10-QPeriod: Q3 FY2009

BRISTOL MYERS SQUIBB CO Quarterly Report for Q3 Ended Sep 30, 2009

Filed October 22, 2009For Securities:BMYCELG-RIBMYMP

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.

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.

Frequently Asked Questions

Bristol-Myers Squibb reported a 4% increase in net sales to $15.9 billion for the first nine months of 2009, driven by strong performance from key products. Net earnings from continuing operations rose by 31% to $3.5 billion, benefiting from improved gross margins and cost savings initiatives.

Key strategic moves included the acquisition of Medarex, Inc. for $2.3 billion to enhance its biologics pipeline, the successful IPO of Mead Johnson Nutrition Company, and the launch of the new diabetes drug ONGLYZA. The company is also focused on its Productivity Transformation Initiative (PTI) to achieve significant cost savings.

PLAVIX* and ABILIFY* continued to be strong performers, driving sales growth. ONGLYZA, a new type 2 diabetes treatment, received regulatory approval and was launched during the quarter. Other products like BARACLUDE, ORENCIA, and SPRYCEL also showed significant growth.

The company maintained a strong liquidity position with $6.4 billion in cash and cash equivalents. Management expects its cash flows, existing cash reserves, and capital markets access to be sufficient to cover working capital needs, capital expenditures, strategic alliances, acquisitions, milestone payments, and dividends.