8-K
BRISTOL MYERS SQUIBB CO (BMY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM 8-K
_____________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 4, 2022
_____________________________
BRISTOL-MYERS SQUIBB COMPANY
(Exact name of registrant as specified in its charter)
_____________________________
| Delaware | 001-01136 | 22-0790350 |
|---|---|---|
| (State or other jurisdiction of<br>incorporation or organization) | (Commission File Number) | (I.R.S Employer<br>Identification No.) |
430 E. 29th Street, 14th Floor
New York, New York, 10016
(Address of principal executive offices) (zip code)
Registrant’s telephone number, including area code: (212) 546-4000
_____________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.10 Par Value | BMY | New York Stock Exchange |
| 1.000% Notes due 2025 | BMY25 | New York Stock Exchange |
| 1.750% Notes due 2035 | BMY35 | New York Stock Exchange |
| Celgene Contingent Value Rights | CELG RT | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 Results of Operations and Financial Condition. |
|---|
On February 4, 2022, Bristol-Myers Squibb Company (the “Company”) issued a press release (the “Earnings Press Release”) announcing its financial results for the fourth quarter of 2021 and full year of 2021. A copy of the Earnings Press Release is furnished pursuant to this Item 2.02 as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein in its entirety. Also furnished pursuant to this Item 2.02 as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference herein in its entirety is certain supplemental information (the “Supplemental Information”) posted on the Company’s website at www.bms.com.
| Item 7.01 Regulation FD Disclosure. |
|---|
On February 4, 2022, the Company posted on its website at www.bms.com a presentation (the “Bristol Myers Presentation”) on certain financial and operating initiatives available for viewing during the Company’s conference call and webcast announcing its financial results for the fourth quarter of 2021 and full year of 2021 at 8:00 a.m. Eastern time on February 4, 2022. A copy of the Bristol Myers Presentation is furnished pursuant to this Item 7.01 as Exhibit 99.3 to this Current Report on Form 8-K and incorporated by reference herein in its entirety. The Bristol Myers Presentation includes references to non-GAAP financial information. Reconciliations between the non-GAAP financial measures and the comparable GAAP financial measures are available in the Supplemental Information, which is included as Exhibit 99.2 hereto, and the reasons for the presentation of such non-GAAP financial measures are available in the Earnings Press Release, which is included as Exhibit 99.1 hereto. The Bristol Myers Presentation should be read in conjunction with the Supplemental Information and the Earnings Press Release. The Company reserves the right to discontinue availability of the Bristol Myers Presentation from its website at any time.
Pursuant to General Instruction B.2. to Form 8-K, the information set forth in this Current Report on Form 8-K, including Exhibits 99.1, 99.2 and 99.3, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities thereof, nor shall it be incorporated by reference into future filings by the Company under the Exchange Act or under the Securities Act of 1933, as amended, except to the extent specifically provided in any such filing. Additionally, the submission of the information set forth in this Item 7.01 is not deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required to be disclosed solely by Regulation FD.
| Item 9.01 Financial Statements and Exhibits. |
|---|
(d) Exhibits
The following exhibits are furnished as part of this Current Report on Form 8-K:
| Exhibit<br>No. | Description |
|---|---|
| 99.1 | Press release of Bristol-Myers Squibb Company dated February 4, 2022. |
| 99.2 | Certain supplemental information posted on Bristol-Myers Squibb Company’s website at www.bms.com not included in the press release. |
| 99.3 | Presentation Materials of Bristol-Myers Squibb Company dated February 4, 2022. |
| 104 | The cover page from this Current Report on Form 8-K formatted in Inline XBRL (included as Exhibit 101). |
EXHIBIT INDEX
| Exhibit<br>No. | Description |
|---|---|
| 99.1 | Press release of Bristol-Myers Squibb Company dated February 4, 2021. |
| 99.2 | Certain supplemental information posted on Bristol-Myers Squibb Company’s website at www.bms.com not included in the press release. |
| 99.3 | Presentation Materials of Bristol-Myers Squibb Company dated February 4, 2021. |
| 104 | The cover page from this Current Report on Form 8-K formatted in Inline XBRL (included as Exhibit 101). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BRISTOL-MYERS SQUIBB COMPANY | ||
|---|---|---|
| Dated: February 4, 2022 | By: | /s/ Kimberly M. Jablonski |
| Name: | Kimberly M. Jablonski | |
| Title: | Corporate Secretary |
Document
Exhibit 99.1
Bristol Myers Squibb Reports Fourth Quarter and Full-Year Financial Results for 2021
•Reports Fourth Quarter Revenues of $12.0 Billion; Full-Year Revenues of $46.4 Billion
•Posts Fourth Quarter Earnings Per Share of $1.07 and Non-GAAP EPS of $1.83; Posts Full- Year Earnings Per Share of $3.12 and Non-GAAP EPS of $7.51
•Delivers Strong Revenues for Eliquis, Immuno-Oncology and New Product Portfolios
•Advances Pipeline with Achievement of Significant Clinical and Regulatory Milestones; Builds Strong Foundation for Portfolio Renewal
•Announces $15 Billion Share Repurchase Authorization; $5 Billion Accelerated Share Repurchase Agreement to be Executed During the First Quarter 2022
•Provides GAAP and More Detailed Non-GAAP Financial Guidance for 2022
•Reaffirms Long-term Financial Targets
(NEW YORK, February 4, 2022) – Bristol Myers Squibb (NYSE:BMY) today reports results for the fourth quarter and full year of 2021, which reflect strong sales driven by robust commercial execution and significant advancement of the company’s pipeline that further progressed the company’s portfolio renewal.
“I am proud of how our company performed in 2021, helping more patients across our therapeutic areas, while achieving 9% revenue and 17% non-GAAP EPS growth, respectively,” said Giovanni Caforio, M.D., board chair and chief executive officer, Bristol Myers Squibb. “2021 was a pivotal year for our company as we achieved significant regulatory and clinical milestones and positioned the company to successfully renew our portfolio. I am confident in our ability to execute against our key milestones in 2022, including three planned first-in-class launches with relatlimab plus nivolumab fixed dose combination, mavacamten and deucravacitinib. Our financial strength, dedicated workforce and proven ability to execute will enable us to continue to advance our pipeline, invest in future sources of innovation and position the company for sustained growth.”
| amounts in millions, except per share amounts | |||
| 2020 | Change | ||
| Total Revenues | $11,068 | 8 | % |
| Earnings (Loss) Per Share - GAAP | (4.45) | * | |
| Earnings Per Share - Non-GAAP | 1.46 | 25 | % |
All values are in US Dollars.
| amounts in millions, except per share amounts | |||
| 2020 | Change | ||
| Total Revenues | $42,518 | 9 | % |
| Earnings (Loss) Per Share - GAAP | (3.99) | * | |
| Earnings Per Share - Non-GAAP | 6.44 | 17 | % |
All values are in US Dollars.
* In excess of +100%.
FOURTH QUARTER FINANCIAL RESULTS
All comparisons are made versus the same period in 2020 unless otherwise stated.
•Bristol Myers Squibb posted fourth quarter revenues of $12.0 billion, an increase of 8%, driven by Eliquis, our Immuno-Oncology and new product portfolios.
•U.S. revenues increased 11% to $7.5 billion in the quarter. International revenues increased 4% to $4.5 billion in the quarter. When adjusted for foreign exchange impact, international revenues increased 7%.
•Gross margin increased from 73.7% to 80.3% in the quarter primarily due to an impairment charge related to marketed product rights in the same period a year ago and lower unwinding of inventory purchase price accounting adjustments.
On a non-GAAP basis, gross margin increased from 79.8% to 80.3% in the quarter primarily driven by foreign exchange and lower royalties.
•Marketing, selling and administrative expenses decreased 13% to $2.4 billion in the quarter primarily due to cash settlement of MyoKardia unvested stock awards in the prior year, and certain incremental and accelerated investments to support our business in 2020, partially offset by investments to support new product launches.
On a non-GAAP basis, marketing, selling and administrative expenses decreased 5% in the quarter primarily due to certain incremental and accelerated investments to support our business in 2020, partially offset by investments to support new product launches.
•Research and development expenses decreased 30% to $2.6 billion in the quarter. The same period a year ago included license and acquisition charges related to Dragonfly, an in-process
research and development (IPR&D) impairment charge and cash settlement of MyoKardia unvested stock awards.
On a non-GAAP basis, research and development expenses increased 3% to $2.6 billion in the quarter primarily due to higher costs related to investments in the overall portfolio.
•Amortization of acquired intangible assets decreased 4% to $2.4 billion in the quarter primarily due to an extended marketed product rights exclusivity period.
•The effective tax benefit rate was 27.7% in the quarter. Income tax benefit was approximately $510 million despite pre-tax earnings of $1.9 billion in the quarter primarily due to the impact of internal transfers of certain intangible assets of $1.0 billion.
On a non-GAAP basis, the effective tax rate decreased 0.5% to 15.0% in the quarter primarily due to earnings mix.
•The company reported net earnings attributable to Bristol Myers Squibb of $2.4 billion, or $1.07 per share, in the fourth quarter, compared to net loss of $10.0 billion, or $(4.45) per share, for the same period a year ago. In addition to the items discussed above, the results in the same period a year ago included an IPR&D charge related to the MyoKardia asset acquisition of $11.4 billion and the impact of fair value adjustments on equity investments and contingent value rights in both periods.
•The company reported non-GAAP net earnings attributable to Bristol Myers Squibb of $4.1 billion, or $1.83 per share, in the fourth quarter, compared to non-GAAP net earnings of $3.3 billion, or $1.46 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.
FOURTH QUARTER PRODUCT REVENUE HIGHLIGHTS
| amounts in millions | ||
|---|---|---|
| Product | Quarter Ended December 31, 2020 | % Change from Quarter Ended December 31, 2020 |
| Revlimid*** | $3,280 | 1% |
| Eliquis | $2,269 | 18% |
| Opdivo | $1,793 | 11% |
| Pomalyst/Imnovid | $835 | 2% |
| Orencia | $867 | 0% |
| Sprycel | $564 | (2)% |
| Yervoy | $471 | 16% |
All values are in US Dollars.
| Abraxane*** | $305 | $297 | 3% |
|---|---|---|---|
| Reblozyl** | $151 | $115 | 31% |
| Empliciti | $81 | $91 | (11)% |
| Abecma** | $69 | N/A | N/A |
| Zeposia** | $48 | $9 | * |
| Breyanzi** | $40 | N/A | N/A |
| Inrebic** | $20 | $15 | 33% |
| Onureg** | $25 | $14 | 79% |
* In excess of +100%.
** Included as part of the new product portfolio
*** Included as part of the key loss of exclusivity (LOE) brands
TWELVE-MONTH PRODUCT REVENUE HIGHLIGHTS
| amounts in millions | ||
|---|---|---|
| Product | Twelve Months Ended December 31, 2020 | % Change from Twelve Months Ended December 31, 2020 |
| Revlimid*** | $12,106 | 6% |
| Eliquis | $9,168 | 17% |
| Opdivo | $6,992 | 8% |
| Pomalyst/Imnovid | $3,070 | 9% |
| Orencia | $3,157 | 5% |
| Sprycel | $2,140 | (1)% |
| Yervoy | $1,682 | 20% |
| Abraxane*** | $1,247 | (5)% |
| Reblozyl** | $274 | * |
| Empliciti | $381 | (12)% |
| Abecma** | N/A | N/A |
| Zeposia** | $12 | * |
| Breyanzi** | N/A | N/A |
| Inrebic** | $55 | 35% |
| Onureg** | $17 | * |
All values are in US Dollars.
* In excess of +100%.
