ALLIANCES

3 Months Ended

Mar. 31, 2022

ALLIANCES

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

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


	Three Months Ended March 31,
Dollars in Millions	2022		2021
Revenues from alliances:
Net product sales	$	3,239	$	2,882
Alliance revenues	188		142
Total Revenues	$	3,427	$	3,024

Payments to/(from) alliance partners:
Cost of products sold	$	1,556	$	1,397
Marketing, selling and administrative	(54)		(49)
Research and development	22		7
Other (income)/expense, net	(12)		(5)


Dollars in Millions	March 31, 2022		December 31, 2021
Selected Alliance Balance Sheet information:
Receivables – from alliance partners	$	304	$	320
Accounts payable – to alliance partners	1,504		1,229
Deferred income from alliances(a)	326		330

(a) Includes unamortized upfront and milestone payments.

The nature, purpose, significant rights and obligations of the parties and specific accounting policy elections for each of the Company's significant alliances are discussed in the 2021 Form 10-K. Significant developments and updates related to alliances during the three months ended March 31, 2022 are set forth below.

Nektar

In April 2022, BMS and Nektar announced that the companies have jointly decided to end the global clinical development program for bempegaldesleukin in combination with Opdivo based on results from pre-planned analyses of two late-stage clinical studies in RCC and bladder cancer. These studies and all other ongoing studies in the program will be discontinued.