Bristol-Myers Squibb Third Quarter Featured Solid Operating Performance, Robust Clinical Data and the Strategic Acquisition of Z

Bristol-Myers Squibb Third Quarter Featured Solid Operating Performance, Robust Clinical Data and the Strategic Acquisition of ZymoGenetics
The Company Presented New Clinical Data from its Diabetes and Cardiovascular Franchises at Important Medical Meetings
Acquisition of ZymoGenetics Added to Strong Hepatitis C Portfolio and Demonstrated Continued Focus on Strategic Transactions
GAAP EPS Increased 22% to $0.55 in Third Quarter; Non-GAAP EPS Increases 26% to $0.59
The Company Confirmed 2010 GAAP EPS Guidance Range of $1.84 to $1.94; Non-GAAP EPS Guidance Range of $2.10 to $2.20
NEW YORK--(BUSINESS WIRE)--Bristol-Myers Squibb Company (NYSE: BMY) today reported results for the third quarter of 2010. Highlights in the quarter included: the presentation of new data on investigational compounds in the diabetes and cardiovascular disease franchises at major medical meetings; the completion of important regulatory milestones in the oncology, diabetes and immunoscience franchises; the acquisition of ZymoGenetics; and double-digit EPS growth. The company also confirmed guidance for 2010.

"The third quarter continued to highlight the excellent progress we are making with our innovative pipeline, an important driver in the success of our differentiated and focused BioPharma strategy," said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb.

"We delivered double-digit EPS growth in the quarter, presented encouraging data on apixaban and dapagliflozin, received regulatory approval in Japan for ORENCIA®, and completed filings for regulatory review in the U.S., Europe and Japan. We also completed our acquisition of ZymoGenetics, adding to our strong portfolio in Hepatitis C and demonstrating our continued focus on strategic transactions," Andreotti said.

                 
             Third Quarter
 
$ amounts in millions, except per share amounts                          
     2010     2009     Change 
Net Sales      $  4,798     $  4,788     -  
Net Earnings Per Common Share -- Diluted       0.55      0.48     15  % 
GAAP Diluted EPS From Continuing Operations       0.55      0.45     22  % 
Non-GAAP Diluted EPS From Continuing Operations       0.59      0.47     26  %  
                                                  

THIRD QUARTER FINANCIAL RESULTS

Bristol-Myers Squibb posted third quarter 2010 net sales of $4.8 billion. U.S. health care reform had a 1.6% negative effect on net sales in the third quarter.
U.S. net sales increased 4% to $3.1 billion in the third quarter of 2010 compared to the same period in 2009. International net sales decreased 6%, or 3% excluding foreign exchange impact, to $1.7 billion.
Gross margin as a percentage of net sales was 73.3% in the third quarter 2010 compared to 72.5% in the same period in 2009.
Marketing, selling and administrative expenses decreased 6% to $892 million in the third quarter of 2010.
Advertising and product promotion spending decreased 10% to $231 million in the third quarter of 2010.
Research and development expenses remained flat at $824 million in the third quarter of 2010.
The effective tax rate on earnings from continuing operations before income taxes was 19.3% in the third quarter of 2010, compared to 23.4% in the same period in 2009.
The Company reported third quarter GAAP net earnings from continuing operations of $949 million, or $0.55 per share, compared to $892 million, or $0.45 per share, for the same period in 2009.
The Company reported third quarter non-GAAP net earnings from continuing operations of $1.0 billion or, $0.59 per share, compared to $944 million, or $0.47 per share, for the same period in 2009. An overview of specified items is discussed under the "Use of Non-GAAP Financial Information" section.
The impact of U.S. health care reform decreased third quarter EPS from continuing operations by approximately $0.02 on both a GAAP and non-GAAP basis.
Cash, cash equivalents and marketable securities were $10.9 billion, resulting in a net cash position of $4.2 billion as of September 30, 2010.
THIRD QUARTER PRODUCT AND PIPELINE UPDATE

