Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - BRISTOL MYERS SQUIBB CO | d246721d8k.htm |
| EX-99.1 - PRESS RELEASE OF BRISTOL-MYERS SQUIBB COMPANY DATED OCTOBER 27, 2011 - BRISTOL MYERS SQUIBB CO | d246721dex991.htm |
Exhibit 99.2
BRISTOL-MYERS SQUIBB COMPANY
QUARTERLY TREND ANALYSIS OF SALES
($ in millions)
Net Sales
| 2010 | 2011 | % Change | FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||
| Total |
$ | 4,807 | $ | 4,768 | $ | 9,575 | $ | 4,798 | $ | 14,373 | $ | 5,111 | $ | 19,484 | $ | 5,011 | $ | 5,434 | $ | 10,445 | $ | 5,345 | $ | 15,790 | 11% | 10% | 3% | 2% | ||||||||||||||||||||||||||||||||
| US |
3,089 | 3,105 | 6,194 | 3,135 | 9,329 | 3,284 | 12,613 | 3,250 | 3,562 | 6,812 | 3,477 | 10,289 | 11% | 10% | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Europe Pharmaceuticals |
886 | 822 | 1,708 | 804 | 2,512 | 936 | 3,448 | 868 | 954 | 1,822 | 916 | 2,738 | 14% | 9% | 11% | 7% | ||||||||||||||||||||||||||||||||||||||||||||
| JPAC Pharmaceuticals |
371 | 403 | 774 | 419 | 1,193 | 458 | 1,651 | 449 | 462 | 911 | 464 | 1,375 | 11% | 15% | 10% | 9% | ||||||||||||||||||||||||||||||||||||||||||||
| Intercon Pharmaceuticals |
225 | 199 | 424 | 207 | 631 | 225 | 856 | 214 | 220 | 434 | 230 | 664 | 11% | 5% | 3% | 2% | ||||||||||||||||||||||||||||||||||||||||||||
| Emerging Markets |
203 | 201 | 404 | 211 | 615 | 189 | 804 | 206 | 215 | 421 | 238 | 659 | 13% | 7% | 5% | 5% | ||||||||||||||||||||||||||||||||||||||||||||
| Other |
33 | 38 | 71 | 22 | 93 | 19 | 112 | 24 | 21 | 45 | 20 | 65 | (9)% | (30)% | — | 1% | ||||||||||||||||||||||||||||||||||||||||||||
% of Total Sales
| 2010 | 2011 | Basis Point Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||
| Total |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | — | — | ||||||||||||||||||||||||||||||
| US Pharmaceuticals |
64.3 | % | 65.1 | % | 64.7 | % | 65.3 | % | 64.9 | % | 64.3 | % | 64.7 | % | 64.9 | % | 65.5 | % | 65.2 | % | 65.1 | % | 65.2 | % | (20) | 30 | ||||||||||||||||||||||||||||||
| Europe Pharmaceuticals |
18.4 | % | 17.2 | % | 17.8 | % | 16.8 | % | 17.5 | % | 18.3 | % | 17.7 | % | 17.3 | % | 17.6 | % | 17.4 | % | 17.1 | % | 17.3 | % | 30 | (20) | ||||||||||||||||||||||||||||||
| JPAC Pharmaceuticals |
7.7 | % | 8.5 | % | 8.1 | % | 8.7 | % | 8.3 | % | 9.0 | % | 8.5 | % | 9.0 | % | 8.5 | % | 8.7 | % | 8.7 | % | 8.7 | % | — | 40 | ||||||||||||||||||||||||||||||
| Intercon Pharmaceuticals |
4.7 | % | 4.2 | % | 4.4 | % | 4.3 | % | 4.4 | % | 4.4 | % | 4.4 | % | 4.3 | % | 4.0 | % | 4.2 | % | 4.3 | % | 4.2 | % | — | (20) | ||||||||||||||||||||||||||||||
| Emerging Markets |
4.2 | % | 4.2 | % | 4.2 | % | 4.4 | % | 4.3 | % | 3.7 | % | 4.1 | % | 4.0 | % | 4.0 | % | 4.0 | % | 4.4 | % | 4.2 | % | — | (10) | ||||||||||||||||||||||||||||||
| Other |
0.7 | % | 0.8 | % | 0.8 | % | 0.5 | % | 0.6 | % | 0.3 | % | 0.6 | % | 0.5 | % | 0.4 | % | 0.5 | % | 0.4 | % | 0.4 | % | (10) | (20) | ||||||||||||||||||||||||||||||
1
BRISTOL-MYERS SQUIBB COMPANY
SALES AND COMPOSITION OF CHANGE IN SALES
FOR THE PERIOD ENDED SEPTEMBER 30, 2011
($ in millions)
| QUARTER-TO-DATE |
Net Sales | Analysis of % Change | ||||||||||||||||||||||
| 2011 | 2010 | Total Change |
Volume | Price | Foreign Exchange |
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| US |
$ | 3,477 | $ | 3,135 | 11% | 6% | 5% | — | ||||||||||||||||
| Europe |
