | ) | (7 | )% | (55 | ) | 2,056 | (3 | )% | (10 | )% | ||||||||||||||||
Marketing, selling and administrative excluding specified items (a) | 2,110 | 2,272 | (162 | ) | (7 | )% | (55 | ) | 2,055 | (3 | )% | (10 | )% | ||||||||||||||||
Marketing, selling and administrative excluding specified items as a % of revenues | 19.4 | % | 22.6 | % | |||||||||||||||||||||||||
Research and development | 3,685 | 2,982 | 703 | 24 | % | (31 | ) | 3,654 | (1 | )% | 23 | % | |||||||||||||||||
Research and development excluding specified items (a) | 2,511 | 2,296 | 215 | 9 | % | (25 | ) | 2,486 | (1 | )% | 8 | % | |||||||||||||||||
Research and development excluding specified items as a % of revenues | 23.0 | % | 22.8 | % |
(a) | Refer to the Specified Items schedule for further details. | |||||||||||
* | Foreign exchange impacts were derived by applying the prior period average currency rates to the current period sales and expenses. |
2017 | 2018 | Growth $ | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||||
Prioritized Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Opdivo | $ | 1,127 | $ | 1,195 | $ | 2,322 | $ | 1,265 | $ | 3,587 | $ | 1,361 | $ | 4,948 | $ | 1,511 | $ | 1,627 | $ | 3,138 | $ | 432 | $ | 816 | 36 | % | 35 | % | ||||||||||||||||||||||||||||||||||
Eliquis | 1,101 | 1,176 | 2,277 | 1,232 | 3,509 | 1,363 | 4,872 | 1,506 | 1,650 | 3,156 | 474 | 879 | 40 | % | 39 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Orencia | 535 | 650 | 1,185 | 632 | 1,817 | 662 | 2,479 | 593 | 711 | 1,304 | 61 | 119 | 9 | % | 10 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Sprycel | 463 | 506 | 969 | 509 | 1,478 | 527 | 2,005 | 438 | 535 | 973 | 29 | 4 | 6 | % | — | |||||||||||||||||||||||||||||||||||||||||||||||
Yervoy | 330 | 322 | 652 | 323 | 975 | 269 | 1,244 | 249 | 315 | 564 | (7 | ) | (88 | ) | (2 | )% | (13 | )% | ||||||||||||||||||||||||||||||||||||||||||||
Empliciti | 53 | 55 | 108 | 60 | 168 | 63 | 231 | 55 | 64 | 119 | 9 | 11 | 16 | % | 10 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 282 | 273 | 555 | 264 | 819 | 233 | 1,052 | 225 | 179 | 404 | (94 | ) | (151 | ) | (34 | )% | (27 | )% | ||||||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(a) | 184 | 188 | 372 | 183 | 555 | 174 | 729 | 84 | 73 | 157 | (115 | ) | (215 | ) | (61 | )% | (58 | )% | ||||||||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 193 | 188 | 381 | 174 | 555 | 143 | 698 | 124 | 117 | 241 | (71 | ) | (140 | ) | (38 | )% | (37 | )% | ||||||||||||||||||||||||||||||||||||||||||||
Hepatitis C Franchise(b) | 162 | 112 | 274 | 73 | 347 | 59 | 406 | 3 | 12 | 15 | (100 | ) | (259 | ) | (89 | )% | (95 | )% | ||||||||||||||||||||||||||||||||||||||||||||
Other Brands | 499 | 479 | 978 | 539 | 1,517 | 595 | 2,112 | 405 | 421 | 826 | (58 | ) | (152 | ) | (12 | )% | (16 | )% | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,929 | $ | 5,144 | $ | 10,073 | $ | 5,254 | $ | 15,327 | $ | 5,449 | $ | 20,776 | $ | 5,193 | $ | 5,704 | $ | 10,897 | $ | 560 | $ | 824 | 11 | % | 8 | % |
(a) | The Sustiva Franchise includes sales of Sustiva, BMS's share of Atripla revenues in Europe, and U.S. Atripla royalty revenue beginning January 1, 2018. |
(b) | Includes Daklinza (daclatasvir) and Sunvepra (asunaprevir) revenues. |
