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Bristol-Myers Squibb Reports Second Quarter Financial Results

NEW YORK–(BUSINESS WIRE)–Bristol-Myers Squibb Company (NYSE:BMY) today reported results for the second quarter of 2019, which were highlighted by strong sales for Eliquis (apixaban) and Opdivo (nivolumab) and a robust operating performance across the portfolio.

“We had a very good second quarter where we delivered strong financial results while also advancing our integration planning for the acquisition of Celgene,” said Giovanni Caforio, M.D., chairman and chief executive officer, Bristol-Myers Squibb. “Through strong commercial execution and financial discipline we are establishing a solid foundation from which we can build the leading biopharma company, well-positioned to address the unmet needs of our patients and create long-term shareholder value.”

Second Quarter

$ amounts in millions, except per share amounts

 

 

 

 

2019

2018

Change

Total Revenues

$6,273

$5,704

10%

GAAP Diluted EPS

0.87

0.23

**

Non-GAAP Diluted EPS

1.18

1.01

17%

**In excess of +/- 100%

SECOND QUARTER FINANCIAL RESULTS

ACQUISITION OF CELGENE CORPORATION

OTEZLA® is a trademark of Celgene Corporation.

SECOND QUARTER PRODUCT AND PIPELINE UPDATE

Product Sales/Business Highlights

Global revenues for the second quarter of 2019, compared to the second quarter of 2018, were driven by:

Opdivo

Clinical

Orencia

Clinical

Empliciti

Clinical

SECOND QUARTER BUSINESS DEVELOPMENT UPDATE

Stivarga® is a trademark of Bayer.

2019 FINANCIAL GUIDANCE

Bristol-Myers Squibb is decreasing its 2019 GAAP EPS guidance range from $3.84 – $3.94 to $3.73- $3.83 and increasing its non-GAAP EPS guidance range from $4.10 – $4.20 to $4.20 – $4.30. Both GAAP and non-GAAP guidance assume current exchange rates. Key revised 2019 GAAP and non-GAAP line-item guidance assumptions are:

The financial guidance for 2019 excludes the impact of any potential future strategic acquisitions and divestitures, including any impact of the pending Celgene acquisition other than expenses incurred in 2019, and any specified items that have not yet been identified and quantified. The non-GAAP 2019 guidance also excludes other specified items as discussed under “Use of Non-GAAP Financial Information.” Details reconciling adjusted non-GAAP amounts with the amounts reflecting specified items are provided in supplemental materials available on the company’s website.

Guidance inclusive of the Celgene acquisition will be provided after the close of the transaction.

Use of Non-GAAP Financial Information

This earnings release contains non-GAAP financial measures, including non-GAAP earnings and related EPS information that are adjusted to exclude certain costs, expenses, gains and losses and other specified items that are evaluated on an individual basis. These items are adjusted after considering their quantitative and qualitative aspects and typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods, including 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, pension, legal and other contractual settlement charges, interest expense on the new notes issued in May 2019 in connection with our pending acquisition of Celgene and interest income earned on the net proceeds of the notes and debt redemption gains or losses, among other items. Deferred and current income taxes attributed to these items are also adjusted for considering their individual impact to the overall tax expense, deductibility and jurisdictional tax rates. Non-GAAP information is intended to portray the results of the company’s baseline performance, supplement or enhance management, analysts and investors overall understanding of the company’s underlying financial performance and facilitate comparisons among current, past and future periods. For example, non-GAAP earnings and EPS information is an indication of the company’s baseline performance before items that are considered by us to not be reflective of the company’s ongoing results. In addition, this information is among the primary indicators that we use as a basis for evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting for future periods. This information is not intended to be considered in isolation or as a substitute for net earnings or diluted EPS prepared in accordance with GAAP and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted.

Company and Conference Call Information

Bristol-Myers Squibb is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. For more information about Bristol-Myers Squibb, visit us at BMS.com or follow us on LinkedIn, Twitter, YouTube and Facebook. For more information about Bristol-Myers Squibb’s pending acquisition of Celgene, please visit https://bestofbiopharma.com.

There will be a conference call on July 25, 2019 at 8:30 a.m. ET during which company executives will review financial information and address inquiries from investors and analysts. Investors and the general public are invited to listen to a live webcast of the call at http://investor.bms.com or by calling the U.S. toll free 888-254-3590 or international 323-994-2093, confirmation code: 9333832. Materials related to the call will be available at the same website prior to the conference call. A replay of the call will be available beginning at 11:45 a.m. ET on July 25, 2019 through 11:45 a.m. ET on August 8, 2019. The replay will also be available through http://investor.bms.com or by calling the U.S. toll free 888-203-1112 or international 719-457-0820, confirmation code: 9333832.

