Skip to content

BMY · BRISTOL MYERS SQUIBB CO

35 filings

10-K

BMY 10-K Annual Reports

BRISTOL MYERS SQUIBB CO - 35 annual reports

Filing record · 2016–202610-K1110-Q328-K169

2025
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2025
Bristol Myers Squibb's 2025 results were essentially flat on the top line but substantially stronger on profitability. Total revenues were $48.2 billion, down roughly 0.2% from $48.3 billion in 2024. U.S. revenues fell 2% to $33.3 billion, while international revenues rose 5% to $13.8 billion, helped by a 2-point FX tailwind. Growth Portfolio sales rose 17% to $26.4 billion, led by Opdivo (+8%), Reblozyl (+31%), Breyanzi (+82%), Camzyos (+77%), and Eliquis (+8% to $14.4 billion). This offset a 15% decline in the Legacy Portfolio to $21.8 billion, driven by generic erosion for Revlimid (-49%), Sprycel (-62%), Abraxane (-58%), and Pomalyst (-23%). Management expects continued Legacy erosion in 2026, primarily from Revlimid and Pomalyst in the U.S. GAAP EPS was $3.46, compared with a loss of $4.41 in 2024, which included a $12.1 billion non-deductible Karuna charge. Non-GAAP EPS rose to $6.15 from $1.15. The improvement mainly reflects far lower Acquired IPRD charges ($3.7 billion vs. $13.4 billion), lower amortization of acquired intangibles ($3.3 billion vs. $8.9 billion), and cost savings from the strategic productivity initiative, which targets about $2.0 billion in savings by end-2027. Selling, general and administrative expense fell 14% and R&D fell 11%. Operating cash flow was $14.2 billion, dividends were $5.0 billion, and net debt declined $4.4 billion to $34.0 billion after $8.7 billion of debt was retired in tender offers and make-whole redemptions. The key investor watch items are the pace of Legacy erosion, U.S. pricing pressure (average net selling prices fell 4% in 2025 and GTN adjustments rose to 47% of gross sales), and pipeline readouts through 2026-2027, including milvexian (LIBREXIA-AF and STROKE), Cobenfy in Alzheimer's psychosis, and the Eliquis European patent litigation. The IRA's Medicare negotiated price for Eliquis takes effect January 1, 2026, and the company has a December 2025 U.S. government agreement that adds tariff relief through January 2029.
Feb 11, 2026
2024
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2024
Bristol-Myers Squibb's FY2024 results were dominated by a one-time, non-tax-deductible Acquired IPRD charge tied to the Karuna acquisition ($12.1 billion, about $6.28 per share of GAAP EPS impact including the SystImmune upfront). As a result, the company reported a GAAP net loss attributable to BMS of $8.9 billion, or $(4.41) per diluted share, versus GAAP EPS of $3.86 in 2023. Excluding specified items, non-GAAP EPS fell to $1.15 from $7.51. Underlying top-line performance was healthier: total revenues rose 7% to $48.3 billion, driven by the Growth Portfolio (up 17% to $22.6 billion, led by Opdivo, Reblozyl, Breyanzi, Camzyos and Yervoy) and Eliquis (up 9%), partly offset by generic erosion in the Legacy Portfolio (Revlimid down 5%, Sprycel down 33%). Gross-to-net adjustments rose to 44% of gross product sales, a signal of continued pricing pressure. The balance sheet absorbed the acquisition spending. Net debt rose to $38.5 billion from $27.1 billion, long-term debt to $47.6 billion, and the company issued $13.0 billion of senior notes in 2024. Operating cash flow was $15.2 billion, but investing outflows of $21.4 billion reflected the Mirati, RayzeBio and Karuna payments. No share repurchases were made in 2024, with $5.0 billion of authorization remaining, and dividends of $2.42 per share were maintained. Management guided to roughly $1.5 billion of capex in 2025 and expanded its productivity program to about $2.0 billion of additional annual savings by 2027. The key investor debate is durability. Eliquis and Opdivo face loss of exclusivity around 2028, the IRA is set to bring Eliquis Medicare pricing in 2026 and Pomalyst negotiation in 2027, and BMS carries $23.3 billion of other intangible assets, with $2.9 billion of impairments recorded in 2024. Offsetting this, the pipeline now includes Cobenfy, the Krazati and RayzeBio assets, and multiple registrational readouts expected through 2025 and 2026.
Feb 12, 2025
2023
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2023
Bristol-Myers Squibb's FY2023 10-K shows a company in a transition year. Total revenues fell 2% to $45.0 billion, driven by Revlimid's generic erosion (down 39% to $6.1 billion) and free-goods distribution through the patient assistance foundation. Growth came from the New Product Portfolio (up 77% to $3.6 billion) and In-Line Products (Opdivo up 9%, Eliquis up 4%). GAAP diluted EPS rose to $3.86 from $2.95, mainly from specified items such as a $656 million non-U.S. tax ruling benefit and litigation settlement income, while non-GAAP EPS fell to $7.51 from $7.70. Operating cash flow was $13.9 billion, and net debt declined to $27.1 billion. The more important forward-looking issues are the patent cliff and acquisitions. Revlimid guidance calls for a $1.5 to $2.0 billion decline in 2024. Eliquis faces IRA government price-setting beginning in 2026 and ongoing European generic challenges, and Opdivo's exclusivity is estimated to run only to 2028 in the U.S. Management is also executing large acquisitions: Mirati closed in January 2024, while Karuna ($14.0 billion) and RayzeBio ($4.1 billion) are expected to close in the first half of 2024 and will be largely debt-funded. S&P downgraded the long-term rating to A from A+, and Moody's placed a negative outlook on its A2 rating. For investors, the core question is whether the pipeline, the new launches (Reblozyl, Breyanzi, Camzyos, Sotyktu, Augtyro), and the Mirati, Karuna, and RayzeBio assets can offset the roughly $8.7 billion of 2024 intangible amortization and the loss of exclusivity on major products. The filing presents a credible growth portfolio but a leverage-constrained balance sheet and meaningful near-term revenue erosion risk.
