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Bristol Myers Squibb posts $10.8 Q1 revenues

Bristol Myers Squibb has reported first quarter revenues of $10.8 Billion, an increase of 82%, on a pro forma basis, revenue increase of 13% or 8% excluding impact of COVID-19.

NEW YORK–(BUSINESS WIRE)–$BMYBristol Myers Squibb (NYSE:BMY) today reports results for the first quarter of 2020, which highlight strong sales, robust operating performance and significant advancement of the company’s pipeline.

During this unprecedented period, Bristol Myers Squibb recognizes the critical role the company and its peers play in minimizing the impact of COVID-19 on citizens globally. The company is carrying out its mission of providing life-saving medicines to its patients while actively contributing to the fight against the COVID-19 pandemic, including supporting communities, promoting public health and contributing to collaborative COVID-19 research efforts.

I am proud of the dedication and resiliency of our workforce who continue to deliver on our mission to help patients with serious disease as we all navigate the challenges of the COVID-19 pandemic,” said Giovanni Caforio, M.D., chairman and chief executive officer, Bristol Myers Squibb. “Our teams have maintained a reliable supply of medicine globally, implemented innovative programs to ensure patients continue to have access to needed medicines and supported relief efforts around the world. This experience has brought our new company together in a way that reinforces our values and what we can do for patients.”

Caforio continued, “The strength of our financial results and pipeline progress in the first quarter reflect continued successful execution across the company. We are well positioned to continue to successfully drive commercial execution of our inline business, launch new brands, progress our integration efforts and deliver our synergy targets while advancing our pipeline. Our financial strength enables us to maintain a capital allocation plan focused on commitment to our dividend, and prioritize debt-reduction and business development. The strength of our diversified portfolio and differentiated pipeline validate our strategy, and provide us with significant opportunities now and in the future.”

First Quarter

$ amounts in millions, except per share amounts

2020

2019

Change

Total Revenues

$10,781

$5,920

82%

GAAP Diluted (Loss)/EPS

(0.34)

1.04

N/A

Non-GAAP Diluted EPS

1.72

1.10

56%

Total Pro Forma Revenues*

10,781

9,534

13%

*The pro forma revenues assume the company’s acquisition of Celgene (Celgene Acquisition) and Otezla® divestiture occurred on January 1, 2019. See “Worldwide Product Revenue,” which is available on bms.com/investors, for information on the revenue of the company and Celgene on a stand-alone basis for the prior-year period.

Otezla® is a trademark of Amgen Inc.

FIRST QUARTER FINANCIAL RESULTS

All comparisons are made versus the same period in 2019 unless otherwise stated.

  • Bristol Myers Squibb posted first quarter revenues of $10.8 billion, an increase of 82% on a reported basis and 13% on a pro forma basis (as described above), or 8% excluding the impact of the COVID-19 pandemic. The increase was driven primarily by the impact of the Celgene Acquisition, which was completed on November 20, 2019, representing 71% of the growth. The quarter benefitted by approximately $500 million due to COVID-19 related buying patterns. Revenues increased 83% when adjusted for foreign exchange.
  • U.S. revenues increased 96% to $6.8 billion in the quarter. International revenues increased 62% to $4.0 billion in the quarter. When adjusted for foreign exchange impact, international revenues increased 65%.
  • Gross margin as a percentage of revenue decreased from 69.2% to 66.0% in the quarter primarily due to the unwinding of inventory purchase price accounting adjustments, partially offset by product mix.
  • Marketing, selling and administrative expenses increased 60% to $1.6 billion in the quarter primarily due to $600 million of costs associated with the broader portfolio resulting from the Celgene Acquisition.
  • Research and development expenses increased 76% to $2.4 billion in the quarter primarily due to $1.0 billion of costs associated with the broader portfolio resulting from the Celgene Acquisition.
  • Amortization of acquired intangible assets was $2.3 billion in the quarter primarily due to the Celgene Acquisition.
  • Income taxes were $462 million despite a pre-tax loss of $304 million in the quarter primarily due to certain non-deductible expenses and purchase price adjustments. The effective tax rate was 13.3% in the same period a year ago.
  • The company reported net loss attributable to Bristol Myers Squibb of $775 million, or $0.34 per share, in the first quarter, compared to net earnings of $1.7 billion, or $1.04 per share, for the same period a year ago. The results in the current quarter include costs and expenses resulting from purchase price accounting, contingent value rights fair value adjustments, and other acquisition and integration expenses.
  • The company reported non-GAAP net earnings attributable to Bristol Myers Squibb of $4.0 billion, or $1.72 per share, in the first quarter, compared to net earnings of $1.8 billion, or $1.10 per share, for the same period a year ago. A discussion of the non-GAAP financial measures is included under the “Use of Non-GAAP Financial Information” section.
  • Cash, cash equivalents and marketable debt securities were $19.0 billion and debt was $46.7 billion, as of March 31, 2020.

COVID-19 Pandemic Response

During the current world health crisis, the company will continue to take all necessary actions to promote public health by carrying out its mission of providing life-saving medicines to the patients who depend on the company.

Some specific actions:

  • Working with researchers, the biotech community and the broader life sciences industry on ways we together can accelerate therapies for COVID-19. This includes evaluating medicines in our portfolio that may have an impact on the inflammatory immune response associated with COVID-19.
  • Expanding the existing Bristol Myers Squibb patient support programs to help eligible unemployed patients in the U.S. who have lost their health insurance due to the COVID-19 pandemic. The expanded program offers access to branded Bristol Myers Squibb medicine for free, including some of its most widely prescribed products, as well as those prescribed via telehealth services.
  • Contributing to COVID-19 relief efforts across the globe, including donating protective personal equipment and other equipment in the United States, as well as donating funds, equipment and expertise in individual international markets. Additionally, the Bristol Myers Squibb Foundation, 501(c)(3) organization, has provided more than $6 million in financial support to COVID-19 related relief efforts, including $2.5 million to human service organizations and patient support groups providing food services, critical education and aid to vulnerable populations.
  • Supporting our employees who are qualified to provide medical services and wish to aid communities affected by the pandemic as well as supporting our colleagues across the world who are virtually volunteering their skills and time.

Financial Guidance

Bristol Myers Squibb is updating its 2020 GAAP EPS guidance range from $0.75 – $0.95 to $0.37 to $0.57. In addition, the company is affirming its 2020 non-GAAP EPS guidance range of $6.00 to $6.20 and 2021 non-GAAP EPS guidance range of $7.15 to $7.45.

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