Bristol-Myers Squibb's global sales growth in the third quarter was led by PLAVIX® and the Company's virology franchise. Sales of PLAVIX rose 7%, BARACLUDE® rose 19%, SUSTIVA® rose 9% and REYATAZ® rose 4%. Third quarter sales of SPRYCEL® and ORENCIA grew 35% and 14% respectively compared to the same period in 2009.
In July, Japan's Ministry of Health, Labour and Welfare approved the Japanese New Drug Application for ORENCIA for the treatment of rheumatoid arthritis.
In July, the supplemental New Drug Application (sNDA) for SPRYCEL for the treatment of adult patients with newly diagnosed chronic myeloid leukemia was submitted in Japan. It is under active review.
In July, the Marketing Authorization Application (MAA) for a fixed-dose combination of ONGLYZATM and metformin tablets as a treatment for adults with type 2 diabetes was validated by the European Medicines Agency.
In August, the U.S. Food and Drug Administration (FDA) accepted for filing and priority review the Biologics License Application (BLA) for ipilimumab for the treatment of adult patients with advanced melanoma. The Prescription Drug Fee User Act (PDUFA) date-the date by which action from the FDA is expected-is December 25, 2010.
In August, at the European Society of Cardiology meeting in Stockholm, the Company and Pfizer presented preliminary data from the AVERROES trial comparing ELIQUIS® (apixaban) with aspirin for the prevention of stroke in patients with atrial fibrillation in patients who cannot take warfarin. Preliminary data from the trial demonstrate that apixaban significantly reduced the relative risk of a composite of stroke or systemic embolism by 54 percent compared with aspirin, without a significant increase in major bleeding.
In September, at the European Association for the Study of Diabetes meeting in Stockholm, the Company and AstraZeneca presented data from two Phase III studies of dapagliflozin. Data from a 24-week study demonstrate that dapagliflozin improved glycosylated hemoglobin levels (HbA1c) when added to glimepiride in adults with type 2 diabetes, compared to glimepiride alone. Data from a 52-week study demonstrate that dapagliflozin plus metformin was similar to glipizide plus metformin in improving HbA1c in adults with type 2 diabetes. In addition, the data demonstrated that dapagliflozin plus metformin reduced total body weight, compared to increases in body weight reported with glipizide, and reduced the number of patients reporting one or more hypoglycemic events.
In October, the FDA approved the sNDA for BARACLUDE for the treatment of chronic hepatitis B in adults with decompensated liver disease.
In October, the Company received a positive opinion from the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) for SPRYCEL for the treatment of adult patients with newly diagnosed chronic myeloid leukemia.
BUSINESS DEVELOPMENT UPDATE

In October, the Company acquired ZymoGenetics, Inc., the Seattle-based biotech company with which the Company had been collaborating on the development of pegylated-interferon lambda for the treatment of Hepatitis C infection since January 2009.
FINANCIAL GUIDANCE

The Company reaffirms its 2010 GAAP EPS guidance range of $1.84 to $1.94 per share and its non-GAAP guidance range of $2.10 to $2.20 per share. Key 2010 non-GAAP guidance assumptions include: low-to-mid single-digit revenue growth; full-year gross margin being consistent with last year; advertising and promotion expense decrease in the low double-digit range; marketing, sales and administrative expenses remaining flat; research and development expense growth in the mid single-digit range; and an effective tax rate of between 23% and 24%.

The financial guidance for 2010 excludes the impact of any potential future strategic transactions and specified items that have not yet been identified and quantified. The non-GAAP 2010 guidance also excludes other specified items such as gains or losses from sale of businesses and product lines; from sale of equity investments and from discontinued operations; restructuring and other exit costs; accelerated depreciation charges; asset impairments; charges and recoveries relating to significant legal proceedings; upfront and milestone payments for licensing arrangements; and debt retirement costs.

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, 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: charges related to implementation of the Productivity Transformation Initiative; gains or losses from the purchase or sale of businesses and product lines; discontinued operations; restructuring and other exit costs; accelerated depreciation charges; asset impairments; charges and recoveries relating to significant legal proceedings; upfront and milestone payments for in-licensing of products that have not achieved regulatory approval, which are immediately expensed; in-process research and development charges prior to 2009; special initiative funding to the Bristol-Myers Squibb Foundation; 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. These items are also not included in the company's operating segment 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 guidance related to the new 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, the inability to improve or remediate FDA concerns raised in the warning letter regarding certain GMP processes at our Manati facility, 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, 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 and Productivity Transformation Initiative, 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 October 26, 2010, at 10:00 a.m. EDT during which company executives will 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 913-312-1235 confirmation code 3914988. 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. and is licensed to Bristol-Myers Squibb Co. 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 NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 
(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
          
       2010
          2009
          %
Change
    2010
          2009
          %
Change
    % Change in U.S. Total
Prescriptions vs. 2009
 