Feb 13, 2024
2022
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2022
Bristol Myers Squibb's 2022 Form 10-K shows a company whose top line was essentially flat: total revenues were $46.2 billion, down 0.5% from $46.4 billion in 2021, with a 3% foreign exchange drag. U.S. revenues grew 9% to $31.8 billion, driven by Eliquis, Opdivo and the New Product Portfolio, while international revenues fell 17% to $13.5 billion, largely because of Revlimid generic erosion in Europe and currency headwinds. GAAP diluted EPS was $2.95, down from $3.12, while non-GAAP EPS rose 8% to $7.70, reflecting lower share count and higher royalty income. Reported profitability was pressured by $9.6 billion of acquired intangible amortization and a $2.4 billion swing in other expense tied to equity investment losses. The filing's central investor theme is the loss-of-exclusivity cliff. Revlimid fell 22% to $10.0 billion and is guided to about $6.5 billion in 2023, while Abraxane sales dropped 31%. Management expects growth in In-Line and New Product Portfolio brands to more than offset these declines through 2025. Key growth drivers include Eliquis (up 10% to $11.8 billion, now the top-selling novel oral anticoagulant globally), Opdivo (up 10% to $8.2 billion), and early launches such as Opdualag, Abecma, Reblozyl and Camzyos. Concentration risk is significant, with Revlimid, Eliquis and Opdivo expected to drive most revenue and earnings in the near term, and Eliquis faces European generic challenges. Capital allocation remained shareholder-focused but balance-sheet constrained. BMS generated $13.1 billion of operating cash flow, which was lower than 2021 because of a $1.9 billion increase in cash taxes from capitalized R&D under the TCJA. The company paid $4.6 billion in dividends, repurchased $8.0 billion of stock, and acquired Turning Point Therapeutics for $4.1 billion. Net debt rose to $30.1 billion, with total debt of $39.3 billion. Credit ratings remain strong at A2/A+. Ongoing risks include IRA-driven Medicare price negotiation starting in 2026, a $35.9 billion intangible asset base that could face impairment if launches underperform, and several material litigation matters, including a Plavix-related Hawaii penalty and CVR-related claims.
Feb 14, 2023
2021
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2021
Bristol-Myers Squibb's 2021 Form 10-K shows a company in transition: total revenues rose 9% to $46.4 billion, driven by Eliquis (+17% to $10.8 billion), Opdivo (+8% to $7.5 billion) and newer launches, which together offset the expected decline in Revlimid and other mature products. GAAP diluted EPS was $3.12 versus a GAAP loss of $3.99 in 2020, which was distorted by the $11.4 billion MyoKardia IPRD charge; non-GAAP EPS rose to $7.51 from $6.44. Operating cash flow reached $16.2 billion, and management is prioritizing debt reduction and shareholder returns, including $6.2 billion of buybacks in 2021 and a $5.0 billion accelerated share repurchase announced in February 2022. The key investor debate is patent cliff risk. Revlimid, which generated $12.8 billion in 2021, faces volume-limited U.S. generic entry beginning March 2022 and broader European generic entry in early 2022, with 2022 Revlimid revenue guided to $9.5 to $10.0 billion. Eliquis U.S. exclusivity was upheld on appeal, but the earliest generic launch is April 2028 under settlements, and European litigation is pending. Pipeline setbacks, including the deucravacitinib UC Phase 2 miss and the FDA extension for mavacamten, add near-term uncertainty. Balance sheet leverage remains the central financial theme. Net debt was $27.6 billion at year-end 2021, down from $34.4 billion, and intangible assets fell to $42.5 billion after $1.2 billion of impairments. Management expects about $3.0 billion of Celgene integration synergies through 2022, and the company is still working through the Celgene CVR litigation and several product liability and antitrust matters.
Feb 9, 2022
2020
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2020
Bristol-Myers Squibb's FY2020 10-K shows a transformational but earnings-distorting year. Total revenue rose 63% to $42.5 billion, driven mainly by the November 2019 Celgene acquisition (which contributed roughly $15.7 billion of revenue growth) and strong demand for Eliquis. Revlimid ($12.1 billion) and Pomalyst ($3.1 billion) became major growth engines, and the company now reports 13 prioritized brands making up about 95% of revenue. Opdivo sales declined 3% to $7.0 billion amid competitive pressure and a withdrawn SCLC indication. GAAP results swung to a net loss of $9.0 billion, or $(3.99) per diluted share, versus GAAP EPS of $2.01 in 2019. The loss was driven by an $11.4 billion IPRD charge from the $13.1 billion MyoKardia acquisition, plus heavy amortization of acquired intangibles ($9.7 billion) and unwinding of Celgene inventory fair-value step-ups. Management's non-GAAP diluted EPS was $6.44, up from $4.69. Investors should weigh the non-GAAP figure against the substantial recurring amortization and integration costs. Balance sheet leverage rose sharply: long-term debt reached about $50.3 billion, net debt was roughly $34.4 billion, and equity fell to $37.9 billion from $51.7 billion. Management plans to prioritize debt reduction while continuing business development, and it expects about $3.0 billion of Celgene synergies through 2022. Key risks include Revlimid and Eliquis generic timing, an unresolved Eliquis patent appeal, pricing pressure in the U.S., and the Celgene CVR termination after the liso-cel FDA delay.
Feb 10, 2021
2019
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2019
Bristol-Myers Squibb's 2019 10-K reflects a transformational year defined by the November 20, 2019 completion of the Celgene acquisition (approximately $80.3 billion total consideration, including $35.7 billion cash and $40.4 billion in BMS stock, plus a CVR worth up to $9.00 per Celgene share). Total revenues rose 16% to $26.1 billion, driven by Eliquis (+23%), Opdivo (+7%) and the $1.9 billion contribution from Celgene's post-closing results. However, GAAP diluted EPS fell to $2.01 from $3.01, weighed down by a $1.6 billion non-cash pension settlement charge, $1.1 billion of amortization of acquired intangibles, $660 million of inventory fair value unwinding, $657 million of acquisition expenses, and $1.6 billion of tax-related costs tied to the Otezla divestiture. Management's non-GAAP diluted EPS rose to $4.69 from $3.98, a 18% increase. The balance sheet changed dramatically. Total assets more than tripled to $129.9 billion, with $64.0 billion of intangible assets and $22.5 billion of goodwill. Long-term debt rose to $43.4 billion (total debt of roughly $46 billion), producing a net debt position of about $30.6 billion versus net cash of $3.2 billion a year earlier. Management has prioritized deleveraging, while noting that it still plans to pursue business development, and it expects $2.5 billion in cost synergies through 2022. Dividends were $1.68 per share, and the company repurchased $5.9 billion of stock in 2019, including a $7.0 billion accelerated share repurchase program. Operating cash flow was $8.1 billion. Investors should weigh several concentration and legal risks. Eliquis, Opdivo and Revlimid (which received U.S. generic challenges and has European erosion starting in 2022) together account for much of the growth profile, and the company disclosed material patent and litigation exposures, including a pending Eliquis U.S. patent trial and an Australian Plavix damages claim of up to 449 million AUD. The company also disclosed a $585 million upfront judgment owed to Juno/SKI in the Kite CAR T case, and an agreement in principle to resolve the Average Manufacturer Price qui tam suit. Integration execution, the Celgene pipeline (notably liso-cel and ide-cel), and the timing of CVR milestones remain key items to monitor.
