- Regulatory Approvals in Both the U.S. and Europe Demonstrate Continued R&D Innovation and Productivity
- Encouraging Topline Results of Phase III ARISTOTLE Trial on ELIQUIS®(apixaban) for Stroke Prevention in Patients with Atrial Fibrillation were Announced
- Sales Increase 14% to $5.4 Billion in Second Quarter
- GAAP EPS Decreases 2% to $0.52; Non-GAAP EPS Increases 4% to $0.56 in Second Quarter
- Company Raises 2011 GAAP EPS Guidance Range to $2.08 to $2.18; Non-GAAP EPS Guidance Range to $2.20 to $2.30
- Company Confirms 2013 Minimum Non-GAAP EPS Guidance of $1.95
NEW YORK--(BUSINESS WIRE)-- Bristol-Myers Squibb Company (NYSE: BMY) today announced double-digit sales growth in a quarter that was highlighted by important new product approvals in both the U.S. and Europe, and key data from the Company’s cardiovascular, oncology and diabetes franchises. In addition, the Company raised guidance for 2011 and confirmed minimum non-GAAP guidance for 2013.
“I am proud of this organization and our strong second quarter results across the board—financially, clinically, and operationally. This performance demonstrates the success of our BioPharma strategy in delivering short term results and in positioning the Company for the future,” said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb.
“While we delivered double-digit sales growth during the second quarter, driven in part by the strong initial performance of YERVOY® (ipilimumab), we also received regulatory approval for NULOJIX® (belatacept) in the U.S. and Europe, and ELIQUIS in Europe for VTE prevention. That brings us to three new products approved in three months, including the approval of YERVOY in the U.S. in March. We also presented clinical data from our oncology and diabetes franchises, and announced important positive top line results from our Phase III ARISTOTLE trial on ELIQUIS for stroke prevention in patients with atrial fibrillation.”
| Second Quarter | |||||||||
| $ amounts in millions, except per share amounts | |||||||||
| 2011 | 2010 | Change | |||||||
| Net Sales | $ | 5,434 | $ | 4,768 | 14 | % | |||
| GAAP Diluted EPS | 0.52 | 0.53 | (2 | )% | |||||
| Non-GAAP Diluted EPS | 0.56 | 0.54 | 4 | % | |||||
SECOND QUARTER FINANCIAL RESULTS
- Bristol-Myers Squibb posted second quarter 2011 net sales of $5.4 billion, an increase of 14%, or 10% excluding the impact of foreign exchange, compared to the same period a year ago.
- U.S. net sales increased 15% to $3.6 billion in the quarter compared to the same period a year ago. International net sales increased 13%, or 3% excluding foreign exchange impact, to $1.9 billion.
- Gross margin as a percentage of net sales was 72.7% in the quarter compared to 73.2% in the same period a year ago.
- Marketing, selling and administrative expenses increased 16% to $1.0 billion in the quarter.
- Advertising and product promotion spending decreased 4% to $253 million in the quarter.
- Research and development expenses increased 12% to $923 million in the quarter.
- The effective tax rate on earnings before income taxes was 27.0% in the quarter, compared to 20.4% in the second quarter last year.
- The Company reported net earnings attributable to Bristol-Myers Squibb of $902 million, or $0.52 per share, in the quarter compared to $927 million, or $0.53 per share, a year ago.
- The Company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $971 million, or $0.56 per share, in the second quarter compared to $944 million, or $0.54 per share, for the same period in 2010. An overview of specified items is discussed under the “Use of Non-GAAP Financial Information” section.
- The incremental impact in 2011 over 2010 of the two additional U.S. health care reform provisions for new discounts associated with the Medicare Part D coverage gap and the annual pharmaceutical company fee decreased second quarter EPS by approximately $0.03.
- Cash, cash equivalents and marketable securities were $10.4 billion, with a net cash position of $4.9 billion as of June 30, 2011.
SECOND QUARTER PRODUCT AND PIPELINE UPDATE
- Bristol-Myers Squibb’s global sales growth in the second quarter was led by PLAVIX®, sales of which grew 15% in the quarter, and ONGLYZA® and recently launched KOMBIGLYZE™, which together delivered $112 million in sales in the quarter. Sales growth was also driven by BARACLUDE®, which grew 31%, SPRYCEL®, which grew 46% , ORENCIA® , which grew 28% and YERVOY, which delivered $95 million in sales in its first quarter on the market in the U.S.
- In May, the European Commission approved ELIQUIS in the 27 countries of the European Union for the prevention of venous thromboembolic events in adult patients who have undergone elective hip or knee replacement surgery. The Company develops and commercializes ELIQUIS with its partner, Pfizer.