Three Months Ended September 30,
                              
                                 
Key Products
                              
 Plavix       $  1,658     $  1,554     7%     $  1,534     $  1,406     9%     (2)% 
 Avapro/Avalide        303      329     (8)%      168      186     (10)%     (19)% 
 Reyataz        375      360     4%      189      186     2%     2% 
 Sustiva Franchise (total revenue)        342      315     9%      227      195     16%     6% 
 Baraclude        228      191     19%      46      41     12%     13% 
 Erbitux        159      179     (11)%      155      175     (11)%     N/A 
 Sprycel        144      107     35%      47      28     68%     5% 
 Ixempra        29      28     4%      25      26     (4)%     N/A 
 Abilify        608      653     (7)%      462      520     (11)%     3% 
 Orencia        184      162     14%      138      126     10%     N/A 
 Onglyza        47      20     135%      37      20     85%     N/A 
                                
Mature Products and All Other        721      890     (19)%      107      103     4%     N/A 
                 
       Worldwide Net Sales
    U.S. Net Sales
    
       2010
    2009
    %
Change
    2010
    2009
    %
Change
    % Change in U.S. Total
Prescriptions vs. 2009
 
Nine Months Ended September 30,
                              
                                 
Key Products
                              
                                
 Plavix       $  4,951     $  4,528     9%     $  4,561     $  4,095     11%     - 
 Avapro/Avalide        924      944     (2)%      524      538     (3)%     (16)% 
 Reyataz        1,105      1,013     9%      560      531     5%     5% 
 Sustiva Franchise (total revenue)        1,008      919     10%      654      579     13%     9% 
 Baraclude        667      522     28%      130      116     12%     13% 
 Erbitux        497      516     (4)%      486      508     (4)%     N/A 
 Sprycel        407      302     35%      127      91     40%     6% 
 Ixempra        87      81     7%      76      74     3%     N/A 
 Abilify        1,858      1,885     (1)%      1,423      1,519     (6)%     6% 
 Orencia        531      434     22%      401      341     18%     N/A 
 Onglyza        85      20     *      66      20     *     N/A 
                                
Mature Products and All Other        2,253      2,611     (14)%      321      340     (6)%     N/A 
                                    
* In excess of +/- 200%.
 
                                    
  
  
BRISTOL-MYERS SQUIBB COMPANY
 
CONSOLIDATED STATEMENTS OF EARNINGS
 
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
 
(Unaudited, amounts in millions except per share data)
 
  
             Three Months
Ended September 30,        Nine Months
Ended September 30, 
     2010        2009    2010        2009 
Net Sales      $     4,798       $     4,788       $     14,373       $     13,775    
Cost of products sold          1,280         1,317         3,863         3,707  
Marketing, selling and administrative        892       953       2,686       2,776  
Advertising and product promotion        231       256       706       802  
Research and development        824       820       2,556       2,539  
Provision for restructuring, net        15       51       50       89  
Litigation expense, net        22       -       22       132  
Equity in net income of affiliates        (70  )      (139  )      (252  )      (435  ) 
Other (income)/expense, net            (10  )          (35  )          84             (117  ) 
Total expenses            3,184             3,223             9,715             9,493    
Earnings from Continuing Operations
Before Income Taxes        1,614       1,565       4,658       4,282  
Provision for income taxes            312             366             987             994    
Net Earnings from Continuing Operations
           1,302             1,199             3,671             3,288    
 
              
Net Earnings from Discontinued Operations            -             91             -             221    
Net Earnings        1,302       1,290       3,671       3,509  
Net Earnings Attributable to Noncontrolling Interest            353             324             1,052             922    
Net Earnings Attributable to BMS      $   949       $     966       $     2,619       $     2,587    
                
Amounts Attributable to BMS               
Income from Continuing Operations      $   949     $   892     $   2,619     $   2,421  
Income from Discontinued Operations            -             74             -             166    
Net Income      $     949       $     966       $     2,619       $     2,587    
                
Earnings per Common Share from Continuing Operations               
Attributable to BMS:               
Basic      $   0.55     $   0.45     $   1.52     $   1.22  
Diluted      $   0.55     $   0.45     $   1.51     $   1.21  
                
Earnings per Common Share Attributable to BMS:               
Basic      $   0.55     $   0.49     $   1.52     $   1.30  
Diluted      $   0.55     $   0.48     $   1.51     $   1.30  
                