2017 | 2018 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||
Prioritized Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Opdivo | $ | 761 | $ | 768 | $ | 1,529 | $ | 778 | $ | 2,307 | $ | 795 | $ | 3,102 | $ | 938 | $ | 1,024 | $ | 1,962 | 33 | % | 28 | % | ||||||||||||||||||||||||||||||
Eliquis | 699 | 703 | 1,402 | 717 | 2,119 | 768 | 2,887 | 885 | 979 | 1,864 | 39 | % | 33 | % | ||||||||||||||||||||||||||||||||||||||||
Orencia(a) | 362 | 449 | 811 | 432 | 1,243 | 461 | 1,704 | 385 | 501 | 886 | 12 | % | 9 | % | ||||||||||||||||||||||||||||||||||||||||
Sprycel | 247 | 281 | 528 | 278 | 806 | 299 | 1,105 | 214 | 310 | 524 | 10 | % | (1 | )% | ||||||||||||||||||||||||||||||||||||||||
Yervoy | 243 | 245 | 488 | 239 | 727 | 181 | 908 | 162 | 228 | 390 | (7 | )% | (20 | )% | ||||||||||||||||||||||||||||||||||||||||
Empliciti | 36 | 37 | 73 | 39 | 112 | 39 | 151 | 37 | 41 | 78 | 11 | % | 7 | % | ||||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 14 | 12 | 26 | 14 | 40 | 13 | 53 | 10 | 9 | 19 | (25 | )% | (27 | )% | ||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(b) | 153 | 161 | 314 | 157 | 471 | 151 | 622 | 10 | 8 | 18 | (95 | )% | (94 | )% | ||||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 88 | 87 | 175 | 85 | 260 | 67 | 327 | 51 | 54 | 105 | (38 | )% | (40 | )% | ||||||||||||||||||||||||||||||||||||||||
Hepatitis C Franchise(c) | 42 | 30 | 72 | 24 | 96 | 13 | 109 | 5 | (2 | ) | 3 | ** | (96 | )% | ||||||||||||||||||||||||||||||||||||||||
Other Brands | 93 | 92 | 185 | 101 | 286 | 104 | 390 | 81 | 78 | 159 | (15 | )% | (14 | )% | ||||||||||||||||||||||||||||||||||||||||
Total(d) | $ | 2,738 | $ | 2,865 | $ | 5,603 | $ | 2,864 | $ | 8,467 | $ | 2,891 | $ | 11,358 | $ | 2,778 | $ | 3,230 | $ | 6,008 | 13 | % | 7 | % |
** | In excess of +/- 100% |
(a) | In 2018, U.S. Sustiva Franchise revenues include sales of Sustiva only. |
(b) | Includes revenues of Daklinza (daclastasvir) only. |
(c) | Includes United States and Puerto Rico. |
2017 | 2018 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||
Prioritized Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Opdivo | $ | 366 | $ | 427 | $ | 793 | $ | 487 | $ | 1,280 | $ | 566 | $ | 1,846 | $ | 573 | $ | 603 | $ | 1,176 | 41 | % | 48 | % | ||||||||||||||||||||||||||||||
Eliquis | 402 | 473 | 875 | 515 | 1,390 | 595 | 1,985 | 621 | 671 | 1,292 | 42 | % | 48 | % | ||||||||||||||||||||||||||||||||||||||||
Orencia | 173 | 201 | 374 | 200 | 574 | 201 | 775 | 208 | 210 | 418 | 4 | % | 12 | % | ||||||||||||||||||||||||||||||||||||||||
Sprycel | 216 | 225 | 441 | 231 | 672 | 228 | 900 | 224 | 225 | 449 | — | 2 | % | |||||||||||||||||||||||||||||||||||||||||
Yervoy | 87 | 77 | 164 | 84 | 248 | 88 | 336 | 87 | 87 | 174 | 13 | % | 6 | % | ||||||||||||||||||||||||||||||||||||||||
Empliciti | 17 | 18 | 35 | 21 | 56 | 24 | 80 | 18 | 23 | 41 | 28 | % | 17 | % | ||||||||||||||||||||||||||||||||||||||||
Established Brands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 268 | 261 | 529 | 250 | 779 | 220 | 999 | 215 | 170 | 385 | (35 | )% | (27 | )% | ||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(a) | 31 | 27 | 58 | 26 | 84 | 23 | 107 | 74 | 65 | 139 | ** | ** | ||||||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 105 | 101 | 206 | 89 | 295 | 76 | 371 | 73 | 63 | 136 | (38 | )% | (34 | )% | ||||||||||||||||||||||||||||||||||||||||
