Bristol-Myers Squibb Reports Third Quarter 2014 Financial Results

Oct 24, 2014
    --  Posts Third Quarter GAAP EPS of $0.43 and Non-GAAP EPS of $0.45
    --  Achieves Significant Regulatory Milestones for PD-1 Inhibitor Opdivo
    --  Launches Daklinza-Based Regimens for HCV Patients in Japan and Europe
    --  Adjusts 2014 GAAP EPS Guidance Range to $1.15 - $1.25 and Confirms
        Non-GAAP EPS Guidance Range of $1.70 - $1.80

NEW YORK--(BUSINESS WIRE)-- Bristol-Myers Squibb Company (NYSE:BMY) today reported strong financial results for the third quarter of 2014, adjusted 2014 GAAP guidance and confirmed 2014 non-GAAP guidance. The quarter was highlighted by strong performance by key brands, significant data and regulatory milestones for Opdivo, the launch of the company's hepatitis C regimens in Japan and Europe and the completion of several business development transactions supporting the company's oncology portfolio.

"Our financial results in the third quarter reflect our continued focus on balancing long-term growth with short-term performance, as we achieved significant progress in our pipeline and saw strong in-market performance for key products including Eliquis, Yervoy, Sprycel and Orencia," said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb. "We continue to build a solid foundation for our future as a Diversified Specialty BioPharma by advancing our own R&D efforts and investing in strategic business development to build a sustainable pipeline."



                                                     

                                                             Third Quarter

$ amounts in millions, except per share amounts                            

                                                       2014       2013      Change

Total Revenues                                        $3,921     $4,065      (4)%

GAAP Diluted EPS                                       0.43       0.42        2%

Non-GAAP Diluted EPS                                   0.45       0.46       (2)%

                                                                                    



THIRD QUARTER FINANCIAL RESULTS

    --  Bristol-Myers Squibb posted third quarter 2014 revenues of $3.9 billion,
        a decrease of 4% compared to the same period a year ago. Excluding the
        divested Diabetes Alliance, global revenues increased 7%.
    --  U.S. revenues decreased 3% to $2.0 billion in the quarter compared to
        the same period a year ago. International revenues decreased 4%.
    --  Gross margin as a percentage of revenues was 74.3% in the quarter
        compared to 71.1% in the same period a year ago.
    --  Marketing, selling and administrative expenses increased 5% to $1.0
        billion in the quarter.
    --  Advertising and product promotion spending decreased 12% to $171 million
        in the quarter.
    --  Research and development expenses increased 10% to $983 million in the
        quarter.
    --  The effective tax rate on earnings before income taxes was 27.4% in the
        quarter, compared to 15.4% in the third quarter last year.
    --  The company reported net earnings attributable to Bristol-Myers Squibb
        of $721 million, or $0.43 per share, in the quarter compared to $692
        million, or $0.42 per share, a year ago.
    --  The company reported non-GAAP net earnings attributable to Bristol-Myers
        Squibb of $750 million, or $0.45 per share, in the third quarter,
        compared to $768 million, or $0.46 per share, for the same period in
        2013. Among other specified items, the non-GAAP earnings in the current
        period exclude a $0.07 per share impact of additional charges related to
        the Branded Prescription Drug Fee resulting from the issuance of final
        rules by the IRS. An overview of specified items is discussed under the
        “Use of Non-GAAP Financial Information” section.
    --  Cash, cash equivalents and marketable securities were $11.5 billion,
        with a net cash position of $3.9 billion, as of September 30, 2014.

THIRD QUARTER PRODUCT AND PIPELINE UPDATE

Bristol-Myers Squibb's global sales in the third quarter included Eliquis, which grew by $175 million, Yervoy, which grew 47%, Sprycel, which grew 22%, Orencia, which grew 18%, and Daklinza and Sunvepra, which had combined sales of $49 million.