Feb 24, 2020
2018
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2018
Bristol-Myers Squibb's 2018 10-K shows a company in transition. Total revenues rose 9% to $22.6 billion, driven by Opdivo (up 36% to $6.7 billion) and Eliquis (up 32% to $6.4 billion). Together these growth brands and the other prioritized brands made up about 86% of 2018 revenues, though established brands such as HIV products, Baraclude and Daklinza continued to erode. GAAP diluted EPS was $3.01, up from $0.61 in 2017, which was depressed by U.S. tax reform charges. Non-GAAP diluted EPS rose to $3.98 from $3.01, reflecting higher revenues, royalty income and a lower effective tax rate. GAAP results were also affected by $1.1 billion of license and asset acquisition charges (including $1.05 billion for the Nektar collaboration) and a $534 million Nektar equity-investment fair value loss. The dominant forward-looking event is the pending acquisition of Celgene, announced January 3, 2019. The deal is valued at roughly $74 billion and will be financed with about $33.5 billion of acquisition debt and assumed Celgene debt of about $19.9 billion. Investors should weigh the expected 2019 GAAP EPS dilution against expected non-GAAP accretion, the anticipated ratings downgrades, and the contingent value rights tied to regulatory milestones. The filing also flags a $2.2 billion termination fee exposure, a securities class action, and a Starboard Value proxy nomination of five directors. Long-term risks are concentrated in patent expirations and competition. Opdivo's estimated U.S. loss of exclusivity is 2028 and Eliquis's is 2026, with the Eliquis composition-of-matter patent term extended to November 2026. Eliquis and Opdivo must keep growing to offset erosion in the established brands. Other watch items include the planned 2019 closing of the UPSA divestiture for $1.6 billion, the pension plan termination with a $1.5 to $2.0 billion non-cash charge expected in Q3 2019, and CheckMate-227 data readouts expected in 2019.
Feb 25, 2019
2017
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2017
Bristol-Myers Squibb's 2017 Form 10-K shows a company in transition: total revenues rose 7% to $20.8 billion, driven by Opdivo ($4.9B, up 31%) and Eliquis ($4.9B, up 46%), which offset steep declines in established brands such as the Hepatitis C franchise (down 74%), Sustiva and Reyataz. Prioritized brands made up roughly 75% of revenues. Reported GAAP diluted EPS fell to $0.61 from $2.65, largely because of a one-time $2.9 billion U.S. tax reform charge (the Tax Cuts and Jobs Act) and $1.1 billion in license and asset acquisition charges. Management's non-GAAP diluted EPS rose to $3.01 from $2.83, a 6% increase, which investors should read alongside the GAAP figure since the adjustments are large and recurring in nature. The filing highlights a heavy dependence on immuno-oncology. Opdivo is the backbone of the IO franchise, and the company is running many late-stage trials, several of which carry readout risk. The 10-K also notes a Phase III CheckMate-227 result and a securities class action tied to CheckMate-026. Eliquis has a U.S. composition-of-matter patent restored to November 2026 after twenty-five Paragraph IV challenges, with settlements reached with several filers, and the company is shifting toward biologics manufacturing with a new Irish facility expected in 2019. Liquidity remains solid, with $9.3 billion in cash and marketable securities, a $5.0 billion revolving credit facility undrawn, and a credit rating of A2/A+/A-. The main investor debate centers on whether the Opdivo and Eliquis launches can offset the erosion of the legacy portfolio and absorb rising rebate and gross-to-net pressure. GTN adjustments reached 24% of gross product sales, up from 21%, and the U.S. loss of exclusivity for Sustiva and Reyataz in December 2017 signals further declines ahead. The $2.5 billion deemed repatriation tax, payable over eight years, adds a cash obligation that will weigh on flexibility over the coming years.
Feb 13, 2018
2016
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2016
Bristol-Myers Squibb's 2016 Form 10-K shows a year of strong top-line growth driven by its immuno-oncology franchise. Total revenues rose 17% to $19.4 billion, led by Opdivo (up to $3.8 billion from $942 million), Eliquis (up 80% to $3.3 billion), and Orencia (up 20% to $2.3 billion). GAAP diluted EPS rose to $2.65 from $0.93, helped by $576 million in divestiture gains, including the sale of investigational HIV medicines to ViiV and the Reckitt OTC business, plus lower R&D license and asset acquisition charges. Non-GAAP diluted EPS increased to $2.83 from $2.01. Note that the GAAP comparison is flattered by the prior year's large $1.7 billion in acquisition charges. The filing also flags material risks. Opdivo's first-line lung cancer program suffered a setback when CheckMate-026 missed its primary endpoint, and the company dropped an accelerated pathway for Opdivo+Yervoy in that setting. Erbitux's North American rights were transferred in 2015, and the diabetes business was sold in 2014. Key exclusivity losses are approaching: Sustiva and Reyataz in the U.S. in December 2017, and Sprycel's European patent was revoked, which may reduce European revenue in 2H 2017. Eliquis's U.S. composition-of-matter patent runs to February 2023. Management also announced an operating model overhaul with $1.5 to $2.0 billion in restructuring charges through 2020, and launched a $2.0 billion accelerated share repurchase in February 2017. Balance sheet and cash flow are solid. Cash and marketable securities total $9.1 billion against $6.5 billion of long-term debt, leaving a $2.4 billion net cash position. Operating cash flow was $2.85 billion, pressured by a $2.0 billion increase in cash taxes. The dividend was held at $0.38 per quarter, with an increase to $0.39 declared for the February 2017 payment. Notably, the February 2017 Merck settlement, which provides a $625 million initial payment plus royalties on Keytruda, falls after the balance sheet date and is a potential upside catalyst.
