01—Abstract
Summary
Summary of the 10-K filed February 19, 2010. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Net sales increased by 6% to $18.8 billion in 2009, driven by strong performance in key products like PLAVIX* (up 10%) and ABILIFY* (up 20%).
- The company continued its strategic transformation by divesting the Mead Johnson Nutrition Company and executing "string-of-pearls" acquisitions, such as Medarex, to focus on its biopharmaceutical core.
- Significant sales growth was reported in the virology portfolio, with BARACLUDE up 36% and the SUSTIVA Franchise up 11%, while ABILIFY* saw a 20% increase.
- BMY is actively managing its product portfolio and intellectual property, with an eye on upcoming patent expirations and generic competition, particularly noting the impact on PLAVIX* sales in Europe.
- Research and development spending remained substantial at $3.6 billion in 2009, supporting a pipeline with promising compounds in areas like transplantation (belatacept) and diabetes (dapagliflozin).
- The company's financial position remained strong, with cash, cash equivalents, and marketable securities totaling $9.9 billion at year-end 2009, supported by significant cash flow from operations.
- BMY is focusing on emerging markets, identifying Brazil, Russia, India, China, and Turkey as key growth opportunities aligned with its innovation-focused strategy.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Bristol Myers Squibb Co kept $0.56.
- Revenue$18.81B100.0%
- Cost of revenue−$5.14B27.3%
- Gross profit$13.67B72.7%
- Operating costs−$10.43B55.4%
- Operating income$3.24B17.2%
- Interest, other & tax$7.37B39.2%
- Net income$10.61B56.4%
Where FY2009 revenue went
$18.81B- Cost of revenue: $5.14B, 27% of revenue
- SG&A: $3.95B, 21% of revenue
- R&D: $3.65B, 19% of revenue
- Operating income: $3.24B, 17% of revenue
- Other operating costs: $2.84B, 15% of revenue
Kept 17% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 19, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $18.81B$17.71B | +6.2% |
| Cost of Revenue | $5.14B$5.32B | −3.3% |
| Gross Profit | $13.67B$12.40B | +10.2% |
| R&D Expenses | $3.65B$3.51B | +3.8% |
| SG&A Expenses | $3.95B$4.14B | −4.7% |
| Operating Expenses | $13.21B$12.94B | +2.1% |
| Operating Income | $3.24B$2.70B | +20.1% |
| Interest Expense | $184.00M$310.00M | −40.6% |
| Net Income | $10.61B$5.25B | +102.2% |
| EPS (Basic) | $5.35$2.64 | +102.7% |
| EPS (Diluted) | $5.34$2.62 | +103.8% |
| Shares Outstanding (Basic) | 1.97B— | — |
| Shares Outstanding (Diluted) | 1.98B— | — |
05—Questions
Frequently Asked Questions
What are Bristol-Myers Squibb's (BMY) top-performing products based on this filing?
Based on the 2009 filing, BMY's top-performing products by sales included PLAVIX* ($6.1 billion), ABILIFY* ($2.6 billion), REYATAZ ($1.4 billion), SUSTIVA Franchise ($1.3 billion), and AVAPRO*/AVALIDE* ($1.3 billion). Significant growth was also seen in BARACLUDE (36%), SPRYCEL (36%), and ORENCIA (37%).
How is BMY addressing the challenge of generic competition?
BMY acknowledges generic competition as a major challenge, particularly for products like PLAVIX* in Europe where data protection has expired. The company's strategy involves focusing on innovative biopharmaceutical products, leveraging patent rights and regulatory exclusivity, and actively pursuing licensing and acquisition opportunities to replenish its pipeline. They also noted the ongoing development of regulatory pathways for biosimilar products.
What significant strategic initiatives has BMY undertaken in recent years?
BMY has been executing a multi-year strategy to transform into a next-generation biopharmaceutical company. This includes divesting non-pharmaceutical businesses (like Mead Johnson, ConvaTec, and Medical Imaging), implementing a "string-of-pearls" acquisition and licensing strategy, and executing a productivity transformation initiative (PTI) to enhance efficiency and reduce costs. They are also focusing resources on emerging markets.
What is BMY's approach to research and development (R&D)?
BMY invests heavily in R&D, spending $3.6 billion in 2009. Their focus areas include critical unmet medical needs in oncology, HIV/AIDS, diabetes, cardiovascular disease, neuroscience, and immunoscience. The company also actively pursues strategic alliances and collaborations to enhance its pipeline and stay at the forefront of technological advancements.
06—Continue