BRISTOL MYERS SQUIBB CO - FORM 8-K - EX-99.2 - CERTAIN SUPPLEMENTAL INFORMATION POSTED ON BRISTOL-MYERS SQUIBB'S WEBSITE - July 22, 2010

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Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY

QUARTERLY TREND ANALYSIS OF SALES

($ in millions)

Net Sales

 

    2009   2010   % Change   FX Impact
     1st Qtr   2nd Qtr   6 Months   3rd Qtr   9 Months   4th Qtr   Year   1st Qtr   2nd Qtr   6 Months   3rd Qtr   9 Months   4th Qtr   Year   Qtr vs. Qtr     YTD vs. YTD   Qtr vs. Qtr   YTD vs. YTD

Total

   $ 4,322   $ 4,665   $ 8,987   $ 4,788   $ 13,775   $ 5,033   $ 18,808   $ 4,807   $ 4,768   $ 9,575           2 %    7%   —     2%

US Pharmaceuticals

     2,766     2,974     5,740     3,012     8,752     3,115     11,867     3,089     3,105     6,194           4 %    8%   N/A   N/A

CV/Metabolics

     1,554     1,699     3,253     1,707     4,960     1,737     6,697     1,815     1,796     3,611           6 %    11%   N/A   N/A

Oncology/Virology

     627     638     1,265     659     1,924     689     2,613     678     682     1,360           7 %    8%   N/A   N/A

Neuroscience

     486     520     1,006     521     1,527     563     2,090     470     490     960           -6 %    -5%   N/A   N/A

Immunoscience

     99     117     216     125     341     126     467     126     137     263           17 %    22%   N/A   N/A

Intercon Pharmaceuticals

     196     215     411     213     624     219     843     225     199     424           -7 %    3%   1%   4%

JPAC Pharmaceuticals

     326     372     698     394     1,092     430     1,522     371     403     774           8 %    11%   10%   12%

Emerging Markets

     166     174     340     203     543     210     753     203     201     404           16 %    19%   6%   7%

Europe Pharmaceuticals

     827     883     1,710     911     2,621     1,004     3,625     886     822     1,708           -7 %    —     -4%   1%

% of Total Sales

      2009     2010    Basis Point 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  

Total

    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %                              —                       —   

US Pharmaceuticals

    64.0 %    63.8 %    63.9 %    62.9 %    63.5 %    61.9 %    63.1 %    64.3 %    65.1 %    64.7 %                130      80   

CV/Metabolics

    36.0 %    36.4 %    36.2 %    35.6 %    36.0 %    34.5 %    35.6 %    37.8 %    37.6 %    37.7 %                120      150   

Oncology/Virology

    14.5 %    13.7 %    14.1 %    13.8 %    14.0 %    13.7 %    13.9 %    14.1 %    14.3 %    14.2 %                60      10   

Neuroscience

    11.2 %    11.2 %    11.2 %    10.9 %    11.1 %    11.2 %    11.1 %    9.8 %    10.3 %    10.0 %                (90 )    (120 ) 

Immunoscience

    2.3 %    2.5 %    2.4 %    2.6 %    2.4 %    2.5 %    2.5 %    2.6 %    2.9 %    2.8 %                40      40   

Intercon Pharmaceuticals

    4.5 %    4.6 %    4.6 %    4.4 %    4.5 %    4.4 %    4.5 %    4.7 %    4.2 %    4.4 %                (40 )    (20 ) 

JPAC Pharmaceuticals

    7.5 %    8.0 %    7.8 %    8.2 %    7.9 %    8.5 %    8.1 %    7.7 %    8.5 %    8.1 %                50      30   

Emerging Markets

    3.8 %    3.7 %    3.8 %    4.2 %    3.9 %    4.2 %    4.0 %    4.2 %    4.2 %    4.2 %                50      40   

Europe Pharmaceuticals

    19.1 %    18.9 %    19.0 %    19.0 %    19.0 %    19.9 %    19.3 %    18.4 %    17.2 %    17.8 %                (170 )    (120 ) 

 

1

BRISTOL-MYERS SQUIBB COMPANY

SALES AND COMPOSITION OF CHANGE IN SALES FOR CONTINUING OPERATIONS

FOR THE PERIOD ENDED JUNE 30, 2010

($ in millions)

QUARTER-TO-DATE

 

     US     Non-US    Total  

Price Increases/(Decreases)

      3%        -3%      1%   

Foreign Exchange

      —        1%      —   

Volume

      1%        —      1%   
                       

Total Change

      4%        -2%      2%   
                       

Total 2010 Period to Date Sales

    $ 3,105      $ 1,663    $ 4,768   

Total 2009 Period to Date Sales

    $ 2,974      $ 1,691    $ 4,665   

YEAR-TO-DATE

 

     US     Non-US    Total

Price Increases/(Decreases)