Feb 21, 2017
2015
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2015
Bristol-Myers Squibb's 2015 10-K shows a company in transition toward a focused specialty biopharmaceutical model. Total revenues rose 4% to $16.56 billion (about 7% lower on a constant-currency basis), with growth driven by the Hepatitis C franchise (including $170 million of previously deferred French revenue), Opdivo, and Eliquis, partly offset by Abilify's loss of U.S. and EU rights, Baraclude/Reyataz/Sustiva erosion, and foreign exchange. GAAP diluted EPS fell to $0.93 from $1.20, driven by a $1.68 billion of license and asset acquisition charges (including Flexus, Cardioxyl, and Five Prime) and higher R&D of $5.9 billion, up 31%. Non-GAAP diluted EPS rose to $2.01 from $1.85, so the GAAP decline reflects one-time acquired R&D costs rather than deterioration in baseline operations. Balance sheet and cash flow were weaker. Operating cash flow fell to $1.83 billion from $3.15 billion, reflecting alliance payment timing, upfront licensing payments, and lower factoring. Cash and marketable securities declined to $8.9 billion from $11.8 billion, and the company now has a net cash position of $2.2 billion, down from $4.0 billion. Dividends of $2.5 billion were covered by non-GAAP earnings but not by operating cash flow in 2015. Management signaled that Opdivo and Eliquis will become increasingly important revenue drivers, while the pending sale of the HIV pipeline to ViiV Healthcare and the 2016 Erbitux North America transfer to Lilly will reduce some future revenue and royalty streams. Key risks for investors include the rapid revenue erosion typical of U.S. generic and biosimilar entry, the expected sharp decline in Japanese Hepatitis C revenue in 2016 due to competition, the challenge to Eliquis's composition-of-matter patent via inter partes review, the EPO revocation of the Sprycel patent in Europe, and the pending Merck PD-1 patent litigation over Keytruda. Royalties of about $675 million in pretax income make the company sensitive to the durability of third-party royalty streams.
Feb 12, 2016
2014
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2014
Bristol-Myers Squibb's FY2014 10-K shows a company in transition. Total revenues fell 3% to $15.9 billion (from $16.4 billion), driven by the February 2014 divestiture of the diabetes business to AstraZeneca, loss of exclusivity for several products, and expiring alliance rights. GAAP diluted EPS dropped to $1.20 from $1.54, mainly because of a $877 million pension settlement and charge tied to a $1.5 billion Prudential annuity transfer, plus $343 million of IPR&D impairments. Non-GAAP diluted EPS rose to $1.85 from $1.82. Management highlighted growth in Eliquis (up $628 million to $774 million), Yervoy (up 36% to $1.3 billion), Sprycel, Orencia, and the newly launched Opdivo, which received U.S. accelerated approval in December 2014 for melanoma. The balance sheet strengthened materially. Cash, cash equivalents and marketable securities reached $11.8 billion, up from $8.3 billion, after the $3.8 billion diabetes sale proceeds, and BMS moved to a $4.0 billion net cash position from $(68) million net debt. Operating cash flow fell to $3.1 billion from $3.5 billion. The dividend was raised to $0.37 per quarter, and the company remains rated investment grade. The key investor concerns are near-term revenue erosion and pipeline dependence. Generic entecavir entered the U.S. market in September 2014 after the Baraclude patent was invalidated, and Abilify's U.S. commercial rights expire April 20, 2015, with management expecting roughly $400 million of alliance and royalty revenue to decline in 2015. Investors will watch Opdivo's lung cancer and melanoma regulatory milestones, the Daklinza HCV filing timeline, and whether growth products can offset these losses.
Feb 13, 2015
2013-A
BRISTOL MYERS SQUIBB CO Annual Report (Amendment), Year Ended Dec 31, 2013
Bristol-Myers Squibb Company (BMY) filed an amendment to its 2013 Form 10-K on April 2, 2014, primarily to re-file a revised redacted version of an exhibit related to a confidential treatment request. This amendment does not alter any other disclosures or financial information from the original filing on February 14, 2014. Therefore, investors should refer to the original 10-K for a comprehensive understanding of BMY's financial performance, strategic initiatives, and risk factors for the fiscal year ended December 31, 2013. The original filing indicated BMY's status as a large accelerated filer and a well-known seasoned issuer, with significant market capitalization as of June 30, 2013. Investors should consult the original February 14, 2014 filing for detailed financial statements, management's discussion and analysis, and other critical information pertinent to the company's operational and financial health during that period.
Apr 3, 2014
2013
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2013
Bristol-Myers Squibb (BMY) reported a decrease in total revenues for 2013 to $16.385 billion from $17.621 billion in 2012, primarily driven by the loss of exclusivity for key products like Plavix and Avapro/Avalide, and a reduced share in Abilify revenues. Despite the revenue decline, the company made strategic progress by focusing on core therapeutic areas such as oncology, virology, and immunology, with notable advancements in its immuno-oncology pipeline, particularly with nivolumab. The company divested its diabetes business to AstraZeneca in February 2014 for significant upfront and potential milestone payments, aiming to sharpen its focus on specialty biopharmaceuticals and allocate resources to higher-growth opportunities. Significant R&D investments continued, with a focus on late-stage pipeline assets, particularly in oncology and hepatitis C. The company also managed its debt effectively and continued its share repurchase program.
Feb 14, 2014
2012
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2012
Bristol-Myers Squibb (BMY) reported its 2012 fiscal year results, marked by significant shifts due to patent expirations on key products like Plavix and Avapro/Avalide. These losses led to a substantial decline in net sales and earnings compared to the prior year. Despite these challenges, the company made strategic acquisitions, notably Amylin Pharmaceuticals, to bolster its diabetes franchise and advanced its pipeline with key regulatory approvals for Eliquis and Orencia's subcutaneous formulation. BMS is actively managing its R&D portfolio, focusing on immuno-oncology, cardiovascular/metabolic disease, and virology, while also expanding its biologics capabilities. The company's financial health remains robust, supported by ongoing product sales, strategic alliances, and a focus on cost management, though it faces continued pricing pressures and the ever-present threat of generic competition in the biopharmaceutical industry.