916 | 804 | 14% | 7% | (4)% | 11% | ||||||||||||||||||
| JPAC |
464 | 419 | 11% | 2% | (1)% | 10% | ||||||||||||||||||
| Intercon |
230 | 207 | 11% | 4% | 4% | 3% | ||||||||||||||||||
| Emerging Markets |
238 | 211 | 13% | 10% | (2)% | 5% | ||||||||||||||||||
| Other |
20 | 22 | (9)% | N/A | N/A | — | ||||||||||||||||||
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| Total |
$ | 5,345 | $ | 4,798 | 11% | 6% | 2% | 3% | ||||||||||||||||
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| YEAR-TO-DATE |
Net Sales | Analysis of % Change | ||||||||||||||||||||||
| 2011 | 2010 | Total Change |
Volume | Price | Foreign Exchange |
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| US |
$ | 10,289 | $ | 9,329 | 10% | 3% | 7% | — | ||||||||||||||||
| Europe |
2,738 | 2,512 | 9% | 6% | (4)% | 7% | ||||||||||||||||||
| JPAC |
1,375 | 1,193 | 15% | 8% | (2)% | 9% | ||||||||||||||||||
| Intercon |
664 | 631 | 5% | 2% | 1% | 2% | ||||||||||||||||||
| Emerging Markets |
659 | 615 | 7% | 6% | (4)% | 5% | ||||||||||||||||||
| Other |
65 | 93 | (30)% | N/A | N/A | 1% | ||||||||||||||||||
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| Total |
$ | 15,790 | $ | 14,373 | 10% | 5% | 3% | 2% | ||||||||||||||||
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2
BRISTOL-MYERS SQUIBB COMPANY
EARNINGS FROM OPERATIONS
($ in millions, except per share amounts)
| 2010 | 2011 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||
| Net Sales |
$ | 4,807 | $ | 4,768 | $ | 9,575 | $ | 4,798 | $ | 14,373 | $ | 5,111 | $ | 19,484 | $ | 5,011 | $ | 5,434 | $ | 10,445 | $ | 5,345 | $ | 15,790 | 11% | 10% | ||||||||||||||||||||||||||||||
| Cost of products sold |
1,306 | 1,277 | 2,583 | 1,280 | 3,863 | 1,414 | 5,277 | 1,343 | 1,481 | 2,824 | 1,407 | 4,231 | 10% | 10% | ||||||||||||||||||||||||||||||||||||||||||
| Marketing, selling and administrative |
900 | 894 | 1,794 | 892 | 2,686 | 1,000 | 3,686 | 928 | 1,040 | 1,968 | 1,019 | 2,987 | 14% | 11% | ||||||||||||||||||||||||||||||||||||||||||
| Advertising and product promotion |
212 | 263 | 475 | 231 | 706 | 271 | 977 | 214 | 253 | 467 | 205 | 672 | (11)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||
| Research and development |
910 | 822 | 1,732 | 824 | 2,556 | 1,010 | 3,566 | 935 | 923 | 1,858 | 973 | 2,831 | 18% | 11% | ||||||||||||||||||||||||||||||||||||||||||
| Provision for restructuring, net |
11 | 24 | 35 | 15 | 50 | 63 | 113 | 44 | 40 | 84 | 8 | 92 | (47)% | 84% | ||||||||||||||||||||||||||||||||||||||||||
| Litigation expense, net |
— | — | — | 22 | 22 | (41 | ) | (19 | ) | — | — | — | — | — | (100)% | (100)% | ||||||||||||||||||||||||||||||||||||||||
| Equity in net income of affiliates |
(97 | ) | (85 | ) | (182 | ) | (70 | ) | (252 | ) | (61 | ) | (313 | ) | (82 | ) | (62 | ) | (144 | ) | (71 | ) | (215 | ) | 1% | (15)% | ||||||||||||||||||||||||||||||
| Other (income)/expense, net |
113 | (19 | ) | 94 | (10 | ) | 84 | 42 | 126 | (138 | ) | (31 | ) | (169 | ) | (26 | ) | (195 | ) | 160% | * | |||||||||||||||||||||||||||||||||||
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| Total expenses |
3,355 | 3,176 | 6,531 | 3,184 | 9,715 | 3,698 | 13,413 | 3,244 | 3,644 | 6,888 | 3,515 | 10,403 | 10% | 7% | ||||||||||||||||||||||||||||||||||||||||||
| Earnings from Operations Before Income Taxes |