      5%        -2%      2%

Foreign Exchange

      —        4%      2%

Volume

      3%        2%      3%
                     

Total Change

      8%        4%      7%
                     

Total 2010 Period to Date Sales

    $ 6,194      $ 3,381    $ 9,575

Total 2009 Period to Date Sales

    $ 5,740      $ 3,247    $ 8,987

 

2

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS FROM CONTINUING OPERATIONS

($ in millions, except per share amounts)

 

    2009     2010   % 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 Sales

   $ 4,322      $ 4,665      $ 8,987      $ 4,788      $ 13,775      $ 5,033      $ 18,808      $ 4,807      $ 4,768      $ 9,575              2%       7%    

Cost of products sold

     1,165        1,225        2,390        1,317        3,707        1,433        5,140        1,306        1,277        2,583              4%       8%    

Marketing, selling and administrative

     901        922        1,823        953        2,776        1,170        3,946        900        894        1,794              -3%       -2%    

Advertising and product promotion

     248        298        546        256        802        334        1,136        212        263        475              -12%       -13%    

Research and development

     908        811        1,719        820        2,539        1,108        3,647        910        822        1,732              1%       1%    

Provision for restructuring, net

     19        19        38        51        89        47        136        11        24        35              26%       -8%    

Litigation expense, net

     104        28        132        —        132        —        132        —        —        —              -100%       100%    

Equity in net income of affiliates

     (146 )      (150 )      (296 )      (139 )      (435 )      (115 )      (550 )      (97 )      (85 )      (182 )            -43%       -39%    

Other (income)/expense, net

     (72 )      (10 )      (82 )      (35 )      (117 )      (264 )      (381 )      113        (19 )      94              90%       *    
                                                                                                       

Total expenses

     3,127        3,143        6,270        3,223        9,493        3,713        13,206        3,355        3,176        6,531              1%       4%    

Earnings from Continuing Operations Before Income Taxes

   $ 1,195      $ 1,522      $ 2,717      $ 1,565      $ 4,282      $ 1,320      $ 5,602      $ 1,452      $ 1,592      $ 3,044              5%       12%    

Provision for income taxes

     275        353        628        366        994        188        1,182        351        324        675              -8%       7%    
                                                                                                       

Net Earnings from Continuing Operations

   $ 920      $ 1,169      $ 2,089      $ 1,199      $ 3,288      $ 1,132      $ 4,420      $ 1,101      $ 1,268      $ 2,369              8%       13%    

Net Earnings Attributable to Noncontrolling Interest

     271        289        560        307        867        314        1,181        358        341        699              18%       25%    
                                                                                                       

Net Earnings from Continuing Operations Attributable to BMS Company

   $ 649      $ 880      $ 1,529      $ 892      $ 2,421      $ 818      $ 3,239      $ 743      $ 927      $ 1,670              5%       9%    
                                                                                                       

Contingently convertible debt interest expense and dividends attributable to unvested shares

     (4 )      (5 )      (8 )      (5 )      (13 )      (4 )      (17 )      (3 )      (3 )      (7 )            -40%       -13%    
                                                                                                       

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to BMS Company

   $ 645      $ 875      $ 1,521      $ 887      $ 2,408      $ 814      $ 3,222      $ 740      $ 924      $ 1,663              6%       9%    
                                                                                                       

Diluted Earnings Attributable to BMS Company per Common Share** - Continuing Operations

   $ 0.33      $ 0.44      $ 0.77      $ 0.45      $ 1.21      $ 0.41      $ 1.63      $ 0.43      $ 0.53      $ 0.96              20%       25%    

Average Common Shares Outstanding - Diluted

     1,981        1,983        1,982        1,984        1,982        1,967        1,978        1,725        1,728        1,727              -13%       -13%    

Dividends declared per common share

   $ 0.31      $ 0.31      $ 0.62      $ 0.31      $ 0.93      $ 0.32      $ 1.25      $ 0.32      $ 0.32      $ 0.64              3%       3%    

 

% of Net Sales
    2009   2010   Basis Point 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

Gross Margin

     73.0%     73.7%     73.4%     72.5%     73.1%     71.5%     72.7%     72.8%     73.2%     73.0%           (50)       (40)    

Cost of products sold

     27.0%     26.3%     26.6%     27.5%     26.9%     28.5%     27.3%     27.2%     26.8%     27.0%           50        40     

Marketing, selling and administrative

     20.8%     19.8%     20.3%     19.9%     20.2%     23.2%     21.0%     18.7%     18.8%     18.7%           (100)       (160)    

Advertising and product promotion

     5.7%     6.4%     6.1%     5.3%     5.8%     6.6%     6.0%     4.4%     5.5%     5.0%           (90)       (110)    

Research and development

     21.0%     17.4%     19.1%     17.1%     18.4%     22.0%     19.4%     18.9%     17.2%     18.1%           (20)       (100)    

Total expenses

     72.4%     67.4%     69.8%     67.3%     68.9%     73.8%     70.2%     69.8%     66.6%     68.2%           (80)       (160)    