- In May, regulatory authorities in China approved ONGLYZA for the treatment of adults with type 2 diabetes. The Company develops and commercializes ONGLYZA with its partner, AstraZeneca.
- In June, NULOJIX was approved by both the U.S. Food and Drug Administration (FDA) and the European Commission for the prevention of organ rejection in adult patients receiving a kidney transplant.
- In June, regulatory authorities in Japan approved the use of SPRYCEL as a first-line treatment of chronic myeloid leukemia. The Company develops and commercializes SPRYCEL with its partner, Otsuka.
- In July, the European Commission approved YERVOY in the 27 countries of the European Union for the treatment of advanced melanoma in adults who have received prior therapy.
- In July, the Company and its partner, AstraZeneca, announced that the FDA’s Endocrinologic and Metabolic Drugs Advisory Committee voted 9 to 6 that the efficacy and safety data did not provide substantial evidence to support the approval of dapagliflozin. The Companies remain committed to dapagliflozin and will continue to work closely with the FDA to support the review of this investigational compound.
- In June, the Company and Pfizer announced that in the Phase III trial, known as ARISTOTLE, ELIQUIS met its primary endpoint of non-inferiority to warfarin on the combined outcome of stroke and systemic embolism in patients with atrial fibrillation and at least one additional risk factor for stroke. ELIQUIS also met the key secondary endpoints of superiority on efficacy and major bleeding compared to warfarin in the study. Data will be presented August 28, 2011, at the European Society of Cardiology Congress in Paris.
- In June, at the American Society of Clinical Oncology meeting in Chicago data were presented on several of the Company’s oncology compounds, including:
- Results from a second Phase III study of YERVOY in metastatic melanoma patients, which met the primary endpoint of overall survival.
- Results from a five-year follow up of a Phase III trial which showed that SPRYCEL 100 mg once daily demonstrated 78% overall survival in patients with chronic-phase chronic myeloid leukemia resistant or intolerant to Gleevec®.
- In June, at the American Diabetes Association Annual Scientific Sessions in San Diego, the Company and its partner, AstraZeneca, presented data on dapagliflozin and ONGLYZA, including:
- Results from two 24-week Phase III clinical studies investigating the combination of dapagliflozin 5 mg or 10 mg with metformin extended-release (XR) which showed the combination significantly improved blood sugar control in previously untreated adults with high blood sugar levels.
- Results from a long-term Phase III study which showed dapagliflozin added to metformin sustained reductions of blood sugar levels in patients with type 2 diabetes when compared to glipizide added to metformin in a two-year study.
- Results from an exploratory 78-week extension of a Phase III clinical study which showed that dapagliflozin plus metformin sustained glycemic control and weight reduction in type 2 diabetes patients inadequately controlled with metformin.
- Results from a Phase IIIb clinical study which showed that ONGLYZA added to insulin (with or without metformin) significantly improved blood sugar levels, compared to treatment with placebo added to insulin (with or without metformin).
BUSINESS DEVELOPMENT UPDATE
- In June, the Company entered into a clinical collaboration agreement with Roche to conduct a Phase I/II study to evaluate the safety and efficacy of the combination of YERVOY and vemurafenib in treating patients with metastatic melanoma.
- In July, the Company announced a global agreement with Innate Pharma S.A., a biotech company in France, for the development and commercialization of IPH 2102, a novel immuno-oncology biologic in Phase I development.
- In July, the Company entered into an agreement to acquire Amira Pharmaceuticals, a small-molecule pharmaceutical company focused on the discovery and early development of new drugs to treat inflammatory and fibrotic diseases. The acquisition marks Bristol-Myers Squibb’s entrance into fibrotic diseases, an area of high unmet need that is complementary to our research efforts in several of our therapeutic areas.
FINANCIAL GUIDANCE
2011
Bristol-Myers Squibb is raising its 2011 GAAP EPS guidance range to $2.08 to $2.18 and its non-GAAP EPS range to $2.20 to $2.30. Key non-GAAP guidance assumptions include:
- High-single-digit revenue growth.
- Gross margin as a percentage of net sales consistent with last year.
- Advertising and promotion expense decrease in the mid-single-digit range.
- Marketing, sales and administrative expenses increasing in the high-single-digit range.
- Research and development expense growth in the mid-single-digit range.
- An effective tax rate of approximately 26%.
This line-item guidance assumes current foreign exchange rates.
2013
The Company is reaffirming its minimum non-GAAP EPS guidance of $1.95 for 2013. This 2013 assumes strong underlying revenue trends for certain key products, timely regulatory approval of and significant contributions from pipeline products, continued and additional productivity savings, exclusivity for ABILIFY® for the term for the current agreement with Otsuka Pharmaceutical Co., and that foreign currency exchange rates and the negative impact of U.S. health care reform and European government-mandated cost containment measures are not substantially different from current expectations.
