8-KEarnings & ResultsExhibits & Filings

BRISTOL MYERS SQUIBB CO 8-K Report, Financial Results (Apr 18, 2022)

Filed April 18, 2022For Securities:BMYCELG-RIBMYMP

Summary

Bristol-Myers Squibb (BMY) announced a modification to its non-GAAP financial reporting, effective Q1 2022, in response to SEC feedback. The company will now include significant R&D charges and other income related to upfront or contingent milestone payments from asset acquisitions and intellectual property licensing within its non-GAAP results. These items will be presented in a new financial statement line item called 'Acquired IPRD'. Prior period results will be restated to reflect this new presentation, providing investors with a more consistent view of these specific costs. The company provided a preliminary estimate that these Acquired IPRD charges and licensing income will have a net negative impact of approximately $0.10 per share on both GAAP and non-GAAP diluted earnings per share for the first quarter of 2022. Investors should note that the Q1 2022 results are not yet finalized and are subject to closing procedures, meaning the actual impact could differ from this estimate. This change aims to enhance transparency and comparability in the company's financial disclosures.

Key Highlights

  • 1BMY is changing its non-GAAP reporting for R&D charges and licensing income related to asset acquisitions and IP licensing, effective Q1 2022.
  • 2A new financial statement line item, 'Acquired IPRD', will be introduced to report these specific R&D charges and income.
  • 3Prior period financial results will be revised to align with the new presentation for improved comparability.
  • 4The company estimates a preliminary negative impact of approximately $0.10 per share on Q1 2022 GAAP and non-GAAP EPS due to these Acquired IPRD items.
  • 5The Q1 2022 financial results are still being finalized, and the actual impact may vary from the preliminary estimate.
  • 6The changes are being made in response to discussions and comments from the U.S. Securities and Exchange Commission (SEC).

Frequently Asked Questions

Bristol-Myers Squibb is modifying its presentation of non-GAAP financial results. Starting in Q1 2022, it will no longer exclude significant R&D charges and other income related to asset acquisitions and intellectual property licensing from its non-GAAP earnings. These items will be reported under a new line item called 'Acquired IPRD'.

'Acquired IPRD' stands for acquired intellectual property rights and development. This new financial statement line item will be used to report specific R&D charges and income arising from upfront or contingent milestone payments in connection with asset acquisitions or the licensing of third-party intellectual property rights.

The company has provided a preliminary estimate that these Acquired IPRD charges and licensing income will result in a net negative impact of approximately $0.10 per share on both GAAP and non-GAAP diluted EPS for the first quarter of 2022. However, this is a preliminary estimate, and the final results may differ.

Bristol-Myers Squibb is making these changes to its presentation of non-GAAP financial measures following comments from and discussions with the U.S. Securities and Exchange Commission (SEC). The aim is to provide a more consistent and transparent presentation of these specific costs and income.