** Included as part of the new product portfolio
*** Included as part of the key loss of exclusivity (LOE) brands
FOURTH QUARTER PRODUCT AND PIPELINE UPDATE
Cardiovascular
mavacamten
Regulatory
•In November, the company announced that the U.S. Food and Drug Administration (FDA) has extended the review of the New Drug Application (NDA) for mavacamten for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy to April 28, 2022. The extension will allow sufficient time to review information pertaining to updates of the proposed Risk Evaluation Mitigation Strategy (REMS). A REMS program was included in the initial application for mavacamten. No additional data or studies have been requested. (link)
Cardiovascular Portfolio
Medical Meetings
•In November, the company presented new data from across its cardiovascular portfolio (link) at the American Heart Association’s (AHA) annual Scientific Sessions, including results from: the:
◦Phase 2 AXIOMATIC-TKR trial that showed milvexian reduced the risk of postoperative venous thromboembolism in a dose dependent manner without increasing the risk of bleeding compared with enoxaparin in patients undergoing total knee replacement surgery. The study was conducted by The Bristol Myers Squibb-Janssen Collaboration. (link)
Oncology
Opdivo
Clinical
•In November, the company announced that the Phase 3 CheckMate -816 trial met the co-primary endpoint of improved event-free survival (EFS) in patients with resectable Stage IB to IIIA non-small cell lung cancer. In a prespecified interim analysis, Opdivo® (nivolumab) plus chemotherapy showed a statistically significant and clinically meaningful improvement in EFS compared to chemotherapy alone when given before surgery. This combination
previously showed a significant improvement of pathologic complete response, the trial’s other primary endpoint. (link)
Hematology
Breyanzi
Regulatory
•In January, the company announced that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has recommended approval of Breyanzi® (lisocabtagene maraleucel) for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma, primary mediastinal large B-cell lymphoma, and follicular lymphoma grade 3B after at least two prior therapies. The recommendation is based on results from TRANSCEND NHL 001 and data from the TRANSCEND WORLD study. (link)
Reblozyl
Regulatory
•In December, the company announced two regulatory applications for Reblozyl® (luspatercept-aamt) have been accepted. The FDA has accepted for priority review the supplemental Biologics License Application (sBLA) for Reblozyl for the treatment of anemia in adults with non-transfusion dependent (NTD) beta thalassemia. The FDA has set a PDUFA goal date of March 27, 2022. The EMA also validated the Type II variation for Reblozyl for NTD beta thalassemia. The applications are based on results from the Phase 2 BEYOND trial. (link)
Hematology Portfolio
Medical Meetings
•In December, the company announced new data and analyses from across its hematology portfolio (link) that were presented at the American Society of Hematology (ASH) Annual Meeting, including results from the:
◦Phase 3 TRANSFORM trial, which showed Breyanzi significantly improved EFS compared to chemotherapy plus autologous stem cell transplant as second line treatment in adults with relapsed or refractory large B-cell lymphoma. (link)
Immunology
Orencia
Regulatory
•In December, the company announced that Orencia® (abatacept) was approved by the FDA for the prophylaxis, or prevention, of acute graft versus host disease, in combination with a calcineurin inhibitor and methotrexate, in patients 2 years of age and older undergoing hematopoietic stem cell transplantation from a matched or 1 allele-mismatched unrelated donor. The approval is based on results from the Phase 2 GVHD-1 trial, also known as ABA2, and a non-interventional (observational) study known as GVHD-2. (link)
Zeposia
Regulatory
•In November, the company announced that the European Commission (EC) approved Zeposia® (ozanimod) for the treatment of adults with moderately to severely active ulcerative colitis who have had an inadequate response, lost response, or were intolerant to either conventional therapy or a biologic agent. The EC’s decision is based on results from the Phase 3 True North trial. (link)
deucravacitinib
Regulatory
•In November, the company announced three regulatory applications for deucravacitinib have been accepted for review. The FDA has accepted the NDA and the EMA has validated the Marketing Authorization Application for deucravacitinib for the treatment of adults with moderate to severe plaque psoriasis. The FDA has assigned a PDUFA goal date of September 10, 2022. Japan's Ministry of Health, Labour and Welfare also accepted the NDA for deucravacitinib for the treatment of adults with moderate to severe plaque psoriasis, pustular psoriasis and erythrodermic psoriasis. The applications are based on the Phase 3 POETYK PSO-1 and POETYK PSO-2 trials. (link)
Environmental, Social & Governance (ESG)
In December, the company issued its 2021 Global Access Report that detailed Bristol Myers Squibb’s efforts and progress towards advancing access to healthcare and health equity globally through its own efforts and in partnership with other stakeholders. (link)
Business Development
•In January, the company and Century Therapeutics (NASDAQ: IPSC) announced a research collaboration and license agreement to develop and commercialize up to four induced pluripotent stem cell derived, engineered natural killer cell and / or T cell programs for hematologic malignancies and solid tumors. (link)
•In December, the company and Immatics N.V. (NASDAQ: IMTX, “Immatics”), announced that they have entered into a license, development and commercialization agreement for Immatics’ TCR Bispecific candidate, IMA401. (link)
Capital Allocation
The company continues to maintain a consistent, balanced approach to capital allocation focused on prioritizing investment for growth through business development along with reducing debt, commitment to dividend growth and share repurchase.
•In December, the company announced that its Board of Directors approved an increase in the quarterly dividend and authorized an additional $15 billion, multi-year share repurchase program. (link) As part of that program, in January, the company announced that it plans to execute an accelerated share repurchase agreement during the first quarter of 2022 to repurchase up to $5 billion of Bristol Myers Squibb common stock. (link)
Financial Guidance
Bristol Myers Squibb is introducing its 2022 GAAP EPS guidance range of $3.37 - $3.67 and reaffirming its non-GAAP EPS guidance range of $7.65 - $7.95. Both GAAP and non-GAAP guidance assume current exchange rates. Key 2022 GAAP and non-GAAP line-item guidance assumptions are:
•Worldwide revenues are expected to be approximately $47 billion, representing an increase in the low-single digits.
◦Sales from key loss of exclusivity (LOE) brands, which represent Revlimid and Abraxane® (paclitaxel protein-bound particles for injectable suspension) (albumin-bound), are expected to be approximately $10.5 billion. Revlimid sales are expected to be $9.5-$10 billion.
◦Our Continuing Business, which represents in-line products and new product portfolio, is expected to grow in the low-double digits and contribute approximately $36.5 billion in 2022.
•Gross margin is expected to be approximately 78% for GAAP and for non-GAAP.
•Operating expenses, consisting of marketing, selling and administrative expenses and research and development expenses, are expected to decrease by approximately 10% for GAAP and be in-line with 2021 levels for non-GAAP.
•An effective tax rate of approximately 24% for GAAP and approximately 16.5% for non-GAAP.
The 2022 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 2022 non-GAAP EPS guidance is further explained under “Use of Non-GAAP Financial Information.” The financial guidance is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release.
Reaffirms Long-Term Financial Targets
Bristol Myers Squibb is also reaffirming its previously communicated 2020-2025 long-term targets:
•Expects low- to mid-single digit revenue CAGR and low double-digit revenue CAGR for our Continuing Business at constant exchange rates
•Expects to maintain low- to mid-40s percent non-GAAP operating margin
•Expects significant free cash flow generation of $45-$50 billion dollars from 2022-2024
This financial guidance excludes the impact of any potential future strategic acquisitions and divestitures as well as any specified items as discussed under “Use of Non-GAAP Financial Information.” There is no reliable or reasonably estimable comparable GAAP measures for this non-GAAP financial guidance. 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 4, 2022 at 8 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 using this link which becomes active 15 minutes prior to the scheduled start time and entering your information to be connected.
Investors and the public can also access the live webcast by dialing in the U.S. toll free 877-502-9276 or international +1 313-209-4906, confirmation code: 2150568. Materials related to the call will be available at the same website prior to the conference call.
A replay of the webcast will be available on http://investor.bms.com approximately three hours after the conference call concludes. A replay of the conference call will be available beginning at 11:30 a.m. ET on February 4 through 11:30 a.m. ET on February 18, 2022 by dialing in the U.S. toll free 888-203-1112 or international +1 719-457-0820, confirmation code: 2150568.
Use of Non-GAAP Financial Information
In discussing financial results and guidance, the company refers to financial measures that are not in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP and are presented because management has evaluated the company’s financial results both including and excluding the adjusted items or the effects of foreign currency translation, as applicable, and believes that the non-GAAP financial measures presented 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 trends and facilitate comparisons among current, past and future periods. 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. In addition, non-GAAP gross margin, which is gross profit excluding certain specified items as a percentage of revenues, non-GAAP operating margin, which is operating income excluding certain specified items as a percentage of revenues; non-GAAP free cash flow, which is non-GAAP net earnings plus adjustments related to cash generated from operating activities and cash paid for capital expenditures; non-GAAP marketing, selling and administrative expenses, which is marketing, selling and administrative expense excluding certain specified items, and non-GAAP research and development expenses, which is research and development expenses excluding certain specified items, are relevant and useful for investors because they allow investors to view performance in a manner similar to the method used by our management and make it easier for investors, analysts and peers to compare our operating performance to other companies in our industry and to compare our year-over-year results.
This earnings release and the accompanying tables also provide certain revenues and expenses as well as non-GAAP measures excluding the impact of foreign exchange. We calculate foreign
exchange impacts by converting our current-period local currency financial results using the prior period average currency rates and comparing these adjusted amounts to our current-period results.
Non-GAAP financial measures such as non-GAAP earnings and related EPS information are adjusted to exclude certain costs, expenses, gains and losses and other specified items that are evaluated on an individual basis 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 past or future operating results. These items are excluded from non-GAAP earnings and related EPS information because the company believes they neither relate to the ordinary course of the company’s business nor reflect the company’s underlying business performance. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods, including amortization of acquired intangible assets, including product rights that generate a significant portion of our ongoing revenue and will recur until the intangible assets are fully amortized, unwind of inventory purchase price 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, divestiture gains or losses, stock compensation resulting from accelerated vesting of Celgene awards, certain retention-related employee compensation charges related to the Celgene transaction, pension, legal and other contractual settlement charges, equity investment and contingent value rights fair value adjustments (including fair value adjustments attributed to limited partnership equity method investments beginning in 2021) and amortization of fair value adjustments of debt acquired from Celgene in our 2019 exchange offer, among other items. Certain other significant tax items are also excluded such as the impact resulting from internal transfers due to streamlining our legal entity structure subsequent to the Celgene acquisition and the global intangible low taxed income tax change upon finalization of the Otezla* divestiture in 2020. 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.
Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related financial measures presented in the press release that are 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.
Reconciliations of the non-GAAP financial measures to the most comparable GAAP measures are provided in the accompanying financial tables and also available on the company’s website at www.bms.com. Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.
Also note that a reconciliation of the forward-looking revenue (ex-FX), free cash flow and non-GAAP operating margin measures is not provided due to the inherent difficulty in forecasting and quantifying items that are necessary for such reconciliation. Namely, we are not able to reliably predict the impact of specified items or currency exchange rates beyond the next twelve months.
As a result, the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures 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 current and projected financial position, results of operations, market position, product development, share repurchase program 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. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. 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 and capital allocation strategy, planned product launches and updates, expectations relating to its pipeline and in relation to its ability to realize the projected benefits of the Celgene acquisition and the MyoKardia acquisition, the full extent of the impact of the COVID-19 pandemic on the company’s operations and the development and commercialization of its products, potential laws and regulations to lower drug costs, market actions taken by private and government payers to manage drug utilization and contain costs, 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 the 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.
Forward-looking statements are based on 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: increasing pricing pressures from market access, pharmaceutical pricing controls and discounting; changes to tax and importation laws and other restrictions in the United States, the European Union and other regions around the world that result in lower prices, lower reimbursement rates and smaller populations for whom payers will reimburse; changes under the 340B Drug Pricing Program; challenges inherent in new product development, including obtaining and maintaining regulatory approval; the company’s ability to obtain and protect market exclusivity rights and enforce patents and other intellectual property rights; the possibility of difficulties and delays in product introduction and commercialization; the risk of certain novel approaches to disease treatment (such as CAR T therapy); industry competition from other manufacturers; potential difficulties, delays and disruptions 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; the impact of integrating the company’s and Celgene’s business and operations, including with respect to human capital management, portfolio rationalization, finance and accounting systems, sales operations and product distribution, pricing systems and methodologies, data security systems, compliance programs and internal controls processes; the risk of an adverse patent litigation decision or settlement and exposure to other litigation and/or regulatory actions; the impact of any healthcare reform and legislation or regulatory action in the United States and international markets; increasing market penetration of lower-priced generic products; the failure of the company’s suppliers, vendors, outsourcing partners, alliance partners and other third parties to meet their contractual, regulatory and other obligations; 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 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; the company’s ability to execute its financial, strategic and operational plans; the company’s ability to identify potential strategic acquisitions, licensing opportunities or other beneficial transactions; the company’s dependency on several key products; any decline in the company’s future royalty streams; the company’s ability to effectively manage acquisitions, divestitures, alliances and other portfolio actions and to successfully realize the expected benefits of such actions; the company’s ability to attract and retain key personnel; the impact of the company’s significant additional indebtedness that it incurred in connection with the Celgene acquisition and the MyoKardia acquisition; political and financial instability of international economies and sovereign risk; interest rate and currency exchange rate fluctuations, credit and foreign exchange risk management; the impact of adverse outcomes in lawsuits, claims, proceedings and government investigations; the impact of our exclusive forum provision in our by-laws for certain lawsuits on our stockholders’ ability to obtain a judicial forum that it finds favorable for such lawsuits; issuance of new or revised accounting standards; and risks relating to public health outbreaks, epidemics and pandemics, including the impact of the COVID-19 pandemic on the company’s operations. In addition, the financial guidance provided in this release relies on assumptions about the duration and severity of the COVID-19 pandemic, timing of the return to a more stable business environment, patient and physician behaviors, buying patterns and clinical trial activities, which may prove to be incorrect.
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, 2020, 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, 2021 AND 2020
(Unaudited, dollars in millions)
| Worldwide Revenues | U.S. Revenues(b) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||
| Revlimid | $ | 3,328 | $ | 3,280 | 1 | % | $ | 2,270 | $ | 2,197 | 3 | % |
| Eliquis | 2,671 | 2,269 | 18 | % | 1,496 | 1,227 | 22 | % | ||||
| Opdivo | 1,988 | 1,793 | 11 | % | 1,120 | 963 | 16 | % | ||||
| Pomalyst/Imnovid | 854 | 835 | 2 | % | 584 | 577 | 1 | % | ||||
| Orencia | 864 | 867 | — | 637 | 626 | 2 | % | |||||
| Sprycel | 555 | 564 | (2) | % | 351 | 351 | — | |||||
| Yervoy | 545 | 471 | 16 | % | 330 | 304 | 9 | % | ||||
| Abraxane | 305 | 297 | 3 | % | 228 | 214 | 7 | % | ||||
| Reblozyl | 151 | 115 | 31 | % | 130 | 104 | 25 | % | ||||
| Empliciti | 81 | 91 | (11) | % | 50 | 53 | (6) | % | ||||
| Abecma | 69 | — | N/A | 67 | — | N/A | ||||||
| Zeposia | 48 | 9 | ** | 34 | 7 | ** | ||||||
| Breyanzi | 40 | — | N/A | 38 | — | N/A | ||||||
| Inrebic | 20 | 15 | 33 | % | 17 | 15 | 13 | % | ||||
| Onureg | 25 | 14 | 79 | % | 22 | 14 | 57 | % | ||||
| Mature and other brands(a) | 441 | 448 | (2) | % | 146 | 130 | 12 | % | ||||
| Total | $ | 11,985 | $ | 11,068 | 8 | % | $ | 7,520 | $ | 6,782 | 11 | % |
** In excess of +/- 100%.
(a) Includes products that have lost exclusivity in major markets, over-the-counter (OTC) brands and royalty revenue.
(b) Includes Puerto Rico.
