Attached files
| file | filename |
|---|---|
| 8-K - 8-K - BRISTOL MYERS SQUIBB CO | q22015earningsrelease8-k.htm |
| EX-99.1 - PRESS RELEASE OF BRISTOL-MYERS SQUIBB COMPANY DATED JULY 23, 2015 - BRISTOL MYERS SQUIBB CO | q22015ex991.htm |
Exhibit 99.2
BRISTOL-MYERS SQUIBB COMPANY
QUARTERLY TREND ANALYSIS OF REVENUES
(Unaudited, dollars in millions)
Revenues | 2014 | 2015 | % 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 | $ | 3,811 | $ | 3,889 | $ | 7,700 | $ | 3,921 | $ | 11,621 | $ | 4,258 | $ | 15,879 | $ | 4,041 | $ | 4,163 | $ | 8,204 | 7% | 7% | (9)% | (7)% | ||||||||||||||||||||||||||||||||
US and Puerto Rico | 1,765 | 1,901 | 3,666 | 1,968 | 5,634 | 2,082 | 7,716 | 2,044 | 1,837 | 3,881 | (3)% | 6% | — | — | ||||||||||||||||||||||||||||||||||||||||||
Europe | 948 | 908 | 1,856 | 814 | 2,670 | 922 | 3,592 | 782 | 974 | 1,756 | 7% | (5)% | (23)% | (19)% | ||||||||||||||||||||||||||||||||||||||||||
Rest of the World | 830 | 811 | 1,641 | 838 | 2,479 | 980 | 3,459 | 1,019 | 1,124 | 2,143 | 39% | 31% | (16)% | (14)% | ||||||||||||||||||||||||||||||||||||||||||
Other | 268 | 269 | 537 | 301 | 838 | 274 | 1,112 | 196 | 228 | 424 | (15)% | (21)% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
% of Revenues | 2014 | 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||
US and Puerto Rico | 46.3 | % | 48.9 | % | 47.6 | % | 50.2 | % | 48.5 | % | 48.9 | % | 48.6 | % | 50.6 | % | 44.1 | % | 47.3 | % | ||||||||||||||||||||||||||||||||||||
Europe | 24.9 | % | 23.3 | % | 24.1 | % | 20.8 | % | 23.0 | % | 21.7 | % | 22.6 | % | 19.4 | % | 23.4 | % | 21.4 | % | ||||||||||||||||||||||||||||||||||||
Rest of the World | 21.8 | % | 20.9 | % | 21.3 | % | 21.4 | % | 21.3 | % | 23.0 | % | 21.8 | % | 25.2 | % | 27.0 | % | 26.1 | % | ||||||||||||||||||||||||||||||||||||
Other | 7.0 | % | 6.9 | % | 7.0 | % | 7.6 | % | 7.2 | % | 6.4 | % | 7.0 | % | 4.8 | % | 5.5 | % | 5.2 | % | ||||||||||||||||||||||||||||||||||||
1
BRISTOL-MYERS SQUIBB COMPANY
EARNINGS FROM OPERATIONS
(Unaudited, dollars and shares in millions except per share data)
2014 | 2015 | % 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 | $ | 2,807 | $ | 2,770 | $ | 5,577 | $ | 2,843 | $ | 8,420 | $ | 3,240 | $ | 11,660 | $ | 3,059 | $ | 3,572 | $ | 6,631 | 29% | 19% | ||||||||||||||||||||||||||||||
Alliance and other revenues | 1,004 | 1,119 | 2,123 | 1,078 | 3,201 | 1,018 | 4,219 | 982 | 591 | 1,573 | (47)% | (26)% | ||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 3,811 | $ | 3,889 | $ | 7,700 | $ | 3,921 | $ | 11,621 | $ | 4,258 | $ | 15,879 | $ | 4,041 | $ | 4,163 | $ | 8,204 | 7% | 7% | ||||||||||||||||||||||||||||||
Cost of products sold | 968 | 991 | 1,959 | 1,007 | 2,966 | 966 | 3,932 | 847 | 1,013 | 1,860 | 2% | (5)% | ||||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 957 | 951 | 1,908 | 1,029 | 2,937 | 1,151 | 4,088 | 894 | 968 | 1,862 | 2% | (2)% | ||||||||||||||||||||||||||||||||||||||||
Advertising and product promotion | 163 | 187 | 350 | 171 | 521 | 213 | 734 | 135 | 167 | 302 | (11)% | (14)% | ||||||||||||||||||||||||||||||||||||||||
Research and development | 946 | 1,416 | 2,362 | 983 | 3,345 | 1,189 | 4,534 | 1,016 | 1,856 | 2,872 | 31% | 22% | ||||||||||||||||||||||||||||||||||||||||
Other (income)/expense | (208 | ) | (104 | ) | (312 | ) | (277 | ) | (589 | ) | 799 | 210 | (299 | ) | 107 | (192 | ) | ** | (38)% | |||||||||||||||||||||||||||||||||
Total Expenses | 2,826 | 3,441 | 6,267 | 2,913 | 9,180 | 4,318 | 13,498 | 2,593 | 4,111 | 6,704 | 19% | 7% | ||||||||||||||||||||||||||||||||||||||||
Earnings/(Loss) Before Income Taxes | $ | 985 | $ | 448 | $ | 1,433 | $ | 1,008 | $ | 2,441 | $ | (60 | ) | $ | 2,381 | $ | 1,448 | $ | 52 | $ | 1,500 | (88)% | 5% | |||||||||||||||||||||||||||||