Feb 15, 2013
2011
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2011
Bristol-Myers Squibb Company (BMY) reported strong performance in its 2011 10-K filing, highlighting continued strategic transformation into a biopharmaceutical company focused on innovative medicines. The company successfully launched several new products, including Yervoy, a subcutaneous formulation of Orencia, Nulojix, and Eliquis in the EU. Significant R&D investment of $3.8 billion was made to fuel its pipeline, with a focus on areas like oncology, immunology, and virology. The company is strategically positioning itself for future growth, particularly as it anticipates the loss of U.S. market exclusivity for its top-selling product, Plavix, in May 2012, and Avapro/Avalide in March 2012. Despite the upcoming patent expirations, BMS is focused on its pipeline and a cost-efficient operational model to sustain its business and drive future growth.
Feb 17, 2012
2010
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2010
Bristol-Myers Squibb Company (BMY) reported strong performance in 2010, with net sales increasing by 4% to $19.5 billion, driven primarily by key products like PLAVIX, the HIV franchise, and ABILIFY, alongside new launches ONGLYZA and KOMBIGLYZE. The company also made significant advancements in its pipeline with drugs like YERVOY and ELIQUIS. However, the company faces significant upcoming challenges, most notably the expected loss of market exclusivity for PLAVIX in the U.S. in May 2012, which is projected to lead to a material decline in sales and cash flow. The company is actively managing costs through its Productivity Transformation Initiative (PTI) and focusing on strategic acquisitions and collaborations. Investors should closely monitor the impact of patent expirations, particularly for PLAVIX and AVAPRO/AVALIDE, and the company's ability to successfully bring its late-stage pipeline products to market.
Feb 18, 2011
2009
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2009
Bristol-Myers Squibb Company (BMY) reported strong performance in its 2009 10-K filing, demonstrating revenue growth driven by key pharmaceutical products such as PLAVIX* and ABILIFY*, alongside significant expansion in its virology and immunology portfolios. The company continued its strategic transformation into a biopharmaceutical company through divestitures of non-core businesses, like Mead Johnson, and strategic "string-of-pearls" acquisitions, notably Medarex. This transformation, coupled with a productivity initiative, aimed at improving efficiency and cost management, positions BMY for future growth. While facing the ongoing challenge of generic competition, particularly impacting PLAVIX* in European markets, BMY highlighted robust sales growth for newer products like BARACLUDE, SUSTIVA Franchise, ABILIFY*, and ORENCIA. The company also reported progress in its R&D pipeline, with key investigational compounds like belatacept and dapagliflozin advancing through clinical trials, indicating a focus on innovation. Investors can look to BMY's continued execution of its biopharmaceutical strategy, pipeline development, and management of product exclusivity as key factors influencing future performance.
Feb 19, 2010
2008
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2008
Bristol-Myers Squibb Company (BMY) reported significant strategic divestitures and acquisitions in 2008, including the sale of its ConvaTec business for $4.1 billion, which contributed a substantial $2.0 billion gain after tax. The company also acquired Kosan Biosciences for oncology product development. These moves indicate a strategic shift towards a more focused biopharmaceutical business. Productivity Transformation Initiatives (PTI) were underway, aiming for $2.5 billion in annual savings by 2012 through operational efficiencies and cost reductions. Financially, net sales from continuing operations grew by 13% year-over-year, driven by strong performance in key products like PLAVIX and ABILIFY. Despite facing ongoing challenges from generic competition, particularly with the expiration of data protection for PLAVIX in the EU, BMY demonstrated resilience and growth through strategic alliances and product pipeline development.
Feb 20, 2009
2007
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2007
Bristol-Myers Squibb Company (BMY) filed its 2007 10-K on February 22, 2008, detailing a year of significant strategic shifts and product performance. The company divested its Medical Imaging business and made strategic acquisitions, including Adnexus Therapeutics, indicating a focus on streamlining operations and investing in future growth areas, particularly in biologics. Financially, BMY saw a robust 12% increase in worldwide net sales to $19.3 billion, driven by strong performance in key pharmaceutical products like PLAVIX® and ABILIFY®, despite declines in mature brands such as PRAVACHOL® due to generic competition. The company also announced an 11% increase in its common stock dividend, signaling confidence in its financial health and future prospects. However, the company also reported significant charges related to its Productivity Transformation Initiative and impairments on auction rate securities, underscoring the ongoing efforts to optimize costs and manage financial market risks.
Feb 22, 2008
2006
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2006
Bristol-Myers Squibb Company (BMY) reported a challenging year in 2006, with net sales decreasing by 7% to $17.9 billion, primarily impacted by the "at-risk" launch of generic clopidogrel bisulfate, which significantly affected PLAVIX® sales, and the loss of exclusivity for PRAVACHOL. Despite these headwinds, the company made progress on its long-term strategy by launching several key products, including ORENCIA and SPRYCEL, and seeing robust growth in other brands like ABILIFY®, REYATAZ, and ERBITUX®. The company is strategically investing in its future, particularly in the growing biologics market with plans for a new manufacturing facility. However, ongoing patent litigation, especially concerning PLAVIX®, and other legal matters represent significant ongoing risks that could materially impact future financial performance and liquidity.
Feb 26, 2007
2005
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2005
Bristol-Myers Squibb Company's (BMY) 2005 10-K filing indicates a year of strategic transition, with net sales from continuing operations experiencing a slight decrease of 1% to $19.2 billion. This was primarily driven by continued revenue losses from key products losing market exclusivity, such as GLUCOPHAGE and PRAVACHOL. However, the company saw strong growth in its "growth driver" products, including PLAVIX, ABILIFY, REYATAZ, and ERBITUX, which are becoming increasingly important components of the revenue mix. The company is actively managing its portfolio, evidenced by the divestiture of its U.S. and Canadian Consumer Medicines business in 2005 and the sale of DOVONEX in early 2006. These divestitures are part of a broader strategy to focus on high-value pharmaceutical products and address significant unmet medical needs. Despite the revenue headwinds from patent expirations, BMY is investing heavily in R&D, with spending increasing by 10% to $2.7 billion, signaling a commitment to future product pipelines. The company anticipates stabilizing gross margins in 2006 and expects to enter a period of sustained growth starting in 2007, contingent on the successful launch and uptake of its newer products and pipeline candidates.