BRISTOL-MYERS SQUIBB COMPANY
PRODUCT REVENUES
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2021 AND 2020
(Unaudited, dollars in millions)
| Worldwide Revenues | U.S. Revenues(b) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||
| Revlimid | $ | 12,821 | $ | 12,106 | 6 | % | $ | 8,695 | $ | 8,291 | 5 | % |
| Eliquis | 10,762 | 9,168 | 17 | % | 6,456 | 5,485 | 18 | % | ||||
| Opdivo | 7,523 | 6,992 | 8 | % | 4,202 | 3,945 | 7 | % | ||||
| Pomalyst/Imnovid | 3,332 | 3,070 | 9 | % | 2,249 | 2,136 | 5 | % | ||||
| Orencia | 3,306 | 3,157 | 5 | % | 2,410 | 2,268 | 6 | % | ||||
| Sprycel | 2,117 | 2,140 | (1) | % | 1,297 | 1,295 | — | |||||
| Yervoy | 2,026 | 1,682 | 20 | % | 1,265 | 1,124 | 13 | % | ||||
| Abraxane | 1,181 | 1,247 | (5) | % | 898 | 873 | 3 | % | ||||
| Reblozyl | 551 | 274 | ** | 485 | 259 | 87 | % | |||||
| Empliciti | 334 | 381 | (12) | % | 200 | 230 | (13) | % | ||||
| Abecma | 164 | — | N/A | 158 | — | N/A | ||||||
| Zeposia | 134 | 12 | ** | 99 | 10 | ** | ||||||
| Breyanzi | 87 | — | N/A | 84 | — | N/A | ||||||
| Inrebic | 74 | 55 | 35 | % | 67 | 55 | 22 | % | ||||
| Onureg | 73 | 17 | ** | 69 | 17 | ** | ||||||
| Mature and other brands(a) | 1,900 | 2,217 | (14) | % | 580 | 589 | (2) | % | ||||
| Total | $ | 46,385 | $ | 42,518 | 9 | % | $ | 29,214 | $ | 26,577 | 10 | % |
** In excess of +/- 100%.
(a) Includes products that have lost exclusivity in major markets, OTC brands and royalty revenue.
(b) Includes Puerto Rico.
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2021 AND 2020
(Unaudited, dollars and shares in millions except per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||
| Net product sales | $ | 11,609 | $ | 10,766 | $ | 45,055 | $ | 41,321 |
| Alliance and other revenues | 376 | 302 | 1,330 | 1,197 | ||||
| Total Revenues | 11,985 | 11,068 | 46,385 | 42,518 | ||||
| Cost of products sold(a) | 2,356 | 2,910 | 9,940 | 11,773 | ||||
| Marketing, selling and administrative | 2,354 | 2,721 | 7,690 | 7,661 | ||||
| Research and development | 2,607 | 3,750 | 11,354 | 11,143 | ||||
| IPRD charge - MyoKardia acquisition | — | 11,438 | — | 11,438 | ||||
| Amortization of acquired intangible assets | 2,417 | 2,526 | 10,023 | 9,688 | ||||
| Other (income)/expense, net | 393 | (1,826) | (720) | (2,314) | ||||
| Total Expenses | 10,127 | 21,519 | 38,287 | 49,389 | ||||
| Earnings/(Loss) Before Income Taxes | 1,858 | (10,451) | 8,098 | (6,871) | ||||
| Provision/(Benefit) for Income Taxes | (514) | (424) | 1,084 | 2,124 | ||||
| Net Earnings/(Loss) | 2,372 | (10,027) | 7,014 | (8,995) | ||||
| Noncontrolling Interest | — | — | 20 | 20 | ||||
| Net Earnings/(Loss) Attributable to BMS | $ | 2,372 | $ | (10,027) | $ | 6,994 | $ | (9,015) |
| Weighted-Average Common Shares Outstanding: | ||||||||
| Basic | 2,202 | 2,252 | 2,221 | 2,258 | ||||
| Diluted | 2,219 | 2,252 | 2,245 | 2,258 | ||||
| Earnings/(Loss) per Common Share: | ||||||||
| Basic | $ | 1.08 | $ | (4.45) | $ | 3.15 | $ | (3.99) |
| Diluted | 1.07 | (4.45) | 3.12 | (3.99) | ||||
| Other (income)/expense, net | ||||||||
| Interest expense(b) | $ | 323 | $ | 355 | $ | 1,334 | $ | 1,420 |
| Royalties and licensing income | (536) | (403) | (1,733) | (1,527) | ||||
| Equity investment (gains)/losses | 469 | (504) | (745) | (1,228) | ||||
| Integration expenses | 130 | 182 | 564 | 717 | ||||
| Contingent consideration | (32) | (1,160) | (542) | (1,757) | ||||
| Loss on debt redemption | — | — | 281 | — | ||||
| Provision for restructuring | 19 | 79 | 169 | 530 | ||||
| Litigation and other settlements | 33 | (235) | 82 | (194) | ||||
| Transition and other service fees | (6) | (20) | (49) | (149) | ||||
| Investment income | (6) | (22) | (39) | (121) | ||||
| Divestiture gains | — | (49) | (9) | (55) | ||||
| Reversion excise tax | — | — | — | 76 | ||||
| Intangible asset impairment | — | — | — | 21 | ||||
| Other | (1) | (49) | (33) | (49) | ||||
| Other (income)/expense, net | $ | 393 | $ | (1,826) | $ | (720) | $ | (2,316) |
(a) Excludes amortization of acquired intangible assets.
(b) Includes amortization of purchase price adjustments to Celgene debt.
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2021 AND 2020
(Unaudited, dollars in millions)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||
| Inventory purchase price accounting adjustments | $ | — | $ | 98 | $ | 264 | $ | 2,688 |
| Intangible asset impairment | — | 575 | 315 | 575 | ||||
| Employee compensation charges | — | 1 | — | 4 | ||||
| Site exit and other costs | — | 1 | 24 | 33 | ||||
| Cost of products sold | — | 675 | 603 | 3,300 | ||||
| Employee compensation charges | — | 241 | 1 | 275 | ||||
| Site exit and other costs | 2 | — | 2 | 4 | ||||
| Marketing, selling and administrative | 2 | 241 | 3 | 279 | ||||
| License and asset acquisition charges | — | 475 | 980 | 1,003 | ||||
| IPRD impairments | — | 470 | 840 | 470 | ||||
| Inventory purchase price accounting adjustments | — | 11 | 1 | 36 | ||||
| Employee compensation charges | — | 241 | 1 | 282 | ||||
| Site exit and other costs | — | 16 | 1 | 115 | ||||
| Research and development | — | 1,213 | 1,823 | 1,906 | ||||
| IPRD charge - MyoKardia acquisition | — | 11,438 | — | 11,438 | ||||
| Amortization of acquired intangible assets | 2,417 | 2,526 | 10,023 | 9,688 | ||||
| Interest expense(a) | (29) | (37) | (120) | (159) | ||||
| Royalties and licensing income | (43) | (14) | (72) | (168) | ||||
| Equity investment gains | 469 | (463) | (758) | (1,156) | ||||
| Integration expenses | 130 | 182 | 564 | 717 | ||||
| Contingent consideration | (32) | (1,160) | (542) | (1,757) | ||||
| Loss on debt redemption | — | — | 281 | — | ||||
| Provision for restructuring | 19 | 79 | 169 | 530 | ||||
| Litigation and other settlements | — | (239) | — | (239) | ||||
| Divestiture gains | — | (49) | (9) | (55) | ||||
| Reversion excise tax | — | — | — | 76 | ||||
| Other (income)/expense, net | 514 | (1,701) | (487) | (2,211) | ||||
| Increase to pretax income | 2,933 | 14,392 | 11,965 | 24,400 | ||||
| Income taxes on items above | (251) | (1,034) | (1,122) | (1,733) | ||||
| Income taxes attributed to Otezla® divestiture | — | — | — | 266 | ||||
| Income taxes attributed to internal transfers of intangible assets | (983) | — | (983) | 853 | ||||
| Income taxes | (1,234) | (1,034) | (2,105) | (614) | ||||
| Increase to net earnings | $ | 1,699 | $ | 13,358 | $ | 9,860 | $ | 23,786 |
(a) Includes amortization of purchase price adjustments to Celgene debt.
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, 2021 AND 2020
(Unaudited, dollars and shares in millions except per share data)
| Three Months Ended December 31, 2021 | Twelve Months Ended December 31, 2021 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GAAP | Specified Items(a) | Non-GAAP | GAAP | Specified Items(a) | Non-GAAP | |||||||||||||
| Gross Profit | $ | 9,629 | $ | — | $ | 9,629 | $ | 36,445 | $ | 603 | $ | 37,048 | ||||||
| Marketing, selling and administrative | 2,354 | (2) | 2,352 | 7,690 | (3) | 7,687 | ||||||||||||
| Research and development | 2,607 | — | 2,607 | 11,354 | (1,823) | 9,531 | ||||||||||||
| Amortization of acquired intangible assets | 2,417 | (2,417) | — | 10,023 | (10,023) | — | ||||||||||||
| Other (income)/expense, net | 393 | (514) | (121) | (720) | 487 | (233) | ||||||||||||
| Earnings Before Income Taxes | 1,858 | 2,933 | 4,791 | 8,098 | 11,965 | 20,063 | ||||||||||||
| (Benefit)/Provision for Income Taxes | (514) | 1,234 | 720 | 1,084 | 2,105 | 3,189 | ||||||||||||
| Noncontrolling interest | — | — | — | 20 | — | 20 | ||||||||||||
| Net Earnings Attributable to BMS used for Diluted EPS Calculation | $ | 2,372 | $ | 1,699 | $ | 4,071 | $ | 6,994 | $ | 9,860 | $ | 16,854 | ||||||
| Weighted-Average Common Shares Outstanding - Diluted | 2,219 | 2,219 | 2,219 | 2,245 | 2,245 | 2,245 | ||||||||||||
| Diluted Earnings Per Share | $ | 1.07 | $ | 0.76 | $ | 1.83 | $ | 3.12 | $ | 4.39 | $ | 7.51 | ||||||
| Effective Tax Rate | (27.7) | % | 42.7 | % | 15.0 | % | 13.4 | % | 2.5 | % | 15.9 | % | ||||||
| Three Months Ended December 31, 2020 | Twelve Months Ended December 31, 2020 | |||||||||||||||||
| GAAP | Specified Items(a) | Non-GAAP | GAAP | Specified Items(a) | Non-GAAP | |||||||||||||
| Gross Profit | $ | 8,158 | $ | 675 | $ | 8,833 | $ | 30,745 | $ | 3,300 | $ | 34,045 | ||||||
| Marketing, selling and administrative | 2,721 | (241) | 2,480 | 7,661 | (279) | 7,382 | ||||||||||||
| Research and development | 3,750 | (1,213) | 2,537 | 11,143 | (1,906) | 9,237 | ||||||||||||
| IPRD charge - MyoKardia acquisition | 11,438 | (11,438) | — | 11,438 | (11,438) | — | ||||||||||||
| Amortization of acquired intangible assets | 2,526 | (2,526) | — | 9,688 | (9,688) | — | ||||||||||||
| Other (income)/expense, net | (1,826) | 1,701 | (125) | (2,314) | 2,211 | (103) | ||||||||||||
| (Loss)/Earnings Before Income Taxes | (10,451) | 14,392 | 3,941 | (6,871) | 24,400 | 17,529 | ||||||||||||
| (Benefit)/Provision for Income Taxes | (424) | 1,034 | 610 | 2,124 | 614 | 2,738 | ||||||||||||
| Noncontrolling interest | — | — | — | 20 | — | 20 | ||||||||||||
| Net (Loss)/Earnings Attributable to BMS used for Diluted EPS Calculation | $ | (10,027) | $ | 13,358 | $ | 3,331 | $ | (9,015) | $ | 23,786 | $ | 14,771 | ||||||
| Weighted-Average Common Shares Outstanding - Diluted | 2,252 | 2,286 | 2,286 | 2,258 | 2,293 | 2,293 | ||||||||||||
| Diluted (Loss)/Earnings Per Share | $ | (4.45) | $ | 5.91 | $ | 1.46 | $ | (3.99) | $ | 10.43 | $ | 6.44 | ||||||
| Effective Tax Rate | 4.1 | % | 11.4 | % | 15.5 | % | (30.9) | % | 46.5 | % | 15.6 | % |
(a) Refer to the Specified Items schedule for further details. Effective tax rate on the Specified Items represents the difference between the GAAP and Non-GAAP effective tax rate.
BRISTOL-MYERS SQUIBB COMPANY
NET DEBT CALCULATION
AS OF DECEMBER 31, 2021 AND DECEMBER 31, 2020
(Unaudited, dollars in millions)
| December 31, 2021 | December 31, 2020 | |||
|---|---|---|---|---|
| Cash and cash equivalents | $ | 13,979 | $ | 14,546 |
| Marketable debt securities - current | 2,987 | 1,285 | ||
| Marketable debt securities - non-current | — | 433 | ||
| Cash, cash equivalents and marketable debt securities | 16,966 | 16,264 | ||
| Short-term debt obligations | (4,948) | (2,340) | ||
| Long-term debt | (39,605) | (48,336) | ||
| Net debt position | $ | (27,587) | $ | (34,412) |
For more information, contact:
Media: media@bms.com
Investor Relations: investor.relations@bms.com
21
Document
Exhibit 99.2
BRISTOL-MYERS SQUIBB COMPANY
QUARTERLY TREND ANALYSIS OF REVENUES
(Unaudited, dollars in millions)
| Revenues | 2020 | 2021 | % Change | FX Impact(b) | ||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | $ | 6,766 | $ | 6,487 | $ | 13,253 | $ | 6,542 | $ | 19,795 | $ | 6,782 | $ | 26,577 | $ | 7,010 | $ | 7,388 | $ | 14,398 | $ | 7,296 | $ | 21,694 | $ | 7,520 | $ | 29,214 | 11 | % | 10 | % | — | — | ||||||||||||||||
| Europe | 2,567 | 2,136 | 4,703 | 2,453 | 7,156 | 2,697 | 9,853 | 2,553 | 2,689 | 5,242 | 2,661 | 7,903 | 2,784 | 10,687 | 3 | % | 8 | % | (3) | % | 3 | % | ||||||||||||||||||||||||||||
| Rest of the World | 1,335 | 1,334 | 2,669 | 1,361 | 4,030 | 1,427 | 5,457 | 1,346 | 1,435 | 2,781 | 1,391 | 4,172 | 1,460 | 5,632 | 2 | % | 3 | % | (4) | % | 1 | % | ||||||||||||||||||||||||||||
| Other(a) | 113 | 172 | 285 | 184 | 469 | 162 | 631 | 164 | 191 | 355 | 276 | 631 | 221 | 852 | 36 | % | 35 | % | — | — | ||||||||||||||||||||||||||||||
| Total | $ | 10,781 | $ | 10,129 | $ | 20,910 | $ | 10,540 | $ | 31,450 | $ | 11,068 | $ | 42,518 | $ | 11,073 | $ | 11,703 | $ | 22,776 | $ | 11,624 | $ | 34,400 | $ | 11,985 | $ | 46,385 | 8 | % | 9 | % | (1) | % | 1 | % | ||||||||||||||
| % of Revenues | 2020 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | 62.8 | % | 64.0 | % | 63.4 | % | 62.1 | % | 62.9 | % | 61.3 | % | 62.5 | % | 63.3 | % | 63.1 | % | 63.2 | % | 62.8 | % | 63.1 | % | 62.7 | % | 63.0 | % | ||||||||||||||||||||||
| Europe | 23.8 | % | 21.1 | % | 22.5 | % | 23.3 | % | 22.8 | % | 24.4 | % | 23.2 | % | 23.1 | % | 23.0 | % | 23.0 | % | 22.9 | % | 23.0 | % | 23.2 | % | 23.0 | % | ||||||||||||||||||||||
| Rest of the World | 12.4 | % | 13.2 | % | 12.8 | % | 12.9 | % | 12.8 | % | 12.9 | % | 12.8 | % | 12.2 | % | 12.3 | % | 12.2 | % | 12.0 | % | 12.1 | % | 12.2 | % | 12.1 | % | ||||||||||||||||||||||
| Other | 1.0 | % | 1.7 | % | 1.3 | % | 1.7 | % | 1.5 | % | 1.4 | % | 1.5 | % | 1.4 | % | 1.6 | % | 1.6 | % | 2.3 | % | 1.8 | % | 1.9 | % | 1.9 | % | ||||||||||||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
(a) Other revenues include royalties and alliance-related revenues for products not sold by our regional commercial organizations.