Hepatitis C Franchise(b) | 120 | 82 | 202 | 49 | 251 | 46 | 297 | (2 | ) | 14 | 12 | (83 | )% | (94 | )% | |||||||||||||||||||||||||||||||||||||||
Other Brands | 406 | 387 | 793 | 438 | 1,231 | 491 | 1,722 | 324 | 343 | 667 | (11 | )% | (16 | )% | ||||||||||||||||||||||||||||||||||||||||
Total(c) | $ | 2,191 | $ | 2,279 | $ | 4,470 | $ | 2,390 | $ | 6,860 | $ | 2,558 | $ | 9,418 | $ | 2,415 | $ | 2,474 | $ | 4,889 | 9 | % | 9 | % |
** | In excess of +/- 100% |
(a) | The Sustiva Franchise includes BMS's share of Atripla revenues in Europe, and U.S. Atripla royalty revenue beginning January 1, 2018. |
(b) | Includes Daklinza (daclatasvir) and Sunvepra (asunaprevir) revenues. |
(c) | When adjusted for foreign exchange impact, total revenues increased 4% for the second quarter. |
2017 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | |||||||||||||||||||||||||||||||||||
Impairment charges | $ | — | $ | 127 | $ | 127 | $ | 1 | $ | 128 | $ | 18 | $ | 146 | $ | 10 | $ | — | $ | 10 | ||||||||||||||||||||||||||||
Accelerated depreciation and other shutdown costs | — | 3 | 3 | — | 3 | — | 3 | 3 | 14 | 17 | ||||||||||||||||||||||||||||||||||||||
Cost of products sold | — | 130 | 130 | 1 | 131 | 18 | 149 | 13 | 14 | 27 | ||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | — | — | — | — | — | 1 | 1 | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||
License and asset acquisition charges | 50 | 393 | 443 | 310 | 753 | 377 | 1,130 | 60 | 1,075 | 1,135 | ||||||||||||||||||||||||||||||||||||||
IPRD impairments | 75 | — | 75 | — | 75 | — | 75 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Site exit costs and other | 72 | 96 | 168 | 64 | 232 | 151 | 383 | 20 | 19 | 39 | ||||||||||||||||||||||||||||||||||||||
Research and development | 197 | 489 | 686 | 374 | 1,060 | 528 | 1,588 | 80 | 1,094 | 1,174 | ||||||||||||||||||||||||||||||||||||||
Loss/(gain) on equity investments | — | — | — | — | — | — | — | (15 | ) | 356 | 341 | |||||||||||||||||||||||||||||||||||||
Provision for restructuring | 164 | 15 | 179 | 28 | 207 | 86 | 293 | 20 | 37 | 57 | ||||||||||||||||||||||||||||||||||||||
Litigation and other settlements | (481 | ) | — | (481 | ) | — | (481 | ) | — | (481 | ) | — | — | — | ||||||||||||||||||||||||||||||||||
Divestiture gains | (100 | ) | — | (100 | ) | — | (100 | ) | (26 | ) | (126 | ) | (43 | ) | (25 | ) | (68 | ) | ||||||||||||||||||||||||||||||
Royalties and licensing income | — | (497 | ) | (497 | ) | — | (497 | ) | — | (497 | ) | (50 | ) | (25 | ) | (75 | ) | |||||||||||||||||||||||||||||||
Pension and postretirement | 33 | 36 | 69 | 22 | 91 | 71 | 162 | 31 | 37 | 68 | ||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | — | — | — | — | — | — | — | 64 | — | 64 | ||||||||||||||||||||||||||||||||||||||
Loss on debt redemption | — | 109 | 109 | — | 109 | — | 109 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Other income (net) | (384 | ) | (337 | ) | (721 | ) | 50 | (671 | ) | 131 | (540 | ) | 7 | 380 | 387 | |||||||||||||||||||||||||||||||||
Increase/(decrease) to pretax income | (187 | ) | 282 | 95 | 425 | 520 | 678 | 1,198 | 101 | 1,488 | 1,589 | |||||||||||||||||||||||||||||||||||||
Income taxes on specified items | 72 | 20 | 92 | (41 | ) | 51 | (138 | ) | (87 | ) | (8 | ) | (218 | ) | (226 | ) | ||||||||||||||||||||||||||||||||
