10-KPeriod: FY2013

BRISTOL MYERS SQUIBB CO Annual Report, Year Ended Dec 31, 2013

Filed February 14, 2014For Securities:BMYCELG-RIBMYMP

Summary

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.

Financial Highlights

57 data points
Beta

Revenue

$16.39B

71.8% Gross Margin

Net Income

$2.56B

15.6% Net Margin

EPS (Diluted)

$1.54

Total Assets

$38.59B

Cash & Equivalents

$3.59B

Free Cash Flow

$3.01B

Financial Statements
Beta
Revenue$16.39B
Cost of Revenue$4.62B
Gross Profit$11.77B
R&D Expenses$3.73B
SG&A Expenses$4.94B
Operating Expenses$13.49B
Interest Expense$199.00M
Net Income$2.56B
EPS (Basic)$1.56
EPS (Diluted)$1.54
Shares Outstanding (Basic)1.64B
Shares Outstanding (Diluted)1.66B

Key Highlights

  • 1Total revenues decreased by 7% year-over-year to $16.385 billion in 2013, impacted by patent expirations and strategic divestitures.
  • 2The company divested its diabetes business to AstraZeneca in February 2014, receiving significant upfront and milestone payments, to streamline its focus on core therapeutic areas.
  • 3Key product revenues showed mixed performance: Sprycel and Yervoy experienced strong growth, while Abilify revenues declined significantly due to changes in revenue-sharing agreements, and Plavix and Avapro/Avalide saw substantial declines post-exclusivity loss.
  • 4Research and Development expenses remained substantial at $3.731 billion, with a focus on advancing late-stage pipeline assets, particularly in oncology (immuno-oncology) and hepatitis C.
  • 5The company continued to manage its capital structure, with total cash, cash equivalents, and marketable securities increasing to $8.272 billion at year-end 2013.
  • 6BMY continued its share repurchase program, buying back $433 million of its common stock in 2013, and maintained its dividend payments.

Frequently Asked Questions

The primary drivers for the revenue decline in 2013 were the loss of market exclusivity for key products like Plavix and Avapro/Avalide, leading to significant generic competition, and a reduction in Bristol-Myers Squibb's share of Abilify revenues due to revised alliance agreements.

The divestiture of the diabetes business to AstraZeneca in February 2014 is significant as it allows Bristol-Myers Squibb to focus its resources and strategic efforts on its core therapeutic areas, particularly oncology, virology, and immunology, and to accelerate its transformation into a leading specialty care biopharmaceutical company.

Bristol-Myers Squibb is managing patent expirations by investing heavily in R&D to develop new products and expand indications for existing ones. The company is also strategically acquiring and licensing promising assets, particularly in its focus areas like immuno-oncology, to build a robust pipeline and mitigate the impact of generic competition on its revenue base.

Looking ahead, Bristol-Myers Squibb is focused on driving the growth of key brands such as Sprycel and Yervoy, executing new product launches like Eliquis, and advancing its late-stage pipeline. The company expects continued growth from its oncology and immunology portfolios, while navigating the challenges posed by patent expirations on older products.