$ | 1,452 | $ | 1,592 | $ | 3,044 | $ | 1,614 | $ | 4,658 | $ | 1,413 | $ | 6,071 | $ | 1,767 | $ | 1,790 | $ | 3,557 | $ | 1,830 | $ | 5,387 | 13% | 16% | ||||||||||||||||||||||||||||||
| Provision for income taxes |
351 | 324 | 675 | 312 | 987 | 571 | 1,558 | 400 | 483 | 883 | 475 | 1,358 | 52% | 38% | ||||||||||||||||||||||||||||||||||||||||||
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| Net Earnings from Operations |
$ | 1,101 | $ | 1,268 | $ | 2,369 | $ | 1,302 | $ | 3,671 | $ | 842 | $ | 4,513 | $ | 1,367 | $ | 1,307 | $ | 2,674 | $ | 1,355 | $ | 4,029 | 4% | 10% | ||||||||||||||||||||||||||||||
| Net Earnings Attributable to Noncontrolling Interest |
358 | 341 | 699 | 353 | 1,052 | 359 | 1,411 | 381 | 405 | 786 | 386 | 1,172 | 9% | 11% | ||||||||||||||||||||||||||||||||||||||||||
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| Net Earnings from Operations Attributable to BMS |
$ | 743 | $ | 927 | $ | 1,670 | $ | 949 | $ | 2,619 | $ | 483 | $ | 3,102 | $ | 986 | $ | 902 | $ | 1,888 | $ | 969 | $ | 2,857 | 2% | 9% | ||||||||||||||||||||||||||||||
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| Contingently convertible debt interest expense and earnings attributable to unvested shares |
(3 | ) | (3 | ) | (7 | ) | (4 | ) | (11 | ) | (2 | ) | (12 | ) | (2 | ) | (2 | ) | (4 | ) | (2 | ) | (6 | ) | (50)% | (45)% | ||||||||||||||||||||||||||||||
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| Net Earnings used for Diluted EPS Calc – Attributable to BMS |
$ | 740 | $ | 924 | $ | 1,663 | $ | 945 | $ | 2,608 | $ | 481 | $ | 3,090 | $ | 984 | $ | 900 | $ | 1,884 | $ | 967 | $ | 2,851 | 2% | 9% | ||||||||||||||||||||||||||||||
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| Diluted Earnings Attributable to BMS per Common Share** |
$ | 0.43 | $ | 0.53 | $ | 0.96 | $ | 0.55 | $ | 1.51 | $ | 0.28 | $ | 1.79 | $ | 0.57 | $ | 0.52 | $ | 1.10 | $ | 0.56 | $ | 1.66 | 2% | 10% | ||||||||||||||||||||||||||||||
| Average Common Shares Outstanding – Diluted |
1,725 | 1,728 | 1,727 | 1,726 | 1,726 | 1,723 | 1,727 | 1,714 | 1,722 | 1,718 | 1,715 | 1,717 | (1)% | (1)% | ||||||||||||||||||||||||||||||||||||||||||
| Dividends declared per common share |
$ | 0.32 | $ | 0.32 | $ | 0.64 | $ | 0.32 | $ | 0.96 | $ | 0.33 | $ | 1.29 | $ | 0.33 | $ | 0.33 | $ | 0.66 | $ | 0.33 | $ | 0.99 | 3% | 3% | ||||||||||||||||||||||||||||||
3
| % of Net Sales | 2010 | 2011 | Basis Point Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||
| Gross Margin |
72.8 | % | 73.2 | % | 73.0 | % | 73.3 | % | 73.1 | % | 72.3 | % | 72.9 | % | 73.2 | % | 72.7 | % | 73.0 | % | 73.7 | % | 73.2 | % | 40 | 10 | ||||||||||||||||||||||||||||||
| Cost of products sold |
27.2 | % | 26.8 | % | 27.0 | % | 26.7 | % | 26.9 | % | 27.7 | % | 27.1 | % | 26.8 | % | 27.3 | % | 27.0 | % | 26.3 | % | 26.8 | % | (40) | (10) | ||||||||||||||||||||||||||||||
| Marketing, selling and administrative |
18.7 | % | 18.8 | % | 18.7 | % | 18.6 | % | 18.7 | % | 19.6 | % | 18.9 | % | 18.5 | % | 19.1 | % | 18.8 | % | 19.1 | % | 18.9 | % | 50 | 20 | ||||||||||||||||||||||||||||||
| Advertising and product promotion |
4.4 | % | 5.5 | % | 5.0 | % | 4.8 | % | 4.9 | % | 5.3 | % | 5.0 | % | 4.3 | % | 4.7 | % | 4.5 | % | 3.8 | % | 4.3 | % | (100) | (60) | ||||||||||||||||||||||||||||||
| Research and development |