Opdivo


    --  In September, the company announced multiple regulatory milestones for
        Opdivo (nivolumab), an investigational PD-1 immune checkpoint inhibitor,
        in the U.S. and European Union (EU):
        o In the U.S., the Food and Drug Administration (FDA) has accepted for
          priority review the Biologics License Application for previously
          treated advanced melanoma and set a Prescription Drug User Fee Act
          decision goal date of March 30, 2015. The FDA granted Opdivo
          Breakthrough Therapy designation for this indication. Bristol-Myers
          Squibb has proposed the name Opdivo, which, if approved by health
          authorities, will serve as the trademark for nivolumab.
        o In the EU, the European Medicines Agency (EMA) has validated for
          review the Marketing Authorization Applications for nivolumab in
          non-small cell lung cancer (NSLC) – the first completed regulatory
          submission for a PD-1 immune checkpoint inhibitor in this tumor type –
          and in advanced melanoma. The application for advanced melanoma was
          granted accelerated assessment by the EMA’s Committee for Medicinal
          Products for Human Use.
    --  Also in September, at the European Society for Medical Oncology Congress
        in Madrid, the company announced positive results from CheckMate -037, a
        Phase III randomized, controlled open-label study ofOpdivo versus
        investigator’s choice chemotherapy (ICC) in patients with advanced
        melanoma who were previously treated withYervoy.Based on a planned
        interim analysis of the co-primary endpoint, the objective response rate
        was 32% (95% CI = 24, 41) in theOpdivo arm (n=120) and 11% (95% CI = 4,
        23) in the ICC reference arm (n=47) in patients with at least six months
        of follow up. The majority (95%) of responses were ongoing in the Opdivo
        arm and the median duration of response was not reached.

Eliquis

    --  In August, the company and its partner, Pfizer, announced that the FDA
        approved a Supplemental New Drug Application for Eliquis for the
        treatment of deep vein thrombosis (DVT) and pulmonary embolism (PE), and
        for the reduction in the risk of recurrent DVT and PE following initial
        therapy.
    --  In July, the company and its partner, Pfizer, announced that the
        European Commission (EC) approved Eliquisfor the treatment of DVT and
        PE, and the prevention of DVT and PE in adults. The approval applies to
        all EU member states as well as Iceland and Norway.
    --  In August, at the European Society of Cardiology Congress in Barcelona,
        Spain, the company and its partner, Pfizer, announced results of a
        pre-specified secondary analysis of the EliquisPhase III AMPLIFY-EXT
        trial. The analysis evaluated clinical and demographic predictors of
        all-cause hospitalization in patients with VTE. Results from this
        analysis demonstrated that during the 12-month extended treatment of
        VTE, Eliquissignificantly reduced the risk of hospitalization versus
        placebo. This effect was independent of other variables including renal
        function, the only other significant predictor of hospitalization in the
        AMPLIFY-EXT population.

Daklinza

    --  In August, the company announced that the EC approved Daklinza
        (daclatasvir), a potent, pan-genotypic NS5A replication complex
        inhibitor (in vitro), for use in combination with other medicinal
        products across genotypes 1, 2, 3 and 4 for the treatment of chronic
        hepatitis C virus (HCV) infection in adults. The approval allows for the
        marketing of Daklinza in all 28 EU member states.

Asunaprevir

    --  In October, the company announced that it will not pursue FDA approval
        of the dual regimen of daclatasvir and asunaprevir for the treatment of
        HCV genotype 1b patients in the U.S. and has withdrawn its New Drug
        Application for asunaprevir, an NS3/4A protease inhibitor. The company
        will continue to pursue FDA approval for daclatasvir, which is currently
        being investigated globally in multiple treatment regimens for HCV
        patients with high unmet needs.

Sustiva

    --  In October, the company announced that it has successfully resolved all
        outstanding U.S. patent litigation relating to efavirenz, an active
        ingredient contained in our Sustiva (efavirenz) and Atripla
        (efavirenz/emtricitabine/tenofovir disoproxil fumarate) products, and
        that loss of patent exclusivity in the U.S. for efavirenz is not
        expected to occur until December 2017.

THIRD QUARTER FINANCIAL UPDATE

In September, the company announced that it will settle $1.4 billion in pension obligations through the purchase of a group annuity contract from The Prudential Insurance Company of America (Prudential) for approximately 8,000 U.S. retirees and their beneficiaries who started receiving their monthly retirement benefit payments on or before June 1, 2014. The transaction reduces risk in the retirement plan and better manages the ongoing variations in cost associated with its maintenance while entrusting current retirees and their beneficiaries' pensions to a financial institution with expertise in the long-term management of retirement benefits. The transaction with Prudential is expected to occur in December 2014 and is subject to satisfaction of closing conditions.