Mar 14, 2006
2004
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2004
Bristol-Myers Squibb's 2004 10-K shows net sales from continuing operations of $19.4 billion, up 4%, almost entirely from favorable foreign exchange; U.S. sales were flat at $10.6 billion. Earnings from continuing operations fell 23% to $2.4 billion ($1.21 diluted EPS) from $3.1 billion, driven by a $575 million deferred tax charge tied to planned repatriation of about $9 billion of foreign earnings under the AJCA, $420 million of litigation charges, and rising R&D spending of $2.5 billion (12.9% of sales). Gross margin compressed as exclusivity losses on higher-margin products shifted the product mix. The central investor issue is patent-exclusivity erosion. PRAVACHOL ($2.6 billion) faces U.S. exclusivity loss in April 2006, and the company expects incremental revenue losses of $1.4 to $1.5 billion in 2005 alone. PLAVIX, the largest product at $3.3 billion, is under U.S. patent litigation, and the company says generic entry is very unlikely before the second half of 2005. Management expects earnings growth to resume only in 2007, as in-line and newer products (PLAVIX, AVAPRO/AVALIDE, ABILIFY, REYATAZ, ERBITUX) offset the losses. The filing also discloses significant legal and regulatory overhang: the 2002 wholesaler-inventory restatement, an SEC consent order with a $150 million fund, ongoing SEC and U.S. Attorney investigations, VANLEV and other securities class actions, pricing and Medicaid best-price investigations, and product liability reserves for SERZONE and PPA. Management says the aggregate impact of these matters beyond reserves is reasonably likely to be material to results and cash flows over the next few years.
Mar 4, 2005
2003-A
BRISTOL MYERS SQUIBB CO Annual Report (Amendment), Year Ended Dec 31, 2003
Bristol-Myers Squibb Company (BMY) filed this 10-K/A filing on June 27, 2004, to amend its annual report for the year ended December 31, 2003. The amendment was made in response to comments from the SEC regarding a registration statement. It includes expanded disclosures on clinical trial results for PRAVACHOL, termination provisions of strategic alliances, remedial actions for disclosure controls, a restatement adjustment for goods-in-transit, clarification on revenue recognition, and details on an asset write-down. The filing also provides an update on recent significant corporate events, including patent litigation, a class action lawsuit dismissal, earnings announcements, and an increase in legal reserves. Key financial data reflects a significant increase in earnings from continuing operations before minority interest and income taxes, up 70% year-over-year, driven by sales growth and the absence of large charges incurred in the prior year. However, the company faces significant revenue challenges due to upcoming patent expiries on key products, estimating sales reductions of $1.2 to $1.3 billion in 2004 alone, with further losses projected in subsequent years. Management believes growth in other key products and pipeline products will offset these losses, though this is contingent on patent litigation outcomes and regulatory approvals.
Jun 28, 2004
2003
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2003
Bristol-Myers Squibb Company (BMY) reported strong sales growth of 15% in 2003, reaching $20.9 billion, driven by robust performance in key products like Pravachol and Plavix. The company also highlighted a significant increase in earnings from continuing operations, up 50% year-over-year, reflecting improved sales and a reduction in specific charges incurred in the prior year. Despite these positive trends, investors should note the company is undergoing a financial restatement impacting prior periods, primarily to correct accounting policies and errors. While management is actively addressing internal control improvements, a 'reportable condition' in income tax accounting remains, with remediation expected by year-end 2004. The company also faces ongoing litigation, particularly concerning the patent for Plavix, which could materially impact future results if an adverse outcome occurs.
Mar 15, 2004
2002
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2002
Bristol-Myers Squibb Company (BMY) filed its 10-K for the fiscal year ended December 31, 2002. The company reported total sales of $18.1 billion, a slight increase of 1% over the prior year. Pharmaceutical sales represented the largest segment at 81% of total sales. The company navigated significant challenges, including a major restatement of its financial statements for prior periods due to errors in revenue recognition related to wholesaler inventories and sales incentives. This restatement impacted periods from 1999 through the second quarter of 2002. Despite these accounting issues and ongoing litigation, BMY continued to invest heavily in research and development ($2.2 billion in 2002), launching new products like ABILIFY* and securing approvals for new indications for existing products. However, patent expirations on key products like GLUCOPHAGE* IR, TAXOL®, and BUSPAR in the U.S. impacted revenue and profitability. The company also reported substantial litigation settlement charges and faced investigations from the SEC and the U.S. Attorney's Office related to its inventory management and sales practices.
Mar 28, 2003
2001-A
BRISTOL MYERS SQUIBB CO Annual Report (Amendment), Year Ended Dec 31, 2001
Bristol-Myers Squibb Company (BMY) filed an amendment to its 2001 Annual Report on Form 10-K, primarily to restate its financial statements for the years ended December 31, 2001, 2000, and 1999. The restatement was necessitated by a substantial buildup of wholesaler inventories in its U.S. pharmaceuticals business, driven by sales incentives offered to meet quarterly sales projections. This led to a determination that certain sales to two major wholesalers should have been accounted for under the consignment model, correcting errors in revenue recognition timing. The company also corrected other historical accounting policies and identified known errors previously deemed immaterial. These restatements reduced net earnings for 2001, 2000, and 1999 by approximately $411 million, $240 million, and $366 million, respectively. The company has implemented significant internal control improvements, including hiring a new CFO, restructuring its accounting department, and enhancing monitoring processes to prevent future recurrences.
Mar 19, 2003
2000
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2000
Bristol-Myers Squibb Company's 10-K for fiscal year 2000 reports net sales from continuing operations of $18,216 million, up 8% (11% excluding foreign exchange) from $16,878 million in 1999. Domestic sales rose 14% to $12.1 billion, while international sales fell 2% to $6.1 billion. Net earnings were $4,711 million, or $2.36 diluted earnings per share, up 15% from $2.06. Earnings from continuing operations include a $508 million restructuring charge and a $160 million gain on sales of businesses. Excluding these nonrecurring items, net earnings rose 14% to $4,309 million, and diluted EPS rose 16% to $2.16. The company is planning to divest its Clairol and Zimmer businesses, which are reported as discontinued operations. The Zimmer business is to be spun off to shareholders, with completion expected by the end of the third quarter of 2001. Cash provided by operating activities was $4.7 billion, the highest in ten years, and the company returned $1.9 billion in dividends and $2.3 billion in stock repurchases during 2000. Dividends per common share rose to $.98, and the 2001 indicated annual payment is $1.10. Key risks disclosed include pending litigation over TAXOL patents, a securities class action related to VANLEV, and remaining breast implant claims, which the filing says are limited to residual Revised Settlement obligations and roughly 850 remaining opt-out claimants. Management states that the company believes these matters will not have a material adverse effect on its operating results or consolidated financial position, although the TAXOL and VANLEV outcomes cannot be assessed at this time.