18.9 | % | 17.2 | % | 18.1 | % | 17.2 | % | 17.8 | % | 19.8 | % | 18.3 | % | 18.7 | % | 17.0 | % | 17.8 | % | 18.2 | % | 17.9 | % | 100 | 10 | ||||||||||||||||||||||||||||||
| Total expenses |
69.8 | % | 66.6 | % | 68.2 | % | 66.4 | % | 67.6 | % | 72.4 | % | 68.8 | % | 64.7 | % | 67.1 | % | 65.9 | % | 65.8 | % | 65.9 | % | (60) | (170) | ||||||||||||||||||||||||||||||
| Earnings from Operations Before Income Taxes |
30.2 | % | 33.4 | % | 31.8 | % | 33.6 | % | 32.4 | % | 27.6 | % | 31.2 | % | 35.3 | % | 32.9 | % | 34.1 | % | 34.2 | % | 34.1 | % | 60 | 170 | ||||||||||||||||||||||||||||||
| Net Earnings from Operations Attributable to BMS |
15.5 | % | 19.4 | % | 17.4 | % | 19.8 | % | 18.2 | % | 9.5 | % | 15.9 | % | 19.7 | % | 16.6 | % | 18.1 | % | 18.1 | % | 18.1 | % | (170) | (10) | ||||||||||||||||||||||||||||||
| Other Ratios |
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| Effective Tax Rate |
24.2 | % | 20.4 | % | 22.2 | % | 19.3 | % | 21.2 | % | 40.4 | % | 25.7 | % | 22.6 | % | 27.0 | % | 24.8 | % | 26.0 | % | 25.2 | % | 670 | 400 | ||||||||||||||||||||||||||||||
| Other (Income)/ Expense, net |
2010 | 2011 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||
| Interest expense |
$ | 33 | $ | 32 | $ | 65 | $ | 38 | $ | 103 | $ | 42 | $ | 145 | $ | 31 | $ | 32 | $ | 63 | $ | 40 | $ | 103 | 5% | — | ||||||||||||||||||||||||||||||
| Interest income |
(15 | ) | (16 | ) | (31 | ) | (23 | ) | (54 | ) | (21 | ) | (75 | ) | (21 | ) | (25 | ) | (46 | ) | (23 | ) | (69 | ) | — | 28% | ||||||||||||||||||||||||||||||
| Impairment and loss on sale of manufacturing operations |
200 | 15 | 215 | 10 | 225 | 11 | 236 | — | — | — | — | — | (100)% | (100)% | ||||||||||||||||||||||||||||||||||||||||||
| (Gain)/Loss on debt repurchase |
— | — | — | — | — | 6 | 6 | (8 | ) | (2 | ) | (10 | ) | — | (10 | ) | — | — | ||||||||||||||||||||||||||||||||||||||
| Net foreign exchange transaction (gains)/losses |
(16 | ) | (16 | ) | (32 | ) | 9 | (23 | ) | 17 | (6 | ) | (7 | ) | 18 | 11 | 4 | 15 | (56)% | (165)% | ||||||||||||||||||||||||||||||||||||
| Gain on sale of product lines, businesses and assets |
(10 | ) | (5 | ) | (15 | ) | (21 | ) | (36 | ) | (3 | ) | (39 | ) | (9 | ) | (2 | ) | (11 | ) | (25 | ) | (36 | ) | 19% | — | ||||||||||||||||||||||||||||||
| Acquisition related items |
— | — | — | — | — | 10 | 10 | — | — | — | 1 | 1 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other income from alliance partners |
(50 | ) | (44 | ) | (94 | ) | (28 | ) | (122 | ) | (14 | ) | (136 | ) | (23 | ) | (39 | ) | (62 | ) | (45 | ) | (107 | ) | 61% | (12)% | ||||||||||||||||||||||||||||||
| Pension curtailment and settlement charges |
— | 14 | 14 | 2 | 16 | 12 | 28 | (3 | ) | — | (3 | ) | 2 | (1 | ) | — | 106% | |||||||||||||||||||||||||||||||||||||||
| Litigation charges/(recoveries) |
— | — | — | — | — | — | — | (102 | ) | (4 | ) | (106 | ) | 1 | (105 | ) | — | — | ||||||||||||||||||||||||||||||||||||||
| Product liability charges |
— | — | — | 13 | 13 | 4 | 17 | 26 | — | 26 | 10 | 36 | (23)% | 177% | ||||||||||||||||||||||||||||||||||||||||||
| Other |
(29 | ) | 1 | (28 | ) | (10 | ) | (38 | ) | (22 | ) | (60 | ) | (22 | ) | (9 | ) | (31 | ) | 9 | (22 | ) | (190)% | (42)% | ||||||||||||||||||||||||||||||||
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| $ | 113 | ($ | 19 | ) | $ | 94 | ($ | 10 | ) | $ | 84 | $ | 42 | $ | 126 | ($ | 138 | ) | ($ | 31 | ) | ($ | 169 | ) | ($ | 26 | ) | ($ | 195 | ) | 160% | * | ||||||||||||||||||||||||