Earnings from Continuing Operations Before Income Taxes

     27.6%     32.6%     30.2%     32.7%     31.1%     26.2%     29.8%     30.2%     33.4%     31.8%           80        160     

Net Earnings from Continuing Operations Attributable to BMS Company

     15.0%     18.9%     17.0%     18.6%     17.6%     16.3%     17.2%     15.5%     19.4%     17.4%           50        40     

Other Ratios

                                

Effective Tax Rate

     23.0%     23.2%     23.1%     23.4%     23.2%     14.2%     21.1%     24.2%     20.4%     22.2%           (280)       (90)    
                                                                                   
Other (Income)/Expense, net
    2009   2010   % 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

   $ 52   $ 42   $ 94   $ 47   $ 141   $ 43   $ 184   $ 33   $ 32   $ 65           -24%       -31%    

Interest income

     (13)     (14)     (27)     (13)     (40)     (14)     (54)     (15)     (16)     (31)           14%       15%    

Impairment and loss on sale of manufacturing operations

     —     —     —     —     —     —     —     200     15     215           —       —    

(Gain)/Loss on debt buyback and termination of interest rate swap agreements

     —     (11)     (11)     4     (7)     —     (7)     —     —     —           -100%       -100%    

Net Foreign exchange transaction (gains)/losses

     (13)     17     4     13     17     (15)     2     (16)     (16)     (32)           194%       *    

Gain on sale of product lines, businesses and assets

     (44)     (11)     (55)     (17)     (72)     (288)     (360)     (10)     (5)     (15)           -55%       -73%    

Medarex acquisition

     —     —     —     (10)     (10)     —      (10)     —     —     —           —       —    

Net royalty income and amortization of upfront licensing and milestone payments received from alliance partners

     (35)     (34)     (69)     (50)     (119)     (29)     (148)     (50)     (44)     (94)           29%       36%    

Pension curtailment and settlement charges

     —     25     25     —     25     18     43     —     14     14           -44%       -44%    

Other

     (19)     (24)     (43)     (9)     (52)     21     (31)     (29)     1     (28)           -104%       -35%    
                                                                                   
  $ (72)   $ (10)   $ (82)   $ (35)   $ (117)   $ (264)   $ (381)     113   $ (19)   $ 94           90%       *    
                                                                                   

 

* in excess of +/- 200%
** quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations.

 

3

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT

FOR THE PERIOD ENDED JUNE 30, 2010

(Unaudited, amounts in millions except per share data)

QUARTER-TO-DATE

 

      2010    2009    Growth $     Growth %     Favorable /
(Unfavorable)
FX Impact $ *		     2010
Excluding FX		    Favorable /
(Unfavorable)
FX Impact % *		    Growth %
Excluding FX		  

Net sales

    $ 4,768    $ 4,665    103      2 %    14      4,754    —    2 % 

Marketing, selling and administrative (a)

      894      922    (28 )    -3 %    3      897    —    -3 % 

Marketing, selling and

administrative excluding

specified items (b)

      888      897    (9 )    -1 %    2      890    —    -1 % 

Advertising and product

promotion

      263      298    (35 )    -12 %    (1 )    262    —    -12 % 

Research and development

      822      811    11      1 %    1      823    —    1 % 

Research and development

excluding specified items (b)

      805      782    23      3 %    1      806    —    3 % 

(a) General and administrative

      335      339    (4 )    -1 %    (1 )    334    —    -1 % 

General and

administrative

excluding specified

items (c)

      329      314    15      5 %    (1 )    328    —    5 % 

(b) Please refer to the Specified Items QTD tab for detail of specified items and the GAAP to Non-GAAP P&L tab for reconciliation.

   

(c) The following table provides a reconciliation of General and administrative GAAP to Non-GAAP figures:

  

     2010    2009                                   

General and administrative

      335      339               

Specified Items:

                     

Process standardization implementation costs

      6      25               
                            

General and administrative excluding specified items

      329      314               
                            
YEAR-TO-DATE                .      
     2010    2009    Growth $     Growth %     Favorable /
(Unfavorable)
FX Impact $ *		     2010
Excluding FX		    Favorable /
(Unfavorable)
FX Impact % *		    Growth %
Excluding FX		  

Net sales

    $ 9,575    $ 8,987    588      7%      145      9,430    2%    5%   

Marketing, selling and administrative (a)

      1,794      1,823    (29 )    -2%      (26 )    1,768    -1%    -3%   

Marketing, selling and

administrative excluding

specified items (b)

      1,775      1,778    (3 )    —      (26 )    1,749    -1%    -1%   

Advertising and product

promotion

      475      546    (71 )    -13%      (7 )    468    -1%    -14%   

Research and development

      1,732      1,719    13      1%      (12 )    1,720    -1%    —   

Research and development

excluding specified items (b)

      1,660      1,545    115      7%      (13 )    1,647    -1%    6%   

(a) General and administrative

      678      671    7      1%      (9 )    669    -1%    —   

General and

administrative

excluding specified

items (c)

      659      626    33      5%      (9 )    650    -1%    4%   

(b) Please refer to the Specified Items YTD tab for detail of specified items and the GAAP to Non-GAAP P&L tab for reconciliation.