Provision for Income Taxes | 49 | 114 | 163 | 276 | 439 | (87 | ) | 352 | 249 | 162 | 411 | 42% | ** | |||||||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) | $ | 936 | $ | 334 | $ | 1,270 | $ | 732 | $ | 2,002 | $ | 27 | $ | 2,029 | $ | 1,199 | $ | (110 | ) | $ | 1,089 | ** | (14)% | |||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to Noncontrolling Interest | (1 | ) | 1 | — | 11 | 11 | 14 | 25 | 13 | 20 | 33 | ** | N/A | |||||||||||||||||||||||||||||||||||||||
Net Earnings/(Loss) Attributable to BMS | $ | 937 | $ | 333 | $ | 1,270 | $ | 721 | $ | 1,991 | $ | 13 | $ | 2,004 | $ | 1,186 | $ | (130 | ) | $ | 1,056 | ** | (17)% | |||||||||||||||||||||||||||||
Diluted Earnings/(Loss) per Common Share* | $ | 0.56 | $ | 0.20 | $ | 0.76 | $ | 0.43 | $ | 1.19 | $ | 0.01 | $ | 1.20 | $ | 0.71 | $ | (0.08 | ) | $ | 0.63 | ** | (17)% | |||||||||||||||||||||||||||||
Average Common Shares Outstanding - Diluted | 1,666 | 1,669 | 1,668 | 1,670 | 1,668 | 1,673 | 1,670 | 1,676 | 1,667 | 1,677 | — | 1% | ||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.36 | $ | 0.36 | $ | 0.72 | $ | 0.36 | $ | 1.08 | $ | 0.37 | $ | 1.45 | $ | 0.37 | $ | 0.37 | $ | 0.74 | 3% | 3% | ||||||||||||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||
% 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 | 74.6 | % | 74.5 | % | 74.6 | % | 74.3 | % | 74.5 | % | 77.3 | % | 75.2 | % | 79.0 | % | 75.7 | % | 77.3 | % | ||||||||||||||||||||||||||||||||
Other Ratios | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 5.0 | % | 25.4 | % | 11.4 | % | 27.4 | % | 18.0 | % | 145.0 | % | 14.8 | % | 17.2 | % | 311.5 | % | 27.4 | % | ||||||||||||||||||||||||||||||||
Other (Income)/Expense | 2014 | 2015 | % 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 | $ | 54 | $ | 46 | $ | 100 | $ | 50 | $ | 150 | $ | 53 | $ | 203 | $ | 51 | $ | 49 | $ | 100 | 7% | — | ||||||||||||||||||||||||||||||
Investment income | (23 | ) | (28 | ) | (51 | ) | (20 | ) | (71 | ) | (30 | ) | (101 | ) | (30 | ) | (26 | ) | (56 | ) | (7)% | 10% | ||||||||||||||||||||||||||||||
Provision for restructuring | 21 | 16 | 37 | 35 | 72 | 91 | 163 | 12 | 28 | 40 | 75% | 8% | ||||||||||||||||||||||||||||||||||||||||
Litigation charges/(recoveries) | 29 | (20 | ) | 9 | 10 | 19 | 4 | 23 | 12 | 4 | 16 | ** | 78% | |||||||||||||||||||||||||||||||||||||||
Equity in net income of affiliates | (36 | ) | (33 | ) | (69 | ) | (12 | ) | (81 | ) | (26 | ) | (107 | ) | (26 | ) | (22 | ) | (48 | ) | (33)% | (30)% | ||||||||||||||||||||||||||||||
Out-licensed intangible asset impairment | — | — | — | 18 | 18 | 11 | 29 | 13 | — | 13 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Gain on sale of product lines, businesses and assets | (259 | ) | 7 | (252 | ) | (315 | ) | (567 | ) | 3 | (564 | ) | (154 | ) | (8 | ) | (162 | ) | ** | (36)% | ||||||||||||||||||||||||||||||||
Other alliance and licensing income | (108 | ) | (144 | ) | (252 | ) | (102 | ) | (354 | ) | (50 | ) | (404 | ) | (161 | ) | (124 | ) | (285 | ) | (14)% | 13% | ||||||||||||||||||||||||||||||
Pension curtailments, settlements and special termination benefits | 64 | 45 | 109 | 28 | 137 | 740 | 877 | 27 | 36 | 63 | (20)% | (42)% | ||||||||||||||||||||||||||||||||||||||||
Loss on debt redemption | 45 | — | 45 | — | 45 | — | 45 | — | 180 | 180 | N/A | ** | ||||||||||||||||||||||||||||||||||||||||
Other | 5 | 7 | 12 | 31 | 43 | 3 | 46 | (43 | ) | (10 | ) | (53 | ) | ** | ** | |||||||||||||||||||||||||||||||||||||
$ | (208 | ) | $ | (104 | ) | $ | (312 | ) | $ | (277 | ) | $ | (589 | ) | $ | 799 | $ | 210 | $ | (299 | ) | $ | 107 | $ | (192 | ) | ** | (38)% | ||||||||||||||||||||||||
* Quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations. |
** In excess of +/- 100% |
2
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
FOR THE PERIOD ENDED JUNE 30, 2015
(Unaudited, dollars in millions)
QUARTER-TO-DATE | 2015 | 2014 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2015 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | ||||||||||||||||||
Revenues | $ | 4,163 | $ | 3,889 | $ | 274 | 7% | $ | (342 | ) | $ | 4,505 | (9)% | 16% | ||||||||||||
Gross profit | 3,150 | 2,898 | 252 | 9% | N/A | N/A | N/A | N/A | ||||||||||||||||||
