What was the primary driver of the increase in net sales?

The primary drivers for the increase in net sales were higher sales volume, higher average net selling prices for certain products, and favorable foreign exchange rates.

What is the expected impact of the upcoming loss of exclusivity for PLAVIX*?

The company expects a rapid, precipitous, and material decline in PLAVIX* net sales and a reduction in net income and operating cash flow upon its loss of exclusivity in the U.S. in May 2012.

How did the company's alliances with Sanofi and Otsuka impact the results?

The Sanofi alliance contributed significantly to net sales, particularly for PLAVIX* and AVAPRO*/AVALIDE*, although international PLAVIX* sales are facing generic competition. The Otsuka alliance for ABILIFY* showed growth in both U.S. and international markets despite a reduction in the company's contractual share of U.S. sales.

What are the significant litigation matters affecting the company?

Major ongoing litigation includes patent infringement disputes related to PLAVIX* and ABILIFY*, with outcomes that could materially impact future sales. The company is also involved in various other proceedings including product liability, pricing practices, and environmental matters, with some having reached settlement or awaiting court decisions.

BRISTOL MYERS SQUIBB CO 10-Q Quarterly Report Q2 FY2011

Summary

Bristol-Myers Squibb Company (BMY) reported solid financial results for the quarter and six months ended June 30, 2011. Net sales increased by 14% to $5.43 billion for the quarter and 9% to $10.44 billion for the first six months, driven by volume, higher average selling prices, and favorable foreign exchange. Diluted earnings per share attributable to Bristol-Myers Squibb Company were $0.52 for the quarter, a slight decrease from $0.53 in the prior year, and $1.10 for the six-month period, an increase from $0.96 in the prior year. The company saw growth in key products such as PLAVIX*, ABILIFY*, and SPRYCEL, though AVAPRO*/AVALIDE* experienced a decline. Significant new product approvals and positive trial results were highlighted, including YERVOY in Europe, NULOJIX in the US and EU, and ELIQUIS* in the EU. However, the company faces the impending loss of exclusivity for PLAVIX* in the U.S. in May 2012, which is expected to materially impact future sales and cash flow. Management is focused on sustaining the business through pipeline advancement, growing current products, and maintaining financial strength.

Financial Highlights

56 data points

Beta

Revenue

$5.43B

0.7% Gross Margin

Net Income

$902.00M

0.2% Net Margin

EPS (Diluted)

$0.52

Total Assets

$31.83B

Cash & Equivalents

$3.67B

Free Cash Flow

$1.02B

Financial Statements

Beta

Revenue	$5.43B
Cost of Revenue	$1.48B
Gross Profit	$3.95B
R&D Expenses	$923.00M
SG&A Expenses	$1.04B
Operating Expenses	$3.64B
Operating Income	$902.00M
Interest Expense	$32.00M
Net Income	$902.00M
EPS (Basic)	$0.53
EPS (Diluted)	$0.52
Shares Outstanding (Basic)	1.71B
Shares Outstanding (Diluted)	1.72B

Key Highlights

1Net sales increased 14% to $5.43 billion for the second quarter and 9% to $10.44 billion for the first six months of 2011.
2Diluted EPS was $0.52 for the quarter and $1.10 for the six-month period.
3Key product PLAVIX* saw a 15% increase in net sales for the quarter, driven by U.S. market performance.
4AVAPRO*/AVALIDE* net sales decreased 18% for the quarter, impacted by supply shortages and generic competition.
5New product approvals included YERVOY (EU), NULOJIX (US/EU), and ELIQUIS* (EU) in recent months.
6The company anticipates a significant decline in sales and cash flow upon the loss of exclusivity for PLAVIX* in the U.S. in May 2012.
7Restructuring and other charges increased significantly to $68 million for the quarter and $139 million for the six months, reflecting workforce reductions and operational streamlining.

BRISTOL MYERS SQUIBB CO Quarterly Report for Q2 Ended Jun 30, 2011

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions