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Bristol Myers Squibb Reports Third Quarter 2020 Financial Results

BusinessWire

NEW YORK–(BUSINESS WIRE)–$BMY—Bristol Myers Squibb (NYSE:BMY) today reports results for the third quarter of 2020, which reflect strong product sales, continued pipeline advancement and robust operating performance.

“I am proud of the significant achievements of our new company over the past year, and the strong foundation we have created for near- and long-term growth” said Giovanni Caforio, M.D., board chair and chief executive officer, Bristol Myers Squibb. “Our financial strength and flexibility combined with our robust inline businesses, multiple launches and progress in our deep pipeline, including the promising results from the deucravacitinib trial, strongly position the company to deliver our mission and help more patients. The strength of our third quarter performance is a testament to the commitment of our people who continue to innovate and deliver novel medicines for patients with serious disease.”

Third Quarter

$ amounts in millions, except per share amounts

 

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2020

2019

Change

Total Revenues

$10,540

$6,007

75%

GAAP Diluted EPS

0.82

0.83

(1)%

Non-GAAP Diluted EPS

1.63

1.17

39%

Total Pro Forma Revenues*

10,540

9,962

6%

 

 

 

 

*The pro forma revenues assume the company’s acquisition of Celgene (Celgene Acquisition) and its divestiture of Otezla® to Amgen Inc. (Otezla® Divestiture) occurred on January 1, 2019 and exclude foreign currency hedge gains and losses. Management believes that measuring revenue rates on a comparable pro forma basis is an appropriate way for investors to best understand the underlying performance of the business. The pro forma revenue is presented for informational purposes only and does not purport to represent what the company’s results of operations or financial position would have been if the company’s planned acquisition of MyoKardia, Inc. (MyoKardia) occurred on January 1, 2019 nor does it purport to project the results of operations or financial position for any future period or as of any future date. See “Worldwide Pro Forma Revenue” in Quarterly Package of Financial Information for this quarter, which is available on bms.com/investors/financial-reporting/quarterly-results, for information on the revenue of the company and Celgene on a stand-alone basis for the prior-year period. Otezla® is a trademark of Amgen Inc.

THIRD QUARTER FINANCIAL RESULTS

All comparisons are made versus the same period in 2019 unless otherwise stated.

THIRD QUARTER PRODUCT REVENUE HIGHLIGHTS

$ amounts in millions

Product

Quarter Ended

September 30, 2020 on

Reported Basis

% Change from Quarter

Ended September 30,

2019 on Reported Basis

% Change from Quarter

Ended September 30,

2019 on Pro Forma Basis**

Revlimid

$3,027

N/A*

10%

Eliquis

$2,095

9%

9%

Opdivo

$1,780

(2)%

(2)%

Orencia

$826

8%

8%

Pomalyst/Imnovid

$777

N/A*

17%

Sprycel

$544

(3)%

(3)%

Yervoy

$446

26%

26%

Abraxane

$342

N/A*

8%

Empliciti

$96

8%

8%

Reblozyl

$96

N/A*

N/A

Inrebic

$13

N/A*

N/A

Zeposia

$2

N/A*

N/A

Onureg

$3

N/A*

N/A

*Products were acquired as part of the Celgene Acquisition.

**Pro forma product revenues assume the Celgene Acquisition and the Otezla® Divestiture occurred on January 1, 2019 and exclude foreign currency hedge gains and losses. Management believes that measuring product revenue rates on a comparable pro forma basis is an appropriate way for investors to best understand the underlying performance of the business. See “Worldwide Pro Forma Revenues” in the Quarterly Package of Financial Information for this quarter, which is available on bms.com/investors/financial-reporting/quarterly-results, for information on the product revenue of the company and Celgene for the prior-year period. Otezla® is a registered trademark of Amgen, Inc.

FIRST NINE-MONTHS PRODUCT REVENUE HIGHLIGHTS

$ amounts in millions

Product

Nine Months Ended

September 30, 2020 on

Reported Basis

% Change from Nine

Months Ended

September 30, 2019 on

Reported Basis

% Change from Nine

Months Ended

September 30, 2019 on

Pro Forma Basis**

Revlimid

$8,826

N/A*

10%

Eliquis

$6,899

17%

17%

Opdivo

$5,199

(4)%

(4)%

Orencia

$2,290

5%

5%

Pomalyst/Imnovid

$2,235

N/A*

22%

Sprycel

$1,576

1%

1%

Yervoy

$1,211

10%

10%

Abraxane

$950

N/A*

4%

Empliciti

$290

10%

10%

Reblozyl

$159

N/A*

N/A

Inrebic

$40

N/A*

N/A

Zeposia

$3

N/A*

N/A

Onureg

$3

N/A*

N/A

*Products were acquired as part of the Celgene Acquisition.

**Pro forma product revenues assume the Celgene Acquisition and the Otezla® Divestiture occurred on January 1, 2019 and exclude foreign currency hedge gains and losses. Management believes that measuring product revenue rates on a comparable pro forma basis is an appropriate way for investors to best understand the underlying performance of the business. See “Worldwide Pro Forma Revenues” in the Quarterly Package of Financial Information for this quarter, which is available on bms.com/investors/financial-reporting/quarterly-results, for information on the product revenue of the company and Celgene for the prior-year period.