The financial guidance for 2011 and the 2013 minimum non-GAAP EPS guidance exclude the impact of any potential strategic acquisitions and divestitures and any specified items that have not yet been identified and quantified. The non-GAAP 2011 guidance and the 2013 minimum non-GAAP guidance also exclude other specified items as discussed under “Use of Non-GAAP Financial Information.” Details reconciling adjusted non-GAAP amounts with the amounts reflecting specified items are provided in supplemental materials available on the Company’s website.
Use of Non-GAAP Financial Information
This press release contains non-GAAP financial measures, including non-GAAP earnings from continuing operations and related earnings per share information, adjusted to exclude certain costs, expenses, significant gains and losses and other specified items. Among the items in GAAP measures but excluded for purposes of determining adjusted earnings and other adjusted measures are: restructuring and other exit costs; accelerated depreciation charges; IPRD and asset impairments; charges and recoveries relating to significant legal proceedings; upfront, milestone and other licensing payments for in-licensing of products that have not achieved regulatory approval which are immediately expensed; and significant tax events. This information is intended to enhance an investor’s overall understanding of the company’s past financial performance and prospects for the future. For example, non-GAAP earnings and earnings per share information is an indication of the company’s baseline performance before items that are considered by the company not to be reflective of the company’s ongoing results. In addition, this information is among the primary indicators the company uses as a basis for evaluating company performance, allocating resources, setting incentive compensation targets, and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for net earnings or diluted earnings per share prepared in accordance with GAAP.
Statement on Cautionary Factors
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to goals, plans and projections regarding the company’s financial position, results of operations, market position, product development and business strategy. These statements may be identified by the fact that they use words such as "anticipate", "estimates", "should", "expect", "guidance", "project", "intend", "plan", "believe" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. These factors include, among other things, implementation of the new discounts and new pharmaceutical company fee under the 2010 U.S. health care reform law, governmental laws and regulations related to Medicare, Medicaid, Medicaid managed care organizations and entities under the Public Health Service 340B program, pharmaceutical rebates and reimbursement, market factors, competitive product development and approvals, pricing controls and pressures (including changes in rules and practices of managed care groups and institutional and governmental purchasers), economic conditions such as interest rate and currency exchange rate fluctuations, judicial decisions, claims and concerns that may arise regarding the safety and efficacy of in-line products and product candidates, changes to wholesaler inventory levels, variability in data provided by third parties, changes in, and interpretation of, governmental regulations and legislation affecting domestic or foreign operations, including tax obligations, changes to business or tax planning strategies, difficulties and delays in product development, manufacturing or sales including any potential future recalls, patent positions and the ultimate outcome of any litigation matter. These factors also include the company’s ability to execute successfully its strategic plans, including its String of Pearls strategy, the expiration of patents or data protection on certain products, and the impact and result of governmental investigations. There can be no guarantees with respect to pipeline products that future clinical studies will support the data described in this release, that the products will receive necessary regulatory approvals, or that they will prove to be commercially successful; nor are there guarantees that regulatory approvals will be sought, or sought within currently expected timeframes, or that contractual milestones will be achieved. For further details and a discussion of these and other risks and uncertainties, see the company's periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Company and Conference Call Information
Bristol-Myers Squibb is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. For more information, please visit www.bms.com or follow us on Twitter at http://twitter.com/bmsnews.
There will be a conference call on July 28, 2011, at 10:30 a.m. EDT during which company executives will review financial information and address inquiries from investors and analysts. Investors and the general public are invited to listen to a live web cast of the call at http://investor.bms.com or by dialing: 913-312-0379, confirmation code: 8747273. Materials related to the call will be available at the same website prior to the call.
ABILIFY® is the trademark of Otsuka Pharmaceutical Co., Ltd.
ATRIPLA® is a trademark of both Bristol-Myers Squibb Co. and Gilead Sciences, Inc.
AVAPRO®, AVALIDE®, and PLAVIX® are trademarks of sanofi-aventis.
ERBITUX® is a trademark of ImClone LLC. ImClone Systems is a wholly-owned subsidiary of Eli Lilly and Company.
ELIQUIS® is a trademark of Pfizer, Inc.