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| * | in excess of +/- 200% |
| ** | quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations. |
4
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND
PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
FOR THE PERIOD ENDED SEPTEMBER 30, 2011
(Unaudited, amounts in millions except per share data)
QUARTER-TO-DATE
| 2011 | 2010 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * |
2011 Excluding FX |
Favorable / (Unfavorable) FX Impact % * |
Growth % Excluding FX |
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| Net sales |
$ | 5,345 | $ | 4,798 | $ | 547 | 11% | 144 | $ | 5,201 | 3% | 8% | ||||||||||||||||||||
| Marketing, selling and administrative(a) |
1,019 | 892 | 127 | 14% | (36 | ) | 983 | (4)% | 10% | |||||||||||||||||||||||
| Marketing, selling and administrative excluding |
1,014 | 884 | 130 | 15% | (36 | ) | 978 | (4)% | 11% | |||||||||||||||||||||||
| Advertising and product promotion |
205 | 231 | (26 | ) | (11)% | (7 | ) | 198 | (3)% | (14)% | ||||||||||||||||||||||
| Research and development |
973 | 824 | 149 | 18% | (16 | ) | 957 | (2)% | 16% | |||||||||||||||||||||||
| Research and development excluding specified items(b) |
891 | 824 | 67 | 8% | (17 | ) | 874 | (2)% | 6% | |||||||||||||||||||||||
| (a) | The following table provides a reconciliation of GAAP to Non-GAAP figures and the impact of annual pharmaceutical company fee: |
| 2011 | 2010 | % Change | ||||||||||
| Marketing, selling and administrative |
1,019 | 892 | 14% | |||||||||
| Specified items |
5 | 8 | (38)% | |||||||||
|
|
|
|
|
|
|
|||||||
| Marketing, selling and administrative excluding specified items |
1,014 | 884 | 15% | |||||||||
| Annual pharmaceutical company fee |
44 | — | N/A | |||||||||
|
|
|
|
|
|
|
|||||||
| Adjusted marketing, selling and administrative excluding specified items |
970 | 884 | 10% | |||||||||
|
|
|
|
|
|
|
|||||||
| (b) | Please refer to the Specified Items QTD tab for detail of specified items and the GAAP to Non-GAAP P&L tab for reconciliation. |
YEAR-TO-DATE
| 2011 | 2010 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * |
2011 Excluding FX |
Favorable / (Unfavorable) FX Impact % * |
Growth % Excluding FX |
|||||||||||||||||||||||||
| Net sales |
$ | 15,790 | $ | 14,373 | $ | 1,417 | 10% | 340 | $ | 15,450 | 2% | 8% | ||||||||||||||||||||
| Marketing, selling and administrative(a) |
2,987 | 2,686 | 301 | 11% | (86 | ) | 2,901 | (3)% | 8% | |||||||||||||||||||||||
| Marketing, selling and administrative excluding specified items(b) |
2,968 | 2,659 | 309 | 12% | (86 | ) | 2,882 | (4)% | 8% | |||||||||||||||||||||||
| Advertising and product promotion |
672 | 706 | (34 | ) | (5)% | (17 | ) | 655 | (2)% | (7)% | ||||||||||||||||||||||
| Research and development |
2,831 | 2,556 | 275 | 11% | (38 | ) | 2,793 | (2)% | 9% | |||||||||||||||||||||||
| Research and development excluding specified items(b) |
2,596 | 2,484 | 112 | 5% | (38 | ) | 2,558 | (2)% | 3% | |||||||||||||||||||||||
| (a) | The following table provides a reconciliation of GAAP to Non-GAAP figures and the impact of annual pharmaceutical company fee: |
| 2011 | 2010 | % Change | ||||||||||
| Marketing, selling and administrative |
2,987 | 2,686 | 11% | |||||||||
| Specified items |
19 | 27 | (30)% | |||||||||