Average Common Shares Outstanding:               
Basic        1,712       1,980       1,715       1,979  
Diluted        1,726       1,984       1,726       1,982  
                
Interest expense      $   38     $   47     $   103     $   141  
Interest income        (23  )      (13  )      (54  )      (40  ) 
Impairment and loss on sale of manufacturing operations        10       -       225       -  
(Gain)/loss on debt buyback and termination of interest rate
  swap agreements
       --
      4       --       (7  ) 
Net foreign exchange transaction (gains)/losses        9       13       (23  )      17  
Gain on sale of product lines, businesses and assets        (21  )      (17  )      (36  )      (72  ) 
Other income received from alliance partners        (28  )      (50  )      (122  )      (119  ) 
Medarex acquisition        --       (10  )      --       (10  ) 
Pension curtailment and settlement charges        2       -       16       25  
Other            3             (9  )          (25  )          (52  ) 
Other (income)/ expense      $     (10  )    $     (35  )    $     84       $     (117  ) 
  
BRISTOL-MYERS SQUIBB COMPANY
 
SPECIFIED ITEMS
 
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
 
(Unaudited, dollars in millions) 
 
   
 

Three months ended September 30, 2010
 
  
Dollars in Millions           Cost of
products
sold
       Marketing,
selling and
administrative
       Provision for
restructuring
       Litigation
expense
       Other
(income)/
expense
         Total  
 
Restructuring Activity:
                   
Downsizing and streamlining of
   worldwide operations
    $
 --
   $  --    $  15    $  --    $  --    $  15  
Impairment and loss on sale of manufacturing
   operations
     --     --     --     --     10     10  
Accelerated depreciation, asset impairment and
   other shutdown costs
     27     --     --     --     --     27  
Pension curtailment and settlement charges      --     --     --     --     3     3  
Process standardization implementation costs        --       8       --       --       --       8    
Total Restructuring      27     8     15     --     13     63  
                     
Other:                    
Litigation charges      --     --     --     22     --     22  
Product liability charges        --       --       --       --       13       13    
Total     $  27    $  8    $  15    $  22    $  26     98  
Income taxes on items above                       (30  ) 
Decrease to Net Earnings from Continuing Operations                $  68    
                                         
Three months ended September 30, 2009
 
                   
    Cost of
products
sold
   Marketing,
selling and
administrative
   Provision
for
restructuring
    Other
(income)/
expense
     Total  
 
Restructuring Activity:
                 
Downsizing and streamlining of worldwide
   operations
    $
 --
   $  --    $  48     $  --     $  48  
Accelerated depreciation, asset impairment and
   other shutdown costs
     30     --     3      --      33  
Process standardization implementation costs      --     20     --      --      20  
Gain on sale of product lines, businesses and
   assets
       --       --       --        (17  )       (17  ) 
Total Restructuring      30     20     51      (17  )     84  
                   
Other:                  
Medarex acquisition      --     --     --      (10  )     (10  ) 
Debt buyback and swap terminations        --       --       --        4          4    
Total     $  30    $  20    $  51     $  (23  )     78  
Income taxes on items above                     (26  ) 
Decrease to Net Earnings from Continuing Operations              $  52    
  
BRISTOL-MYERS SQUIBB COMPANY
 
SPECIFIED ITEMS
 
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
 
(Unaudited, dollars in millions)
 
  
Nine months ended September 30, 2010
 
                                                    
Dollars in Millions     Cost of
products
sold
   Marketing,
selling and
administrative
   Research
and
development
   Provision for
restructuring
   Litigation
expense
   Other
(income)/
expense
   Total
 
Restructuring Activity:
                      
Downsizing and streamlining of
   worldwide operations
    $
 --
   $  --    $  --    $  50    $  --    $  --    $  50  
Impairment and loss on sale of manufacturing
   operations
     --     --     --     --     --     225     225  
Accelerated depreciation, asset impairment and
   other shutdown costs
     85     --     --     --     --     --     85  
Pension curtailment and settlement charges      --     --     --     --     --     8     8  
Process standardization implementation costs        --       27       --       --       --       --       27    
Total Restructuring      85     27     --     50     --     233     395  
                        