(b) Foreign exchange impacts were derived by converting our current-period local currency financial results using the prior period average currency rates and comparing these adjusted amounts to our current-period results.
BRISTOL-MYERS SQUIBB COMPANY
EARNINGS FROM OPERATIONS
(Unaudited, dollars and shares in millions except per share data)
| 2020 | 2021 | % 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 | $ | 10,541 | $ | 9,817 | $ | 20,358 | $ | 10,197 | $ | 30,555 | $ | 10,766 | $ | 41,321 | $ | 10,798 | $ | 11,405 | $ | 22,203 | $ | 11,243 | $ | 33,446 | $ | 11,609 | $ | 45,055 | 8 | % | 9 | % | ||||||||||||||
| Alliance and other revenues | 240 | 312 | 552 | 343 | 895 | 302 | 1,197 | 275 | 298 | 573 | 381 | 954 | 376 | 1,330 | 25 | % | 11 | % | ||||||||||||||||||||||||||||
| Total Revenues | 10,781 | 10,129 | 20,910 | 10,540 | 31,450 | 11,068 | 42,518 | 11,073 | 11,703 | 22,776 | 11,624 | 34,400 | 11,985 | 46,385 | 8 | % | 9 | % | ||||||||||||||||||||||||||||
| Cost of products sold(a) | 3,662 | 2,699 | 6,361 | 2,502 | 8,863 | 2,910 | 11,773 | 2,841 | 2,452 | 5,293 | 2,291 | 7,584 | 2,356 | 9,940 | (19) | % | (16) | % | ||||||||||||||||||||||||||||
| Marketing, selling and administrative | 1,606 | 1,628 | 3,234 | 1,706 | 4,940 | 2,721 | 7,661 | 1,666 | 1,882 | 3,548 | 1,788 | 5,336 | 2,354 | 7,690 | (13) | % | — | |||||||||||||||||||||||||||||
| Research and development | 2,372 | 2,522 | 4,894 | 2,499 | 7,393 | 3,750 | 11,143 | 2,225 | 3,271 | 5,496 | 3,251 | 8,747 | 2,607 | 11,354 | (30) | % | 2 | % | ||||||||||||||||||||||||||||
| IPRD charge - MyoKardia acquisition | — | — | — | — | — | 11,438 | 11,438 | — | — | — | — | — | — | — | (100) | % | (100) | % | ||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 2,282 | 2,389 | 4,671 | 2,491 | 7,162 | 2,526 | 9,688 | 2,513 | 2,547 | 5,060 | 2,546 | 7,606 | 2,417 | 10,023 | (4) | % | 3 | % | ||||||||||||||||||||||||||||
| Other (income)/expense, net | 1,163 | (736) | 427 | (915) | (488) | (1,826) | (2,314) | (702) | (2) | (704) | (409) | (1,113) | 393 | (720) | ** | (69) | % | |||||||||||||||||||||||||||||
| Total Expenses | 11,085 | 8,502 | 19,587 | 8,283 | 27,870 | 21,519 | 49,389 | 8,543 | 10,150 | 18,693 | 9,467 | 28,160 | 10,127 | 38,287 | (53) | % | (22) | % | ||||||||||||||||||||||||||||
| Earnings/(Loss) Before Income Taxes | (304) | 1,627 | 1,323 | 2,257 | 3,580 | (10,451) | (6,871) | 2,530 | 1,553 | 4,083 | 2,157 | 6,240 | 1,858 | 8,098 | ** | ** | ||||||||||||||||||||||||||||||
| Provision/(Benefit) for Income Taxes | 462 | 1,707 | 2,169 | 379 | 2,548 | (424) | 2,124 | 501 | 492 | 993 | 605 | 1,598 | (514) | 1,084 | 21 | % | (49) | % | ||||||||||||||||||||||||||||
| Net Earnings/(Loss) | (766) | (80) | (846) | 1,878 | 1,032 | (10,027) | (8,995) | 2,029 | 1,061 | 3,090 | 1,552 | 4,642 | 2,372 | 7,014 | ** | ** | ||||||||||||||||||||||||||||||
| Noncontrolling Interest | 9 | 5 | 14 | 6 | 20 | — | 20 | 8 | 6 | 14 | 6 | 20 | — | 20 | N/A | — | ||||||||||||||||||||||||||||||
| Net Earnings/(Loss) Attributable to BMS | $ | (775) | $ | (85) | $ | (860) | $ | 1,872 | $ | 1,012 | $ | (10,027) | $ | (9,015) | $ | 2,021 | $ | 1,055 | $ | 3,076 | $ | 1,546 | $ | 4,622 | $ | 2,372 | $ | 6,994 | ** | ** | ||||||||||||||||
| Net Earnings used for Diluted EPS Calculation | $ | 333 | $ | 1,270 | $ | 721 | $ | 1,991 | $ | 333 | $ | 1,270 | $ | 721 | $ | 1,991 | (38)% | 11% | ||||||||||||||||||||||||||||
| Diluted Earnings/(Loss) per Common Share* | $ | (0.34) | $ | (0.04) | $ | (0.38) | $ | 0.82 | $ | 0.44 | $ | (4.45) | $ | (3.99) | $ | 0.89 | $ | 0.47 | $ | 1.36 | $ | 0.69 | $ | 2.05 | $ | 1.07 | $ | 3.12 | ** | ** | ||||||||||||||||
| Weighted-Average Common Shares Outstanding - Diluted | 2,258 | 2,263 | 2,261 | 2,290 | 2,295 | 2,252 | 2,258 | 2,265 | 2,252 | 2,258 | 2,243 | 2,253 | 2,219 | 2,245 | — | — | ||||||||||||||||||||||||||||||
| Dividends declared per common share | $ | 0.45 | $ | 0.45 | $ | 0.90 | $ | 0.45 | $ | 1.35 | $ | 0.49 | $ | 1.84 | $ | 0.49 | $ | 0.49 | $ | 0.98 | $ | 0.49 | $ | 1.47 | $ | 0.54 | $ | 2.01 | 10 | % | 9 | % | ||||||||||||||
| 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
| % 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 | 66.0 | % | 73.4 | % | 69.6 | % | 76.3 | % | 71.8 | % | 73.7 | % | 72.3 | % | 74.3 | % | 79.0 | % | 76.8 | % | 80.3 | % | 78.0 | % | 80.3 | % | 78.6 | % | ||||||||||||||||||
| Other Ratios | ||||||||||||||||||||||||||||||||||||||||||||||
| Effective tax rate | (152.0) | % | 104.9 | % | 163.9 | % | 16.8 | % | 71.2 | % | 4.1 | % | (30.9) | % | 19.8 | % | 31.7 | % | 24.3 | % | 28.0 | % | 25.6 | % | (27.7) | % | 13.4 | % | ||||||||||||||||||
| Other (income)/expense, net | 2020 | 2021 | % 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(b) | $ | 362 | $ | 357 | $ | 719 | $ | 346 | $ | 1,065 | $ | 355 | $ | 1,420 | $ | 353 | $ | 330 | $ | 683 | $ | 328 | $ | 1,011 | $ | 323 | $ | 1,334 | (9) | % | (6) | % | ||||||||||||||
| Royalties and licensing income | (410) | (311) | (721) | (403) | (1,124) | (403) | (1,527) | (367) | (405) | (772) | (425) | (1,197) | (536) | (1,733) | 33 | % | 13 | % | ||||||||||||||||||||||||||||
| Equity investment (gains)/losses | 338 | (818) | (480) | (244) | (724) | (504) | (1,228) | (601) | (148) | (749) | (465) | (1,214) | 469 | (745) | ** | (39) | % | |||||||||||||||||||||||||||||
| Integration expenses | 174 | 166 | 340 | 195 | 535 | 182 | 717 | 141 | 152 | 293 | 141 | 434 | 130 | 564 | (29) | % | (21) | % | ||||||||||||||||||||||||||||
| Contingent consideration | 556 | (165) | 391 | (988) | (597) | (1,160) | (1,757) | (510) | — | (510) | — | (510) | (32) | (542) | (97) | % | (69) | % | ||||||||||||||||||||||||||||
| Loss on debt redemption | — | — | — | — | — | — | — | 281 | — | 281 | — | 281 | — | 281 | N/A | ** | ||||||||||||||||||||||||||||||
| Provision for restructuring | 160 | 115 | 275 | 176 | 451 | 79 | 530 | 45 | 78 | 123 | 27 | 150 | 19 | 169 | (76) | % | (68) | % | ||||||||||||||||||||||||||||
| Litigation and other settlements | 32 | (1) | 31 | 10 | 41 | (235) | (194) | (8) | 44 | 36 | 13 | 49 | 33 | 82 | ** | ** | ||||||||||||||||||||||||||||||
| Transition and other service fees | (61) | (50) | (111) | (18) | (129) | (20) | (149) | (15) | (22) | (37) | (6) | (43) | (6) | (49) | (70) | % | (67) | % | ||||||||||||||||||||||||||||
| Investment income | (61) | (25) | (86) | (13) | (99) | (22) | (121) | (9) | (12) | (21) | (12) | (33) | (6) | (39) | (73) | % | (68) | % | ||||||||||||||||||||||||||||
| Divestiture (gains)/losses | (16) | 9 | (7) | 1 | (6) | (49) | (55) | — | (11) | (11) | 2 | (9) | — | (9) | (100) | % | (84) | % | ||||||||||||||||||||||||||||
| Reversion excise tax | 76 | — | 76 | — | 76 | — | 76 | — | — | — | — | — | — | — | N/A | (100) | % | |||||||||||||||||||||||||||||
| Intangible asset impairment | — | 21 | 21 | — | 21 | — | 21 | — | — | — | — | — | — | — | N/A | (100) | % | |||||||||||||||||||||||||||||
| Other | 13 | (34) | (21) | 23 | 2 | (49) | (47) | (12) | (8) | (20) | (12) | (32) | (1) | (33) | (98) | % | (30) | % | ||||||||||||||||||||||||||||
| Other (income)/expense, net | $ | 1,163 | $ | (736) | $ | 427 | $ | (915) | $ | (488) | $ | (1,826) | $ | (2,314) | $ | (702) | $ | (2) | $ | (704) | $ | (409) | $ | (1,113) | $ | 393 | $ | (720) | ** | (69) | % |
* Quarterly amounts may not add to the year-to-date amounts, as each period is computed on a discrete basis.
** In excess of +/- 100%.
(a) Excludes amortization of acquired intangible assets.
(b) Includes amortization of purchase price adjustments to Celgene debt.
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
FOR THE PERIOD ENDED DECEMBER 31, 2020
(Unaudited, dollars in millions)
| QUARTER-TO-DATE | 2021 | 2020 | Change | % Change | Favorable/(Unfavorable) FX Impact * | 2020 Excluding FX | Favorable/(Unfavorable) FX Impact %* | % Change Excluding FX | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | $ | 11,985 | $ | 11,068 | 8 | % | $ | 12,109 | (1) | % | 9 | % | ||||
| Gross profit | 9,629 | 8,158 | 1,471 | 18 | % | N/A | N/A | N/A | N/A | |||||||
| Gross profit excluding specified items(a) | 9,629 | 8,833 | 796 | 9 | % | N/A | N/A | N/A | N/A | |||||||
| Gross profit excluding specified items as a % of revenues | 80.3 | % | 79.8 | % | ||||||||||||
| Marketing, selling and administrative | 2,354 | 2,721 | (367) | (13) | % | 17 | 2,371 | — | (13) | % | ||||||
| Marketing, selling and administrative excluding specified items(a) | 2,352 | 2,480 | (128) | (5) | % | 17 | 2,369 | 1 | % | (4) | % | |||||
| Marketing, selling and administrative excluding specified items as a % of revenues | 19.6 | % | 22.4 | % | ||||||||||||
| Research and development | 2,607 | 3,750 | (1,143) | (30) | % | 6 | 2,613 | — | (30) | % | ||||||
| Research and development excluding specified items(a) | 2,607 | 2,537 | 70 | 3 | % | 6 | 2,613 | — | 3 | % | ||||||
| Research and development excluding specified items as a % of revenues | 21.8 | % | 22.9 | % | ||||||||||||
| YEAR-TO-DATE | 2021 | 2020 | Change | % Change | Favorable/(Unfavorable) FX Impact * | 2020 Excluding FX | Favorable/(Unfavorable) FX Impact %* | % Change Excluding FX | ||||||||
| Revenues | $ | 46,385 | $ | 42,518 | 9 | % | $ | 45,950 | 1 | % | 8 | % | ||||
| Gross profit | 36,445 | 30,745 | 5,700 | 19 | % | N/A | N/A | N/A | N/A | |||||||
| Gross profit excluding specified items(a) | 37,048 | 34,045 | 3,003 | 9 | % | N/A | N/A | N/A | N/A | |||||||
| Gross profit excluding specified items as a % of revenues | 79.9 | % | 80.1 | % | ||||||||||||
| Marketing, selling and administrative | 7,690 | 7,661 | 29 | — | (59) | 7,631 | — | — | ||||||||
| Marketing, selling and administrative excluding specified items(a) | 7,687 | 7,382 | 305 | 4 | % | (59) | 7,628 | (1) | % | 3 | % | |||||
| Marketing, selling and administrative excluding specified items as a % of revenues | 16.6 | % | 17.4 | % | ||||||||||||
| Research and development | 11,354 | 11,143 | 211 | 2 | % | (21) | 11,333 | — | 2 | % | ||||||
| Research and development excluding specified items(a) | 9,531 | 9,237 | 294 | 3 | % | (21) | 9,510 | — | 3 | % | ||||||
| Research and development excluding specified items as a % of revenues | 20.5 | % | 21.7 | % |
All values are in US Dollars.