   

(c) The following table provides a reconciliation table of General and administrative GAAP to Non-GAAP figures:

  

     2010    2009                                   

General and administrative

      678      671               

Specified Items:

                     

Process standardization

implementation costs

      19      45               
                            

General and administrative

excluding specified items

      659      626               
                            

 

* The company calculates the foreign exchange (FX) impact by determining the change in a line item’s current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact.

 

4

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT

FOR THE PERIOD ENDED JUNE 30, 2010

(Unaudited, amounts in millions except per share data)

QUARTER-TO-DATE

 

     2010    2009    Growth $     Growth %   Favorable /
(Unfavorable)
FX Impact $ *		   2010
Excluding FX
    Favorable /
(Unfavorable)
FX Impact % *		   Growth %
Excluding FX

Plavix

    1,627    1,539    88        6%    8    1,619    —     6%

Avapro/Avalide

    307    313    (6 )     -2%    5       302     1%    -3%

Abilify

    633    643    (10 )     -2%   (4)      637    -1%    -1%

Reyataz

    357    331    26        8%   (3)      360    -1%     9%

Sustiva Franchise

    331    312    19        6%   (4)      335    -1%     7%

Baraclude

    223    179    44      25%    4       219     2%   23%

Orencia

    178    148    30      20%   —      178    —   20%

Erbitux

    172    173    (1 )     -1%   —      172    —   -1%

Sprycel

    132    107    25      23%   —      132    —   23%

Ixempra

    29    29    —      —   —        29    —   —

Onglyza

    28    —    28       N/A    —        28     N/A     N/A 

YEAR-TO-DATE

 

     2010    2009    Growth $    Growth %   Favorable /
(Unfavorable)
FX Impact $ *		    2010
Excluding FX
    Favorable /
(Unfavorable)
FX Impact % *		   Growth %
Excluding FX

Plavix

    3,293    2,974    319    11%   26    3,267      1%   10%

Avapro/Avalide

    621    615    6      1%   19    602      3%    -2%

Abilify

    1,250    1,232    18      1%     5    1,245    —     1%

Reyataz

    730    653    77    12%     9    721      1%   11%

Sustiva Franchise

    666    604    62    10%     4    662      1%     9%

Baraclude

    439    331    108    33%   14    425      4%   29%

Orencia

    347    272    75    28%     3    344      1%   27%

Erbitux

    338    337    1    —   —    338    —   —

Sprycel

    263    195    68    35%     8    255      4%   31%

Ixempra

    58    53    5      9%   —    58    —     9%

Onglyza

    38    —    38     N/A    —    38     N/A     N/A 

 

* The company calculates the foreign exchange (FX) impact by determining the change in a product’s current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact.

 

5

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

 

    2009   2010   % Change   FX Impact
    1st Qtr   2nd Qtr   6 Months   3rd Qtr   9 Months   4th Qtr   Year   1st Qtr   2nd Qtr   6 Months   3rd Qtr   9 Months   4th Qtr   Year   Qtr vs. Qtr   YTD vs. YTD   Qtr vs. Qtr   YTD vs. YTD

TOTAL

   4,322   4,665   8,987   4,788   13,775   5,033   18,808   4,807   4,768   9,575           2%   7%   —     2%

Cardiovascular

   1,892   2,050   3,942   2,055   5,997   2,118   8,115   2,129   2,069   4,198           1%   6%   1%   1%

Plavix

   1,435   1,539   2,974   1,554   4,528   1,618   6,146   1,666   1,627   3,293           6%   11%   1%   1%

Avapro/Avalide

   302   313   615   329   944   339   1,283   314   307   621           -2%   1%   1%   3%

Virology

   794   848   1,642   890   2,532   981   3,513   945   929   1,874           10%   14%   —     2%

Reyataz

   322   331   653   360   1,013   388   1,401   373   357   730           8%   12%   -1%   1%

Sustiva Franchise (a)

   292   312   604   315   919   358   1,277   335   331   666           6%   10%   -1%   1%

Baraclude

   152   179   331   191   522   212   734   216   223   439           25%   33%   2%   4%

Oncology

   407   450   857   447   1,304   437   1,741   435   444   879           -1%   3%   1%   2%

Erbitux

   164   173   337   179   516   167   683   166   172   338           -1%   —     —     —  

Sprycel

   88   107   195   107   302   119   421   131   132   263           23%   35%   —     4%

Ixempra

   24   29   53   28   81   28   109   29   29   58           —     9%   —     —  

Neuroscience

   621   660   1,281   668   1,949   727   2,676   635   650   1,285           -2%   —     —     1%

Abilify (b)

   589   643   1,232   653   1,885   707   2,592   617   633   1,250           -2%   1%   -1%   —  

Immunoscience

   124   148   272   162   434   168   602   169   178   347           20%   28%   —     1%

Orencia

   124   148   272   162   434   168   602   169   178   347           20%   28%   —     1%

Metabolics

   25   36   61   52   113   30   143   37   55   92           53%   51%   -1%   —  

Onglyza

   —   —   —   20   20   4   24   10   28   38           N/A   N/A   N/A   N/A

 

* In excess of +/- 200%
(a) The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla.
(b) Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd.