Other:                       
Litigation charges      --     --     --     --     22     --     22  
Upfront licensing, milestone and other
   payments
     --     --     72     --     --     --     72  
Product liability charges        --       --       --       --       --       13       13    
Total     $  85    $  27    $  72    $  50    $  22    $  246     502  
Income taxes on items above                        (134  ) 
Out-of-period tax adjustment                          (59  ) 
Decrease to Net Earnings from Continuing Operations                   $  309    
                                                    
Nine months ended September 30, 2009
 
                        
    Cost of
products
sold
   Marketing,
selling and
administrative
   Research
and
development
   Provision
for
restructuring
   Litigation
expense
   Other
(income)/
expense
     Total 
 
Restructuring Activity:
                      
Downsizing and streamlining of worldwide

   operations
    $
 --
   $  --    $  --    $  80    $  --    $  --     $  80  
Accelerated depreciation, asset impairment and
   other shutdown costs
     80     --     --     9     --     
 --      89  
Pension curtailment and settlement charges      --     --     --     --     --     25      25  
Process standardization implementation costs      --     65     --     --     --     --      65  
Gain on sale of product lines, businesses and
   assets
       --       --       --       --       --       (72  )       (72  ) 
Total Restructuring      80     65     --     89     --     (47  )     187  
                        
Other:                       
Litigation charges      --     --     --     --     132     --      132  
Upfront licensing and milestone payments      --     --     174     --     --     --      174  
Medarex acquisition      --     --     --     --     --     (10  )     (10  ) 
Debt buyback and swap terminations      --     --     --     --     --     (7  )     (7  ) 
Product liability charges/(insurance recoveries)        8       --       --       --       --       (5  )       3    
Total     $  88    $  65    $  174    $  89    $  132    $  (69  )     479  
Income taxes on items above                          (161  ) 
Decrease to Net Earnings from Continuing Operations                   $  318    
  
BRISTOL-MYERS SQUIBB COMPANY
 
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
 
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
 
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
 
(Unaudited, amounts in millions except per share data)
 
                    
    Q3 2010         Q3 2009 
    GAAP           Specified
Items*
          Non
GAAP           GAAP           Specified
Items*
          Non
GAAP 
                                                
Net Sales     $     4,798     --
    $     4,798     $     4,788     --      $     4,788 
Cost of Products Sold           1,280     (27)           1,253           1,317     (30  )           1,287 
Gross Profit       3,518     27       3,545       3,471     30        3,501 
Gross Profit as a % of Sales       73.3%     0.6%       73.9%       72.5%     0.6  %       73.1% 
                          
Marketing Selling and Administration       892     (8)       884       953     (20  )       933 
Advertising and Product Promotion           231     --           231           256     --            256 
Total SG&A       1,123     (8)       1,115       1,209     (20  )       1,189 
SG&A as a % of Sales       23.4%     (0.2)%       23.2%       25.3%     (0.5  )%       24.8% 
                          
R&D       824     --       824       820     --        820 
R&D as a % of Sales       17.2%     --       17.2%       17.1%     --        17.1% 
                          
Operating Margin       1,571     35       1,606       1,442     50        1,492 
Operating Margin as % of Sales       32.7%     0.8%       33.5%       30.1%     1.1  %       31.2% 
                          
Provision for restructuring, net       15     (15)       --       51     (51  )       -- 
Litigation expense, net       22     (22)       --       --     --        -- 
Equity in net income of affiliates       (70)     --       (70)       (139)     --        (139) 
Other (income)/expense, net       (10)     (26)       (36)       (35)     23        (12) 
                          
Earnings from Continuing Operations Before Income
Taxes
    $   1,614     98     $   1,712     $   1,565     78      $   1,643 
                          
Provision for income taxes           312     30           342           366     26            392 
                          
Net Earnings - Continuing Operations     $   1,302     68     $   1,370     $   1,199     52      $   1,251 
Net Earnings - Continuing Operations Attributable to
                                
Noncontrolling Interest
          353               353           307               307 
Net Earnings - Continuing Operations Attributable to BMS     $   949     68     $   1,017     $   892     52      $   944 
Contingently convertible debt interest expense and
   dividends attributable to unvested shares
          (4)               (4)           (5)               (5) 
Net Earnings used for Diluted EPS Calc - Continuing
   Operations-Attributable BMS
    $   945     68     $   1,013     $   887     52      $   939 
                          
Avg Shares (Diluted)       1,726           1,726       1,984           1,984 
                          
Diluted EPS - Continuing Operations Attributable to BMS     $   0.55     0.04     $   0.59     $   0.45     0.02      $   0.47 
                          
Net Earnings from Continuing Operations
 Attributable to BMS as a % of sales
      19.8%     1.4%       21.2%       18.6%     1.1  %       19.7% 
                          
Effective Tax Rate       19.3%     0.7%       20.0%       23.4%     0.5  %       23.9% 
                                   
* Refer to the Specified Items schedules for further details.
 