Gross profit excluding specified items(a) | 3,175 | 2,937 | 238 | 8% | N/A | N/A | N/A | N/A | ||||||||||||||||||
Gross profit excluding specified items as a % of revenues | 76.3 | % | 75.5 | % | ||||||||||||||||||||||
Marketing, selling and administrative | 968 | 951 | 17 | 2% | 72 | 1,040 | 7% | 9% | ||||||||||||||||||
Marketing, selling and administrative excluding specified items(a) | 965 | 948 | 17 | 2% | 72 | 1,037 | 7% | 9% | ||||||||||||||||||
Advertising and product promotion | 167 | 187 | (20 | ) | (11)% | 12 | 179 | 7% | (4)% | |||||||||||||||||
SG&A excluding specified items as a % of revenues | 27.2 | % | 29.2 | % | ||||||||||||||||||||||
Research and development | 1,856 | 1,416 | 440 | 31% | 23 | 1,879 | 2% | 33% | ||||||||||||||||||
Research and development excluding specified items(a) | 985 | 958 | 27 | 3% | 23 | 1,008 | 2% | 5% | ||||||||||||||||||
Research and development excluding specified items as a % of revenues | 23.7 | % | 24.6 | % | ||||||||||||||||||||||
YEAR-TO-DATE | 2015 | 2014 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2015 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | ||||||||||||||||||
Revenues | $ | 8,204 | $ | 7,700 | $ | 504 | 7% | $ | (598 | ) | $ | 8,802 | (7)% | 14% | ||||||||||||
Gross profit | 6,344 | 5,741 | 603 | 11% | N/A | N/A | N/A | N/A | ||||||||||||||||||
Gross profit excluding specified items(a) | 6,403 | 5,825 | 578 | 10% | N/A | N/A | N/A | N/A | ||||||||||||||||||
Gross profit excluding specified items as a % of revenues | 78.0 | % | 75.6 | % | ||||||||||||||||||||||
Marketing, selling and administrative | 1,862 | 1,908 | (46 | ) | (2)% | 125 | 1,987 | 6% | 4% | |||||||||||||||||
Marketing, selling and administrative excluding specified items(a) | 1,858 | 1,902 | (44 | ) | (2)% | 125 | 1,983 | 6% | 4% | |||||||||||||||||
Advertising and product promotion | 302 | 350 | (48 | ) | (14)% | 20 | 322 | 6% | (8)% | |||||||||||||||||
SG&A excluding specified items as a % of revenues | 26.3 | % | 29.2 | % | ||||||||||||||||||||||
Research and development | 2,872 | 2,362 | 510 | 22% | 44 | 2,916 | 1% | 23% | ||||||||||||||||||
Research and development excluding specified items(a) | 1,839 | 1,856 | (17 | ) | (1)% | 44 | 1,883 | 2% | 1% | |||||||||||||||||
Research and development excluding specified items as a % of revenues | 22.4 | % | 24.1 | % | ||||||||||||||||||||||
(a) Refer to the Specified Items schedule for further details. | |||
* Foreign exchange (FX) impact determined by 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. | |||
3
BRISTOL-MYERS SQUIBB COMPANY
WORLDWIDE REVENUES FROM OPERATIONS BY PRODUCT
QUARTERLY REVENUES TREND ANALYSIS AND RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
(Unaudited, dollars in millions)
2014 | 2015 | Growth $ | % Change | EX-FX | 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 | QTD $ | YTD $ | Qtr vs. Qtr % | YTD vs. YTD % | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL | $ | 3,811 | $ | 3,889 | $ | 7,700 | $ | 3,921 | $ | 11,621 | $ | 4,258 | $ | 15,879 | $ | 4,041 | $ | 4,163 | $ | 8,204 | $ | 274 | $ | 504 | 7% | 7% | $ | 4,505 | $ | 8,802 | 16% | 14% | (9)% | (7)% | ||||||||||||||||||||||||||||||||||||||||||
Virology(a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 406 | 369 | 775 | 325 | 1,100 | 341 | 1,441 | 340 | 343 | 683 | (26 | ) | (92 | ) | (7)% | (12)% | 371 | 737 | 1% | (5)% | (8)% | (7)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hepatitis C Franchise(b) | — | — | — | 49 | 49 | 207 | 256 | 264 | 479 | 743 | 479 | 743 | N/A | N/A | 579 | 887 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 344 | 362 | 706 | 338 | 1,044 | 318 | 1,362 | 294 | 303 | 597 | (59 | ) | (109 | ) | (16)% | (15)% | 322 | 636 | (11)% | (10)% | (5)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(c) | 319 | 361 | 680 | 357 | 1,037 | 407 | 1,444 | 290 | 317 | 607 | (44 | ) | (73 | ) | (12)% | (11)% | 319 | 611 | (12)% | (10)% | — | (1)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oncology(a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Erbitux | 169 | 186 | 355 | 187 | 542 | 181 | 723 | 165 | 169 | 334 | (17 | ) | (21 | ) | (9)% | (6)% | 169 | 334 | (9)% | (6)% | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Opdivo | — | — | — | 1 | 1 | 5 | 6 | 40 | 122 | 162 | 122 | 162 | N/A | N/A | 122 | 162 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sprycel | 342 | 368 | 710 | 385 | 1,095 | 398 | 1,493 | 375 | 405 | 780 | 37 | 70 | 10% | 10% | 440 | 848 | 20% | 19% | (10)% | (9)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Yervoy | 271 | 321 | 592 | 350 | 942 | 366 | 1,308 | 325 | 296 | 621 | (25 | ) | 29 | (8)% | 5% | 326 | 676 | 2% | 14% | (10)% | (9)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Neuroscience(a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Abilify(d) | 540 | 555 | 1,095 | 449 | 1,544 | 476 | 2,020 | 554 | 107 | 661 | (448 | ) | (434 | ) | (81)% | (40)% | 112 | 670 | (80)% | (39)% | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Immunoscience(a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Orencia(e) | 363 | 402 | 765 | 444 | 1,209 | 443 | 1,652 | 400 | 461 | 861 | 59 | 96 | 15% | 13% | 489 | 914 | 22% | 19% | (7)% | (6)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cardiovascular(a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eliquis | 106 | 171 | 277 | 216 | 493 | 281 | 774 | 355 | 437 | 792 | 266 | 515 | ** | ** | 478 | 860 | ** | ** | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mature Products and All Other(f) | 951 | 794 | 1,745 | 820 | 2,565 | 835 | 3,400 | 639 | 724 | 1,363 | (70 | ) | (382 | ) | (9)% | (22)% | 778 | 1,467 | (2)% | (16)% | (7)% | (6)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Excluding Diabetes Alliance | 3,632 | 3,862 | 7,494 | 3,879 | 11,373 | 4,211 | 15,584 | 3,987 | 4,099 | 8,086 | 237 | 592 | 6% | 8% | 4,441 | 8,684 | 15% | 16% | (9)% | (8)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
** | In excess of 100% |
(a) | Key products listed do not represent all products in the respective therapeutic areas. |
(b) | Includes Daklinza (daclatasvir) and Sunvepra (asunaprevir) revenues of $382M and $97M for the three months ended June 30, 2015, respectively, and $562M and $181M for the six months ended June 30, 2015, respectively. |
(c) | The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla. Includes alliance and other revenue of $276M and $313M for the three months ended June 30, 2015 and 2014, respectively, and $527M and $585M for the six months ended June 30, 2015 and 2014, respectively. |
(d) | Includes alliance and other revenue of $70M and $499M for the three months ended June 30, 2015 and 2014, respectively, and $578M and $940M for the six months ended June 30, 2015 and 2014, respectively. |
(e) | Includes Orencia SubQ revenues of $207M and $160M for the three months ended June 30, 2015 and 2014, respectively, and $383M and $296M for the six months ended June 30, 2015 and 2014, respectively. |
(f) | Represents all other products, including those which have lost exclusivity in major markets, over the counter brands and royalty-related revenue. Includes Diabetes Alliance revenues of $64M and $27M for the three months ended June 30, 2015 and 2014, respectively, and $118M and $206M for the six months ended June 30, 2015 and 2014, respectively. |
4
BRISTOL-MYERS SQUIBB COMPANY
DOMESTIC REVENUES FROM OPERATIONS BY PRODUCT
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
2014 | 2015 | % 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(a) | $ | 1,765 | $ | 1,901 | $ | 3,666 | $ | 1,968 | $ | 5,634 | $ | 2,082 | $ | 7,716 | $ | 2,044 | $ | 1,837 | $ | 3,881 | (3)% | 6% | ||||||||||||||||||||||||||||||
Virology | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 70 | 84 | 154 | 40 | 194 | 21 | 215 | 46 | 37 | 83 | (56)% | (46)% | ||||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 176 | 168 | 344 | 169 | 513 | 176 | 689 | 143 | 157 | 300 | (7)% | (13)% | ||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(b) | 228 | 266 | 494 | 284 | 778 | 340 | 1,118 | 234 | 258 | 492 | (3)% | — | ||||||||||||||||||||||||||||||||||||||||
