10-KPeriod: FY2011

BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2011

Filed February 17, 2012For Securities:BMYCELG-RIBMYMP

Summary

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.

Financial Highlights

58 data points
Beta

Revenue

$21.24B

73.6% Gross Margin

Net Income

$3.71B

17.5% Net Margin

EPS (Diluted)

$2.16

Total Assets

$32.97B

Cash & Equivalents

$5.78B

Free Cash Flow

$4.47B

Financial Statements
Beta
Revenue$21.24B
Cost of Revenue$5.60B
Gross Profit$15.65B
R&D Expenses$3.84B
SG&A Expenses$4.20B
Operating Expenses$14.26B
Operating Income$3.71B
Interest Expense$145.00M
Net Income$3.71B
EPS (Basic)$2.18
EPS (Diluted)$2.16
Shares Outstanding (Basic)1.70B
Shares Outstanding (Diluted)1.72B

Key Highlights

  • 1BMY reported net sales of $21.24 billion for 2011, a 9% increase from 2010, driven by strong performance in key products and new launches.
  • 2The company invested $3.8 billion in Research and Development (R&D) in 2011, reflecting its commitment to innovation and pipeline development.
  • 3BMY successfully launched Yervoy (ipilimumab) in the US and EU for melanoma, and also launched new formulations/products like subcutaneous Orencia, Nulojix, and Eliquis (EU).
  • 4The company is proactively addressing the upcoming loss of U.S. market exclusivity for Plavix (May 2012) and Avapro/Avalide (March 2012), which are significant revenue drivers.
  • 5BMY continued its 'string-of-pearls' acquisition and licensing strategy, with key acquisitions including Amira Pharmaceuticals and Inhibitex Inc.
  • 6Despite increased spending on marketing and R&D, the company managed its cost structure, with cost of goods sold as a percentage of net sales decreasing slightly year-over-year.
  • 7Financial position remained strong, with total cash, cash equivalents, and marketable securities at $11.64 billion as of December 31, 2011.

Frequently Asked Questions

In 2011, Bristol-Myers Squibb's key products, which represented 86% of total net sales, included Plavix ($7.1 billion), Abilify ($2.8 billion), Reyataz ($1.6 billion), the Sustiva Franchise ($1.5 billion), and Baraclude ($1.2 billion). These products are critical to the company's revenue generation.

The most significant risk identified is the upcoming loss of U.S. market exclusivity for Plavix in May 2012 and Avapro/Avalide in March 2012. The company anticipates a rapid and material decline in sales for these products following exclusivity loss, which could significantly impact its financial results.

Bristol-Myers Squibb is investing heavily in its pipeline through a robust R&D program, spending $3.8 billion in 2011. The company is also actively pursuing its 'string-of-pearls' strategy, which involves strategic acquisitions and licensing of innovative products, such as the recent acquisitions of Amira Pharmaceuticals and Inhibitex Inc., to build a strong portfolio for the future.

The U.S. healthcare reform legislation enacted in 2010 has had a financial impact, increasing costs through higher Medicaid rebates and a new annual pharmaceutical company fee. The company reported an increased EPS impact from U.S. healthcare reform from $0.10 in 2010 to $0.24 in 2011, primarily due to the Medicare Part D coverage gap discount and the annual fee.