|
|
|
|
|
|
|
|||||||
| Marketing, selling and administrative excluding specified items |
2,968 | 2,659 | 12% | |||||||||
| Annual pharmaceutical company fee |
165 | — | N/A | |||||||||
|
|
|
|
|
|
|
|||||||
| Adjusted marketing, selling and administrative excluding specified items |
2,803 | 2,659 | 5% | |||||||||
|
|
|
|
|
|
|
|||||||
| (b) | Please refer to the Specified Items YTD tab for detail of specified items and the GAAP to Non-GAAP P&L tab for reconciliation. |
| * | The company calculates the foreign exchange (FX) impact by determining the change in a line item’s current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact. |
5
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND
PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
FOR THE PERIOD ENDED SEPTEMBER 30, 2011
(Unaudited, amounts in millions except per share data)
QUARTER-TO-DATE
| 2011 | 2010 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ ** |
2011 Excluding FX |
Favorable / (Unfavorable) FX Impact % ** |
Growth % Excluding FX |
|||||||||||||||||||||||||
| Plavix |
1,788 | 1,658 | 130 | 8% | 7 | 1,781 | 1% | 7% | ||||||||||||||||||||||||
| Avapro/Avalide |
216 | 303 | (87 | ) | (29)% | 8 | 208 | 2% | (31)% | |||||||||||||||||||||||
| Abilify |
691 | 608 | 83 | 14% | 15 | 676 | 3% | 11% | ||||||||||||||||||||||||
| Reyataz |
391 | 375 | 16 | 4% | 16 | 375 | 4% | — | ||||||||||||||||||||||||
| Sustiva Franchise |
359 | 342 | 17 | 5% | 12 | 347 | 3% | 2% | ||||||||||||||||||||||||
| Baraclude |
311 | 228 | 83 | 36% | 18 | 293 | 8% | 28% | ||||||||||||||||||||||||
| Erbitux |
172 | 159 | 13 | 8% | — | 172 | — | 8% | ||||||||||||||||||||||||
| Sprycel |
211 | 144 | 67 | 47% | 11 | 200 | 8% | 39% | ||||||||||||||||||||||||
| Yervoy |
121 | — | 121 | N/A | — | 121 | N/A | N/A | ||||||||||||||||||||||||
| Orencia |
233 | 184 | 49 | 27% | 7 | 226 | 4% | 23% | ||||||||||||||||||||||||
| Nulojix |
— | — | — | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
| Onglyza/Kombiglyze |
127 | 47 | 80 | 170% | 2 | 125 | 4% | 166% | ||||||||||||||||||||||||
| Mature Products and All Other |
725 | 750 | (25 | ) | (3)% | 48 | 677 | 7% | (10)% | |||||||||||||||||||||||
| Total |
5,345 | 4,798 | 547 | 11% | 144 | 5,201 | 3% | 8% | ||||||||||||||||||||||||
YEAR-TO-DATE
| 2011 | 2010 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ ** |
2011 Excluding FX |
Favorable / (Unfavorable) FX Impact % ** |
Growth % Excluding FX |
|||||||||||||||||||||||||
| Plavix |
5,415 | 4,951 | 464 | 9% | 16 | 5,399 | — | 9% | ||||||||||||||||||||||||
| Avapro/Avalide |
757 | 924 | (167 | ) | (18)% | 22 | 735 | 2% | (20)% | |||||||||||||||||||||||
| Abilify |
2,021 | 1,858 | 163 | 9% | 37 | 1,984 | 2% | 7% | ||||||||||||||||||||||||
| Reyataz |
1,153 | 1,105 | 48 | 4% | 35 | 1,118 | 3% | 1% | ||||||||||||||||||||||||
| Sustiva Franchise |
1,073 | 1,008 | 65 | 6% | 25 | 1,048 | 2% | 4% | ||||||||||||||||||||||||
| Baraclude |
878 | 667 | 211 | 32% | 45 | 833 | 7% | 25% | ||||||||||||||||||||||||
| Erbitux |
510 | 497 | 13 | 3% | — | 510 | — | 3% | ||||||||||||||||||||||||
| Sprycel |
576 | 407 | 169 | 42% | 23 | 553 | 6% | 36% | ||||||||||||||||||||||||
| Yervoy |
216 | — | 216 | N/A | — | 216 | N/A | N/A | ||||||||||||||||||||||||
| Orencia |
660 | 531 | 129 | 24% | 15 | 645 | 2% | 22% | ||||||||||||||||||||||||
| Nulojix |
2 | — | 2 | N/A | — | 2 | N/A | N/A | ||||||||||||||||||||||||
| Onglyza/Kombiglyze |
320 | 85 | 235 | * | 6 | 314 | * | * | ||||||||||||||||||||||||
| Mature Products and All Other |
2,209 | 2,340 | (131 | ) | (6)% | 116 | 2,093 | 5% | (11)% | |||||||||||||||||||||||
| Total |
15,790 | 14,373 | 1,417 | 10% | 340 | 15,450 | 2% | 8% | ||||||||||||||||||||||||
| * | In excess of +/- 200% |
| ** | The company calculates the foreign exchange (FX) impact by determining the change in a product’s current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact. |
6
BRISTOL-MYERS SQUIBB COMPANY
WORLDWIDE NET SALES FROM OPERATIONS BY PRODUCT
QUARTERLY SALES TREND ANALYSIS
($ in millions)
| 2010 | 2011 | % Change | FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||
| TOTAL |
4,807 | 4,768 | 9,575 | 4,798 | 14,373 | 5,111 | 19,484 | 5,011 | 5,434 | 10,445 | 5,345 | 15,790 | 11% | 10% | 3% | 2% | ||||||||||||||||||||||||||||||||||||||||||||
| Key Products |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Plavix |
1,666 | 1,627 | 3,293 | 1,658 | 4,951 | 1,715 | 6,666 | 1,762 | 1,865 | 3,627 | 1,788 | 5,415 | 8% | 9% | 1% | — | ||||||||||||||||||||||||||||||||||||||||||||
| Avapro/Avalide |
314 | 307 | 621 | 303 | 924 | 252 | 1,176 | 290 | 251 | 541 | 216 | 757 | (29)% | (18)% | 2% | 2% | ||||||||||||||||||||||||||||||||||||||||||||
| Abilify(a) |
617 | 633 | 1,250 | 608 | 1,858 | 707 | 2,565 | 624 | 706 | 1,330 | 691 | 2,021 | 14% | 9% | 3% | 2% | ||||||||||||||||||||||||||||||||||||||||||||
| Reyataz |
373 | 357 | 730 | 375 | 1,105 | 374 | 1,479 | 366 | 396 | 762 | 391 | 1,153 | 4% | 4% | 4% | 3% | ||||||||||||||||||||||||||||||||||||||||||||
| Sustiva Franchise(b) |
335 | 331 | 666 | 342 | 1,008 | 360 | 1,368 | 343 | 371 | 714 | 359 | 1,073 | 5% | 6% | 3% | 2% | ||||||||||||||||||||||||||||||||||||||||||||
| Baraclude |
216 | 223 | 439 | 228 | 667 | 264 | 931 | 275 | 292 | 567 | 311 | 878 | 36% | 32% | 8% | 7% | ||||||||||||||||||||||||||||||||||||||||||||
| Erbitux |
166 | 172 | 338 | 159 | 497 | 165 | 662 | 165 | 173 | 338 | 172 | 510 | 8% | 3% | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Sprycel |
131 | 132 | 263 | 144 | 407 | 169 | 576 | 172 | 193 | 365 | 211 | 576 | 47% | 42% | 8% | 6% | ||||||||||||||||||||||||||||||||||||||||||||
| Yervoy |
— | — | — | — | — | — | — | — | 95 | 95 | 121 | 216 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
| Orencia |
169 | 178 | 347 | 184 | 531 | 202 | 733 | 199 | 228 | 427 | 233 | 660 | 27% | 24% | 4% | 2% | ||||||||||||||||||||||||||||||||||||||||||||
| Nulojix |
— | — | — | — | — | — | — | — | 2 | 2 | — | 2 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
| Onglyza/Kombiglyze(c) |
10 | 28 | 38 | 47 | 85 | 73 | 158 | 81 | 112 | 193 | 127 | 320 | 170% | * | 4% | * | ||||||||||||||||||||||||||||||||||||||||||||
| Mature Products and
All |
810 | 780 | 1,590 | 750 | 2,340 | 830 | 3,170 | 734 | 750 | 1,484 | 725 | 2,209 | (3)% | (6)% | 7% | 5% | ||||||||||||||||||||||||||||||||||||||||||||
| 2010 | 2011 | % Change | FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||
| Net Sales by Therapeutic Area: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cardiovascular |
2,129 | 2,069 | 4,198 | 2,086 | 6,284 | 2,111 | 8,395 | 2,162 | 2,236 | 4,398 | 2,114 | 6,512 | 1% | 4% | 1% | 1% | ||||||||||||||||||||||||||||||||||||||||||||
| Virology |