* Foreign exchange impacts were derived by converting our current-period local currency financial results using the prior period average currency rates and comparing these adjusted amounts to our current-period results.
(a) Refer to the Specified Items schedule for further details.
BRISTOL-MYERS SQUIBB COMPANY
WORLDWIDE REVENUES
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
| 2020 | 2021 | Change | % 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 | ||||||||||||||||||
| Revlimid | $ | 2,915 | $ | 2,884 | $ | 5,799 | $ | 3,027 | $ | 8,826 | $ | 3,280 | $ | 12,106 | $ | 2,944 | $ | 3,202 | $ | 6,146 | $ | 3,347 | $ | 9,493 | $ | 3,328 | $ | 12,821 | $ | 715 | 1 | % | 6 | % | |
| Eliquis | 2,641 | 2,163 | 4,804 | 2,095 | 6,899 | 2,269 | 9,168 | 2,886 | 2,792 | 5,678 | 2,413 | 8,091 | 2,671 | 10,762 | 402 | 1,594 | 18 | % | 17 | % | |||||||||||||||
| Opdivo | 1,766 | 1,653 | 3,419 | 1,780 | 5,199 | 1,793 | 6,992 | 1,720 | 1,910 | 3,630 | 1,905 | 5,535 | 1,988 | 7,523 | 195 | 531 | 11 | % | 8 | % | |||||||||||||||
| Pomalyst/Imnovid | 713 | 745 | 1,458 | 777 | 2,235 | 835 | 3,070 | 773 | 854 | 1,627 | 851 | 2,478 | 854 | 3,332 | 19 | 262 | 2 | % | 9 | % | |||||||||||||||
| Orencia | 714 | 750 | 1,464 | 826 | 2,290 | 867 | 3,157 | 758 | 814 | 1,572 | 870 | 2,442 | 864 | 3,306 | (3) | 149 | — | 5 | % | ||||||||||||||||
| Sprycel | 521 | 511 | 1,032 | 544 | 1,576 | 564 | 2,140 | 470 | 541 | 1,011 | 551 | 1,562 | 555 | 2,117 | (9) | (23) | (2) | % | (1) | % | |||||||||||||||
| Yervoy | 396 | 369 | 765 | 446 | 1,211 | 471 | 1,682 | 456 | 510 | 966 | 515 | 1,481 | 545 | 2,026 | 74 | 344 | 16 | % | 20 | % | |||||||||||||||
| Abraxane | 300 | 308 | 608 | 342 | 950 | 297 | 1,247 | 314 | 296 | 610 | 266 | 876 | 305 | 1,181 | 8 | (66) | 3 | % | (5) | % | |||||||||||||||
| Reblozyl | 8 | 55 | 63 | 96 | 159 | 115 | 274 | 112 | 128 | 240 | 160 | 400 | 151 | 551 | 36 | 277 | 31 | % | ** | ||||||||||||||||
| Empliciti | 97 | 97 | 194 | 96 | 290 | 91 | 381 | 85 | 86 | 171 | 82 | 253 | 81 | 334 | (10) | (47) | (11) | % | (12) | % | |||||||||||||||
| Abecma | — | — | — | — | — | — | — | — | 24 | 24 | 71 | 95 | 69 | 164 | 69 | 164 | N/A | N/A | |||||||||||||||||
| Zeposia | — | 1 | 1 | 2 | 3 | 9 | 12 | 18 | 28 | 46 | 40 | 86 | 48 | 134 | 39 | 122 | ** | ** | |||||||||||||||||
| Breyanzi | — | — | — | — | — | — | — | — | 17 | 17 | 30 | 47 | 40 | 87 | 40 | 87 | N/A | N/A | |||||||||||||||||
| Inrebic | 12 | 15 | 27 | 13 | 40 | 15 | 55 | 16 | 16 | 32 | 22 | 54 | 20 | 74 | 5 | 19 | 33 | % | 35 | % | |||||||||||||||
| Onureg | — | — | — | 3 | 3 | 14 | 17 | 15 | 12 | 27 | 21 | 48 | 25 | 73 | 11 | 56 | 79 | % | ** | ||||||||||||||||
| Mature and other brands(a) | 698 | 578 | 1,276 | 493 | 1,769 | 448 | 2,217 | 506 | 473 | 979 | 480 | 1,459 | 441 | 1,900 | (7) | (317) | (2) | % | (14) | % | |||||||||||||||
| Total | $ | 10,781 | $ | 10,129 | $ | 20,910 | $ | 10,540 | $ | 31,450 | $ | 11,068 | $ | 42,518 | $ | 11,073 | $ | 11,703 | $ | 22,776 | $ | 11,624 | $ | 34,400 | $ | 11,985 | $ | 46,385 | $ | 3,867 | 8 | % | 9 | % |
All values are in US Dollars.
** In excess of +/- 100%.
(a) Includes products that have lost exclusivity in major markets, over-the-counter (OTC) brands and royalty revenue.
BRISTOL-MYERS SQUIBB COMPANY
U.S. REVENUES
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
| 2020 | 2021 | % 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 | |||||||||||||||||
| Revlimid | $ | 1,966 | $ | 2,048 | $ | 4,014 | $ | 2,080 | $ | 6,094 | $ | 2,197 | $ | 8,291 | $ | 1,958 | $ | 2,164 | $ | 4,122 | $ | 2,303 | $ | 6,425 | $ | 2,270 | $ | 8,695 | 3 | % | 5 | % |
| Eliquis | 1,777 | 1,363 | 3,140 | 1,118 | 4,258 | 1,227 | 5,485 | 1,923 | 1,722 | 3,645 | 1,315 | 4,960 | 1,496 | 6,456 | 22 | % | 18 | % | ||||||||||||||
| Opdivo | 1,008 | 956 | 1,964 | 1,018 | 2,982 | 963 | 3,945 | 944 | 1,076 | 2,020 | 1,062 | 3,082 | 1,120 | 4,202 | 16 | % | 7 | % | ||||||||||||||
| Pomalyst/Imnovid | 489 | 522 | 1,011 | 548 | 1,559 | 577 | 2,136 | 512 | 567 | 1,079 | 586 | 1,665 | 584 | 2,249 | 1 | % | 5 | % | ||||||||||||||
| Orencia | 500 | 554 | 1,054 | 588 | 1,642 | 626 | 2,268 | 536 | 593 | 1,129 | 644 | 1,773 | 637 | 2,410 | 2 | % | 6 | % | ||||||||||||||
| Sprycel | 300 | 308 | 608 | 336 | 944 | 351 | 1,295 | 275 | 325 | 600 | 346 | 946 | 351 | 1,297 | — | — | ||||||||||||||||
| Yervoy | 257 | 254 | 511 | 309 | 820 | 304 | 1,124 | 294 | 328 | 622 | 313 | 935 | 330 | 1,265 | 9 | % | 13 | % | ||||||||||||||
| Abraxane | 205 | 218 | 423 | 236 | 659 | 214 | 873 | 225 | 234 | 459 | 211 | 670 | 228 | 898 | 7 | % | 3 | % | ||||||||||||||
| Reblozyl | 8 | 55 | 63 | 92 | 155 | 104 | 259 | 98 | 110 | 208 | 147 | 355 | 130 | 485 | 25 | % | 87 | % | ||||||||||||||
| Empliciti | 59 | 59 | 118 | 59 | 177 | 53 | 230 | 51 | 51 | 102 | 48 | 150 | 50 | 200 | (6) | % | (13) | % | ||||||||||||||
| Abecma | — | — | — | — | — | — | — | — | 24 | 24 | 67 | 91 | 67 | 158 | N/A | N/A | ||||||||||||||||
| Zeposia | — | 1 | 1 | 2 | 3 | 7 | 10 | 13 | 20 | 33 | 32 | 65 | 34 | 99 | ** | ** | ||||||||||||||||
| Breyanzi | — | — | — | — | — | — | — | — | 17 | 17 | 29 | 46 | 38 | 84 | N/A | N/A | ||||||||||||||||
| Inrebic | 12 | 15 | 27 | 13 | 40 | 15 | 55 | 15 | 15 | 30 | 20 | 50 | 17 | 67 | 13 | % | 22 | % | ||||||||||||||
| Onureg | — | — | — | 3 | 3 | 14 | 17 | 14 | 12 | 26 | 21 | 47 | 22 | 69 | 57 | % | ** | |||||||||||||||
| Mature and other brands(a) | 185 | 134 | 319 | 140 | 459 | 130 | 589 | 152 | 130 | 282 | 152 | 434 | 146 | 580 | 12 | % | (2) | % | ||||||||||||||
| Total(b) | $ | 6,766 | $ | 6,487 | $ | 13,253 | $ | 6,542 | $ | 19,795 | $ | 6,782 | $ | 26,577 | $ | 7,010 | $ | 7,388 | $ | 14,398 | $ | 7,296 | $ | 21,694 | $ | 7,520 | $ | 29,214 | 11 | % | 10 | % |
** In excess of +/- 100%.
(a) Includes products that have lost exclusivity in major markets, OTC brands and royalty revenue.
(b) Includes Puerto Rico.
BRISTOL-MYERS SQUIBB COMPANY
INTERNATIONAL REVENUES
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
| 2020 | 2021 | % Change(b) | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | |||||||||||||||||
| Revlimid | $ | 949 | $ | 836 | $ | 1,785 | $ | 947 | $ | 2,732 | $ | 1,083 | $ | 3,815 | $ | 986 | $ | 1,038 | $ | 2,024 | $ | 1,044 | $ | 3,068 | $ | 1,058 | $ | 4,126 | (2) | % | 8 | % |
| Eliquis | 864 | 800 | 1,664 | 977 | 2,641 | 1,042 | 3,683 | 963 | 1,070 | 2,033 | 1,098 | 3,131 | 1,175 | 4,306 | 13 | % | 17 | % | ||||||||||||||
| Opdivo | 758 | 697 | 1,455 | 762 | 2,217 | 830 | 3,047 | 776 | 834 | 1,610 | 843 | 2,453 | 868 | 3,321 | 5 | % | 9 | % | ||||||||||||||
| Pomalyst/Imnovid | 224 | 223 | 447 | 229 | 676 | 258 | 934 | 261 | 287 | 548 | 265 | 813 | 270 | 1,083 | 5 | % | 16 | % | ||||||||||||||
| Orencia | 214 | 196 | 410 | 238 | 648 | 241 | 889 | 222 | 221 | 443 | 226 | 669 | 227 | 896 | (6) | % | 1 | % | ||||||||||||||
| Sprycel | 221 | 203 | 424 | 208 | 632 | 213 | 845 | 195 | 216 | 411 | 205 | 616 | 204 | 820 | (4) | % | (3) | % | ||||||||||||||
| Yervoy | 139 | 115 | 254 | 137 | 391 | 167 | 558 | 162 | 182 | 344 | 202 | 546 | 215 | 761 | 29 | % | 36 | % | ||||||||||||||
| Abraxane | 95 | 90 | 185 | 106 | 291 | 83 | 374 | 89 | 62 | 151 | 55 | 206 | 77 | 283 | (7) | % | (24) | % | ||||||||||||||
| Reblozyl | — | — | — | 4 | 4 | 11 | 15 | 14 | 18 | 32 | 13 | 45 | 21 | 66 | 91 | % | ** | |||||||||||||||
| Empliciti | 38 | 38 | 76 | 37 | 113 | 38 | 151 | 34 | 35 | 69 | 34 | 103 | 31 | 134 | (18) | % | (11) | % | ||||||||||||||
| Abecma | — | — | — | — | — | — | — | — | — | — | 4 | 4 | 2 | 6 | N/A | N/A | ||||||||||||||||
| Zeposia | — | — | — | — | — | 2 | 2 | 5 | 8 | 13 | 8 | 21 | 14 | 35 | ** | ** | ||||||||||||||||
| Breyanzi | — | — | — | — | — | — | — | — | — | — | 1 | 1 | 2 | 3 | N/A | N/A | ||||||||||||||||
| Inrebic | — | — | — | — | — | — | — | 1 | 1 | 2 | 2 | 4 | 3 | 7 | N/A | N/A | ||||||||||||||||
| Onureg | — | — | — | — | — | — | — | 1 | — | 1 | — | 1 | 3 | 4 | N/A | N/A | ||||||||||||||||
| Mature and other brands(a) | 513 | 444 | 957 | 353 | 1,310 | 318 | 1,628 | 354 | 343 | 697 | 328 | 1,025 | 295 | 1,320 | (7) | % | (19) | % | ||||||||||||||
| Total | $ | 4,015 | $ | 3,642 | $ | 7,657 | $ | 3,998 | $ | 11,655 | $ | 4,286 | $ | 15,941 | $ | 4,063 | $ | 4,315 | $ | 8,378 | $ | 4,328 | $ | 12,706 | $ | 4,465 | $ | 17,171 | 4 | % | 8 | % |
** In excess of +/- 100%.
(a) Includes products that have lost exclusivity in major markets, OTC brands and royalty revenue.