Income taxes attributed to U.S. tax reform | — | — | — | — | — | 2,911 | 2,911 | (32 | ) | 3 | (29 | ) | ||||||||||||||||||||||||||||||||||||
Income taxes | 72 | 20 | 92 | (41 | ) | 51 | 2,773 | 2,824 | (40 | ) | (215 | ) | (255 | ) | ||||||||||||||||||||||||||||||||||
Increase/(decrease) to net earnings | (115 | ) | 302 | 187 | 384 | 571 | 3,451 | 4,022 | 61 | 1,273 | 1,334 | |||||||||||||||||||||||||||||||||||||
Noncontrolling interest | (59 | ) | — | (59 | ) | — | (59 | ) | — | (59 | ) | — | — | — | ||||||||||||||||||||||||||||||||||
Increase/(decrease) to net earnings used for diluted Non-GAAP EPS calculation | $ | (174 | ) | $ | 302 | $ | 128 | $ | 384 | $ | 512 | $ | 3,451 | $ | 3,963 | $ | 61 | $ | 1,273 | $ | 1,334 |
2017 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 3,664 | $ | 3,575 | $ | 7,239 | $ | 3,675 | $ | 10,914 | $ | 3,768 | $ | 14,682 | $ | 3,609 | $ | 4,079 | $ | 7,688 | ||||||||||||||||||||||||||||
Specified items (a) | — | 130 | 130 | 1 | 131 | 18 | 149 | 13 | 14 | 27 | ||||||||||||||||||||||||||||||||||||||
Gross profit excluding specified items | 3,664 | 3,705 | 7,369 | 3,676 | 11,045 | 3,786 | 14,831 | 3,622 | 4,093 | 7,715 | ||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 1,085 | 1,187 | 2,272 | 1,163 | 3,435 | 1,316 | 4,751 | 980 | 1,131 | 2,111 | ||||||||||||||||||||||||||||||||||||||
Specified items (a) | — | — | — | — | — | (1 | ) | (1 | ) | (1 | ) | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Marketing, selling and administrative excluding specified items | 1,085 | 1,187 | 2,272 | 1,163 | 3,435 | 1,315 | 4,750 | 979 | 1,131 | 2,110 | ||||||||||||||||||||||||||||||||||||||
Research and development | 1,303 | 1,679 | 2,982 | 1,561 | 4,543 | 1,939 | 6,482 | 1,250 | 2,435 | 3,685 | ||||||||||||||||||||||||||||||||||||||
Specified items (a) | (197 | ) | (489 | ) | (686 | ) | (374 | ) | (1,060 | ) | (528 | ) | (1,588 | ) | (80 | ) | (1,094 | ) | (1,174 | ) | ||||||||||||||||||||||||||||
Research and development excluding specified items | 1,106 | 1,190 | 2,296 | 1,187 | 3,483 | 1,411 | 4,894 | 1,170 | 1,341 | 2,511 | ||||||||||||||||||||||||||||||||||||||
Other income (net) | (679 | ) | (586 | ) | (1,265 | ) | (232 | ) | (1,497 | ) | (185 | ) | (1,682 | ) | (400 | ) | (4 | ) | (404 | ) | ||||||||||||||||||||||||||||
Specified items (a) | 384 | 337 | 721 | (50 | ) | 671 | (131 | ) | 540 | (7 | ) | (380 | ) | (387 | ) | |||||||||||||||||||||||||||||||||
Other income (net) excluding specified items | (295 | ) | (249 | ) | (544 | ) | (282 | ) | (826 | ) | (316 | ) | (1,142 | ) | (407 | ) | (384 | ) | (791 | ) |
(a) | Refer to the Specified Items schedule for further details. |
2017 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | |||||||||||||||||||||||||||||||||||
Earnings before income taxes | $ | 1,955 | $ | 1,295 | $ | 3,250 | $ | 1,183 | $ | 4,433 | $ | 698 | $ | 5,131 | $ | 1,779 | $ | 517 | $ | 2,296 | ||||||||||||||||||||||||||||
Specified items(a) | (187 | ) | 282 | 95 | 425 | 520 | 678 | 1,198 | 101 | 1,488 | 1,589 | |||||||||||||||||||||||||||||||||||||
Earnings before income taxes excluding specified items | 1,768 | 1,577 | 3,345 | 1,608 | 4,953 | 1,376 | 6,329 | 1,880 | 2,005 | 3,885 | ||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 429 | 373 | 802 | 327 | 1,129 | 3,027 | 4,156 | 284 | 135 | 419 | ||||||||||||||||||||||||||||||||||||||