All other brand names of products appearing in all capital letters are registered trademarks of the Company or one of its subsidiaries.
| BRISTOL-MYERS SQUIBB COMPANY |
| SELECTED PRODUCTS |
| FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010 |
| (Unaudited, dollars in millions) |
| The following table sets forth worldwide and U.S. reported net sales for selected products. In addition, the table includes, where applicable, the estimated total U.S. prescription change for the retail and mail-order channels for the comparative periods presented for certain of the company's U.S. pharmaceutical products based on third-party data. A significant portion of the company's U.S. pharmaceutical sales is made to wholesalers. Where changes in reported net sales differ from prescription growth, this change in net sales may not reflect underlying prescriber demand. |
| Worldwide Net Sales | U.S. Net Sales | |||||||||||||||
|
2011 |
2010 |
% |
2011 |
2010 |
% |
% Change in U.S. Total |
||||||||||
|
Three Months Ended June 30, |
||||||||||||||||
|
Key Products |
||||||||||||||||
| Plavix | $ 1,865 | $ 1,627 | 15% |
$1,747 |
$ 1,496 | 17% | (4)% | |||||||||
| Avapro/Avalide | 251 | 307 | (18)% | 133 | 170 | (22)% | (40)% | |||||||||
| Abilify | 706 | 633 | 12% | 517 | 491 | 5% | 6% | |||||||||
| Reyataz | 396 | 357 | 11% | 189 | 185 | 2% | 2% | |||||||||
| Sustiva Franchise | 371 | 331 | 12% | 228 | 213 | 7% | 8% | |||||||||
| Baraclude | 292 | 223 | 31% | 51 | 42 | 21% | 8% | |||||||||
| Erbitux | 173 | 172 | 1% | 167 | 168 | (1)% | N/A | |||||||||
| Sprycel | 193 | 132 | 46% | 68 | 42 | 62% | 11% | |||||||||
| Yervoy | 95 | — | N/A | 95 | — | N/A | N/A | |||||||||
| Orencia | 228 | 178 | 28% | 152 | 137 | 11% | N/A | |||||||||
| Nulojix | 2 | — | N/A | 2 | — | N/A | N/A | |||||||||
| Onglyza/Kombiglyze | 112 | 28 | * | 80 | 23 | * | * | |||||||||
| Mature Products and All Other | 750 | 780 | (4)% | 133 | 138 | (4)% | N/A | |||||||||
|
Total |
5,434 | 4,768 | 14% | 3,562 | 3,105 | 15% | N/A | |||||||||
| Worldwide Net Sales | U.S. Net Sales | |||||||||||||||
|
2011 |
2010 |
% |
2011 |
2010 |
% |
% Change in U.S. Total |
||||||||||
|
Six Months Ended June 30, |
||||||||||||||||
|
Key Products |
||||||||||||||||
| Plavix | $ 3,627 | $ 3,293 | 10% |
$3,388 |
$ 3,027 | 12% | (4)% | |||||||||
| Avapro/Avalide | 541 | 621 | (13)% | 293 | 356 | (18)% | (36)% | |||||||||
| Abilify | 1,330 | 1,250 | 6% | 977 | 961 | 2% | 5% | |||||||||
| Reyataz | 762 | 730 | 4% | 370 | 371 | — | 2% | |||||||||
| Sustiva Franchise | 714 | 666 | 7% | 443 | 427 | 4% | 8% | |||||||||
| Baraclude | 567 | 439 | 29% | 99 | 84 | 18% | 10% | |||||||||
| Erbitux | 338 | 338 | — | 329 | 331 | (1)% | N/A | |||||||||
| Sprycel | 365 | 263 | 39% | 129 | 80 | 61% | 10% | |||||||||
| Yervoy | 95 | — | N/A | 95 | — | N/A | N/A | |||||||||
| Orencia | 427 | 347 | 23% | 290 | 263 | 10% | N/A | |||||||||
| Nulojix | 2 | — | N/A | 2 | — | N/A | N/A | |||||||||
| Onglyza/Kombiglyze | 193 | 38 | * | 137 | 29 | * | * | |||||||||
| Mature Products and All Other | 1,484 | 1,590 | (7)% | 260 | 265 | (2)% | N/A | |||||||||
|
Total |
10,445 | 9,575 | 9% | 6,812 | 6,194 | 10% | N/A | |||||||||
|
* In excess of +/- 200%. |
||||||||||||||||
|
BRISTOL-MYERS SQUIBB COMPANY CONSOLIDATED STATEMENTS OF EARNINGS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010 (Unaudited, amounts in millions except per share data) |
||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Net Sales | $ | 5,434 | $ | 4,768 | $ | 10,445 | $ | 9,575 | ||||||||
