Summary
Bristol-Myers Squibb Company (BMY) reported a net sales increase of 4% for the nine months ended September 30, 2009, compared to the same period in 2008, reaching $15.9 billion. This growth was driven by key products like PLAVIX* and ABILIFY*, which saw significant sales increases. Net earnings from continuing operations also saw a substantial rise of 31% to $3.5 billion, primarily attributed to sales growth, improved gross margins, and cost-saving initiatives from the company's Productivity Transformation Initiative (PTI). Strategically, BMY continues its transformation into a next-generation biopharmaceutical company. This includes the successful initial public offering (IPO) of its subsidiary Mead Johnson Nutrition Company, extending its ABILIFY* co-marketing agreement, and completing the acquisition of Medarex, Inc. for $2.3 billion to bolster its biologics pipeline. The company is managing costs effectively, aiming for $2.5 billion in annual productivity savings by 2012 through its PTI program.
Financial Highlights
55 data points| Revenue | $4.79B |
| Cost of Revenue | $1.32B |
| Gross Profit | $3.47B |
| R&D Expenses | $820.00M |
| SG&A Expenses | $953.00M |
| Operating Expenses | $3.22B |
| Operating Income | $892.00M |
| Interest Expense | $47.00M |
| Net Income | $966.00M |
| EPS (Basic) | $0.49 |
| EPS (Diluted) | $0.48 |
Key Highlights
- 1Net sales increased by 4% to $15.9 billion for the nine months ended September 30, 2009, driven by strong performance in key products like PLAVIX* and ABILIFY*.
- 2Net earnings from continuing operations grew by 31% to $3.5 billion, reflecting improved gross margins and cost efficiencies from the Productivity Transformation Initiative (PTI).
- 3The company completed the acquisition of Medarex, Inc. for $2.3 billion, strengthening its biologics pipeline, particularly in oncology and immunology.
- 4Mead Johnson Nutrition Company completed its IPO in February 2009, with BMY retaining an 83.1% interest.
- 5ONGLYZA (saxagliptin), a new treatment for type 2 diabetes, received FDA approval and was launched in the U.S. and Mexico in Q3 2009, and in the EU in October 2009.
- 6The company is actively managing costs through its PTI program, targeting $2.5 billion in annual savings by 2012.
- 7Despite a challenging economic environment, BMY maintained a strong liquidity position with $6.4 billion in cash and cash equivalents at the end of Q3 2009.