Bristol-Myers Squibb Delivers Excellent Second Quarter with Global New Product Approvals, Important Clinical Data and Stro

  • 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

 

%
Change

2011

 

2010

 

%
Change

% Change in U.S. Total
Prescriptions vs. 2010

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

%
Change

2011

2010

%
Change

% Change in U.S. Total
Prescriptions vs. 2010

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
Items*

 

Non
GAAP

GAAP

 

Specified
Items*

  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.

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
Items*

  Non
GAAP
GAAP  

Specified
Items*

  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.

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

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Health  Cardiology  Clinical Trials  Oncology  Pharmaceutical  Other Health  Professional Services  Accounting  Banking  Finance  Research  Diabetes  Science  General Health

MEDIA:

Logo
 Logo

Suggested Articles

Monday, Bernstein analysts echoed what many were probably thinking about Novo Nordisk’s Rybselsus price: “Finally we can stop talking about it.”

Low interest rates and strong stock valuations are two top reasons why U.S. drugmakers are on the move for deals.

Despite a 45% premium offered to Allergan investors through the AbbVie buyout, one investor is suing to block the deal.