(b) The foreign exchange impact on international revenues was unfavorable 3% for the fourth quarter and favorable 3% year-to-date. The foreign exchange impact on key brands is included below.
| Quarter-to-Date | Year-to-Date | |||||
|---|---|---|---|---|---|---|
| Revenue Change % | Favorable/ (Unfavorable) FX Impact % | Revenue Change % Excluding FX | Revenue Change % | Favorable/ (Unfavorable) FX Impact % | Revenue Change % Excluding FX | |
| Revlimid | (2)% | (3)% | 1% | 8% | 3% | 5% |
| Eliquis | 13% | (3)% | 16% | 17% | 3% | 14% |
| Opdivo | 5% | (3)% | 8% | 9% | 2% | 7% |
| Pomalyst/Imnovid | 5% | (4)% | 9% | 16% | 2% | 14% |
| Orencia | (6)% | (4)% | (2)% | 1% | 2% | (1)% |
| Sprycel | (4)% | (5)% | 1% | (3)% | 1% | (4)% |
| Yervoy | 29% | (3)% | 32% | 36% | 2% | 34% |
| Abraxane | (7)% | (1)% | (6)% | (24)% | 3% | (27)% |
| Empliciti | (18)% | (6)% | (12)% | (11)% | — | (11)% |
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
(Unaudited, dollars in millions)
| 2020 | 2021 | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | |||||||||||||||
| Inventory purchase price accounting adjustments | $ | 1,420 | $ | 714 | $ | 2,134 | $ | 456 | $ | 2,590 | $ | 98 | $ | 2,688 | $ | 79 | $ | 88 | $ | 167 | $ | 97 | $ | 264 | $ | — | $ | 264 |
| Intangible asset impairment | — | — | — | — | — | 575 | 575 | 315 | — | 315 | — | 315 | — | 315 | ||||||||||||||
| Employee compensation charges | 2 | 1 | 3 | — | 3 | 1 | 4 | — | — | — | — | — | — | — | ||||||||||||||
| Site exit and other costs | 16 | 13 | 29 | 3 | 32 | 1 | 33 | 23 | 1 | 24 | — | 24 | — | 24 | ||||||||||||||
| Cost of products sold | 1,438 | 728 | 2,166 | 459 | 2,625 | 675 | 3,300 | 417 | 89 | 506 | 97 | 603 | — | 603 | ||||||||||||||
| Employee compensation charges | 15 | 12 | 27 | 7 | 34 | 241 | 275 | — | 1 | 1 | — | 1 | — | 1 | ||||||||||||||
| Site exit and other costs | 6 | (1) | 5 | (1) | 4 | — | 4 | (1) | — | (1) | 1 | — | 2 | 2 | ||||||||||||||
| Marketing, selling and administrative | 21 | 11 | 32 | 6 | 38 | 241 | 279 | (1) | 1 | — | 1 | 1 | 2 | 3 | ||||||||||||||
| License and asset acquisition charges | 25 | 300 | 325 | 203 | 528 | 475 | 1,003 | — | 780 | 780 | 200 | 980 | — | 980 | ||||||||||||||
| IPRD impairments | — | — | — | — | — | 470 | 470 | — | 230 | 230 | 610 | 840 | — | 840 | ||||||||||||||
| Inventory purchase price accounting adjustments | 17 | — | 17 | 8 | 25 | 11 | 36 | — | — | — | 1 | 1 | — | 1 | ||||||||||||||
| Employee compensation charges | 18 | 15 | 33 | 8 | 41 | 241 | 282 | 1 | — | 1 | — | 1 | — | 1 | ||||||||||||||
| Site exit and other costs | 56 | 39 | 95 | 4 | 99 | 16 | 115 | — | — | — | 1 | 1 | — | 1 | ||||||||||||||
| Research and development | 116 | 354 | 470 | 223 | 693 | 1,213 | 1,906 | 1 | 1,010 | 1,011 | 812 | 1,823 | — | 1,823 | ||||||||||||||
| IPRD charge - MyoKardia acquisition | — | — | — | — | — | 11,438 | 11,438 | — | — | — | — | — | — | — | ||||||||||||||
| Amortization of acquired intangible assets | 2,282 | 2,389 | 4,671 | 2,491 | 7,162 | 2,526 | 9,688 | 2,513 | 2,547 | 5,060 | 2,546 | 7,606 | 2,417 | 10,023 | ||||||||||||||
| Interest expense(a) | (41) | (41) | (82) | (40) | (122) | (37) | (159) | (34) | (28) | (62) | (29) | (91) | (29) | (120) | ||||||||||||||
| Royalties and licensing income | (83) | (18) | (101) | (53) | (154) | (14) | (168) | (14) | (15) | (29) | — | (29) | (43) | (72) | ||||||||||||||
| Equity investment (gains)/losses | 339 | (818) | (479) | (214) | (693) | (463) | (1,156) | (608) | (154) | (762) | (465) | (1,227) | 469 | (758) | ||||||||||||||
| Integration expenses | 174 | 166 | 340 | 195 | 535 | 182 | 717 | 141 | 152 | 293 | 141 | 434 | 130 | 564 | ||||||||||||||
| Contingent consideration | 556 | (165) | 391 | (988) | (597) | (1,160) | (1,757) | (510) | — | (510) | — | (510) | (32) | (542) | ||||||||||||||
| Loss on debt redemption | — | — | — | — | — | — | — | 281 | — | 281 | — | 281 | — | 281 | ||||||||||||||
| Provision for restructuring | 160 | 115 | 275 | 176 | 451 | 79 | 530 | 45 | 78 | 123 | 27 | 150 | 19 | 169 | ||||||||||||||
| Litigation and other settlements | — | — | — | — | — | (239) | (239) | — | — | — | — | — | — | — | ||||||||||||||
| Divestiture (gains)/losses | (16) | 9 | (7) | 1 | (6) | (49) | (55) | — | (11) | (11) | 2 | (9) | — | (9) | ||||||||||||||
| Reversion excise tax | 76 | — | 76 | — | 76 | — | 76 | — | — | — | — | — | — | — | ||||||||||||||
| Other (income)/expense, net | 1,165 | (752) | 413 | (923) | (510) | (1,701) | (2,211) | (699) | 22 | (677) | (324) | (1,001) | 514 | (487) | ||||||||||||||
| Increase to pretax income | 5,022 | 2,730 | 7,752 | 2,256 | 10,008 | 14,392 | 24,400 | 2,231 | 3,669 | 5,900 | 3,132 | 9,032 | 2,933 | 11,965 | ||||||||||||||
| Income taxes on items above | (291) | (3) | (294) | (405) | (699) | (1,034) | (1,733) | (300) | (388) | (688) | (183) | (871) | (251) | (1,122) | ||||||||||||||
| Income taxes attributed to Otezla® divestiture | — | 255 | 255 | 11 | 266 | — | 266 | — | — | — | — | — | — | — | ||||||||||||||
| Income taxes attributed to internal transfers of intangible assets | — | 853 | 853 | — | 853 | — | 853 | — | — | — | — | — | (983) | (983) | ||||||||||||||
| Income taxes | (291) | 1,105 | 814 | (394) | 420 | (1,034) | (614) | (300) | (388) | (688) | (183) | (871) | (1,234) | (2,105) | ||||||||||||||
| Increase to net earnings | $ | 4,731 | $ | 3,835 | $ | 8,566 | $ | 1,862 | $ | 10,428 | $ | 13,358 | $ | 23,786 | $ | 1,931 | $ | 3,281 | $ | 5,212 | $ | 2,949 | $ | 8,161 | $ | 1,699 | $ | 9,860 |
(a) Includes amortization of purchase price adjustments to Celgene debt.
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF CERTAIN GAAP LINE ITEMS TO CERTAIN NON-GAAP LINE ITEMS
(Unaudited, dollars in millions)
| 2020 | 2021 | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | $ | 7,119 | $ | 7,430 | $ | 14,549 | $ | 8,038 | $ | 22,587 | $ | 8,158 | $ | 30,745 | $ | 8,232 | $ | 9,251 | $ | 17,483 | $ | 9,333 | $ | 26,816 | $ | 9,629 | $ | 36,445 |
| Specified items(a) | 1,438 | 728 | 2,166 | 459 | 2,625 | 675 | 3,300 | 417 | 89 | 506 | 97 | 603 | — | 603 | ||||||||||||||
| Gross profit excluding specified items | 8,557 | 8,158 | 16,715 | 8,497 | 25,212 | 8,833 | 34,045 | 8,649 | 9,340 | 17,989 | 9,430 | 27,419 | 9,629 | 37,048 | ||||||||||||||
| Marketing, selling and administrative | 1,606 | 1,628 | 3,234 | 1,706 | 4,940 | 2,721 | 7,661 | 1,666 | 1,882 | 3,548 | 1,788 | 5,336 | 2,354 | 7,690 | ||||||||||||||
| Specified items(a) | (21) | (11) | (32) | (6) | (38) | (241) | (279) | 1 | (1) | — | (1) | (1) | (2) | (3) | ||||||||||||||
| Marketing, selling and administrative excluding specified items | 1,585 | 1,617 | 3,202 | 1,700 | 4,902 | 2,480 | 7,382 | 1,667 | 1,881 | 3,548 | 1,787 | 5,335 | 2,352 | 7,687 | ||||||||||||||
| Research and development | 2,372 | 2,522 | 4,894 | 2,499 | 7,393 | 3,750 | 11,143 | 2,225 | 3,271 | 5,496 | 3,251 | 8,747 | 2,607 | 11,354 | ||||||||||||||
| Specified items(a) | (116) | (354) | (470) | (223) | (693) | (1,213) | (1,906) | (1) | (1,010) | (1,011) | (812) | (1,823) | — | (1,823) | ||||||||||||||
| Research and development excluding specified items | 2,256 | 2,168 | 4,424 | 2,276 | 6,700 | 2,537 | 9,237 | 2,224 | 2,261 | 4,485 | 2,439 | 6,924 | 2,607 | 9,531 | ||||||||||||||
| IPRD charge - MyoKardia acquisition | — | — | — | — | — | 11,438 | 11,438 | — | — | — | — | — | — | — | ||||||||||||||
| Specified items(a) | — | — | — | — | — | (11,438) | (11,438) | — | — | — | — | — | — | — | ||||||||||||||
| IPRD charge - MyoKardia acquisition excluding specified items | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Amortization of acquired intangible assets | 2,282 | 2,389 | 4,671 | 2,491 | 7,162 | 2,526 | 9,688 | 2,513 | 2,547 | 5,060 | 2,546 | 7,606 | 2,417 | 10,023 | ||||||||||||||
| Specified items(a) | (2,282) | (2,389) | (4,671) | (2,491) | (7,162) | (2,526) | (9,688) | (2,513) | (2,547) | (5,060) | (2,546) | (7,606) | (2,417) | (10,023) | ||||||||||||||
| Amortization of acquired intangible assets excluding specified items | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||
| Other (income)/expense, net | 1,163 | (736) | 427 | (915) | (488) | (1,826) | (2,314) | (702) | (2) | (704) | (409) | (1,113) | 393 | (720) | ||||||||||||||
| Specified items(a) | (1,165) | 752 | (413) | 923 | 510 | 1,701 | 2,211 | 699 | (22) | 677 | 324 | 1,001 | (514) | 487 | ||||||||||||||
| Other (income)/expense, net excluding specified items | (2) | 16 | 14 | 8 | 22 | (125) | (103) | (3) | (24) | (27) | (85) | (112) | (121) | (233) |
(a) Refer to the Specified Items schedule for further details.
For a description of Non-GAAP financial information, see Bristol Myers Squibb "Use of non-GAAP Financial Information" herein.