 

6

BRISTOL-MYERS SQUIBB COMPANY

DOMESTIC NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

 

    2009   2010   % Change   % Change in U.S. Total
Prescription**
    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

TOTAL

   2,766   2,974   5,740   3,012   8,752   3,115   11,867   3,089   3,105   6,194           4%   8%    

Cardiovascular

   1,515   1,652   3,167   1,650   4,817   1,693   6,510   1,770   1,707   3,477           3%   10%    

Plavix

   1,296   1,393   2,689   1,406   4,095   1,461   5,556   1,531   1,496   3,027           7%   13%   -1%   1%

Avapro/Avalide

   173   179   352   186   538   184   722   186   170   356           -5%   1%   -17%   -15%

Virology

   406   404   810   424   1,234   466   1,700   445   441   886           9%   9%    

Reyataz

   176   169   345   186   531   196   727   186   185   371           9%   8%   6%   7%

Sustiva Franchise (a)

   190   194   384   195   579   224   803   214   213   427           10%   11%   10%   10%

Baraclude

   36   39   75   41   116   44   160   42   42   84           8%   12%   15%   14%

Oncology

   218   233   451   233   684   219   903   233   239   472           3%   5%    

Erbitux

   162   171   333   175   508   163   671   163   168   331           -2%   -1%   N/A   N/A

Sprycel

   30   33   63   28   91   32   123   38   42   80           27%   27%   7%   7%

Ixempra

   22   26   48   26   74   25   99   25   26   51           —     6%   N/A   N/A

Neuroscience

   491   513   1,004   520   1,524   566   2,090   473   494   967           -4%   -4%    

Abilify (b)

   481   518   999   520   1,519   563   2,082   470   491   961           -5%   -4%   5%   7%

Immunoscience

   99   116   215   126   341   126   467   126   137   263           18%   22%    

Orencia

   99   116   215   126   341   126   467   126   137   263           18%   22%   N/A   N/A

Metabolics

   11   21   32   36   68   12   80   16   30   46           43%   44%    

Onglyza

   —   —   —   20   20   2   22   6   23   29           N/A   N/A   N/A   N/A

 

* In excess of +/- 200%
** The data is provided by Wolters Kluwer Health (WK), except for SPRYCEL, and based on the Source Prescription Audit which is a product of WK’s own recordkeeping and projection processes. As such, the data is subject to the inherent limitations of estimates based on sampling and may include a margin of error. The change in SPRYCEL demand is calculated based upon tablets sold though retail and mail order channels based upon data obtained from the IMS Health (IMS) National Sales Perspectives Audit, which is a product of IMS’s own recordkeeping and projection processes. As such, the data is subject to the inherent limitations of estimates based on sampling and may include a margin of error. ERBITUX, IXEMPRA and ORENCIA are parenterally administered products and do not have prescription-level data as physicians do not write prescriptions for these products.
(a) The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. The change in U.S. total prescriptions growth for the Sustiva Franchise includes both branded Sustiva and Atripla prescription units.
(b) Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. The following table provides a reconciliation of the impact for extending the term of the commercialization and manufacturing agreement and U.S. healthcare reform.

 

     2009    2010    % Change
     2nd Qtr    6 Months    2nd Qtr    6 Months    Qtr vs. Qtr    YTD vs. YTD

Abilify Net Sales As Reported

    518    999    491    961    -5%    -4%

Contractual share change from 65% to 58%

    —    —    59    116    N/A    N/A

Incremental amortization of extension payment

    —    —    —    16    N/A    N/A

U.S. healthcare reform

    —    —    27    54    N/A    N/A
                             

Abilify Net Sales - Adjusted

    518    999    577    1,147    11%    15%
                             

 

7

BRISTOL-MYERS SQUIBB COMPANY

INTERNATIONAL NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

 

    2009   2010   % Change   FX Impact
    1st Qtr   2nd Qtr   6 Months   3rd Qtr   9 Months   4th Qtr   Year   1st Qtr   2nd Qtr   6 Months   3rd Qtr   9 Months   4th Qtr   Year   Qtr vs. Qtr   YTD vs. YTD   Qtr vs. Qtr   YTD vs. YTD

TOTAL

   1,556   1,691   3,247   1,776   5,023   1,918   6,941   1,718   1,663   3,381           -2%   4%   1%   4%

Cardiovascular

   377   398   775   405   1,180   425   1,605   359   362   721           -9%   -7%   3%   6%

Plavix

   139   146   285   148   433   157   590   135   131   266           -10%   -7%   5%   8%