Oncology | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Erbitux | 158 | 178 | 336 | 175 | 511 | 171 | 682 | 157 | 165 | 322 | (7)% | (4)% | ||||||||||||||||||||||||||||||||||||||||
Opdivo | — | — | — | — | — | 1 | 1 | 38 | 107 | 145 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||
Sprycel | 145 | 163 | 308 | 179 | 487 | 184 | 671 | 181 | 205 | 386 | 26% | 25% | ||||||||||||||||||||||||||||||||||||||||
Yervoy | 146 | 173 | 319 | 191 | 510 | 199 | 709 | 181 | 136 | 317 | (21)% | (1)% | ||||||||||||||||||||||||||||||||||||||||
Neuroscience | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Abilify | 325 | 417 | 742 | 407 | 1,149 | 423 | 1,572 | 508 | 67 | 575 | (84)% | (23)% | ||||||||||||||||||||||||||||||||||||||||
Immunoscience | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Orencia(c) | 229 | 254 | 483 | 292 | 775 | 289 | 1,064 | 259 | 310 | 569 | 22% | 18% | ||||||||||||||||||||||||||||||||||||||||
Cardiovascular | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Eliquis | 61 | 94 | 155 | 113 | 268 | 136 | 404 | 200 | 243 | 443 | ** | ** | ||||||||||||||||||||||||||||||||||||||||
Mature Products and All Other(d) | 227 | 104 | 331 | 118 | 449 | 142 | 591 | 97 | 152 | 249 | 46% | (25)% | ||||||||||||||||||||||||||||||||||||||||
Total Excluding Diabetes Alliance | 1,651 | 1,901 | 3,552 | 1,968 | 5,520 | 2,086 | 7,606 | 2,044 | 1,834 | 3,878 | (4)% | 9% | ||||||||||||||||||||||||||||||||||||||||
** | In excess of 100% |
(a) | Domestic revenues include United States and Puerto Rico. |
(b) | The Sustiva Franchise includes sales of Sustiva, as well as revenue from sales of bulk efavirenz included in the combination therapy, Atripla. |
(c) | Includes Orencia SubQ revenues of $136M and $105M for the three months ended June 30, 2015 and 2014, respectively, and $247M and $198M for the six months ended June 30, 2015 and 2014, respectively. |
(d) | Represents all other products sold in the U.S., including those which have lost exclusivity in major markets. |
5
BRISTOL-MYERS SQUIBB COMPANY
INTERNATIONAL REVENUES FROM OPERATIONS BY PRODUCT
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
2014 | 2015 | % 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 | $ | 2,046 | $ | 1,988 | $ | 4,034 | $ | 1,953 | $ | 5,987 | $ | 2,176 | $ | 8,163 | $ | 1,997 | $ | 2,326 | $ | 4,323 | 17% | 7% | (17)% | (15)% | ||||||||||||||||||||||||||||||||
Virology | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baraclude | 336 | 285 | 621 | 285 | 906 | 320 | 1,226 | 294 | 306 | 600 | 7% | (3)% | (10)% | (8)% | ||||||||||||||||||||||||||||||||||||||||||
Hepatitis C Franchise(a) | — | — | — | 49 | 49 | 207 | 256 | 264 | 479 | 743 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Reyataz Franchise | 168 | 194 | 362 | 169 | 531 | 142 | 673 | 151 | 146 | 297 | (25)% | (18)% | (10)% | (11)% | ||||||||||||||||||||||||||||||||||||||||||
Sustiva Franchise(b) | 91 | 95 | 186 | 73 | 259 | 67 | 326 | 56 | 59 | 115 | (38)% | (38)% | (2)% | (1)% | ||||||||||||||||||||||||||||||||||||||||||
Oncology | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Erbitux | 11 | 8 | 19 | 12 | 31 | 10 | 41 | 8 | 4 | 12 | (50)% | (37)% | (3)% | (2)% | ||||||||||||||||||||||||||||||||||||||||||
Opdivo | — | — | — | 1 | 1 | 4 | 5 | 2 | 15 | 17 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Sprycel | 197 | 205 | 402 | 206 | 608 | 214 | 822 | 194 | 200 | 394 | (2)% | (2)% | (17)% | (17)% | ||||||||||||||||||||||||||||||||||||||||||
Yervoy | 125 | 148 | 273 | 159 | 432 | 167 | 599 | 144 | 160 | 304 | 8% | 11% | (20)% | (20)% | ||||||||||||||||||||||||||||||||||||||||||
Neuroscience | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Abilify(c) | 215 | 138 | 353 | 42 | 395 | 53 | 448 | 46 | 40 | 86 | (71)% | (76)% | (3)% | (3)% | ||||||||||||||||||||||||||||||||||||||||||