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP TO NON-GAAP EPS
(Unaudited, dollars and shares in millions except per share data)
| 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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/(loss) before income taxes | $ | (304) | $ | 1,627 | $ | 1,323 | $ | 2,257 | $ | 3,580 | $ | (10,451) | $ | (6,871) | $ | 2,530 | $ | 1,553 | $ | 4,083 | $ | 2,157 | $ | 6,240 | $ | 1,858 | $ | 8,098 | ||||||||||||||
| Specified items(a) | 5,022 | 2,730 | 7,752 | 2,256 | 10,008 | 14,392 | 24,400 | 2,231 | 3,669 | 5,900 | 3,132 | 9,032 | 2,933 | 11,965 | ||||||||||||||||||||||||||||
| Earnings before income taxes excluding specified items | 4,718 | 4,357 | 9,075 | 4,513 | 13,588 | 3,941 | 17,529 | 4,761 | 5,222 | 9,983 | 5,289 | 15,272 | 4,791 | 20,063 | ||||||||||||||||||||||||||||
| Provision/(Benefit) for income taxes | 462 | 1,707 | 2,169 | 379 | 2,548 | (424) | 2,124 | 501 | 492 | 993 | 605 | 1,598 | (514) | 1,084 | ||||||||||||||||||||||||||||
| Income taxes on specified items(a) | 291 | 3 | 294 | 405 | 699 | 1,034 | 1,733 | 300 | 388 | 688 | 183 | 871 | 251 | 1,122 | ||||||||||||||||||||||||||||
| Income taxes attributed to Otezla® divestiture(a) | — | (255) | (255) | (11) | (266) | — | (266) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
| Income taxes attributed to internal transfers of intangible assets(a) | — | (853) | (853) | — | (853) | — | (853) | — | — | — | — | — | 983 | 983 | ||||||||||||||||||||||||||||
| Provision for income taxes excluding tax on specified items and income taxes attributed to Otezla® divestiture and internal transfers of intangible assets | 753 | 602 | 1,355 | 773 | 2,128 | 610 | 2,738 | 801 | 880 | 1,681 | 788 | 2,469 | 720 | 3,189 | ||||||||||||||||||||||||||||
| Noncontrolling Interest | 9 | 5 | 14 | 6 | 20 | — | 20 | 8 | 6 | 14 | 6 | 20 | — | 20 | ||||||||||||||||||||||||||||
| Specified items(a) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
| Noncontrolling Interest excluding specified items | 9 | 5 | 14 | 6 | 20 | — | 20 | 8 | 6 | 14 | 6 | 20 | — | 20 | ||||||||||||||||||||||||||||
| Net Earnings/(Loss) Attributable to BMS used for Diluted EPS Calculation - GAAP | (775) | (85) | (860) | 1,872 | 1,012 | (10,027) | (9,015) | 2,021 | 1,055 | 3,076 | 1,546 | 4,622 | 2,372 | 6,994 | ||||||||||||||||||||||||||||
| Specified items(a) | 4,731 | 3,835 | 8,566 | 1,862 | 10,428 | 13,358 | 23,786 | 1,931 | 3,281 | 5,212 | 2,949 | 8,161 | 1,699 | 9,860 | ||||||||||||||||||||||||||||
| Net Earnings Attributable to BMS used for Diluted EPS Calculation excluding specified items - Non-GAAP | 3,956 | 3,750 | 7,706 | 3,734 | 11,440 | 3,331 | 14,771 | 3,952 | 4,336 | 8,288 | 4,495 | 12,783 | 4,071 | 16,854 | ||||||||||||||||||||||||||||
| Weighted-average Common Shares Outstanding - Diluted-GAAP | 2,258 | 2,263 | 2,261 | 2,290 | 2,295 | 2,252 | 2,258 | 2,265 | 2,252 | 2,258 | 2,243 | 2,253 | 2,219 | 2,245 | ||||||||||||||||||||||||||||
| Weighted-average Common Shares Outstanding - Diluted-Non-GAAP | 2,298 | 2,297 | 2,298 | 2,290 | 2,295 | 2,286 | 2,293 | 2,265 | 2,252 | 2,258 | 2,243 | 2,253 | 2,219 | 2,245 | ||||||||||||||||||||||||||||
| Diluted Earnings/(Loss) Per Share - GAAP* | $ | (0.34) | $ | (0.04) | $ | (0.38) | $ | 0.82 | $ | 0.44 | $ | (4.45) | $ | (3.99) | $ | 0.89 | $ | 0.47 | $ | 1.36 | $ | 0.69 | $ | 2.05 | $ | 1.07 | $ | 3.12 | ||||||||||||||
| Diluted Earnings Per Share Attributable to specified items(a) | 2.06 | 1.67 | 3.73 | 0.81 | 4.54 | 5.91 | 10.43 | 0.85 | 1.46 | 2.31 | 1.31 | 3.62 | 0.76 | 4.39 | ||||||||||||||||||||||||||||
| Diluted Earnings Per Share - Non-GAAP* | $ | 1.72 | $ | 1.63 | $ | 3.35 | $ | 1.63 | $ | 4.98 | $ | 1.46 | $ | 6.44 | $ | 1.74 | $ | 1.93 | $ | 3.67 | $ | 2.00 | $ | 5.67 | $ | 1.83 | $ | 7.51 | ||||||||||||||
| Effective Tax Rate | (152.0) | % | 104.9 | % | 163.9 | % | 16.8 | % | 71.2 | % | 4.1 | % | (30.9) | % | 19.8 | % | 31.7 | % | 24.3 | % | 28.0 | % | 25.6 | % | (27.7) | % | 13.4 | % | ||||||||||||||
| Specified items(a) | 168.0 | % | (91.1) | % | (149.0) | % | 0.3 | % | (55.5) | % | 11.4 | % | 46.5 | % | (3.0) | % | (14.8) | % | (7.5) | % | (13.1) | % | (9.4) | % | 42.7 | % | 2.5 | % | ||||||||||||||
| Effective Tax Rate excluding specified items | 16.0 | % | 13.8 | % | 14.9 | % | 17.1 | % | 15.7 | % | 15.5 | % | 15.6 | % | 16.8 | % | 16.9 | % | 16.8 | % | 14.9 | % | 16.2 | % | 15.0 | % | 15.9 | % |
* Quarterly amounts may not add to the year-to-date amounts, as each period is computed on a discrete basis.
(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.
For a description of Non-GAAP financial information, see Bristol Myers Squibb "Use of non-GAAP Financial Information" herein.
BRISTOL-MYERS SQUIBB COMPANY
SELECTED BALANCE SHEET INFORMATION
(Unaudited, dollars in millions)
| March 31,<br>2020 | June 30,<br>2020 | September 30,<br>2020 | December 31, 2020 | March 31,<br>2021 | June 30,<br>2021 | September 30,<br>2021 | December 31, 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | $ | 15,817 | $ | 19,934 | $ | 19,435 | $ | 14,546 | $ | 10,982 | $ | 11,024 | $ | 13,540 | $ | 13,979 |
| Marketable debt securities - current | 2,505 | 1,724 | 1,720 | 1,285 | 1,948 | 1,946 | 2,123 | 2,987 | ||||||||
| Marketable debt securities - non-current | 651 | 523 | 495 | 433 | 288 | 143 | 46 | — | ||||||||
| Cash, cash equivalents and marketable debt securities | 18,973 | 22,181 | 21,650 | 16,264 | 13,218 | 13,113 | 15,709 | 16,966 | ||||||||
| Short-term debt obligations | (3,862) | (4,819) | (3,585) | (2,340) | (1,777) | (2,655) | (5,065) | (4,948) | ||||||||
| Long-term debt | (42,844) | (41,853) | (41,364) | (48,336) | (44,505) | (42,503) | (39,677) | (39,605) | ||||||||
| Net debt position | $ | (27,733) | $ | (24,491) | $ | (23,299) | $ | (34,412) | $ | (33,064) | $ | (32,045) | $ | (29,033) | $ | (27,587) |
BRISTOL-MYERS SQUIBB COMPANY
2022 FULL YEAR PROJECTED DILUTED EPS FROM OPERATIONS
EXCLUDING PROJECTED SPECIFIED ITEMS
| Full Year 2022 | |||||||
|---|---|---|---|---|---|---|---|
| Pre-tax | Tax | After-tax | |||||
| Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP | $3.37 to $3.67 | ||||||
| Projected Specified Items: | |||||||
| Purchase price accounting adjustments(a) | 4.54 | 0.41 | 4.13 | ||||
| Acquisition, restructuring and integration expenses(b) | 0.23 | 0.06 | 0.17 | ||||
| Other | (0.04) | (0.02) | (0.02) | ||||
| Total | 4.73 | 0.45 | 4.28 | ||||
| Projected Diluted Earnings Attributable to Shareholders per Common Share - Non-GAAP | $7.65 to $7.95 |
(a) Includes amortization of acquired intangible assets, unwind of inventory purchase price adjustments and amortization of fair value adjustments of debt assumed from Celgene.
(b) Includes acquisition-related restructuring and integration expenses recognized primarily in Other (income)/expense, net.
| The following table summarizes the company's 2022 financial guidance: | ||
|---|---|---|
| Line item | GAAP | Non-GAAP |
| Revenues | Increasing low-single digits | Increasing low-single digits |
| Gross margin | Approximately 78% | Approximately 78% |
| Operating expenses(c) | Decreasing by approximately 10% | In-line with 2021 |
| Effective tax rate | Approximately 24% | Approximately 16.5% |
(c) Operating expenses consist of marketing, selling and administrative expenses and research and development expenses.
| The GAAP financial results for the full year of 2022 will include specified items, including but not limited to purchase price accounting adjustments, integration expenses, charges associated with restructuring, downsizing and streamlining worldwide operations. The 2022 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. 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 Fourth Quarter and Full-Year Financial Results for 2021 on February 4, 2022, including “2022 Financial Guidance” and “Use of non-GAAP Financial Information” therein. |
|---|
BRISTOL-MYERS SQUIBB COMPANY
USE OF NON-GAAP FINANCIAL INFORMATION
In discussing financial results and guidance, the company refers to financial measures that are not in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this supplementary information to the earnings release that are calculated and presented in accordance with GAAP and are presented because management has evaluated the company’s financial results both including and excluding the adjusted items or the effects of foreign currency translation, as applicable, and believes that the non-GAAP financial measures presented 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 trends and facilitate comparisons among current, past and future periods. 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. In addition, non-GAAP gross margin, which is gross profit excluding certain specified items as a percentage of revenues, non-GAAP marketing, selling and administrative expenses, which is marketing, selling and administrative expense excluding certain specified items, and non-GAAP research and development expenses, which is research and development expenses excluding certain specified items, are relevant and useful for investors because they allow investors to view performance in a manner similar to the method used by our management and make it easier for investors, analysts and peers to compare our operating performance to other companies in our industry and to compare our year-over-year results.
This supplementary information to the earnings release also provides certain revenues and expenses as well as non-GAAP measures excluding the impact of foreign exchange. We calculate foreign exchange impacts by converting our current-period local currency financial results using the prior period average currency rates and comparing these adjusted amounts to our current-period results.
Non-GAAP financial measures such as non-GAAP earnings and related EPS information are adjusted to exclude certain costs, expenses, gains and losses and other specified items that are evaluated on an individual basis 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 past or future operating results. These items are excluded from non-GAAP earnings and related EPS information because the company believes they neither relate to the ordinary course of the company’s business nor reflect the company’s underlying business performance. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods, including amortization of acquired intangible assets, including product rights that generate a significant portion of our ongoing revenue and will recur until the intangible assets are fully amortized, unwind of inventory purchase price 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, divestiture gains or losses, stock compensation resulting from accelerated vesting of Celgene awards, certain retention-related employee compensation charges related to the Celgene transaction, pension, legal and other contractual settlement charges, equity investment and contingent value rights fair value adjustments (including fair value adjustments attributed to limited partnership equity method investments beginning in 2021) and amortization of fair value adjustments of debt acquired from Celgene in our 2019 exchange offer, among other items. Certain other significant tax items are also excluded such as the impact resulting from internal transfers due to streamlining our legal entity structure subsequent to the Celgene acquisition and the global intangible low taxed income tax change upon finalization of the Otezla* divestiture in 2020. 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.
Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related financial measures presented in the press release that are 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.
Reconciliations of the non-GAAP financial measures to the most comparable GAAP measures are provided in the accompanying financial tables. Within the accompanying financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.
Also note that a reconciliation of the forward-looking revenue (ex-FX), free cash flow and non-GAAP operating margin measures is not provided due to the inherent difficulty in forecasting and quantifying items that are necessary for such reconciliation. Namely, we are not able to reliably predict the impact of specified items or currency exchange rates beyond the next twelve months. As a result, the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures 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.
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Q4 2021 Results February 4, 2022
Q4 2021 Results Not for Product Promotional Use Forward Looking Statement and Non-GAAP Financial Information 2 This presentation contains statements about the Company’s future plans and prospects that constitute forward-looking statements for purposes of the safe harbor prov isions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated as a result of various important factors, including those discussed in the Company’s most recent annual report on Form 10-K and reports on Form 10-Q and Form 8-K. These documents are available on the SEC’s website, on the Bristol-Myers Squibb website or from Bristol-Myers Squibb Investor Relations. In addition, any forward-looking statements represent our estimates only as of the date hereof and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. This presentation includes certain non-generally accepted accounting principles (GAAP) financial measures that we use to describe our company’s performance. The non-GAAP information presented prov ides investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to rev iew our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. An explanation of these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measure are available on our website at bms.com/investors. Also note that a reconciliation of certain forward-looking non-GAAP financial measures, however, is not prov ided due to no reasonably accessible or reliable comparable GAAP measures for such statements and the inherent difficulty in forecasting and quantifying such measures that are necessary for such reconciliation. Namely, we are not able to reliably predict the impact of certain specified items or currency exchange rates beyond the next twelve months. As a result, the reconciliation of these non- GAAP measures to the most directly comparable GAAP measures 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.
