01—Abstract
Summary
Summary of the 10-Q filed April 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Bristol-Myers Squibb's first-quarter 2025 results show a mixed picture.
Total revenues fell 6% year over year to $11.2 billiona, as generic erosion on Revlimid, Pomalyst, Sprycel and Abraxane, plus the Medicare Part D redesign affecting Eliquis pricing, offset strong demand growth in the Growth Portfolio (up 16% to $5.6 billion). U.S. net selling prices declined 8%, and U.S. gross-to-net adjustments rose to 51% of gross sales from 45%. Reported GAAP diluted EPS was $1.20, versus a loss of $(5.89) in Q1 2024 that was driven by the $12.1 billion Karuna acquired IPRD charge.
Non-GAAP diluted EPS was $1.80b, versus $(4.40) a year earlier, and the comparison is distorted by the 2024 one-time charges and acquisition-related items. Cash generation weakened. Operating cash flow was $1.95 billion, down from $2.83 billion, mainly because of higher U.S. GTN payments.
Net debt improved by $886 million to $37.6 billionc, aided by $12.1 billion of cash and marketable securities. Dividends of $1.26 billion were paid, and the company retains $5.0 billion of remaining buyback capacity. Total debt is $49.5 billion, and short-term obligations rose to $3.6 billion as the current portion of long-term debt increased.
Operating cost discipline is improving. SG&A fell 33% and R&D fell 16%, largely because 2024 included acquisition-related stock settlements. Management expects about $2.0 billiond of annual cost savings by the end of 2027 from its expanded productivity program, with the 2023 Restructuring Plan's total charges now estimated at about $2.5 billion.
Pipeline and regulatory news was mixed. Breyanzi, Camzyos, Opdivo and Opdivo plus Yervoy won several approvals, including a U.S. approval for first-line HCC and CRC. However, the Phase III ODYSSEY-HCM (Camzyos in nHCM) and ARISE (Cobenfy adjunctive) trials missed their primary endpoints, and RELATIVITY-098 (Opdualag adjuvant) also failed.
02—Key points
Key Highlights
- Total revenues fell 6% to $11.2B. The Growth Portfolio rose 16% to $5.6B, led by Breyanzi (+146%), Reblozyl (+35%), Camzyos (+89%) and Opdivo (+9%), but Legacy Portfolio sales fell 20% to $5.6B on Revlimid (-44%) and Sprycel (-53%) generic erosion.
- GAAP diluted EPS was $1.20 versus a $(5.89) loss a year earlier, which included the $12.1B Karuna IPRD charge. Non-GAAP diluted EPS was $1.80 versus $(4.40).
- Operating cash flow fell to $1.95B from $2.83B due to higher U.S. GTN payments. Net debt improved $886M to $37.6B.
- U.S. GTN adjustments rose to 51% of gross sales from 45%, and average U.S. net selling prices fell 8%, reflecting the Medicare Part D redesign and government channel rebates.
- Amortization of acquired intangibles fell 65% to $830M after Revlimid's marketed product right was fully amortized in Q4 2024, a significant tailwind to GAAP earnings.
- Expected annual cost savings of about $2.0B by end of 2027 from the expanded productivity program; total 2023 Restructuring Plan charges now estimated at about $2.5B through 2027.
- Several pipeline setbacks in the quarter: Phase III ODYSSEY-HCM (Camzyos, nHCM), ARISE (Cobenfy adjunctive), and RELATIVITY-098 (Opdualag adjuvant) did not meet primary endpoints. Regulatory wins included FDA approval of Opdivo + Yervoy for first-line HCC and MSI-H/dMMR CRC.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 24, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $11.20B$11.87B | −5.6% |
| Cost of Revenue | $3.03B$2.93B | +3.4% |
| Gross Profit | $8.17B$8.93B | −8.6% |
| R&D Expenses | $2.26B$2.69B | −16.3% |
| SG&A Expenses | $1.58B$2.37B | −33.1% |
| Operating Expenses | $8.23B$23.38B | −64.8% |
| Net Income | $2.46B-$11.91B | +120.6% |
| EPS (Basic) | $1.21$-5.89 | +120.5% |
| EPS (Diluted) | $1.20$-5.89 | +120.4% |
| Shares Outstanding (Basic) | 2.03B2.02B | +0.4% |
| Shares Outstanding (Diluted) | 2.04B2.02B | +0.8% |
05—Questions
Frequently Asked Questions
Why did GAAP EPS swing from a loss to a profit year over year?
Q1 2024 included a $12.1 billion one-time Acquired IPRD charge for the Karuna acquisition, which was non-tax-deductible, plus other acquisition-related charges. Q1 2025 had no comparable charge. Amortization also dropped 65% to $830 million, mainly because the Revlimid product right was fully amortized in Q4 2024. Revenue declined 6%, so the swing is driven mainly by the absence of 2024 one-time items rather than by operating improvement.
How are generic erosion and pricing pressure affecting the business?
Revlimid sales fell 44% to $936 million and Sprycel fell 53% after U.S. generic entry. Pomalyst international sales fell 55%. Average U.S. net selling prices fell 8%, and U.S. GTN adjustments rose to 51% of gross sales from 45%, driven by Medicare Part D redesign and higher government rebates. Eliquis, the largest product at $3.6 billion, declined 4% in total, and its U.S. sales fell 6% on lower net prices. Maximum fair price for Eliquis under the IRA takes effect January 2026.
Is BMS's balance sheet and dividend under pressure?
Net debt is $37.6 billion, down from $38.5 billion at year-end 2024. Cash and marketable securities total $12.1 billion, and the company has no borrowings under its $5.0 billion revolving credit facility. However, operating cash flow of $1.95 billion covered quarterly dividends of about $1.26 billion, but with less cushion than a year earlier. Short-term debt rose to $3.6 billion as the current portion of long-term debt increased. The Board decides dividends quarterly, and the declared dividend is $0.62 per share.
What are the key near-term catalysts and risks flagged in the filing?
Catalysts include the continued launches of Breyanzi, Camzyos, Opdivo Qvantig and Opdivo + Yervoy, and the $2.0B cost savings program. Key risks include the IRA price negotiation (Eliquis from 2026, Pomalyst selected for 2027), U.S. generic pomalidomide entry expected in March 2026, the Revlimid volume-limited licenses ending January 31, 2026, and pending tax disputes with the IRS (2008–2012 transfer pricing), where a $300–340 million reduction in unrecognized tax benefits is possible within twelve months. Also notable are the Plavix Hawaii penalty appeal ($458 million attributed to BMS) and the Eliquis European patent litigation.
What did the trial failures mean for the pipeline?
The Phase III ODYSSEY-HCM trial of Camzyos in nonobstructive HCM did not meet its dual primary endpoints, which limits the drug's label expansion to oHCM. The Phase III ARISE trial of Cobenfy as adjunctive therapy in schizophrenia missed statistical significance, which constrains its add-on opportunity. RELATIVITY-098 (Opdualag adjuvant melanoma) missed recurrence-free survival. Positive offsets include the Sotyktu PsA-2 Phase III trial, which met its ACR20 primary endpoint (54.2% vs 39.4% placebo), and the BioArctic Alzheimer's licensing deal, which carries a $100 million upfront payment and up to $1.3 billion in milestones.
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