THIRD QUARTER BUSINESS DEVELOPMENT UPDATE


    --  In October, the company announced a clinical trial collaboration
        agreement with Janssen and Pharmacyclics to evaluate the safety,
        tolerability and preliminary efficacy of Opdivo in combination with
        Janssen and Pharmacyclics’ oral Bruton's tyrosine kinase inhibitor
        Imbruvica®(ibrutinib) to treat patients with non-Hodgkin lymphoma.
    --  In October, the company and The University of Texas MD Anderson Cancer
        Center announced a clinical research collaboration to evaluate Yervoy,
        Opdivoand three early-stage clinical immuno-oncology assets as potential
        treatment options for acute and chronic leukemia as well as other
        hematologic malignancies.
    --  In October, the company announced a clinical trial collaboration with
        Novartis to evaluate the safety, tolerability and preliminary efficacy
        of combining Opdivo with three molecularly targeted oncology therapies
        from Novartis – Zykadia™ (ceritinib), INC280 and EGF816 – to treat NSLC.
    --  In August, the company and Celgene Corporation announced the
        establishment of a clinical trial collaboration to evaluate the safety,
        tolerability and preliminary efficacy of a combination regimen of
        Opdivoand Celgene’s nab® technology-based chemotherapy Abraxane®
        (paclitaxel protein-bound particles for injectable suspension)
        (albumin-bound) in a Phase I study. Multiple tumor types will be
        explored in the study.
    --  In August, the company and Allied Minds announced the formation of
        Allied-Bristol Life Sciences LLC, a new jointly owned enterprise created
        to identify and foster research and pre-clinical development of
        biopharmaceutical innovations from leading university research
        institutions across the U.S. The new enterprise will focus on converting
        discoveries from university research institutions into therapeutic
        candidates for clinical development and, ultimately, approved therapies
        that address serious diseases.

Abraxane(R) and nab(R) are trademarks of Abraxis BioScience LLC, a wholly owned subsidiary of Celgene Corporation.
Imbruvica(R) is a trademark of Pharmacyclics, Inc.
Zykadia(TM) is a trademark of Novartis AG.

2014 FINANCIAL GUIDANCE

Bristol-Myers Squibb is adjusting its 2014 GAAP EPS guidance range to $1.15 - $1.25 from $1.50 - $1.60 and confirming its non-GAAP EPS guidance range of $1.70 - $1.80. Both GAAP and non-GAAP guidance assume current exchange rates and that the R&D tax credit will be extended by Congress in 2014. Key 2014 non-GAAP guidance assumptions include:

       

•       Worldwide revenues between $15.2 billion and $15.8 billion.

                                                                            

•       Full-year gross margin as a percentage of revenues between 75% and
        76%.

                                                                            

•       Advertising and promotion expense decreasing in the mid-teen-digit
        range.

                                                                            

•       Marketing, sales and administrative expenses decreasing in the
        mid-single-digit range.

                                                                            

•       Research and development expenses growing in the mid-single-digit
        range.

                                                                            

•       An effective tax rate of 19% - 20%.

                                                                            



The financial guidance for 2014 excludes the impact of any potential future strategic acquisitions and divestitures, and any specified items that have not yet been identified and quantified. The non-GAAP 2014 guidance also excludes 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 and related earnings per share information. These measures are 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 payments for in-licensing of products that have not achieved regulatory approval which are immediately expensed; net amortization of acquired intangible assets and deferred income related to Amylin; pension settlement charges; significant tax events and additional charges related to the Branded Prescription Drug Fee. This information is intended to enhance an investor's overall understanding of the company's past financial performance and prospects for the future. Non-GAAP financial measures provide the company and its investors with 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. The company uses non-GAAP gross profit, non-GAAP marketing, selling and administrative expense, non-GAAP research and development expense, and non-GAAP other income and expense measures to set internal budgets, manage costs, allocate resources, and plan and forecast future periods. Non-GAAP effective tax rate measures are primarily used to plan and forecast future periods. Non-GAAP earnings and earnings per share measures are primary indicators the company uses as a basis for evaluating company performance, 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 financial measures 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, effects of the continuing implementation of 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 which take into account assumptions about the continued extension of the R&D tax credit, 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 business strategy, the expiration of patents or data protection on certain products, including assumptions about the company's ability to retain patent exclusivity of 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 compounds 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 24, 2014, 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 webcast of the call at http://investor.bms.com or by dialing 913-312-0964, confirmation code: 1193919. Materials related to the call will be available at the same website prior to the conference call.