Immunoscience | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Orencia | 134 | 148 | 282 | 152 | 434 | 154 | 588 | 141 | 151 | 292 | 2% | 4% | (19)% | (18)% | ||||||||||||||||||||||||||||||||||||||||||
Cardiovascular | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eliquis | 45 | 77 | 122 | 103 | 225 | 145 | 370 | 155 | 194 | 349 | ** | ** | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Mature Products and All Other(d) | 724 | 690 | 1,414 | 702 | 2,116 | 693 | 2,809 | 542 | 572 | 1,114 | (17)% | (21)% | (8)% | (7)% | ||||||||||||||||||||||||||||||||||||||||||
Total Excluding Diabetes Alliance | 1,981 | 1,961 | 3,942 | 1,911 | 5,853 | 2,125 | 7,978 | 1,943 | 2,265 | 4,208 | 16% | 7% | (17)% | (15)% | ||||||||||||||||||||||||||||||||||||||||||
** | In excess of 100% |
(a) | Includes Daklinza (daclatasvir) revenues of $382M and Sunvepra (asunaprevir) revenues of $97M for the three months ended June 30, 2015 and $562M and $181M for the six months ended, June 30, 2015, respectively. |
(b) | The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla. |
(c) | Includes revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. |
(d) | Represents all other products, including those which have lost exclusivity in major markets, over the counter brands and royalty-related revenue. |
6
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO CERTAIN GAAP LINE ITEMS
(Unaudited, dollars in millions)
2014 | 2015 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 2,843 | $ | 2,898 | $ | 5,741 | $ | 2,914 | $ | 8,655 | $ | 3,292 | $ | 11,947 | $ | 3,194 | $ | 3,150 | $ | 6,344 | ||||||||||||||||||||||||||||
Specified items(a) | 45 | 39 | 84 | 36 | 120 | 31 | 151 | 34 | 25 | 59 | ||||||||||||||||||||||||||||||||||||||
Gross profit excluding specified items | 2,888 | 2,937 | 5,825 | 2,950 | 8,775 | 3,323 | 12,098 | 3,228 | 3,175 | 6,403 | ||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 957 | 951 | 1,908 | 1,029 | 2,937 | 1,151 | 4,088 | 894 | 968 | 1,862 | ||||||||||||||||||||||||||||||||||||||
Specified items(a) | (3 | ) | (3 | ) | (6 | ) | (98 | ) | (104 | ) | (1 | ) | (105 | ) | (1 | ) | (3 | ) | (4 | ) | ||||||||||||||||||||||||||||
Marketing, selling and administrative excluding specified items | 954 | 948 | 1,902 | 931 | 2,833 | 1,150 | 3,983 | 893 | 965 | 1,858 | ||||||||||||||||||||||||||||||||||||||
Research and development | 946 | 1,416 | 2,362 | 983 | 3,345 | 1,189 | 4,534 | 1,016 | 1,856 | 2,872 | ||||||||||||||||||||||||||||||||||||||
Specified items(a) | (48 | ) | (458 | ) | (506 | ) | (65 | ) | (571 | ) | (50 | ) | (621 | ) | (162 | ) | (871 | ) | (1,033 | ) | ||||||||||||||||||||||||||||
Research and development excluding specified items | 898 | 958 | 1,856 | 918 | 2,774 | 1,139 | 3,913 | 854 | 985 | 1,839 | ||||||||||||||||||||||||||||||||||||||
Other (income)/expense | (208 | ) | (104 | ) | (312 | ) | (277 | ) | (589 | ) | 799 | 210 | (299 | ) | 107 | (192 | ) | |||||||||||||||||||||||||||||||
Specified items(a) | 88 | (67 | ) | 21 | 203 | 224 | (850 | ) | (626 | ) | 122 | (237 | ) | (115 | ) | |||||||||||||||||||||||||||||||||
Other (income)/expense excluding specified items | (120 | ) | (171 | ) | (291 | ) | (74 | ) | (365 | ) | (51 | ) | (416 | ) | (177 | ) | (130 | ) | (307 | ) | ||||||||||||||||||||||||||||
Effective Tax Rate | 5.0 | % | 25.4 | % | 11.4 | % | 27.4 | % | 18.0 | % | 145.0 | % | 14.8 | % | 17.2 | % | 311.5 | % | 27.4 | % | ||||||||||||||||||||||||||||
Specified items(a) | 18.0 | % | (4.1 | )% | 10.7 | % | (3.2 | )% | 4.8 | % | (135.0 | )% | 5.1 | % | 3.6 | % | (288.1 | )% | (5.5 | )% | ||||||||||||||||||||||||||||
Effective Tax Rate excluding specified items | 23.0 | % | 21.3 | % | 22.1 | % | 24.2 | % | 22.8 | % | 10.0 | % | 19.9 | % | 20.8 | % | 23.4 | % | 21.9 | % | ||||||||||||||||||||||||||||
(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. |
7
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
(Unaudited, dollars in millions)
