10-KPeriod: FY2009

BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2009

Filed February 19, 2010For Securities:BMYCELG-RIBMYMP

Summary

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.

Financial Highlights

59 data points
Beta

Revenue

$18.81B

72.7% Gross Margin

Net Income

$10.61B

56.4% Net Margin

EPS (Diluted)

$5.34

Total Assets

$31.01B

Cash & Equivalents

$7.68B

Free Cash Flow

$3.33B

Financial Statements
Beta
Revenue$18.81B
Cost of Revenue$5.14B
Gross Profit$13.67B
R&D Expenses$3.65B
SG&A Expenses$3.95B
Operating Expenses$13.21B
Operating Income$3.24B
Interest Expense$184.00M
Net Income$10.61B
EPS (Basic)$5.35
EPS (Diluted)$5.34
Shares Outstanding (Basic)1.97B
Shares Outstanding (Diluted)1.98B

Key Highlights

  • 1Net 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%).
  • 2The 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.
  • 3Significant sales growth was reported in the virology portfolio, with BARACLUDE up 36% and the SUSTIVA Franchise up 11%, while ABILIFY* saw a 20% increase.
  • 4BMY 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.
  • 5Research 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).
  • 6The 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.
  • 7BMY is focusing on emerging markets, identifying Brazil, Russia, India, China, and Turkey as key growth opportunities aligned with its innovation-focused strategy.

Frequently Asked Questions

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%).

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.

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.

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.