Apr 2, 2001
1999
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 1999
Bristol-Myers Squibb's 1999 10-K shows a company at a high point: worldwide net sales rose 11% to $20.2 billion, net earnings rose 33% reported to $4.17 billion (15% excluding the 1998 special charge), and diluted EPS reached $2.06 (up 15% on an adjusted basis from $1.79). Growth was broad-based, with all four segments posting record sales and the Medicines segment contributing about 71% of revenue. Key growth drivers were PRAVACHOL ($1.7B), TAXOL ($1.5B, up 23%), GLUCOPHAGE ($1.3B, up 53%), and newer launches such as PLAVIX ($547M) and AVAPRO ($255M, up 107%). Gross margins compressed modestly, with cost of products sold rising to 27.4% of sales, largely due to lower-margin growth from the Oncology Therapeutics Network, while advertising and SG&A fell as a percentage of sales. Balance sheet and cash generation remain strong. Operating cash flow reached a decade-high $4.5 billion, cash and marketable securities were about $3.0 billion, and the company held triple-A ratings from both Moody's and S&P. Management returned $1.7 billion in dividends and repurchased $1.4 billion of stock, and the board raised the 2000 indicated dividend 14% to $0.98 per share, its 28th consecutive annual increase. R&D spending rose 17% to $1.84 billion, or 9.1% of sales. The main risks flagged are legal and competitive. Breast implant liabilities are largely resolved, with about 1,700 remaining opt-outs and residual settlement obligations. The most significant near-term risk is the TAXOL patent litigation: in February 2000 a federal court invalidated most of the key patent claims, allowing generics to market paclitaxel for metastatic breast cancer, with the remaining ovarian-cancer claims set for trial in May 2000. Patent exclusivity is also scheduled to lapse for GLUCOPHAGE in September 2000 and BUSPAR in May 2000, and international CAPOTEN sales fell 24% after generic entry. Prescription drug pricing antitrust actions remain pending.
Mar 30, 2000
1998
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 1998
Bristol-Myers Squibb closed 1998 with record net sales of $18.3 billion, up 9% from 1997 (domestic sales up 15% to $11.1 billion; international up 2% to $7.2 billion, with a roughly 3% currency headwind on worldwide sales). Medicines, the largest segment at 69% of sales, grew 12% to $12.6 billion, led by PRAVACHOL and TAXOL, both above $1 billion. All four segments grew excluding foreign exchange and divestitures. Reported results were depressed by an $800 million pre-tax special charge in Q4 1998 ($700 million for breast implant liabilities, net of a $100 million insurance receivable increase, plus $100 million for prescription drug pricing litigation). Net earnings fell to $3.14 billion from $3.21 billion, with diluted EPS of $1.55. Excluding the charge, net earnings rose 13% to $3.64 billion and diluted EPS rose 14% to $1.79. Pre-tax gains of $201 million on divestitures and $201 million of restructuring charges largely offset each other. Cash flow and capital returns were strong. Operating cash flow reached a record $4.1 billion, and the company returned about $3.1 billion to shareholders through $1.6 billion in dividends and $1.6 billion in share repurchases. The balance sheet remains conservative, with $2.5 billion in cash and marketable securities, total debt of roughly $1.8 billion, and triple-A ratings from Moody's and S&P. The board declared a two-for-one stock split effective February 1999 and a 10% dividend increase for 1999 (indicated $0.86 per pre-split share), the 27th consecutive annual increase. The main risk for investors is the remaining litigation. Breast implant exposure is described as largely contained, with about 6,000 opt-outs remaining and reserves in place. The prescription drug pricing antitrust cases remain pending, including a class action where plaintiffs have appealed a directed verdict in the defendants' favor. Management believes neither matter will have a material adverse effect on results or financial position.
Mar 30, 1999
1997
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 1997
Bristol-Myers Squibb's 1997 10-K reports a record year: worldwide net sales rose 11% to $16.7 billion, net earnings increased 12% to $3.205 billion, and basic EPS grew 13% to $3.22 (diluted $3.14). Growth was driven almost entirely by volume (up 14%), with no net pricing contribution, and the Pharmaceuticals segment (59% of sales) led with 15% growth to $9.9 billion, powered by Pravachol, Taxol, Zerit, Buspar, Serzone and Glucophage. Management set a strategic goal of becoming the leader in EPS growth among its peers and is investing heavily in R&D (up 9% to $1.39 billion), advertising and sales force expansion. Gross margins were pressured by low-margin Oncology Therapeutics Network sales and heavier advertising spend. Balance sheet and cash generation remain strong: operating cash flow was $2.5 billion, cash and investments totaled $1.8 billion, the company holds triple-A ratings from Moody's and S&P, and stockholders' equity rose to $7.2 billion. Capital was returned through $1.5 billion of dividends (the 1998 indicated annual dividend is $1.56, the 26th consecutive annual increase) and $1.2 billion of share buybacks. Long-term debt rose to $1.28 billion after new debentures were issued. The main investor risk remains litigation. Breast implant exposure is the most significant item: roughly 24,000 plaintiffs are pending, the company's individual aggregate benefit limit under the Revised Settlement is $400 million, and it paid about $190 million into the settlement fund in 1997. Antitrust suits over brand-name drug pricing (including a $2.4 billion damages claim before trebling) and an FTC investigation are also pending. Management states that reserves are adequate and that the antitrust matters should not have a material adverse effect, but the outcomes remain uncertain.
Mar 31, 1998
1996
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 1996
Bristol-Myers Squibb's 1996 10-K reports a year of record growth: worldwide net sales rose 9% to $15.1 billion (volume up 11%, pricing flat, FX down 2%), and net earnings rose to $2.85 billion, or $2.84 per share. Excluding the 1995 charges, EPS grew 11% and pre-tax earnings grew 10%. Pharmaceuticals is the largest segment at 58% of sales ($8.7 billion, up 11%), led by the cardiovascular franchise (PRAVACHOL, up 39% to $1.1 billion), TAXOL (up 40% to $813 million) and ZERIT/VIDEX. Growth was partly offset by the loss of U.S. patent exclusivity for CAPOTEN, whose U.S. sales fell 68%, and CAPOTEN's exclusivity will also erode in several non-U.S. markets in 1997. Operating margins improved in nonprescription health and medical devices, while toiletries and beauty aids remained the lowest-margin segment. The balance sheet remains strong, with $2.2 billion in cash, time deposits and marketable securities, operating cash flow of $2.6 billion, and triple-A ratings from Moody's and S&P. Dividends were raised for the 25th consecutive year, to an indicated $1.52 per share for 1997. The company repurchased 19 million shares for $852 million in 1996 and authorized a two-for-one stock split effective February 1997. Long-term debt rose to $966 million after a $350 million debenture issue. The main investor risk is contingent liabilities, chiefly breast implant litigation (about 22,000 plaintiffs, with the company's own $400 million aggregate settlement limit and a possible additional charge), plus infant formula antitrust matters and a large retail pharmacy antitrust action seeking damages of about $2.4 billion before trebling. Management says these should not materially affect liquidity or financial position, though an additional charge could hurt results in a given period. Looking ahead, 1997 growth will depend on sustaining momentum in key brands such as PRAVACHOL, TAXOL, GLUCOPHAGE and CEFZIL, offsetting CAPOTEN erosion, and absorbing the cost of heavier advertising and R&D spending. TAXOL's U.S. exclusivity expires in December 1997, a meaningful risk to the anti-cancer franchise.