                                                                                                                        

                                             BRISTOL-MYERS SQUIBB COMPANY

                                                  SELECTED PRODUCTS

                                FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

                                           (Unaudited, dollars in millions)

                                                                                                                          

                                                 Worldwide Revenues                           U.S. Revenues

                                                                        %                                         %
                                           2014           2013        Change         2014          2013        Change

Three Months Ended September 30,

Key Products

Virology

Baraclude                               $     325      $     378      (14) %       $     40      $     67       (40) %

Hepatitis C Franchise                          49              —         N/A              —             —          N/A

Reyataz                                       338            375      (10) %            169           189       (11) %

Sustiva Franchise                             357            389       (8) %            284           259         10 %

Oncology

Erbitux(a)                                    187            183         2 %            175           180        (3) %

Opdivo                                          1              —         N/A              —             —          N/A

Sprycel                                       385            316        22 %            179           134         34 %

Yervoy                                        350            238        47 %            191           130         47 %

Neuroscience

Abilify(b)                                    449            569      (21) %            407           378          8 %

Immunoscience

Orencia                                       444            375        18 %            292           246         19 %

Cardiovascular

Eliquis                                       216             41          **            113            27           **

                                                                                                                          

Diabetes Alliance                              42            432      (90) %              —           308      (100) %

                                                                                                                          

Mature Products and All Other                 778            769         1 %            118           119        (1) %

                                                                                                                          

Total                                       3,921          4,065       (4) %          1,968         2,037        (3) %

                                                                                                                          

Total Excluding Diabetes Alliance           3,879          3,633         7 %          1,968         1,729         14 %

                                                                                                                          



**        In excess of 100%

           

(a)       Erbitux is a trademark of ImClone LLC. ImClone LLC is a wholly-owned
          subsidiary of Eli Lilly and Company.

(b)       Abilify is a trademark of Otsuka Pharmaceutical Co., Ltd.

           





                                                                                                                             

                                               BRISTOL-MYERS SQUIBB COMPANY

                                                     SELECTED PRODUCTS

                                       FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014

                                                         AND 2013

                                             (Unaudited, dollars in millions)

                                                                                                                               

                                                   Worldwide Revenues                             U.S. Revenues

                                                                            %                                          %
                                            2014             2013         Change          2014           2013        Change

Nine Months Ended September 30,

Key Products

Virology

Baraclude                               $     1,100      $     1,115       (1) %       $     194      $     208       (7) %

Hepatitis C Franchise                            49                —         N/A               —              —         N/A

Reyataz                                       1,044            1,167      (11) %             513            582      (12) %

Sustiva Franchise                             1,037            1,187      (13) %             778            785       (1) %

Oncology

Erbitux                                         542              516         5 %             511            506         1 %

Opdivo                                            1                —         N/A               —              —         N/A

Sprycel                                       1,095              915        20 %             487            384        27 %

Yervoy                                          942              700        35 %             510            429        19 %

Neuroscience

Abilify                                       1,544            1,654       (7) %           1,149          1,084         6 %

Immunoscience

Orencia                                       1,209            1,047        15 %             775            698        11 %

Cardiovascular

Eliquis                                         493               75          **             268             49          **

                                                                                                                               

Diabetes Alliance                               248            1,228      (80) %             114            920      (88) %

                                                                                                                               

Mature Products and All Other                 2,317            2,340       (1) %             335            408      (18) %

                                                                                                                               

Total                                        11,621           11,944       (3) %           5,634          6,053       (7) %

                                                                                                                               

Total Excluding Diabetes Alliance            11,373           10,716         6 %           5,520          5,133         8 %

                                                                                                                               



**       In excess of 100%

          





                                                                                                                                        

                                                     BRISTOL-MYERS SQUIBB COMPANY

                                                 CONSOLIDATED STATEMENTS OF EARNINGS

                                   FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

                                  (Unaudited, dollars and shares in millions except per share data)

                                                                                                                                          

                                                                             Three Months Ended                 Nine Months Ended
                                                                                September 30,                     September 30,

                                                                              2014            2013              2014            2013  

Net product sales                                                        $   2,843       $   3,025         $   8,420       $   9,006

Alliance and other revenues                                                  1,078           1,040             3,201           2,938  

Total Revenues                                                               3,921           4,065            11,621          11,944  

                                                                                                                                          

Cost of products sold                                                        1,007           1,175             2,966           3,346

Marketing, selling and administrative                                        1,029             980             2,937           3,016

Advertising and product promotion                                              171             194               521             601

Research and development                                                       983             893             3,345           2,774

Other (income)/expense                                                        (277 )             5              (589 )           185  

Total Expenses                                                               2,913           3,247             9,180           9,922  

                                                                                                                                          