Website Information

We routinely post important information for investors on our website, BMS.com, in the “Investors” section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. We may also use social media channels to communicate with our investors and the public about our company, our products and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document.

Cautionary Statement Regarding Forward-Looking Statements

This earnings release and the related attachments (as well as the oral statements made with respect to information contained in this release and the attachments) contain certain “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, statements relating to goals, plans and projections regarding the company’s financial position, results of operations, market position, product development and business strategy. These statements may be identified by the fact they use words such as “should,” “could,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe,” “will” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance, although not all forward-looking statements contain such terms. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements are likely to relate to, among other things, the company’s ability to execute successfully its strategic plans, including its business development strategy generally and in relation to its ability to complete the financing transactions in connection with and to realize the projected benefits of the company’s pending acquisition of Celgene, the expiration of patents or data protection on certain products, including assumptions about the company’s ability to retain patent exclusivity of certain products and the impact, and result of governmental investigations. No forward-looking statement can be guaranteed, including that the company’s future clinical studies will support the data described in this release, product candidates will receive necessary clinical and manufacturing regulatory approvals, pipeline products will prove to be commercially successful, clinical and manufacturing regulatory approvals will be sought or obtained within currently expected timeframes or contractual milestones will be achieved.

Such forward-looking statements are based on historical performance and current expectations and projections about the company’s future financial results, goals, plans and objectives and involve inherent risks, assumptions and uncertainties, including internal or external factors that could delay, divert or change any of them in the next several years, that are difficult to predict, may be beyond the company’s control and could cause the company’s future financial results, goals, plans and objectives to differ materially from those expressed in, or implied by, the statements. Such risks, uncertainties and other matters include, but are not limited to, challenges inherent in new product development, including obtaining and maintaining regulatory approval; competitive developments affecting current products; difficulties and delays in product introduction and commercialization; industry competition from other manufacturers; the company’s ability to obtain and protect market exclusivity rights and enforce patents and other intellectual property rights; the risk of an adverse patent litigation decision or settlement and exposure to other litigation and/or regulatory actions; pricing controls and pressures (including changes in rules and practices of managed care organizations and institutional and governmental purchasers); the impact of any U.S. healthcare reform and legislation or regulatory action in the U.S. and markets outside the U.S. affecting pharmaceutical product pricing, reimbursement or access; changes in tax law and regulations, including the impact of the Tax Cuts and Jobs Act of 2017 and related guidance; any significant issues that may arise related to the company’s joint ventures and other third-party business arrangements; the company’s ability to execute its financial, strategic and operational plans or initiatives; the ability to attract and retain key personnel; the company’s ability to identify potential strategic acquisitions or transactions and successfully realize the expected benefits of such transactions, including with respect to the pending acquisition of Celgene; the conditions to closing the Celgene transaction will be satisfied and, if the transaction closes, the company’s ability to successfully integrate Celgene, manage the impact of the company’s increased indebtedness, achieve anticipated synergies and effectively address any risks that Celgene currently faces, including the loss of patent protection for any of its commercialized products and the failure to obtain approvals for its pipeline products; difficulties or delays in manufacturing, distribution or sale of products, including without limitation, interruptions caused by damage to the company’s and the company’s suppliers’ manufacturing sites; regulatory decisions impacting labeling, manufacturing processes and/or other matters; the impact on the company’s competitive position from counterfeit or unregistered versions of its products or stolen products; the 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; political and financial instability of international economies and sovereign risk; and issuance of new or revised accounting standards.

Forward-looking statements in this earnings release should be evaluated together with the many risks and uncertainties that affect the company’s business and market, particularly those identified in the cautionary statement and risk factors discussion in the company’s Annual Report on Form 10-K for the year ended December 31, 2018, as updated by the company’s subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. The forward-looking statements included in this document are made only as of the date of this document and except as otherwise required by applicable law, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise.