| Cost of products sold | 1,481 | 1,277 | 2,824 | 2,583 | ||||||||||||
| Marketing, selling and administrative | 1,040 | 894 | 1,968 | 1,794 | ||||||||||||
| Advertising and product promotion | 253 | 263 | 467 | 475 | ||||||||||||
| Research and development | 923 | 822 | 1,858 | 1,732 | ||||||||||||
| Provision for restructuring, net | 40 | 24 | 84 | 35 | ||||||||||||
| Equity in net income of affiliates | (62 | ) | (85 | ) | (144 | ) | (182 | ) | ||||||||
| Other (income)/expense, net | (31 | ) | (19 | ) | (169 | ) | 94 | |||||||||
| Total expenses | 3,644 | 3,176 | 6,888 | 6,531 | ||||||||||||
Earnings before Income Taxes |
1,790 | 1,592 | 3,557 | 3,044 | ||||||||||||
| Provision for income taxes | 483 | 324 | 883 | 675 | ||||||||||||
|
Net Earnings |
1,307 | 1,268 | 2,674 | 2,369 | ||||||||||||
| Net Earnings Attributable to Noncontrolling Interest | 405 | 341 | 786 | 699 | ||||||||||||
| Net Earnings Attributable to BMS | $ | 902 | $ | 927 | $ | 1,888 | $ | 1,670 | ||||||||
| Earnings per Common Share Attributable to BMS: | ||||||||||||||||
| Basic | $ | 0.53 | $ | 0.54 | $ | 1.11 | $ | 0.97 | ||||||||
| Diluted | $ | 0.52 | $ | 0.53 | $ | 1.10 | $ | 0.96 | ||||||||
| Average Common Shares Outstanding: | ||||||||||||||||
| Basic | 1,707 | 1,718 | 1,705 | 1,717 | ||||||||||||
| Diluted | 1,722 | 1,728 | 1,718 | 1,727 | ||||||||||||
| Other (income)/expense | ||||||||||||||||
|
Interest expense |
$ | 32 | $ | 32 | $ | 63 | $ | 65 | ||||||||
| Interest income | (25 | ) | (16 | ) | (46 | ) | (31 | ) | ||||||||
| Impairment and loss on sale of manufacturing operations | — | 15 | — | 215 | ||||||||||||
| Gain on debt repurchase | (2 | ) | — | (10 | ) | — | ||||||||||
| Net foreign exchange transaction losses/(gains) | 18 | (16 | ) | 11 | (32 | ) | ||||||||||
| Gain on sale of product lines, businesses and assets | (2 | ) | (5 | ) | (11 | ) | (15 | ) | ||||||||
| Other income from alliance partners | (39 | ) | (44 | ) | (62 | ) | (94 | ) | ||||||||
| Pension curtailment and settlement charges | — | 14 | (3 | ) | 14 | |||||||||||
| Litigation charges/(recoveries) | (4 | ) | — | (106 | ) | — | ||||||||||
| Product liability charges | — | — | 26 | — | ||||||||||||
| Other | (9 | ) | 1 | (31 | ) | (28 | ) | |||||||||
| Other (income)/expense | $ | (31 | ) | $ | (19 | ) | $ | (169 | ) | $ | 94 | |||||
|
BRISTOL-MYERS SQUIBB COMPANY SPECIFIED ITEMS FOR THE THREE MONTHS ENDED JUNE 30, 2011 AND 2010 (Unaudited, dollars in millions) |
||||||||||||||||
|
Three months ended June 30, 2011 |
||||||||||||||||
| Cost of products sold |
Marketing, selling and administrative | Research and development |
Provision for restructuring |
Total | ||||||||||||
|
Restructuring Activity: |
||||||||||||||||
| Downsizing and streamlining of worldwide operations |
$ |
-- |
$ | -- | $ | -- | $ | 33 | $ | 33 | ||||||
| Accelerated depreciation, asset impairment and other shutdown costs | 18 | 4 | -- | 7 | 29 | |||||||||||
| Process standardization implementation costs | -- | 6 | -- | -- | 6 | |||||||||||
| Total Restructuring | 18 | 10 | -- | 40 | 68 | |||||||||||
| Other: | ||||||||||||||||
| Upfront, milestone and other licensing payments | -- | -- | 50 | -- | 50 | |||||||||||
| Total | $ | 18 | $ | 10 | $ | 50 | $ | 40 | 118 | |||||||
| Income taxes on items above | (34 | ) | ||||||||||||||
| Specified tax benefit | (15 | ) | ||||||||||||||
| Decrease to Net Earnings | $ | 69 | ||||||||||||||
|
Three months ended June 30, 2010 |
|||||||||||||||||||
