01—Abstract
Summary
Summary of the 10-K filed February 12, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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 billionc 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 billiond, 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.
02—Key points
Key Highlights
- Total revenues grew 7% to $48.3 billion, with the Growth Portfolio up 17% to $22.6 billion and now representing about 47% of revenue.
- GAAP diluted EPS was $(4.41), reflecting a one-time $12.1 billion non-deductible Karuna Acquired IPRD charge; non-GAAP EPS was $1.15 versus $7.51 in 2023.
- Net debt increased to $38.5 billion from $27.1 billion after $13.0 billion of 2024 senior notes issuance and roughly $20.7 billion of acquisition and collaboration payments.
- Eliquis (+9% to $13.3 billion) and Opdivo (+3% to $9.3 billion) remain the largest franchises, but both face U.S. and EU exclusivity erosion starting around 2028 and 2030, respectively.
- Gross-to-net adjustments rose to 44% of gross product sales from 40%, and the Medicare Part D redesign is expected to add pressure in Q1 2025, particularly for Eliquis.
- Intangible asset impairments of $2.9 billion were recorded in 2024, including $1.4 billion for Augtyro and $1.8 billion in total cost-of-sales impairments, signaling pressure on newly acquired assets.
- No share repurchases occurred in 2024, the dividend was held at $0.60 per quarter, and the company expects roughly $1.5 billion in 2025 capex.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 12, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $48.30B$45.01B | +7.3% |
| Cost of Revenue | $13.97B$10.69B | +30.6% |
| Gross Profit | $34.33B$34.31B | +0.1% |
| R&D Expenses | $11.16B$9.30B | +20.0% |
| SG&A Expenses | $8.41B$7.77B | +8.3% |
| Operating Expenses | $56.68B$36.57B | +55.0% |
| Net Income | -$8.95B$8.03B | −211.5% |
| EPS (Basic) | $-4.41$3.88 | −213.7% |
| EPS (Diluted) | $-4.41$3.86 | −214.2% |
| Shares Outstanding (Basic) | 2.03B2.07B | −2.0% |
| Shares Outstanding (Diluted) | 2.03B2.08B | −2.5% |
05—Questions
Frequently Asked Questions
Why did BMS report a GAAP net loss in 2024 when it was profitable in 2023?
The loss was driven mainly by a one-time $12.1 billion Acquired IPRD charge from the Karuna asset acquisition. Because it was treated as an asset acquisition, the cost was expensed rather than capitalized and is not tax-deductible. Intangible asset impairments of about $2.9 billion and higher interest expense of $1.9 billion also weighed on results. Excluding these specified items, non-GAAP EPS was $1.15.
How much revenue is at risk from patent and exclusivity loss?
Eliquis, Opdivo, Orencia and Yervoy are expected to represent a significant share of revenue, earnings and cash flow over the next few years. Yervoy has an estimated minimum U.S. exclusivity date of 2025, and Opdivo's U.S. date is 2028. Legacy products are already eroding: Revlimid fell 5%, Sprycel fell 33%, and Abraxane fell 13%. The filing notes that U.S. revenue declines after exclusivity loss are typically faster than in other developed markets.
What is the impact of the Inflation Reduction Act on BMS?
Eliquis received a Medicare maximum fair price effective January 1, 2026, and Pomalyst was selected for government negotiation starting in 2027. The Part D redesign has also shifted manufacturer discounts. Management says the full impact remains uncertain, and the filing states that more products could be selected in future years, which could accelerate revenue erosion before patent expiry.
Is the dividend safe, and what is the capital allocation outlook?
Dividends paid totaled $4.9 billion in 2024, and the quarterly dividend stayed at $0.60 per share. Share repurchases were paused in 2024 as cash went to acquisitions, leaving $5.0 billion of authorization remaining. Net debt of $38.5 billion and the S&P rating downgrade from A+ to A limit near-term flexibility, so the filing explicitly notes that the Board could reduce the dividend or buybacks, and that the IRA's 1% excise tax on repurchases could also affect buyback decisions.
What pipeline catalysts should investors watch?
Management expects a number of registrational readouts through 2025 and 2026 that could deliver 10 or more new medicines over the next five years. Key items include Cobenfy trials in adjunctive schizophrenia and Alzheimer's psychosis, milvexian Phase III LIBREXIA trials in stroke, ACS and atrial fibrillation, Camzyos in non-obstructive HCM, Opdivo adjuvant HCC, and arlo-cel and iberdomide in multiple myeloma. Commercial momentum is also visible in Cobenfy, which launched in October 2024, and in Breyanzi and Camzyos, which grew 105% and 161% respectively.
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