THIRD QUARTER PRODUCT AND PIPELINE UPDATE

Oncology and Hematology

Opdivo

Regulatory

Clinical

Medical Conferences

REVLIMID®

Patent Update

Onureg

Regulatory

ide-cel

Regulatory

IDHIFA®

Clinical

Immunology

Deucravacitinib (BMS-986165)

Clinical

Zeposia

Medical Conferences

Business Development

Commitment to Diversity and Inclusion

In August, the company and the Bristol Myers Squibb Foundation announced a combined investment of $300 million as part of a series of commitments designed to address health disparities, increase clinical trial diversity and increase the company’s spend with diverse suppliers. The company also announced that it will expand the diversity of its workforce and leadership by doubling Black/African American and Hispanic/Latino representation at executive levels of the company by 2022. (link)

COVID-19 Pandemic Response

During the current world health crisis, the company continues to take all necessary actions to promote public health by carrying out its mission of providing life-saving medicines to the patients who depend on the company and supporting relief efforts across the globe. (link)

Financial Guidance

Bristol Myers Squibb is increasing its 2020 GAAP EPS guidance range from ($0.06) – $0.09 to $0.47 – $0.57. In addition, the company is raising its 2020 non-GAAP EPS guidance range from $6.10 – $6.25 to $6.25 – $6.35 and reaffirming its 2021 non-GAAP EPS guidance range of $7.15 to $7.45. Adjusted 2020 GAAP and non-GAAP line items are:

 

GAAP

non-GAAP

Revenue

$41.5B – $42.0B

$41.5B – $42.0B

Gross margin as a percentage of revenue

Approximately 74%

Approximately 80%

Marketing, selling and administrative expense

Approximately $6.9B

Approximately $6.9B

Research and development expense

Approximately $10.4B

Approximately $9.2B

Other (income)/expense, net

($0.1B) – ($0.3B)

($0.1B) – $0.1B

Effective tax rate

Approximately 69%

Approximately 16%

Weighted average diluted shares

Approximately 2.3 Billion

Approximately 2.3 Billion

EPS guidance

$0.47 – $0.57

$6.25 – $6.35

The 2020 and 2021 guidance assumes that healthcare systems around the world will continue to adapt, and gradually recover from the impacts from the COVID-19 pandemic.

The 2020 financial guidance excludes the impact of any potential future strategic acquisitions and divestitures, including any impact of the MyoKardia acquisition, and any specified items that have not yet been identified and quantified. The 2020 non-GAAP EPS guidance further excludes other specified items as discussed under “Use of Non-GAAP Financial Information.” A reconciliation of non-GAAP financial measures to the most comparable GAAP measure and the reasons why management believes the use of these measures is important are provided in supplemental materials available on the company’s website. The 2021 non-GAAP EPS guidance incorporates the expected dilution from the MyoKardia acquisition. For the 2021 non-GAAP EPS guidance, there is no reliable or reasonably estimable comparable GAAP measure as discussed below. The financial guidance is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release.

Company and Conference Call Information

Bristol Myers Squibb is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. For more information about Bristol Myers Squibb, visit us at BMS.com or follow us on LinkedIn, Twitter, YouTube, Facebook, and Instagram.

There will be a conference call on November 5 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 dialing in the U.S. toll free 888-394-8218 or international 786-789-4776, confirmation code: 5151966, or using this link which becomes active 15 minutes prior to the scheduled start time and entering your information to be connected. 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 12:00 p.m. ET on November 5 through 12:00 p.m. ET on November 19, 2020. The replay will also be available through http://investor.bms.com or by dialing in the U.S. toll free 888-203-1112 or international 719-457-0820, confirmation code: 5151966.

Use of Non-GAAP Financial Information

This earnings release contains non-GAAP financial measures, including non-GAAP earnings and related EPS information that are adjusted to exclude certain costs, expenses, gains and losses and other specified items that are evaluated on an individual basis. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures are available on the company’s website at www.bms.com.

These non-GAAP items are adjusted after considering their quantitative and qualitative aspects and typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods, including amortization of acquired intangible assets beginning in the fourth quarter of 2019, including product rights that generate a significant portion of our ongoing revenue, unwind of inventory fair value adjustments, acquisition and integration expenses, restructuring costs, accelerated depreciation and impairment of property, plant and equipment and intangible assets, R&D charges or other income resulting from upfront or contingent milestone payments in connection with the acquisition or licensing of third-party intellectual property rights, costs of acquiring a priority review voucher, divestiture gains or losses, stock compensation resulting from accelerated vesting of Celgene awards, certain retention-related employee compensation charges related to the Celgene Acquisition, pension, legal and other contractual settlement charges, interest expense on the notes issued in May 2019 incurred prior to the Celgene Acquisition and interest income earned on the net proceeds of those notes, equity investment and contingent value rights fair value adjustments and amortization of fair value adjustments of debt acquired from Celgene in our 2019 exchange offer, 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. Certain other significant tax items are also excluded such as the impact resulting from internal transfer of intangible assets and the Otezla® Divestiture. This earnings release also provides international revenues excluding the impact of foreign exchange.

Non-GAAP information is intended to portray the results of the company’s baseline performance, supplement or enhance management, analysts and investors overall understanding of the company’s underlying financial performance and facilitate comparisons among current, past and future periods.

Contacts

For more information:

Media: media@bms.com
Investor Relations: Tim Power, 609-252-7509, timothy.power@bms.com; Nina Goworek, 908-673-9711, nina.goworek@bms.com.

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