| Cost of products sold |
Marketing, selling and administrative |
Research and development |
Provision for restructuring |
Other (income)/ expense |
Total | ||||||||||||||
|
Restructuring Activity: |
|||||||||||||||||||
| Downsizing and streamlining of worldwide operations |
$ |
-- |
$ | -- | $ | -- | $ | 24 | $ | -- | $ | 24 | |||||||
| Impairment and loss on sale of manufacturing operations | -- | -- | -- | -- | 15 | 15 | |||||||||||||
| Accelerated depreciation, asset impairment and other shutdown costs | 27 | -- | -- | -- | -- | 27 | |||||||||||||
| Pension curtailment and settlement charges | -- | -- | -- | -- | 5 | 5 | |||||||||||||
| Process standardization implementation costs | -- | 6 | -- | -- | -- | 6 | |||||||||||||
| Total Restructuring | 27 | 6 | -- | 24 | 20 | 77 | |||||||||||||
| Other: | |||||||||||||||||||
| Upfront, milestone and other licensing payments | -- | -- | 17 | -- | -- | 17 | |||||||||||||
| Total | $ | 27 | $ | 6 | $ | 17 | $ | 24 | $ | 20 | 94 | ||||||||
| Income taxes on items above | (18 | ) | |||||||||||||||||
| Out-of-period tax adjustment | (59 | ) | |||||||||||||||||
| Decrease to Net Earnings | $ | 17 | |||||||||||||||||
|
BRISTOL-MYERS SQUIBB COMPANY SPECIFIED ITEMS FOR THE SIX MONTHS ENDED JUNE 30, 2011 AND 2010 (Unaudited, dollars in millions) |
||||||||||||
|
Six months ended June 30, 2011 |
||||||||||||
| Cost of products sold |
Marketing, selling and administrative | Research and development |
Provision for restructuring |
Other (income)/ expense |
Total | |||||||
|
Restructuring Activity: |
||||||||||||
| Downsizing and streamlining of worldwide operations |
$ -- |
$ -- |
$ -- |
$ 77 | $ -- | $ 77 | ||||||
| Accelerated depreciation, asset impairment and other shutdown costs | 41 | 4 | -- | 7 | -- | 52 | ||||||
| Process standardization implementation costs | -- | 10 | -- | -- | -- | 10 | ||||||
| Total Restructuring | 41 | 14 | -- | 84 | -- | 139 | ||||||
| Other: | ||||||||||||
| Litigation recovery | -- | -- | -- | -- | (102) | (102) | ||||||
| Upfront, milestone and other licensing payments | -- | -- | 138 | -- | -- | 138 | ||||||
| In-process research and development (IPRD) impairment | -- | -- | 15 | -- | -- | 15 | ||||||
| Product liability charges | -- | -- | -- | -- | 26 | 26 | ||||||
| Total | $ 41 | $ 14 | $ 153 | $ 84 | $ (76) | 216 | ||||||
| Income taxes on items above | (62) | |||||||||||
| Specified tax benefit | (71) | |||||||||||
| Decrease to Net Earnings | $ 83 | |||||||||||
|
Six months ended June 30, 2010 |
||||||||||||
| Cost of products sold |
Marketing, selling and administrative |
Research and development |
Provision for restructuring |
Other (income)/ expense |
Total | |||||||
|
Restructuring Activity: |
||||||||||||
| Downsizing and streamlining of worldwide operations |
$ -- |
$ -- | $ -- | $ 35 | $ -- | $ 35 | ||||||
| Impairment and loss on sale of manufacturing operations | -- | -- | -- | -- | 215 | 215 | ||||||
| Accelerated depreciation, asset impairment and other shutdown costs | 58 | -- | -- | -- | -- | 58 | ||||||
| Pension curtailment and settlement charges | -- | -- | -- | -- | 5 | 5 | ||||||
| Process standardization implementation costs | -- | 19 | -- | -- | -- | 19 | ||||||
| Total Restructuring | 58 | 19 | -- | 35 | 220 | 332 | ||||||
| Other: | ||||||||||||
| Upfront, milestone and other licensing payments | -- | -- | 72 | -- | -- | 72 | ||||||
| Total | $ 58 | $ 19 | $ 72 | $ 35 | $ 220 | 404 | ||||||
| Income taxes on items above | (104) | |||||||||||