Tax on specified items(a) | 72 | 20 | 92 | (41 | ) | 51 | (138 | ) | (87 | ) | (8 | ) | (218 | ) | (226 | ) | ||||||||||||||||||||||||||||||||
Income taxes attributed to U.S. tax reform(a) | — | — | — | — | — | 2,911 | 2,911 | (32 | ) | 3 | (29 | ) | ||||||||||||||||||||||||||||||||||||
Provision for income taxes excluding tax on specified items and income taxes attributed to U.S. tax reform | 357 | 353 | 710 | 368 | 1,078 | 254 | 1,332 | 324 | 350 | 674 | ||||||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | (48 | ) | 6 | (42 | ) | 11 | (31 | ) | (1 | ) | (32 | ) | 9 | 9 | 18 | |||||||||||||||||||||||||||||||||
Specified items(a) | (59 | ) | — | (59 | ) | — | (59 | ) | — | (59 | ) | — | — | — | ||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest excluding specified items | 11 | 6 | 17 | 11 | 28 | (1 | ) | 27 | 9 | 9 | 18 | |||||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to BMS used for Diluted EPS Calculation - GAAP | 1,574 | 916 | 2,490 | 845 | 3,335 | (2,328 | ) | 1,007 | 1,486 | 373 | 1,859 | |||||||||||||||||||||||||||||||||||||
Specified items(a) | (174 | ) | 302 | 128 | 384 | 512 | 3,451 | 3,963 | 61 | 1,273 | 1,334 | |||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to BMS used for Diluted EPS Calculation excluding specified items - Non-GAAP | 1,400 | 1,218 | 2,618 | 1,229 | 3,847 | 1,123 | 4,970 | 1,547 | 1,646 | 3,193 | ||||||||||||||||||||||||||||||||||||||
Weighted-average Common Shares Outstanding - Diluted- GAAP | 1,671 | 1,650 | 1,660 | 1,645 | 1,655 | 1,635 | 1,652 | 1,640 | 1,636 | 1,638 | ||||||||||||||||||||||||||||||||||||||
Weighted-average Common Shares Outstanding - Diluted- Non-GAAP | 1,671 | 1,650 | 1,660 | 1,645 | 1,655 | 1,642 | 1,652 | 1,640 | 1,636 | 1,638 | ||||||||||||||||||||||||||||||||||||||
Diluted Earnings/(Loss) Per Share - GAAP | $ | 0.94 | $ | 0.56 | $ | 1.50 | $ | 0.51 | $ | 2.02 | $ | (1.42 | ) | $ | 0.61 | $ | 0.91 | $ | 0.23 | $ | 1.13 | |||||||||||||||||||||||||||
Diluted Earnings/(Loss) Per Share Attributable to Specified Items | (0.10 | ) | 0.18 | 0.08 | 0.24 | 0.30 | 2.10 | 2.40 | 0.03 | 0.78 | 0.82 | |||||||||||||||||||||||||||||||||||||
Diluted Earnings Per Share - Non-GAAP | $ | 0.84 | $ | 0.74 | $ | 1.58 | $ | 0.75 | $ | 2.32 | $ | 0.68 | $ | 3.01 | $ | 0.94 | $ | 1.01 | $ | 1.95 | ||||||||||||||||||||||||||||
Effective Tax Rate | 21.9 | % | 28.8 | % | 24.7 | % | 27.6 | % | 25.5 | % | 433.7 | % | 81.0 | % | 16.0 | % | 26.1 | % | 18.2 | % | ||||||||||||||||||||||||||||
Specified items (a) | (1.7 | )% | (6.4 | )% | (3.5 | )% | (4.7 | )% | (3.7 | )% | (415.2 | )% | (60.0 | )% | 1.2 | % | (8.6 | )% | (0.9 | )% | ||||||||||||||||||||||||||||
Effective Tax Rate excluding specified items | 20.2 | % | 22.4 | % | 21.2 | % | 22.9 | % | 21.8 | % | 18.5 | % | 21.0 | % | 17.2 | % | 17.5 | % | 17.3 | % | ||||||||||||||||||||||||||||
(a) | Refer to the Specified Items schedule for further details. Effective tax rate on the Specified Items represents the difference between the GAAP and Non-GAAP effective tax rate. |
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | |||||||||||||||||||||