Not for Product Promotional Use Q4 2021 Results Giovanni Caforio Board Chair and Chief Executive Officer 3
Q4 2021 Results Not for Product Promotional Use Operational Performance Robust commercial execution • Q4 sales: ~$12.0B,+8% YoY; FY 2021 sales: ~$46.4B,+9% YoY • Strong double digit Non-GAAP EPS growth in Q4 & FY 21 • Continued momentum for Eliquis, I-O & demand growth for New Product Portfolio: Breyanzi & Abecma, Zeposia, & Reblozyl Pipeline Execution Key milestones • Deucravacitinib PsO filed in U.S., EU, & Japan; U.S. PDUFA September 10, 2022 • Zeposia UC EC approval • Clinical: Opdivo CM-816 EFS, milvexian (AHA), & Breyanzi 2L LBCL/CELMoDs in MM (ASH) Financial Strength Strong 2021 results & 2022 outlook • Balance sheet strength & strong cash flow generation • $17B total cash as of YE • Gross debt reduction of ~$6.1B • 10.2% dividend growth: 13th consecutive annual increase • $5B ASR to be executed in Q1’22 as part of $15B share repurchase authorization • 2022 guidance reflects Revenue & Non-GAAP EPS growth 2021 Performance 4
Q4 2021 Results Not for Product Promotional Use 2021 Key Milestones Opdivo (+/- Yervoy) U.S./EU expected approvals: 1L RCC (9ER, O+Cabometyx) 1L GC (649, O+Chemo) adj Eso (577) adj MIBC (274) 1L Esophageal (CM-648) Opdivo return to annual growth relatlimab + nivolumab FDC 1L Melanoma w/Opdivo Ph3 Breyanzi 3L+ LBCL U.S. approval 3L+ LBCL EU approval1 2L TE LBCL 2L TNE LBCL 3L+ CLL2 Delivered on Our 2021 Commitments 5 1 Expected in 2022 2 Expected in 2023 3 Approved after 4 prior lines of therapy 4 PDUFA April 28, 2022 Abecma 4L+ MM U.S. approval 3 4L+ MM EU approval iberdomide + dex 4L+ MM Ph 1b/2a deucravacitinib PsO (2nd study) Ph3 U.S. filing UC Ph2 (POC) Zeposia UC U.S. approval UC EU approval cendakimab Initiation of Ph3 in EoE milvexian (FXIa inhib.) Total Knee Replacement VTEp Ph2 (POC) mavacamten oHCM U.S. filing oHCM U.S. approval4 Milestones represent data read-outs unless otherwise specified To be expanded to include regulatory milestones pending future registrational successes
Q4 2021 Results Not for Product Promotional Use 2022 Key Milestones Opdivo (+/- Yervoy) U.S./EU expected approvals: 1L ESCC (CM-648) Neo-adj lung EFS (CM-816) (U.S.) relatlimab + nivolumab FDC 1L melanoma U.S. approval Initiation 2L+ CRC Ph3 bempeg 1L melanoma 1L renal 1L bladder Breyanzi 2L LBCL U.S. approval 3L+ LBCL EU approval Abecma 2L+ MM (KarMMa-2) Ph2 (POC) iberdomide Initiation 2L+ MM Ph3 (EXCALIBER) CC-92480 4L+ MM Ph1/2 Portfolio Depth Provides Significant Near-term Catalysts 6 Milestones represent data read-outs unless otherwise specified To be expanded to include regulatory milestones pending future registrational successes deucravacitinib PsO U.S. approval SLE Ph2 (POC) cendakimab AD Ph2 (POC) mavacamten oHCM U.S. approval SRT (VALOR) Ph3 Initiation nHCM Ph3 milvexian SSP Ph2 (POC) 2023/2024 Key Milestones Opdivo (+/- Yervoy) Metastatic: 1L CRPC (CM-7DX) 1L HCC (CM-9DW) Early Stage: Adj. HCC (CM-9DX) Adj. RCC (CM-914) Peri-adj Lung (CM- 77T) Peri-adj MIBC (CM- 078) Adj. NSCLC (ANVIL, co-op group) relatlimab + nivolumab FDC 1L melanoma EU approval Initiation of 1L Lung 2L HCC (POC) bempeg Neo-adj. cis- ineligible MIBC Breyanzi 3L+ FL 3L+ CLL Abecma 3L+ MM (KarMMa-3) Ph3 CC-93269 BCMA TCE Initiation of pivotal trial iberdomide Initiation of Post transplant maintenance Ph3 H2H vs Rev Initiation of NDMM Ph3 H2H vs. Rev CC-92480 Initiation triplet 2L+ MM Ph3 Reblozyl 1L MDS (ESA naïve) COMMANDS Ph3 MF INDEPENDENCE Ph3 deucravacitinib PsO EU approval PsA Ph3 CD & DLE Ph2 (POC) UC (IM011-127) Ph2 (POC) cendakimab EoE Ph3 Zeposia CD Ph3 mavacamten HFpEF Ph2 EMBARK (POC)
Q4 2021 Results Not for Product Promotional Use Driving Growth Through the Decade 7 ($12B – $14B) +$8B – $10B +$10B – $13B 2020 Revenues Key LOE Brands In-Line Brands Primarily I-O & Eliquis 2025 Revenues New Product Portfolio Growth 2020 - 2025 Growth 2025 - 2029 2025 Revenues 2029 Revenues LOE Brands Primarily Eliquis & Opdivo Additional growth from New Product Portfolio Advancing Robust Pipeline Additional Optionality from Disciplined Business Development Maintain low to mid 40s operating margin** Key LOE Brands = Revlimid, Abraxane, Sprycel, and Pomalyst Financial projections may contain non promoted sales, BMS promotes only according to label *At constant exchange rates on a risk-adjusted basis; **Non-GAAP: There is no reliable or reasonable estimable comparable GAAP metric for this forward-looking information Continuing Business Growth Low to mid-single digit revenue CAGR*
Not for Product Promotional Use David Elkins Chief Financial Officer 8 Q4 2021 Results
Q4 2021 Results Not for Product Promotional Use Net Sales $ in Billions Vs. Prior Year $3.3 1% $2.7 18% $2.0 11% $0.9 $0.9 2% $0.6 2% $0.5 16% $0.3 3% Strong performance in key franchises 9 Net Sales $ in Billions Vs. Prior Year $12.8 6% $10.8 17% $7.5 8% $3.3 5% $3.3 9% $2.1 1% $2.0 20% $1.2 5% FY 2021 SalesQ4 2021 Sales ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ Total Q4 2021 Sales of $12.0B, up 8% vs PY Total FY 2021 Sales of $46.4B, up 9% vs PY --- ▲ ▲ ▲ ▲ ▲
Q4 2021 Results Not for Product Promotional Use US: Continued significant demand growth • Continued strong underlying demand & ~$100m inventory build vs. Q3 • ~13% TRx growth Q4 2021 Eliquis performance 10Rx Source: Symphony Health Significant future growth opportunity • Expect to continue to grow share within an expanding class International: Strong demand growth • Continues to be #1 OAC in key markets Global net sales up 18% in Q4, 17% for FY vs. PY 52% 57% 22% 18% 26% 25% Q4 2020 Q4 2021 TRx Share - US Other NOACs Warfarin Eliquis 61% 63% 13% 12% 26% 25% Q4 2020 Q4 2021 NBRx Share – US
Q4 2021 Results Not for Product Promotional Use Global net sales up 11% in Q4, 8% for FY vs. PY U.S. • Accelerated growth (+16% vs. PY) • 1L lung* shares in low double-digits • Leadership position in 1L renal • Strong initial adoption in Upper GI, adj. esophageal & GU in adj. bladder cancer Q4 2021 Opdivo performance 11 24% 24%27% 9% 16% Approx. U.S. Sales Mix Note: percentages are approximate 30% 22% 24% 4% 20% Approx. Ex-U.S. Sales Mix NSCLC RCC Melanoma Upper GI All others Future growth drivers include recent launches & approvals in 2022 *excluding EGFR/ALK patients International • Growth (+5% vs. PY) driven by increased demand in lung, new indications & expanded access
Q4 2021 Results Not for Product Promotional Use Q4 2021 IMiD agents performance 12 $577 $584 $258 $270 Q4 2020 Q4 2021 Global net sales up 1% in Q4, 6% FY vs PY • U.S.: 3% driven primarily by triplet demand & longer treatment duration offset by fewer selling days • International: (2%) due to FX & generic competition in Canada Global net sales up 2% in Q4, 9% FY vs PY • Demand growth from new triplet regimens & use in earlier lines offset by fewer selling days in the U.S. Global Net Sales $2,197 $2,270 $1,083 $1,058 Q4 2020 Q4 2021 US Ex-US 2022 Expectations • Expect global sales of ~$9.5-$10B • Q1 global sales projected to be ~$2.5B
Q4 2021 Results Not for Product Promotional Use Advancing new product portfolio launches 13 $274 $551 $164 $12 $134 $87 $17 $73 $55 $74 $358 $1,083 2020 2021 2021 vs 2020 Global Net Sales Reblozyl Abecma Zeposia Breyanzi Onureg Inrebic • Revenues doubled compared to PY • Continued demand increase offset by one-time inventory build in Q3 of ~$20-$25M • Continue to secure reimbursement in international markets • Continued robust demand • Remain focused on capacity expansion • Approved in Japan in January 2022 • Increased demand driven by differentiated profile • Opportunity to expand into earlier lines (2L LBCL) • Momentum from MS launch • #1 S1P modulator in written Rx in MS • UC launch progressing well; focused on building demand & broadening access • Approved for UC in EU in Q4 2021 • Establishing profile in 1L AML response maintenance • Focused on increasing adoption & patient adherence 2022 upcoming launches: mavacamten, relatlimab + nivolumab FDC, & deucravacitinib
Q4 2021 Results Not for Product Promotional Use US GAAP Non-GAAP $ in billions, except EPS Q4 2021 Q4 2020 Q4 2021 Q4 2020 Total Revenues, net 12.0 11.1 12.0 11.1 Gross Margin % 80.3% 73.7% 80.3% 79.8% MS&A 2.4 2.7 2.4 2.5 R&D 2.6 3.8 2.6 2.5 Effective Tax Rate (27.7)% 4.1% 15.0% 15.5% Diluted EPS 1.07 (4.45) 1.83 1.46 Diluted Shares Outstanding (# in millions) 2,219 2,252 2,219 2,286 Q4 2021 Financial Performance 14
Q4 2021 Results Not for Product Promotional Use Significant financial flexibility to support a balanced approach to capital allocation 15 $B Q4 2021 Total Cash** ~$17.0B Total Debt ~$44.6B Net Debt Position ~$27.6B *Subject to Board approval **Cash includes cash, cash equivalents and marketable debt securities Committed to reducing debt • ~$6.1B in debt reduction in 2021 • Maintain strong investment-grade credit ratings Returning capital to shareholders • Continued dividend growth*; opportunistic share repurchases ✓ Increased dividend low double-digit in Dec 2021 ✓ $5B ASR to be executed in Q1 2022 as part of $15B share repurchase authorization Future innovation through business development • Strategically aligned • Scientifically sound • Financially attractive
Q4 2021 Results Not for Product Promotional Use 2022 Guidance 16 GAAP Non-GAAP Total Net Sales ~$47.0B or low single-digit increase ~$47.0B or low single-digit increase Key LOE Brands1 ~$10.5B or double-digit decline ~$10.5B or double-digit decline Continuing Business ~$36.5B or low double-digit increase ~$36.5B or low double-digit increase Gross Margin % ~78% ~78% Operating Expenses Approx. 10% decline In-line with 2021 Tax Rate ~24% ~16.5% Diluted EPS $3.37 - $3.67 $7.65 - $7.95 1Key LOE Brands = Revlimid & Abraxane
Q4 2021 Results Not for Product Promotional Use Q&A Giovanni Caforio, M.D. Board Chair, Chief Executive Officer David Elkins Executive VP, Chief Financial Officer 17 Chris Boerner, Ph.D. Executive VP, Chief Commercialization Officer Samit Hirawat, M.D. Executive VP, Chief Medical Officer, Global Drug Development
Q4 2021 Results Not for Product Promotional Use 2022 Key News Flow 18 Asset Timing Opdivo Approval in 1L ESCC (CM-648) U.S. PDUFA - May 28, 2022 MAA under review Opdivo U.S. Approval in neo adj. lung EFS (CM- 816) 2022 relatlimab + nivo FDC U.S. approval in 1L Melanoma U.S. PDUFA - March 19, 2022 MAA under review bempegaldesleukin 1L Melanoma 1L Renal Cell Carcinoma (RCC) 1L Muscle Invasive Urothelial Carcinoma 1H 2022 Breyanzi Approval in 3L+ LBCL Approved in U.S. MAA under review Breyanzi Approval in 2L LBCL 2022 Asset Timing deucravacitinib U.S. approval in mod to severe Psoriasis POETYK PSO-2 U.S. PDUFA – September 10, 2022 MAA under review deucravacitinib Systemic Lupus Erythematosus Ph2 POC 1H 2022 mavacamten U.S. approval in Obstructive HCM (EXPLORER- HCM) U.S. PDUFA - April 28, 2022 MAA under review mavacamten Septal Reduction Therapy (VALOR) 2022 milvexian (FXIa inhib.) Ph 2 POC in SSP (+TKR in VTEp to inform Ph3) Expect data in-house 1H 2022
Q4 2021 Results Not for Product Promotional Use Hematology Fibrosis HSP47 LPA1 Antagonist Immunology Oncology Data as of February 4, 2022 Anti-Fucosyl GM1 TIGIT BispecificAnti-NKG2A Anti-SIRPα1 AR LDD Anti-CTLA-4 NF Anti-CCR8 Anti-CTLA-4 Probody BCMA TCE CD3xPSCA (GEMoaB)2 IL-12 Fc Anti-IL-8 Anti-TIGIT BET Inhibitor (BMS-986158) CD19 NEX T BCMA ADC TGFβ Inhibitor LSD1 Inhibitor1 iberdomide iberdomide MK2 InhibitorAnti-CD40 IL2-CD25 cendakimab branebrutinib deucravacitinib Cardiovascular FA-RelaxinFXIa Inhibitor 19 Phase 1 Phase 2 Phase 3 Marketed A/I CELMoD (CC-92480) A/I CELMoD (CC-99282) GSPT1 CELMoD (CC-90009) BET Inhibitor1 (CC-90010) CD33 NKE CD47xCD20 Neuroscience Anti-Tau (Prothena)2 AHR Antagonist (Ikena)2 S1PR1 Modulator afimetoran (TLR 7/8 Inhibitor) BET Inhibitor1 (CC-95775) NME Active Clinical Development Portfolio STING Agonist danicamtiv BCMA NEX T motolimod Cardiac Myosin Inhibitor milvexian (FX Ia Inhibitor) mavacamten TYK2 Inhibitor GPRC5D CAR T COVID-19 SARS-CoV-2 mAb Duo Anti-CTLA-4 NF-Probody CK1α CELMoD ROMK Inhibitor BTK Inhibitor BCMA NKE ROR1 CAR T Anti-TIM3 farletuzumab - eribulin ADC FAAH/MGLL Dual Inhibitor relatlimab1 bempegal- desleukin linrodostat subcutaneous nivolumab eIF2b Activator MAGE A4/8 TCE5 1 - In development for solid tumors and hematology; 2 - BMS has an exclusive option to license and/or option to acquire
Q4 2021 Results Not for Product Promotional Use Our Commitment as a sustainable organization Embracing environmental stewardship 20 • Experienced & diverse Board ― Board oversight of strategy & key enterprise risks ― 60% female & ethnically diverse directors • Shareholder rights ― Regular shareholder engagement ― Proxy access ― Special meeting right (15%) Environment GovernanceSocial K e y P r io r it ie s C o n c r e t e C o m m it m e n ts 2021 • ≥ 25% new clinical trial sites in diverse metro areas 2022 • Gender parity at executive level • 2X representation for Black/African American & Hispanic/Latino executives 2025 • $1B spend with diverse suppliers 2024 • Science-based emissions reduction targets established 2030 • 100% renewable electricity 2040 • Net neutral GHG • 100% EV fleet • 100% equitable water use • Zero waste to landfill Maintaining highest ethics, integrity & compliance Upholding Board oversight & accountability Promoting product quality & safety Cultivating diversity, equity & inclusion Ensuring health equity, patient access & innovation