 

BRISTOL-MYERS SQUIBB COMPANY

PRODUCT REVENUES

FOR THE THREE MONTHS ENDED JUNE 30, 2019 AND 2018

(Unaudited, dollars in millions)

 

 

Worldwide Revenues

 

U.S. Revenues(b)

 

2019

 

2018

 

%

Change

 

2019

 

2018

 

%

Change

Prioritized Brands

 

 

 

 

 

 

 

 

 

 

 

Opdivo

$

1,823

 

 

$

1,627

 

 

12

%

 

$

1,112

 

 

$

1,024

 

 

9

%

Eliquis

2,042

 

 

1,650

 

 

24

%

 

1,269

 

 

979

 

 

30

%

Orencia

778

 

 

711

 

 

9

%

 

566

 

 

501

 

 

13

%

Sprycel

544

 

 

535

 

 

2

%

 

307

 

 

310

 

 

(1

)%

Yervoy

367

 

 

315

 

 

17

%

 

253

 

 

228

 

 

11

%

Empliciti

91

 

 

64

 

 

42

%

 

63

 

 

41

 

 

54

%

 

 

 

 

 

 

 

 

 

 

 

 

Established Brands

 

 

 

 

 

 

 

 

 

 

 

Baraclude

147

 

 

179

 

 

(18

)%

 

7

 

 

9

 

 

(22

)%

Other Brands(a)

481

 

 

623

 

 

(23

)%

 

90

 

 

138

 

 

(35

)%

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

6,273

 

 

$

5,704

 

 

10

%

 

$

3,667

 

 

$

3,230

 

 

14

%

(a)

Includes Sustiva, Reyataz, Daklinza and all other products that lost exclusivity in major markets, over-the-counter brands and royalty revenue.

(b)

Includes United States and Puerto Rico.

BRISTOL-MYERS SQUIBB COMPANY

PRODUCT REVENUES

FOR THE SIX MONTHS ENDED JUNE 30, 2019 AND 2018

(Unaudited, dollars in millions)

 

 

Worldwide Revenues

 

U.S. Revenues(b)

 

2019

 

2018

 

%

Change

 

2019

 

2018

 

%

Change

Prioritized Brands

 

 

 

 

 

 

 

 

 

 

 

Opdivo

$

3,624

 

 

$

3,138

 

 

15

%

 

$

2,236

 

 

$

1,962

 

 

14

%

Eliquis

3,967

 

 

3,156

 

 

26

%

 

2,475

 

 

1,864

 

 

33

%

Orencia

1,418

 

 

1,304

 

 

9

%

 

1,015

 

 

886

 

 

15

%

Sprycel

1,003

 

 

973

 

 

3

%

 

547

 

 

524

 

 

4

%

Yervoy

751

 

 

564

 

 

33

%

 

528

 

 

390

 

 

35

%

Empliciti

174

 

 

119

 

 

46

%

 

121

 

 

78

 

 

55

%

 

 

 

 

 

 

 

 

 

 

 

 

Established Brands

 

 

 

 

 

 

 

 

 

 

 

Baraclude

288

 

 

404

 

 

(29

)%

 

14

 

 

19

 

 

(26

)%

Other Brands(a)

968

 

 

1,239

 

 

(22

)%

 

180

 

 

285

 

 

(37

)%

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

12,193

 

 

$

10,897

 

 

12

%

 

$

7,116

 

 

$

6,008

 

 

18

%

(a)

Includes Sustiva, Reyataz, Daklinza and all other products that lost exclusivity in major markets, over-the-counter brands and royalty revenue.

(b)

Includes United States and Puerto Rico.

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018

(Unaudited, dollars and shares in millions except per share data)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

Net product sales

$

6,031

 

 

$

5,461

 

 

$

11,744

 

 

$

10,433

 

Alliance and other revenues

242

 

 

243

 

 

449

 

 

464

 

Total Revenues

6,273

 

 

5,704

 

 

12,193

 

 

10,897

 

 

 

 

 

 

 

 

 

Cost of products sold

1,992

 

 

1,625

 

 

3,836

 

 

3,209

 

Marketing, selling and administrative

1,076

 

 

1,131

 

 

2,082

 

 

2,111

 

Research and development

1,328

 

 

2,435

 

 

2,679

 

 

3,685

 

Other income (net)

101

 

 

(4

)

 

(159

)

 

(404

)

Total Expenses

4,497

 

 

5,187

 

 

8,438

 

 

8,601

 

 

 

 

 

 

 

 

 

Earnings Before Income Taxes

1,776

 

 

517

 

 

3,755

 

 

2,296

 

Provision for Income Taxes

337

 

 

135

 

 

601

 

 

419

 

 

 

 

 

 

 

 

 

Net Earnings

1,439

 

 

382

 

 

3,154

 

 

1,877

 

Noncontrolling Interest

7

 

 

9

 

 

12

 

 