Cash and cash equivalents | $ | 3,910 | $ | 3,470 | $ | 4,644 | $ | 5,421 | $ | 5,342 | $ | 4,999 | ||||||||||||||||
Marketable securities - current | 2,199 | 3,035 | 2,478 | 1,391 | 1,428 | 1,076 | ||||||||||||||||||||||
Marketable securities - non-current | 2,685 | 2,580 | 2,526 | 2,480 | 2,252 | 2,117 | ||||||||||||||||||||||
Cash, cash equivalents and marketable securities | 8,794 | 9,085 | 9,648 | 9,292 | 9,022 | 8,192 | ||||||||||||||||||||||
Short-term debt obligations | (1,197 | ) | (1,306 | ) | (1,461 | ) | (987 | ) | (1,925 | ) | (1,716 | ) | ||||||||||||||||
Long-term debt | (7,237 | ) | (6,911 | ) | (6,982 | ) | (6,975 | ) | (5,775 | ) | (5,671 | ) | ||||||||||||||||
Net cash position | $ | 360 | $ | 868 | $ | 1,205 | $ | 1,330 | $ | 1,322 | $ | 805 |
BRISTOL-MYERS SQUIBB COMPANY | ||||
2018 FULL YEAR PROJECTED DILUTED EPS FROM OPERATIONS | ||||
EXCLUDING PROJECTED SPECIFIED ITEMS |
Full Year 2018 | |||||||||||
Pre-tax | Tax | After-tax | |||||||||
Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP | $2.68 to $2.78 | ||||||||||
Projected Specified Items: | |||||||||||
Restructuring, accelerated depreciation and other exit costs (1) | 0.16 | 0.03 | 0.13 | ||||||||
Divestiture gains and licensing income | (0.14 | ) | (0.04 | ) | (0.10 | ) | |||||
Research and development license and asset acquisition charges | 0.69 | 0.14 | 0.55 | ||||||||
Pension charges | 0.08 | 0.02 | 0.06 | ||||||||
Loss/(gain) on equity investments | 0.21 | (0.01 | ) | 0.22 | |||||||
Other | 0.04 | 0.03 | 0.01 | ||||||||
Total | 1.04 | 0.17 | 0.87 | ||||||||
Projected Diluted Earnings Attributable to Shareholders per Common Share - Non-GAAP | $3.55 to $3.65 | ||||||||||
(1) Includes items recognized in Cost of products sold, Research and development and Other income (net). |
The following table summarizes the company's 2018 financial guidance: | ||||||||||||||||||||||
Line item | GAAP | Non-GAAP | ||||||||||||||||||||
Worldwide revenues | Increasing in the mid- to high-single digits | Increasing in the mid- to high-single digits | ||||||||||||||||||||
Gross margin as a percent of revenue | Approximately 70% | Approximately 70% | ||||||||||||||||||||
Marketing, selling and administrative expense | Decreasing in the low- to mid-single digit range | Decreasing in the low- to mid-single digit range | ||||||||||||||||||||
Research and development expense | Increasing in the low-single digits | Increasing in the high-single digits | ||||||||||||||||||||
Effective tax rate | Between 17%-18% | Between 17%-18% |
The GAAP financial results for the full year 2018 will include specified items, including charges associated with restructuring, downsizing and streamlining worldwide operations, gains/losses on divestitures and equity investments, license and asset acquisition charges, pension charges and other specified items that have not yet been identified and quantified, including litigation and other settlements, licensed asset impairments and finalization of the deemed repatriation tax, among other items. For a fuller discussion of items that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Reports Second Quarter 2018 Financial Results, July 26, 2018 including “2018 Financial Guidance” and “Use of non-GAAP Financial Information” therein. |
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