Earnings Before Income Taxes                                                 1,008             818             2,441           2,022

Provision for Income Taxes                                                     276             126               439             177  

                                                                                                                                          

Net Earnings                                                                   732             692             2,002           1,845

Net Earnings Attributable to Noncontrolling Interest                            11               —                11               8  

Net Earnings Attributable to BMS                                         $     721       $     692         $   1,991       $   1,837  

                                                                                                                                          

Earnings per Common Share

Basic                                                                    $    0.43       $    0.42         $    1.20       $    1.12

Diluted                                                                  $    0.43       $    0.42         $    1.19       $    1.11

                                                                                                                                          

Average Common Shares Outstanding:

Basic                                                                        1,658           1,646             1,656           1,643

Diluted                                                                      1,670           1,662             1,668           1,659

                                                                                                                                          

Other (Income)/Expense

                                                                                                                                          

Interest expense                                                         $      50       $      46         $     150       $     146

Investment income                                                              (20 )           (23 )             (71 )           (76 )

Provision for restructuring                                                     35               6                72             212

Litigation charges/(recoveries)                                                 10              17                19              (5 )

Equity in net income of affiliates                                             (12 )           (42 )             (81 )          (128 )

Out-licensed intangible asset impairment                                        18               —                18               —

Gain on sale of product lines, businesses and assets                          (315 )             —              (567 )            (1 )

Other alliance and licensing income                                           (102 )           (31 )            (354 )          (120 )

Pension curtailments, settlements and special termination benefits              28              37               137             138

Other                                                                           31              (5 )              88              19  

Other (income)/expense                                                   $    (277 )     $       5         $    (589 )     $     185  

                                                                                                                                          





                                                                                                                                       

                                                    BRISTOL-MYERS SQUIBB COMPANY

                                                           SPECIFIED ITEMS

                                   FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

                                                  (Unaudited, dollars in millions)

                                                                                                                                         

                                                                             Three Months Ended                Nine Months Ended
                                                                                September 30,                    September 30,

                                                                             2014           2013             2014            2013

Accelerated depreciation, asset impairment and other shutdown costs       $     36       $      —         $     120       $       —

Amortization of acquired Amylin intangible assets                                —            137                 —             412

Amortization of Amylin alliance proceeds                                         —            (68 )               —            (202 )

Amortization of Amylin inventory adjustment                                      —              —                 —              14  

Cost of products sold                                                           36             69               120             224

                                                                                                                                         

Additional year of Branded Prescription Drug Fee                                96              —                96               —

Process standardization implementation costs                                     2              4                 8               6  

Marketing, selling and administrative                                           98              4               104               6

                                                                                                                                         

Upfront, milestone and other payments                                           65              —               228               —

IPRD impairments                                                                 —              —               343               —  

Research and development                                                        65              —               571               —

                                                                                                                                         

Provision for restructuring                                                     35              6                72             212

Gain on sale of product lines, businesses and assets                          (315 )            —              (562 )             —

Pension curtailments, settlements and special termination benefits              28             37               137             136

Acquisition and alliance related items(a)                                       39              —                72             (10 )

Litigation charges/(recoveries)                                                 10              —                12             (23 )

Loss on debt redemption                                                          —              —                45               —

Upfront, milestone and other licensing receipts                                  —              —                 —             (14 )

Other (income)/expense                                                        (203 )           43              (224 )           301

                                                                                                                                         

Increase/(decrease) to pretax income                                            (4 )          116               571             531

Income tax on items above                                                       33            (40 )            (248 )          (191 )

Increase to net earnings                                                  $     29       $     76         $     323       $     340  

                                                                                                                                         



(a) Includes $16 million of additional year of Branded Prescription Drug Fee.





                                                                                                

                                 BRISTOL-MYERS SQUIBB COMPANY

           RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO CERTAIN GAAP LINE ITEMS

                    FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

                               (Unaudited, dollars in millions)

                                                                                                  

                                                               Specified             Non
Three Months Ended September 30, 2014           GAAP             Items*             GAAP

Gross Profit                                $     2,914       $     36         $     2,950

Marketing, selling and administrative             1,029            (98 )               931

Research and development                            983            (65 )               918

Other (income)/expense                             (277 )          203                 (74 )  

Effective Tax Rate                                 27.4 %         (3.2 ) %            24.2   %

                                                                                                  

                                                               Specified             Non
Three Months Ended September 30, 2013           GAAP             Items*             GAAP

Gross Profit                                $     2,890       $     69         $     2,959

Marketing, selling and administrative               980             (4 )               976

Research and development                            893              —                 893

Other (income)/expense                                5            (43 )               (38 )  

Effective Tax Rate                                 15.4 %          2.4   %            17.8   %

                                                                                                  





*     Refer to the Specified Items schedule for further details. Effective tax
      rate on the Specified Items represents the difference between the GAAP and
      Non-GAAP effective tax rate.