Avapro/Avalide

   129   134   263   143   406   155   561   128   137   265           2%   1%   3%   7%

Virology

   388   444   832   466   1,298   515   1,813   500   488   988           10%   19%   -1%   4%

Reyataz

   146   162   308   174   482   192   674   187   172   359           6%   17%   -2%   3%

Sustiva Franchise (a)

   102   118   220   120   340   134   474   121   118   239           —     9%   -4%   2%

Baraclude

   116   140   256   150   406   168   574   174   181   355           29%   39%   3%   6%

Oncology

   189   217   406   214   620   218   838   202   205   407           -6%   —     2%   4%

Erbitux

   2   2   4   4   8   4   12   3   4   7           100%   75%   9%   9%

Sprycel

   58   74   132   79   211   87   298   93   90   183           22%   39%   0%   6%

Ixempra

   2   3   5   2   7   3   10   4   3   7           —     40%   4%   4%

Neuroscience

   130   147   277   148   425   161   586   162   156   318           6%   15%   -2%   4%

Abilify (b)

   108   125   233   133   366   144   510   147   142   289           14%   24%   -2%   3%

Immunoscience

   25   32   57   36   93   42   135   43   41   84           28%   47%   —     6%

Orencia

   25   32   57   36   93   42   135   43   41   84           28%   47%   —     6%

Metabolics

   14   15   29   16   45   18   63   21   25   46           67%   59%   -2%   -1%

Onglyza

   —   —   —   —   —   2   2   4   5   9           N/A   N/A   N/A   N/A

 

* In excess of +/- 200%
(a) The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla.
(b) Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd.

 

8

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2010

(Unaudited, amounts in millions except per share data)

 

     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 4,768      —      $ 4,768   

Cost of products sold

      1,277      (27 )      1,250   
                  

Gross Profit

      3,491      27        3,518   

Gross profit as a % of sales

      73.2 %    0.6 %      73.8 % 

Marketing, selling and administrative

      894      (6 )      888   

Advertising and product promotion

      263      —        263   
                  

Total SG&A

      1,157      (6 )      1,151   

SG&A as a % of sales

      24.3 %    (0.2 )%      24.1 % 

Research and development

      822      (17 )      805   

R&D as a % of sales

      17.2 %    (0.3 )%      16.9 % 

Operating Margin

      1,512      50        1,562   

Operating Margin as a % of sales

      31.7 %    1.1 %      32.8 % 

Provision for restructuring, net

      24      (24 )      —   

Litigation expense, net

      —      —        —   

Equity in net income of affiliates

      (85 )    —        (85 ) 

Other income, net

      (19 )    (20 )      (39 ) 
                  

Earnings from Continuing Operations Before Income Taxes

    $ 1,592      94      $ 1,686   

Provision for income taxes

      324      77        401   
                  

Net Earnings - Continuing Operations

    $ 1,268      17      $ 1,285   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      341          341   
                  

Net Earnings - Continuing Operations Attributable to BMS Company

    $ 927      17      $ 944   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      (3 )        (3 ) 
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations

       

-Attributable to BMS Company

    $ 924      17      $ 941   

Average Common Shares Outstanding - Diluted

      1,728          1,728   

Diluted EPS - Continuing Operations Attributable to BMS Company

    $ 0.53      0.01      $ 0.54   

Net Earnings from Continuing Operations Attributable to BMS Company as a % of sales

      19.4 %    0.4 %      19.8 % 

Effective Tax Rate

      20.4 %    3.4 %      23.8 % 

 

9

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2010

(Unaudited, amounts in millions except per share data)

 

     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 9,575      —      $ 9,575   

Cost of products sold

      2,583      (58 )      2,525   
                  

Gross Profit

      6,992      58        7,050   

Gross profit as a % of sales

      73.0 %    0.6 %      73.6 % 

Marketing, selling and administrative

      1,794      (19 )      1,775   

Advertising and product promotion

      475      —        475   
                  

Total SG&A

      2,269      (19 )      2,250   

SG&A as a % of sales

      23.7 %    (0.2 )%      23.5 % 

Research and development

      1,732      (72 )      1,660   

R&D as a % of sales

      18.1 %    (0.8 )%      17.3 % 

Operating Margin

      2,991      149        3,140   

Operating Margin as a % of sales

      31.2 %    1.6 %      32.8 % 

Provision for restructuring, net

      35      (35 )      —   

Litigation expense, net

      —      —        —   

Equity in net income of affiliates

      (182 )    —        (182 ) 

Other income, net

      94      (220 )      (126 ) 
                  

Earnings from Continuing Operations Before Income Taxes

    $ 3,044      404      $ 3,448   

Provision for income taxes

      675      163        838   
                  

Net Earnings - Continuing Operations

    $ 2,369      241      $ 2,610   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      699          699   
                  

Net Earnings - Continuing Operations Attributable to BMS Company

    $ 1,670      241      $ 1,911   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      (7 )        (7 ) 
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations

       

-Attributable to BMS Company

    $ 1,663      241      $ 1,904   

Average Common Shares Outstanding - Diluted

      1,727          1,727   

Diluted EPS - Continuing Operations Attributable to BMS Company

    $ 0.96      0.14      $ 1.10   

Net Earnings from Continuing Operations Attributable to BMS Company as a % of sales

      17.4 %    2.6 %      20.0 % 

Effective Tax Rate

      22.2 %    2.1 %      24.3 % 

 

10

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009

($ in millions)

Three months ended June 30, 2010

 

      Cost of
products sold		    Marketing,
selling and
administrative		    Research and
development		    Provision
for
restructuring		    Other (income)/
expense		    Total  

Restructuring Activity:

                  

Downsizing and streamlining of worldwide operations

    $ —    $ —    $ —    $ 24    $ —    $ 24   

Impairment and loss on sale of manufacturing operations

      —      —      —      —      15      15   

Accelerated depreciation, asset impairment and other shutdown costs

      27      —      —      —      —      27   

Pension settlements/curtailments

      —      —      —      —      5      5   

Process standardization implementation costs

      —      6      —      —      —      6   
                                           

Total Restructuring

      27      6      —      24      20      77   

Other:

                  

Upfront licensing, milestone and other payments

      —      —      17      —      —      17   
                                           

Total

    $ 27    $ 6    $ 17    $ 24    $ 20      94   
                                     

Income taxes on items above

                     (18 ) 

Out-of-period tax adjustment

                     (59 ) 
                       

Decrease to Net Earnings from Continuing Operations

                     17   
                       

Three months ended June 30, 2009

 

      Cost of
products sold		    Marketing,
selling and
administrative		    Research and
development		    Provision
for
restructuring		    Litigation
expense		    Other (income)/
expense		     Total  

Restructuring Activity:

                    

Downsizing and streamlining of worldwide operations

    $ —    $ —    $ —    $ 17    $ —    $ —      $ 17   

Accelerated depreciation, asset impairment and other shutdown costs

      24      —      —      2      —      —        26   

Pension settlements/curtailments

      —      —      —      —      —      25        25   

Process standardization implementation costs

      —      25      —      —      —      —        25   

Gain on sale of product lines, businesses and assets

      —      —      —      —      —      (11 )      (11 ) 
                                                   

Total Restructuring

      24      25      —      19      —      14        82   

Other:

                    

Litigation charges

      —      —      —      —      28      —        28   

Upfront licensing and milestone payments

      —      —      29      —      —      —        29   

Debt buyback and swap terminations

      —      —      —      —      —      (11 )      (11 ) 
                                                   

Total

    $ 24    $ 25    $ 29    $ 19    $ 28    $ 3        128   
                                             

Income taxes on items above

                       (42 ) 
                         

Decrease to Net Earnings from Continuing Operations

                     $ 86   
                         

 

11

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009

($ in millions)

 

Six months ended June 30, 2010

                  

 

     Cost of
products sold		    Marketing
selling and
administrative		    Research and
development		    Provision for
restructuring		    Other (income)/
expense		    Total  

Restructuring Activity:

                  

Downsizing and streamlining of worldwide operations

    $ —    $ —    $ —    $ 35    $ —    $ 35   

Impairment and loss on sale of manufacturing operations

      —      —      —      —      215      215   

Accelerated depreciation, asset impairment and other shutdown costs

      58      —      —      —      —      58   

Pension settlements/curtailments

      —      —      —      —      5      5   

Process standardization implementation costs

      —      19      —      —      —      19   
                                           

Total Restructuring

      58      19      —      35      220      332   

Other:

                  

Upfront licensing, milestone and other payments

      —      —      72      —      —      72   
                                           

Total

    $ 58    $ 19    $ 72    $ 35    $ 220      404   
                                     

Income taxes on items above

                     (104 ) 

Out-of-period tax adjustment

                     (59 ) 
                       

Decrease to Net Earnings from Continuing Operations

                   $ 241   
                       

 

Six months ended June 30, 2009

                  

 

     Cost of
products sold		    Marketing
selling and
administrative		    Research and
development		    Provision for
restructuring		    Litigation
expense		    Other (income)/
expense		     Total  

Restructuring Activity:

                    

Downsizing and streamlining of worldwide operations

    $ —    $ —    $ —    $ 32    $ —    $ —      $ 32   

Accelerated depreciation, asset impairment and other shutdown costs

      50      —      —      6      —      —        56   

Pension settlements/curtailments

      —      —      —      —      —      25        25   

Process standardization implementation costs

      —      45      —      —      —      —        45   

Gain on sale of product lines, businesses and assets

      —      —      —      —      —      (55 )      (55 ) 
                                                   

Total Restructuring

      50      45      —      38      —      (30 )      103   

Other:

                    

Litigation charges

      —      —      —      —      132      —        132   

Upfront licensing and milestone payments

      —      —      174      —      —      —        174   

Debt buyback and swap terminations

      —      —      —      —      —      (11 )      (11 ) 