2014 | 2015 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||
Cost of products sold(a) | $ | 45 | $ | 39 | $ | 84 | $ | 36 | $ | 120 | $ | 31 | $ | 151 | $ | 34 | $ | 25 | $ | 59 | ||||||||||||||||||||||||||||
Additional year of Branded Prescription Drug Fee | — | — | — | 96 | 96 | — | 96 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Process standardization implementation costs | 3 | 3 | 6 | 2 | 8 | 1 | 9 | 1 | 3 | 4 | ||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 3 | 3 | 6 | 98 | 104 | 1 | 105 | 1 | 3 | 4 | ||||||||||||||||||||||||||||||||||||||
Upfront, milestone and other payments | 15 | 148 | 163 | 65 | 228 | 50 | 278 | 162 | 869 | 1,031 | ||||||||||||||||||||||||||||||||||||||
IPRD impairments | 33 | 310 | 343 | — | 343 | — | 343 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Accelerated depreciation and other shutdown costs | — | — | — | — | — | — | — | — | 2 | 2 | ||||||||||||||||||||||||||||||||||||||
Research and development | 48 | 458 | 506 | 65 | 571 | 50 | 621 | 162 | 871 | 1,033 | ||||||||||||||||||||||||||||||||||||||
Provision for restructuring | 21 | 16 | 37 | 35 | 72 | 91 | 163 | 12 | 28 | 40 | ||||||||||||||||||||||||||||||||||||||
Gain on sale of product lines, businesses and assets | (259 | ) | 12 | (247 | ) | (315 | ) | (562 | ) | 3 | (559 | ) | (152 | ) | (8 | ) | (160 | ) | ||||||||||||||||||||||||||||||
Pension curtailments, settlements and special termination benefits | 64 | 45 | 109 | 28 | 137 | 740 | 877 | 27 | 36 | 63 | ||||||||||||||||||||||||||||||||||||||
Acquisition and alliance related items(b) | 16 | 17 | 33 | 39 | 72 | — | 72 | (36 | ) | — | (36 | ) | ||||||||||||||||||||||||||||||||||||
Litigation charges/(recoveries) | 25 | (23 | ) | 2 | 10 | 12 | 15 | 27 | 14 | 1 | 15 | |||||||||||||||||||||||||||||||||||||
Out-licensed intangible asset impairment | — | — | — | — | — | 11 | 11 | 13 | — | 13 | ||||||||||||||||||||||||||||||||||||||
Loss on debt redemption | 45 | — | 45 | — | 45 | — | 45 | — | 180 | 180 | ||||||||||||||||||||||||||||||||||||||
Upfront, milestone and other licensing receipts | — | — | — | — | — | (10 | ) | (10 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||
Other (income)/expense | (88 | ) | 67 | (21 | ) | (203 | ) | (224 | ) | 850 | 626 | (122 | ) | 237 | 115 | |||||||||||||||||||||||||||||||||
Increase/(decrease) to pretax income | 8 | 567 | 575 | (4 | ) | 571 | 932 | 1,503 | 75 | 1,136 | 1,211 | |||||||||||||||||||||||||||||||||||||
Income tax on items above | (179 | ) | (102 | ) | (281 | ) | 33 | (248 | ) | (297 | ) | (545 | ) | (68 | ) | (116 | ) | (184 | ) | |||||||||||||||||||||||||||||
Specified tax charge(c) | — | — | — | — | — | 123 | 123 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Income taxes | (179 | ) | (102 | ) | (281 | ) | 33 | (248 | ) | (174 | ) | (422 | ) | (68 | ) | (116 | ) | (184 | ) | |||||||||||||||||||||||||||||
Increase/(decrease) to net earnings | $ | (171 | ) | $ | 465 | $ | 294 | $ | 29 | $ | 323 | $ | 758 | $ | 1,081 | $ | 7 | $ | 1,020 | $ | 1,027 | |||||||||||||||||||||||||||
(a) Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs. |
(b) Includes $16 million of additional year of Branded Prescription Drug Fee in the third quarter of 2014. |
(c) The 2014 specified tax charge relates to transfer pricing matters. |
8
BRISTOL-MYERS SQUIBB COMPANY
SELECTED BALANCE SHEET INFORMATION
(Unaudited, dollars in millions)
March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | |||||||||||||||||||||
Cash and cash equivalents | $ | 5,225 | $ | 4,282 | $ | 4,851 | $ | 5,571 | $ | 6,294 | $ | 4,199 | ||||||||||||||||
Marketable securities - current | 1,834 | 2,893 | 2,370 | 1,864 | 1,313 | 1,277 | ||||||||||||||||||||||
Marketable securities - long term | 3,558 | 3,876 | 4,328 | 4,408 | 4,279 | 4,632 | ||||||||||||||||||||||
Cash, cash equivalents and marketable securities | 10,617 | 11,051 | 11,549 | 11,843 | 11,886 | 10,108 | ||||||||||||||||||||||