18

 

Net Earnings Attributable to BMS

$

1,432

 

 

$

373

 

 

$

3,142

 

 

$

1,859

 

 

 

 

 

 

 

 

 

Average Common Shares Outstanding:

 

 

 

 

 

 

 

Basic

1,636

 

 

1,633

 

 

1,635

 

 

1,633

 

Diluted

1,637

 

 

1,636

 

 

1,637

 

 

1,638

 

 

 

 

 

 

 

 

 

Earnings per Common Share

 

 

 

 

 

 

 

Basic

$

0.88

 

 

$

0.23

 

 

$

1.92

 

 

$

1.14

 

Diluted

0.87

 

 

0.23

 

 

1.92

 

 

1.13

 

 

 

 

 

 

 

 

 

Other income (net)

 

 

 

 

 

 

 

Interest expense

$

123

 

 

$

45

 

 

$

168

 

 

$

91

 

Investment income

(119

)

 

(38

)

 

(175

)

 

(74

)

Equity investment (gains)/losses

(71

)

 

356

 

 

(246

)

 

341

 

Provision for restructuring

10

 

 

37

 

 

22

 

 

57

 

Acquisition expenses

303

 

 

 

 

468

 

 

 

Integration expenses

106

 

 

 

 

128

 

 

 

Litigation and other settlements

 

 

(1

)

 

1

 

 

(1

)

Equity in net income of affiliates

 

 

(27

)

 

 

 

(51

)

Divestiture losses/(gains)

8

 

 

(25

)

 

8

 

 

(70

)

Royalties and licensing income

(303

)

 

(353

)

 

(611

)

 

(720

)

Transition and other service fees

(2

)

 

(1

)

 

(4

)

 

(5

)

Pension and postretirement

26

 

 

(19

)

 

70

 

 

(30

)

Intangible asset impairment

15

 

 

 

 

15

 

 

64

 

Other

5

 

 

22

 

 

(3

)

 

(6

)

Other income (net)

$

101

 

 

$

(4

)

 

$

(159

)

 

$

(404

)

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018

(Unaudited, dollars in millions)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

Impairment charges

$

109

 

 

$

 

 

$

109

 

 

$

10

 

Accelerated depreciation and other shutdown costs

30

 

 

14

 

 

42

 

 

17

 

Cost of products sold

139

 

 

14

 

 

151

 

 

27

 

 

 

 

 

 

 

 

 

Marketing, selling and administrative

 

 

 

 

1

 

 

1

 

 

 

 

 

 

 

 

 

License and asset acquisition charges

25

 

 

1,075

 

 

25

 

 

1,135

 

IPRD impairments

 

 

 

 

32

 

 

 

Site exit costs and other

19

 

 

19

 

 

38

 

 

39

 

Research and development

44

 

 

1,094

 

 

95

 

 

1,174

 

 

 

 

 

 

 

 

 

Interest expense

83

 

 

 

 

83

 

 

 

Investment income

(54

)

 

 

 

(54

)

 

 

Equity investment (gains)/losses

(71

)

 

356

 

 

(246

)

 

341

 

Provision for restructuring

10

 

 

37

 

 

22

 

 

57

 

Acquisition expenses

303

 

 

 

 

468

 

 

 

Integration expenses

106

 

 

 

 

128

 

 

 

Divestiture losses/(gains)

8

 

 

(25

)

 

8

 

 

(68

)

Royalties and licensing income

 

 

(25

)

 

 

 

(75

)

Pension and postretirement

44

 

 

37

 

 

93

 

 

68

 

Intangible asset impairment

 

 

 

 

 

 

64

 

Other income (net)

429

 

 

380

 

 

502

 

 

387

 

 

 

 

 

 

 

 

 

Increase to pretax income

612

 

 

1,488

 

 

749

 

 

1,589

 

 

 

 

 

 

 

 

 

Income taxes on items above

(105

)

 

(218

)

 

(148

)

 

(226

)

Income taxes attributed to U.S. tax reform

 

 

3

 

 

 

 

(29

)

Income taxes

(105

)

 

(215

)

 

(148

)

 

(255

)

 

 

 

 

 

 

 

 

Increase to net earnings

$

507

 

 

$

1,273

 

 

$

601

 

 

$

1,334

 

Contacts

Media: Carrie Fernandez, 609-252-5222, carrie.fernandez@bms.com;

Investor Relations: John Elicker, 609-252-4611, john.elicker@bms.com or Tim Power, 609-252-7509, timothy.power@bms.com

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