| Out-of-period tax adjustment | (59) | |||||||||||
| Decrease to Net Earnings | $ 241 | |||||||||||
|
BRISTOL-MYERS SQUIBB COMPANY RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2011 AND 2010 (Unaudited, amounts in millions except per share data) |
||||||||||||||||||||||
| Q2 2011 | Q2 2010 | |||||||||||||||||||||
| GAAP |
Specified |
Non |
GAAP |
Specified |
Non GAAP |
|||||||||||||||||
| Net Sales | $ | 5,434 |
-- |
$ | 5,434 | $ | 4,768 | -- | $ | 4,768 | ||||||||||||
| Cost of Products Sold | 1,481 | (18 | ) | 1,463 | 1,277 | (27 | ) | 1,250 | ||||||||||||||
| Gross Profit | 3,953 | 18 | 3,971 | 3,491 | 27 | 3,518 | ||||||||||||||||
| Gross Profit as a % of Sales | 72.7 | % | 0.4 | % | 73.1 | % | 73.2 | % | 0.6 | % | 73.8 | % | ||||||||||
| Marketing, Selling and Administration | 1,040 | (10 | ) | 1,030 | 894 | (6 | ) | 888 | ||||||||||||||
| Advertising and Product Promotion | 253 | -- | 253 | 263 | -- | 263 | ||||||||||||||||
| Total SG&A | 1,293 | ( 10 | ) | 1,283 | 1,157 | (6 | ) | 1,151 | ||||||||||||||
| SG&A as a % of Sales | 23.8 | % | (0.2 | )% | 23.6 | % | 24.3 | % | (0.2 | )% | 24.1 | % | ||||||||||
| Research and Development | 923 | (50 | ) | 873 | 822 | (17 | ) | 805 | ||||||||||||||
| R&D as a % of Sales | 17.0 | % | (0.9 | )% | 16.1 | % | 17.2 | % | (0.3 | )% | 16.9 | % | ||||||||||
| Operating Margin | 1,737 | 78 | 1,815 | 1,512 | 50 | 1,562 | ||||||||||||||||
| Operating Margin as % of Sales | 32.0 | % | 1.4 | % | 33.4 | % | 31.7 | % | 1.1 | % | 32.8 | % | ||||||||||
| Provision for restructuring, net | 40 | (40 | ) | -- | 24 | (24 | ) | -- | ||||||||||||||
| Equity in net income of affiliates | (62 | ) | -- | (62 | ) | (85 | ) | -- | (85 | ) | ||||||||||||
| Other (income)/expense, net | (31 | ) | -- | (31 | ) | (19 | ) | (20 | ) | (39 | ) | |||||||||||
| Earnings Before Income Taxes | $ | 1,790 | 118 | $ | 1,908 | $ | 1,592 | 94 | $ | 1,686 | ||||||||||||
| Provision for income taxes | 483 | 49 | 532 | 324 | 77 | 401 | ||||||||||||||||
| Net Earnings | $ | 1,307 | 69 | $ | 1,376 | $ | 1,268 | 17 | $ | 1,285 | ||||||||||||
| Net Earnings – Attributable to Noncontrolling Interest | 405 | 405 | 341 | 341 | ||||||||||||||||||
| Net Earnings – Attributable to BMS | $ | 902 | 69 | $ | 971 | $ | 927 | 17 | $ | 944 | ||||||||||||
| Contingently convertible debt interest expense and earnings attributable to unvested shares | (2 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||||||||
| Net Earnings used for Diluted EPS Calc – Attributable to BMS | $ | 900 | 69 | $ | 969 | $ | 924 | 17 | $ | 941 | ||||||||||||
| Average Common Shares Outstanding - Diluted | 1,722 | 1,722 | 1,728 | 1,728 | ||||||||||||||||||
| Diluted EPS – Attributable to BMS | $ | 0.52 | 0.04 | $ | 0.56 | $ | 0.53 | 0.01 | $ | 0.54 | ||||||||||||
| Net Earnings Attributable to BMS as a % of sales | 16.6 | % | 1.3 | % | 17.9 | % | 19.4 | % | 0.4 | % | 19.8 | % | ||||||||||
| Effective Tax Rate | 27.0 | % | 0.9 | % | 27.9 | % | 20.4 | % | 3.4 | % | 23.8 | % | ||||||||||
|
* Refer to the Specified Items schedules for further details. |
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|
BRISTOL-MYERS SQUIBB COMPANY RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2011 AND 2010 (Unaudited, amounts in millions except per share data) |
||||||||||||||||||||||
| YTD 2011 | YTD 2010 | |||||||||||||||||||||
| GAAP |
Specified |
Non GAAP |
GAAP |
Specified |
Non GAAP |
|||||||||||||||||
| Net Sales | $ | 10,445 |
-- |
$ | 10,445 | $ | 9,575 | -- | $ | 9,575 | ||||||||||||