  
                          
BRISTOL-MYERS SQUIBB COMPANY
 
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
 
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
 
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
 
(Unaudited, amounts in millions except per share data)
 
            
      YTD 2010           YTD 2009 
      GAAP           Specified
Items*
          Non
GAAP           GAAP           Specified
Items*
          Non
GAAP 
                                                  
Net Sales       $     14,373      --
     $     14,373      $     13,775      --      $     13,775  
Cost of Products Sold             3,863        (85  )           3,778              3,707        (88  )           3,619    
Gross Profit         10,510      85        10,595        10,068      88        10,156  
Gross Profit as a % of Sales         73.1
 %
    0.6  %       73.7  %       73.1  %     0.6  %       73.7  % 
                            
Marketing Selling and Administration         2,686      (27  )       2,659        2,776      (65  )       2,711  
Advertising and Product Promotion             706        --            706              802        --            802    
Total SGA         3,392      (27  )       3,365        3,578      (65  )       3,513  
SG&A as a % of Sales         23.6
 %
    (0.2  )%       23.4  %       26.0  %     (0.5  )%       25.5  % 
                            
R&D         2,556      (72  )       2,484        2,539      (174  )       2,365  
R&D as a % of Sales         17.8  %     (0.5  )%       17.3  %       18.4  %     (1.2  )%       17.2  % 
                            
Operating Margin         4,562      184        4,746        3,951      327        4,278  
Operating Margin as % of Sales         31.7  %     1.3  %       33.0  %       28.7  %     2.4  %       31.1  % 
                            
Provision for restructuring, net         50      (50  )       --        89      (89  )       --  
Litigation expense, net         22      (22  )       --        132      (132  )       --  
Equity in net income of affiliates         (252  )     --        (252  )       (435  )     --        (435  ) 
Other (income)/expense, net             84        (246  )           (162  )           (117  )     69            (48  ) 
                            
Earnings from Continuing Operations Before Income
Taxes
      $   4,658      502      $   5,160      $   4,282      479      $   4,761  
                            
Provision for income taxes             987        193            1,180              994        161            1,155    
                            
Net Earnings - Continuing Operations       $   3,671      309      $   3,980      $   3,288      318      $   3,606  
Net Earnings - Continuing Operations Attributable to
   Noncontrolling Interest
            1,052                  1,052              867        --            867    
Net Earnings - Continuing Operations Attributable to
   BMS
      $   2,619      309      $   2,928      $   2,421      318      $   2,739  
Contingently convertible debt interest expense and
   dividends attributable to unvested shares
            (11  )               (11  )           (13  )     --            (13  ) 
Net Earnings used for Diluted EPS Calc - Continuing
   Operations-Attributable BMS
      $   2,608      309      $   2,917      $   2,408      318      $   2,726  
                            
Avg Shares (Diluted)         1,726            1,726        1,982            1,982  
                            
Diluted EPS - Continuing Operations Attributable to
BMS
      $   1.51      0.18      $   1.69      $   1.21      0.17      $   1.38  
                            
Net Earnings from Continuing Operations
  Attributable to BMS as a % of sales
        18.2  %     2.2  %       20.4  %       17.6  %     2.3  %       19.9  % 
                            
Effective Tax Rate         21.2  %     1.7  %       22.9  %       23.2  %     1.1  %       24.3  % 
                                          
* Refer to the Specified Items schedules for further details.
 
  
  
BRISTOL-MYERS SQUIBB COMPANY
 
NET CASH CALCULATION
 
AS OF SEPTEMBER 30, 2010 AND JUNE 30, 2010
 
(Unaudited, dollars in millions)
 
                 
    September 30, 2010    June 30, 2010 
Cash and cash equivalents     $  7,581     $  5,918  
Marketable securities-current      778      1,536  
Marketable securities-long term      2,562      2,795  
Short-term borrowings      (243  )     (290  ) 
Long-term debt        (6,479  )       (6,248  ) 
Net cash     $  4,199       $  3,711 

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