Product liability

      8      —      —      —      —      (5 )      3   
                                                   

Total

    $ 58    $ 45    $ 174    $ 38    $ 132    $ (46 )      401   
                                             

Income taxes on items above

                       (135 ) 
                         

Decrease to Net Earnings from Continuing Operations

                     $ 266   
                         

 

12

BRISTOL-MYERS SQUIBB COMPANY

SELECTED BALANCE SHEET INFORMATION

($ in millions)

 

     March 31,
2009		    June 30,
2009		    September 30,
2009		    December 31,
2009		    March 31,
2010		    June 30,
2010		    September 30,
2010		    December 31,
2010

Cash and cash equivalents

    $ 7,832    $ 7,507    $ 6,367    $ 7,683    $ 5,135    $ 5,918      

Marketable securities - current

      1,088      613      302      831      1,641      1,536      

Marketable securities - long term

      184      983      1,202      1,369      2,997      2,795      

Short-term borrowings

      156      124      286      231      208      290      

Long-term debt

      6,492      6,235      6,307      6,130      6,081      6,248      
                                                       

Net (debt) / cash

    $ 2,456    $ 2,744    $ 1,278    $ 3,522    $ 3,484    $ 3,711    $ —      $ —  
                                                       

 

13

BRISTOL-MYERS SQUIBB COMPANY

2010 FULL YEAR PROJECTED DILUTED EPS FROM CONTINUING OPERATIONS

EXCLUDING PROJECTED SPECIFIED ITEMS

 

     Full Year 2010  

Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP

    $ 1.84 to $1.94   

Projected Specified Items:

   

Downsizing and streamlining of worldwide operations

      0.15   

Accelerated depreciation and other shutdown costs

      0.08   

Upfront and milestone payments and other

      0.03   

Certain tax-related items

      (0.03 ) 
        

Total

      0.23   
        

Projected Diluted Earnings Attributable to Shareholders per Common Share - Non-GAAP

    $ 2.10 to $2.20   
        

Gross margin on a GAAP basis for the six months ended June 30, 2010 was 73.0%, which included specified items of $58 million and had a 0.6% adverse impact on gross margin in aggregate. On a non-GAAP basis, for the six months ended June 30, 2010 gross margin was 73.6%. On a non-GAAP basis, the Company projects gross margin for the full year 2010 to remain consistent with last year. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on gross margin. See GAAP to Non-GAAP PL Reconciliation - June YTD tab.

Research and development expenses on a GAAP basis for the six months ended June 30, 2010 were $1,732 million, which included specified items of $72 million. On a non-GAAP basis, for the six months ended June 30, 2010 research and development expenses were $1,660 million. On a non-GAAP basis, the Company projects research and development expenses for the full year 2010 to increase in the mid to high single digit range compared to 2009. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on research and development. See GAAP to Non-GAAP PL Reconciliation - June YTD tab.

Marketing, selling and administrative expenses, on a GAAP basis for the six months ended June 30, 2010 were $1,794 million, which included specified items of $19 million. On a non-GAAP basis, for the six months ended June 30, 2010 marketing, selling and administrative expenses were $1,775 million. On a non-GAAP basis, the Company projects marketing, selling and administrative expenses for the full year 2010 to remain flat compared to 2009. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on marketing, selling and administrative expense. See GAAP to Non-GAAP PL Reconciliation - June YTD tab.

The effective tax rate on a GAAP basis for the six months ended June 30, 2010 was 22.2%, which included specified items of $163 million in the tax provision, and had a 2.1% impact on the effective tax rate in aggregate. On a non-GAAP basis, for the six months ended June 30, 2010 effective tax rate was 24.3%. On a non-GAAP basis, based on historical trends in 2009 the Company projects the annual effective tax rate between 23% and 24% for the full year 2010. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on the tax rate. See GAAP to Non-GAAP PL Reconciliation - June YTD tab.

The GAAP results for the full year 2010 will include specified items that may occur and impact results, including expected charges associated with downsizing and streamlining worldwide operations, accelerated depreciation, upfront and milestone payments and certain tax-related items. The GAAP results for the full year 2010 could also include other specified items that have not yet been identified and quantified, including any gains or losses from the purchase or sale of business or product lines, charges and recoveries relating to significant legal proceedings, debt retirement costs and other charges related to new transactions, additional upfront and milestone payments, copromotion or alliance charges and charges for in-process research and development related to new external development transactions, gains or losses from asset disposals, other restructuring activities, impairments to marketable securities and significant tax events. For a fuller discussion of certain litigation and other matters that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Company Reports Financial Results For The Second Quarter of 2010, July 22, 2010, including “2010 Guidance” and “Use of Non-GAAP Financial Information” therein.

With respect to the 2013 minimum non-GAAP EPS guidance, there is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on earnings per share.

 

14

BRISTOL MYERS SQUIBB CO Reports