| Cost of Products Sold | 2,824 | (41 | ) | 2,783 | 2,583 | (58 | ) | 2,525 | ||||||||||||||
| Gross Profit | 7,621 | 41 | 7,662 | 6,992 | 58 | 7,050 | ||||||||||||||||
| Gross Profit as a % of Sales | 73.0 | % | 0.4 | % | 73.4 | % | 73.0 | % | 0.6 | % | 73.6 | % | ||||||||||
| Marketing, Selling and Administration | 1,968 | (14 | ) | 1,954 | 1,794 | (19 | ) | 1,775 | ||||||||||||||
| Advertising and Product Promotion | 467 | -- | 467 | 475 | -- | 475 | ||||||||||||||||
| Total SG&A | 2,435 | ( 14 | ) | 2,421 | 2,269 | (19 | ) | 2,250 | ||||||||||||||
| SG&A as a % of Sales | 23.3 | % | (0.1 | )% | 23.2 | % | 23.7 | % | (0.2 | )% | 23.5 | % | ||||||||||
| Research and Development | 1,858 | (153 | ) | 1,705 | 1,732 | (72 | ) | 1,660 | ||||||||||||||
| R&D as a % of Sales | 17.8 | % | (1.5 | )% | 16.3 | % | 18.1 | % | (0.8 | )% | 17.3 | % | ||||||||||
| Operating Margin | 3,328 | 208 | 3,536 | 2,991 | 149 | 3,140 | ||||||||||||||||
| Operating Margin as % of Sales | 31.9 | % | 2.0 | % | 33.9 | % | 31.2 | % | 1.6 | % | 32.8 | % | ||||||||||
| Provision for restructuring, net | 84 | (84 | ) | -- | 35 | (35 | ) | -- | ||||||||||||||
| Equity in net income of affiliates | (144 | ) | -- | (144 | ) | (182 | ) | -- | (182 | ) | ||||||||||||
| Other (income)/expense, net | (169 | ) | 76 | (93 | ) | 94 | (220 | ) | (126 | ) | ||||||||||||
| Earnings Before Income Taxes | $ | 3,557 | 216 | $ | 3,773 | $ | 3,044 | 404 | $ | 3,448 | ||||||||||||
| Provision for income taxes | 883 | 133 | 1,016 | 675 | 163 | 838 | ||||||||||||||||
| Net Earnings | $ | 2,674 | 83 | $ | 2,757 | $ | 2,369 | 241 | $ | 2,610 | ||||||||||||
| Net Earnings – Attributable to Noncontrolling Interest | 786 | 786 | 699 | 699 | ||||||||||||||||||
| Net Earnings – Attributable to BMS | $ | 1,888 | 83 | $ | 1,971 | $ | 1,670 | 241 | $ | 1,911 | ||||||||||||
| Contingently convertible debt interest expense and earnings attributable to unvested shares | (4 | ) | (4 | ) | (7 | ) | (7 | ) | ||||||||||||||
| Net Earnings used for Diluted EPS Calc – Attributable to BMS | $ | 1,884 | 83 | $ | 1,967 | $ | 1,663 | 241 | $ | 1,904 | ||||||||||||
| Average Common Shares Outstanding - Diluted | 1,718 | 1,718 | 1,727 | 1,727 | ||||||||||||||||||
| Diluted EPS – Attributable to BMS | $ | 1.10 | 0.04 | $ | 1.14 | $ | 0.96 | 0.14 | $ | 1.10 | ||||||||||||
| Net Earnings Attributable to BMS as a % of sales | 18.1 | % | 0.8 | % | 18.9 | % | 17.4 | % | 2.6 | % | 20.0 | % | ||||||||||
| Effective Tax Rate | 24.8 | % | 2.1 | % | 26.9 | % | 22.2 | % | 2.1 | % | 24.3 | % | ||||||||||
|
* Refer to the Specified Items schedules for further details. |
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|
BRISTOL-MYERS SQUIBB COMPANY NET CASH CALCULATION AS OF JUNE 30, 2011 AND MARCH 31, 2011 (Unaudited, dollars in millions) |
||||||||
| June 30, 2011 | March 31, 2011 | |||||||
| Cash and cash equivalents | $ | 3,665 | $ | 3,405 | ||||
| Marketable securities–current | 4,005 | 3,388 | ||||||
| Marketable securities–long-term | 2,734 | 3,065 | ||||||
| Cash, cash equivalents and marketable securities | 10,404 | 9,858 | ||||||
| Short-term borrowings | (187 | ) | (135 | ) | ||||
| Long-term debt | (5,332 | ) | (5,276 | ) | ||||
| Net (debt) /cash | $ | 4,885 | $ | 4,447 | ||||
CONTACT:
Bristol-Myers Squibb Company
Communications:
Jennifer Fron Mauer, 609-252-6579
or
Investor Relations:
Teri Loxam, 609-252-3368
Timothy Power, 609-252-7509
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