       





                                                                                                 

                                 BRISTOL-MYERS SQUIBB COMPANY

           RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO CERTAIN GAAP LINE ITEMS

                     FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

                               (Unaudited, dollars in millions)

                                                                                                   

                                                                Specified             Non
Nine Months Ended September 30, 2014            GAAP             Items*              GAAP

Gross Profit                                $     8,655       $     120         $     8,775

Marketing, selling and administrative             2,937            (104 )             2,833

Research and development                          3,345            (571 )             2,774

Other (income)/expense                             (589 )           224                (365 )  

Effective Tax Rate                                 18.0 %           4.8   %            22.8   %

                                                                                                   

                                                                Specified             Non
Nine Months Ended September 30, 2013            GAAP             Items*              GAAP

Gross Profit                                $     8,598       $     224         $     8,822

Marketing, selling and administrative             3,016              (6 )             3,010

Research and development                          2,774               —               2,774

Other (income)/expense                              185            (301 )              (116 )  

Effective Tax Rate                                  8.8 %           5.6   %            14.4   %

                                                                                                   





*     Refer to the Specified Items schedule for further details. Effective tax
      rate on the Specified Items represents the difference between the GAAP and
      Non-GAAP effective tax rate.

       





                                                                                                                                          

                                                      BRISTOL-MYERS SQUIBB COMPANY

                                               RECONCILIATION OF NON-GAAP EPS TO GAAP EPS

                                    FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

                                   (Unaudited, dollars and shares in millions except per share data)

                                                                                                                                            

                                                                                  Three Months Ended               Nine Months Ended
                                                                                     September 30,                   September 30,

                                                                                  2014           2013             2014           2013

Net Earnings Attributable to BMS used for Diluted EPS Calculation - GAAP       $    721       $    692         $   1,991       $   1,837

Less Specified Items*                                                                29             76               323             340

Net Earnings used for Diluted EPS Calculation – Non-GAAP                       $    750       $    768         $   2,314       $   2,177

                                                                                                                                            

Average Common Shares Outstanding – Diluted                                       1,670          1,662             1,668           1,659

                                                                                                                                            

Diluted Earnings Per Share — GAAP                                              $   0.43       $   0.42         $    1.19       $    1.11

Diluted EPS Attributable to Specified Items                                        0.02           0.04              0.20            0.20

Diluted Earnings Per Share — Non-GAAP                                          $   0.45       $   0.46         $    1.39       $    1.31

                                                                                                                                            



*     Refer to the Specified Items schedule for further details.

       





                                                                                           

                              BRISTOL-MYERS SQUIBB COMPANY

                               NET CASH/(DEBT) CALCULATION

                       AS OF SEPTEMBER 30, 2014 AND JUNE 30, 2014

                            (Unaudited, dollars in millions)

                                                                                             

                                                                  September     June 30,
                                                                  30, 2014        2014

Cash and cash equivalents                                         $ 4,851       $ 4,282

Marketable securities - current                                     2,370         2,893

Marketable securities - long term                                   4,328         3,876  

Cash, cash equivalents and marketable securities                   11,549        11,051

Short-term borrowings and current portion of long-term debt          (401 )        (365 )

Long-term debt                                                     (7,267 )      (7,372 )

Net cash position                                                 $ 3,881       $ 3,314  

                                                                                             



    CONTACT: Bristol-Myers Squibb
             Communications
             Laura Hortas, 609-252-4587
             laura.hortas@bms.com
             or
             Investor Relations
             John Elicker, 609-252-4611
             john.elicker@bms.com
             Ranya Dajani, 609-252-5330
             ranya.dajani@bms.com
             Ryan Asay, 609-252-5020
             ryan.asay@bms.com

    Source: Bristol-Myers Squibb Company
Bristol-Myers Squibb Communications Laura Hortas, 609-252-4587 laura.hortas@bms.com or Investor Relations John Elicker, 609-252-4611 john.elicker@bms.com Ranya Dajani, 609-252-5330 ranya.dajani@bms.com Ryan Asay, 609-252-5020 ryan.asay@bms.com

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