Short-term borrowings and current portion of long-term debt | (281 | ) | (365 | ) | (401 | ) | (590 | ) | (330 | ) | (755 | ) | ||||||||||||||||
Long-term debt | (7,367 | ) | (7,372 | ) | (7,267 | ) | (7,242 | ) | (7,127 | ) | (6,615 | ) | ||||||||||||||||
Net cash position | $ | 2,969 | $ | 3,314 | $ | 3,881 | $ | 4,011 | $ | 4,429 | $ | 2,738 | ||||||||||||||||
9
BRISTOL-MYERS SQUIBB COMPANY
2015 FULL YEAR PROJECTED DILUTED EPS FROM OPERATIONS
EXCLUDING PROJECTED SPECIFIED ITEMS
Full Year 2015 | ||
Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP | $1.02 to $1.12 | |
Projected Specified Items: | ||
Downsizing and streamlining of worldwide operations | (0.01 | ) |
Upfront and milestone payments, net | 0.57 | |
Pension Related items | 0.05 | |
Impairments | 0.01 | |
Other | 0.06 | |
Total | 0.68 | |
Projected Diluted Earnings Attributable to Shareholders per Common Share - Non-GAAP | $1.70 to $1.80 | |
Gross margin as a percentage of revenues on a GAAP and non-GAAP basis for the six months ended June 30, 2015 was 77.3% and 78.0%, respectively. On a non-GAAP basis, the Company projects gross margin as a percentage of revenues for the full year 2015 to be approximately 76%. There is no reliable comparable GAAP measure for this forward-looking information on gross margin. See "—Reconciliation of GAAP and non-GAAP Growth Dollars and Percentages Excluding Foreign Exchange Impact". | |||||||||
Research and development expenses on a GAAP and non-GAAP basis for the six months ended June 30, 2015 were $2.9 billion and $1.8 billion, respectively. On a non-GAAP basis, the Company projects research and development expenses for the full year 2015 to increase in the mid-single-digit range compared to 2014. It is estimated that 30% to 45% of the research and development expenses in 2015 will be incurred on late-stage development programs. There is no reliable comparable GAAP measure for this forward-looking information on research and development. See "—Reconciliation of Certain non-GAAP Line Items to Certain GAAP Line Items". | |||||||||
Marketing, selling and administrative expenses on a GAAP and non-GAAP basis for the six months ended June 30, 2015 were $1.9 billion. On a non-GAAP basis, the Company projects marketing, selling and administrative expenses for the full year 2015 to decrease in the low- to mid-single-digit range compared to 2014. There is no reliable comparable GAAP measure for this forward-looking information on marketing, selling and administrative expense. See "—Reconciliation of Certain non-GAAP Line Items to Certain GAAP Line Items". | |||||||||
The effective tax rate on a GAAP basis for the six months ended June 30, 2015 was 27.4%. On a non-GAAP basis, for the six months ended June 30, 2015 the effective tax rate was 21.9%. On a non-GAAP basis, the Company projects an annual effective tax rate of approximately 19%. There is no reliable comparable GAAP measure for this forward-looking information on the tax rate. See "—Reconciliation of Certain non-GAAP Line Items to Certain GAAP Line Items". | |||||||||
The GAAP financial results for the full year 2015 will include specified items, including gains on divestitures, expected charges associated with downsizing and streamlining worldwide operations, in-process research and development (IPRD) , upfront and milestone payments, restructuring and pension related items. The GAAP financial results for the full year 2015 could also include other specified items that have not yet been identified and quantified, including any gains or losses from acquisitions or divestitures, additional upfront, milestone and other licensing payments, charges for IPRD and licensed asset impairments, charges and recoveries relating to significant legal proceedings, restructuring activities 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 Reports Second Quarter 2015 Financial Results, July 23, 2015 including “2015 Financial Guidance” and “Use of non-GAAP Financial Information” therein. | |||||||||
10