Mar 31, 1997
1995
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 1995
Bristol-Myers Squibb's 1995 10-K shows a record year on the top line: net sales rose 15% to $13.8 billion, with all four segments growing and international sales up 22%. The pharmaceutical segment (57% of sales) grew 12% to $7.8 billion, led by cardiovascular drugs such as PRAVACHOL and anti-infectives, while the medical devices, nonprescription health and toiletries segments also posted increases. Profitability was weighed down by non-recurring charges: a $950 million pre-tax breast implant product liability charge, a $310 million restructuring provision, and continued litigation exposure. As reported, net earnings fell 2% to $1.81 billion ($3.58 per share) from $1.84 billion ($3.62 per share). Excluding the special charges and restructuring, net earnings rose 12% to $2.6 billion ($5.14 per share). The balance sheet remains strong, with $2.2 billion in cash, time deposits and marketable securities, operating cash flow of $2.5 billion, and AAA ratings from Moody's and S&P. The company continued to return capital to shareholders, paying about $1.5 billion in dividends, raising the indicated 1996 dividend to $3.00 per share (the 24th consecutive annual increase), and expanding its share repurchase authorization from 50 million to 75 million shares. Shareholders' equity was essentially flat at $5.8 billion, while total liabilities rose sharply to $8.1 billion, largely because of product liability reserves. The main investor concern is the open-ended breast implant litigation. Roughly 20,000 plaintiffs have sued, a revised settlement (up to $755 million industry-wide over 15 years, with a $400 million company limit) is under appeal, and management said further charges may be needed. Other overhangs include infant formula antitrust suits, pharmaceutical pricing class actions, and the 1996 expiry of CAPOTEN's U.S. patent, which management described as not materially important to the business.
Mar 28, 1996
1994
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 1994
Bristol-Myers Squibb's 1994 10-K shows a company whose core earnings power remained strong but whose reported results were dominated by a large, escalating breast implant litigation charge. Net sales rose 5% to $11.98 billion, with volume growth as the main driver and pricing contributing about 1%. Excluding special product liability charges, pre-tax earnings grew 8% to $3.31 billion and EPS rose 4% to $4.58. Reported net earnings fell about 6% to $1.84 billion, or $3.62 per share, because of a $750 million pre-tax special charge in Q4 1994 tied to breast implant claimant opt-outs, following a $500 million charge in 1993. The pharmaceutical segment, at 58% of sales, was the growth engine, rising 7% to $6.97 billion. Key drivers were cardiovascular drugs (led by captopril and Pravachol), the anti-cancer franchise (up 13%, with Taxol strong), and the central nervous system line (up 17%). Management highlighted recent acquisitions, including the remaining stake in the UPSA analgesics group, Matrix Essentials in hair care, and Calgon Vestal. It also flagged near-term patent risk: the U.S. captopril patent expiration was extended by GATT legislation to February 1996, and its effect is still being evaluated. R&D spending held at $1.1 billion, about 13.6% of pharmaceutical sales. The balance sheet remains conservative. The company held $2.4 billion in cash, time deposits and marketable securities, carried a triple-A credit rating, and generated $2.3 billion in operating cash flow, which funded roughly $1.5 billion in dividends. The dividend was raised to a 1995 indicated annual rate of $2.96. The main open risk is the breast implant matter: about 20,000 plaintiffs have sued, roughly 3,000 U.S. opt-outs may assert claims, the company's total settlement contribution is capped at $1.154 billion over about 30 years, and further charges cannot be ruled out, with a trigger point possibly arriving in late 1995. Coverage litigation against insurers is also pending.
Mar 29, 1995
1993
BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 1993
Bristol-Myers Squibb's 1993 10-K shows a company with solid top-line growth and strong profitability, but reported earnings were depressed by a $500 million pre-tax special charge for breast implant litigation. Worldwide net sales rose 2% to $11.4 billion (domestic up 4%, international flat, or up 5% excluding currency translation). Earnings from continuing operations fell 1.2% from the 1991 level but rose 27% year over year to $1.96 billion, or $3.80 per share. Excluding the 1993 special charge and the 1992 restructuring charge, earnings from continuing operations grew 8% to $2.27 billion, or $4.40 per share. Management reported a 32.8% return on stockholders' equity, a triple-A credit rating, and $2.7 billion in cash, time deposits and marketable securities. The pharmaceutical segment drove results, with sales up 3% to $6.5 billion and operating margin improving to 32.7%. Anti-cancer drugs grew 19% to $1.2 billion, led by TAXOL, and newer cardiovascular products such as PRAVACHOL and MONOPRIL performed well. Captopril (CAPOTEN), the largest product, fell 11% to $1.5 billion, and its U.S. patent expires in 1995, a key risk for investors. R&D spending rose to $1.13 billion, or 14.9% of pharmaceutical sales. The medical devices segment was loss-making in 1993 because of the breast implant charge, and the company agreed in late March 1994 to a settlement with a cap of $1.154 billion in contributions over roughly 30 years. Investors should weigh the strong cash generation and dividend growth (the 1994 indicated dividend is $2.92, the 22nd consecutive annual increase) against several overhangs: the breast implant settlement's dependence on claimant opt-outs and court approval, a 1994 effective tax rate expected to rise to about 30% under the 1993 Omnibus Budget Reconciliation Act, pending infant formula antitrust actions, pharmaceutical pricing litigation, and captopril's 1995 patent expiry.
Mar 31, 1994