10-QPeriod: Q1 FY2015

BRISTOL MYERS SQUIBB CO Quarterly Report for Q1 Ended Mar 31, 2015

Filed April 28, 2015For Securities:BMYCELG-RIBMYMP

Summary

Bristol-Myers Squibb Company (BMY) reported solid financial results for the first quarter of 2015, with total revenues increasing by 6% year-over-year to $4.04 billion. This growth was driven by strong performance from key products like Eliquis and Yervoy, as well as the recent launches of the Hepatitis C Franchise and Opdivo. Net earnings attributable to BMS rose to $1.19 billion, or $0.71 per diluted share, compared to $937 million, or $0.56 per diluted share, in the prior year's quarter. Despite positive top-line growth and improved profitability, investors should note potential headwinds. The company's U.S. rights to Abilify are set to expire soon, which is expected to impact revenues in subsequent quarters. Additionally, the company is navigating patent expirations and increased generic competition for products like Baraclude. BMY is actively pursuing business development opportunities, including acquisitions and licensing agreements, to bolster its pipeline, particularly in the immuno-oncology space, as evidenced by the acquisition of Flexus Biosciences, Inc.

Financial Highlights

54 data points
Beta

Revenue

$4.04B

79.0% Gross Margin

Net Income

$1.19B

29.3% Net Margin

EPS (Diluted)

$0.71

Total Assets

$33.58B

Cash & Equivalents

$6.29B

Free Cash Flow

$490.00M

Financial Statements
Beta
Revenue$4.04B
Cost of Revenue$847.00M
Gross Profit$3.19B
R&D Expenses$1.02B
SG&A Expenses$1.03B
Operating Expenses$2.59B
Interest Expense$51.00M
Net Income$1.19B
EPS (Basic)$0.71
EPS (Diluted)$0.71
Shares Outstanding (Basic)1.66B
Shares Outstanding (Diluted)1.68B

Key Highlights

  • 1Total Revenues increased by 6% to $4.04 billion, driven by strong performance in key products.
  • 2Net Earnings Attributable to BMS grew to $1.19 billion ($0.71 per diluted share) from $937 million ($0.56 per diluted share) in Q1 2014.
  • 3Eliquis and Yervoy demonstrated significant sales growth, contributing to the revenue increase.
  • 4Opdivo, a new immuno-oncology drug, had its U.S. launch in late 2014 and contributed $40 million in sales.
  • 5The company acquired Flexus Biosciences, Inc. in April 2015 to expand its oncology pipeline.
  • 6U.S. rights for Abilify are expiring in April 2015, which is expected to negatively impact future revenues.
  • 7Baraclude faced generic competition, leading to a 16% decrease in its product sales.

Frequently Asked Questions

Revenue growth was primarily driven by increased sales of key products such as Eliquis and Yervoy, the recent launches of the Hepatitis C Franchise and Opdivo, and a higher share of Abilify revenues in the U.S. This growth more than offset the negative impacts from foreign currency fluctuations and the loss of exclusivity for certain products.

A significant near-term risk is the expiration of BMY's U.S. rights to Abilify in April 2015, which will lead to a cessation of revenue from this product. Additionally, the company continues to face generic competition for older products like Baraclude, and potential regulatory changes or legal proceedings related to pricing and marketing practices could also impact future results.

The company is actively engaged in business development activities, including acquisitions and licensing agreements, to strengthen its R&D pipeline, particularly in oncology and immuno-oncology. The acquisition of Flexus Biosciences, Inc. and strategic collaborations highlight the focus on novel therapeutics, especially in the area of immuno-oncology with drugs like Opdivo and Yervoy.

BMY maintained a strong financial position, with cash, cash equivalents, and marketable securities totaling $11.89 billion as of March 31, 2015. The net cash position was $4.43 billion. The company believes its current liquidity is sufficient to meet its operational needs, including dividends and capital expenditures, and continues to manage its capital structure. Long-term debt stood at $7.13 billion.