945 | 929 | 1,874 | 963 | 2,837 | 1,017 | 3,854 | 997 | 1,075 | 2,072 | 1,080 | 3,152 | 12% | 11% | 5% | 4% | ||||||||||||||||||||||||||||||||||||||||||||
| Oncology |
435 | 444 | 879 | 443 | 1,322 | 478 | 1,800 | 466 | 591 | 1,057 | 629 | 1,686 | 42% | 28% | 4% | 4% | ||||||||||||||||||||||||||||||||||||||||||||
| Neuroscience |
635 | 650 | 1,285 | 618 | 1,903 | 715 | 2,618 | 631 | 714 | 1,345 | 698 | 2,043 | 13% | 7% | 3% | 2% | ||||||||||||||||||||||||||||||||||||||||||||
| Immunoscience |
169 | 178 | 347 | 184 | 531 | 202 | 733 | 199 | 230 | 429 | 233 | 662 | 27% | 25% | 4% | 3% | ||||||||||||||||||||||||||||||||||||||||||||
| Metabolics |
37 | 55 | 92 | 75 | 167 | 97 | 264 | 107 | 139 | 246 | 158 | 404 | 111% | 142% | 7% | 6% | ||||||||||||||||||||||||||||||||||||||||||||
| Other Therapeutic Areas |
457 | 443 | 900 | 429 | 1,329 | 491 | 1,820 | 449 | 449 | 898 | 433 | 1,331 | 1% | — | 7% | 5% | ||||||||||||||||||||||||||||||||||||||||||||
| * | In excess of +/- 200% |
| (a) | Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. |
| (b) | The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. |
| (c) | Kombiglyze was launched in Q4 2010. Includes Kombiglyze sales of $5M in 2010 and $21M and $39M for the three and nine months ended September 30, 2011 respectively. |
| (d) | Represents all other products, including those which have lost their exclusivity in major markets and over the counter brands. |
7
BRISTOL-MYERS SQUIBB COMPANY
DOMESTIC NET SALES FROM OPERATIONS BY PRODUCT
QUARTERLY SALES TREND ANALYSIS
($ in millions)
| 2010 | 2011 | % Change | % Change
in U.S. Total Prescription** | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||
| TOTAL |
3,089 | 3,105 | 6,194 | 3,135 | 9,329 | 3,284 | 12,613 | 3,250 | 3,562 | 6,812 | 3,477 | 10,289 | 11% | 10% | ||||||||||||||||||||||||||||||||||||||||||||||
| Key Products |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Plavix |
1,531 | 1,496 | 3,027 | 1,534 | 4,561 | 1,593 | 6,154 | 1,641 | 1,747 | 3,388 | 1,672 | 5,060 | 9% | 11% | (6)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||||
| Avapro/Avalide |
186 | 170 | 356 | 168 | 524 | 118 | 642 | 160 | 133 | 293 | 121 | 414 | (28)% | (21)% | (42)% | (38)% | ||||||||||||||||||||||||||||||||||||||||||||
| Abilify(a) |
470 | 491 | 961 | 462 | 1,423 | 535 | 1,958 | 460 | 517 | 977 | 505 | 1,482 | 9% | 4% | 4% | 5% | ||||||||||||||||||||||||||||||||||||||||||||
| Reyataz |
186 | 185 | 371 | 189 | 560 | 194 | 754 | 181 | 189 | 370 | 184 | 554 | (3)% | (1)% | 1% | 2% | ||||||||||||||||||||||||||||||||||||||||||||
| Sustiva Franchise(b) |
214 | 213 | 427 | 227 | 654 | 227 | 881 | 215 | 228 | 443 | 222 | 665 | (2)% | 2% | 7% | 8% | ||||||||||||||||||||||||||||||||||||||||||||
| Baraclude |
42 | 42 | 84 | 46 | 130 | 49 | 179 | 48 | 51 | 99 | 51 | 150 | 11% | 15% | 8% | 9% | ||||||||||||||||||||||||||||||||||||||||||||
| Erbitux |
163 | 168 | 331 | 155 | 486 | 160 | 646 | 162 | 167 | 329 | 168 | 497 | 8% | 2% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
| Sprycel |
38 | 42 | 80 | 47 | 127 | 61 | 188 | 61 | 68 | 129 | 78 | 207 | 66% | 63% | 27% | 19% | ||||||||||||||||||||||||||||||||||||||||||||
| Yervoy |
— | — | — | — | — | — | — | — | 95 | 95 | 109 | 204 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
| Orencia |
126 | 137 | 263 | 138 | 401 | 146 | 547 | 138 | 152 | 290 | 154 | 444 | 12% | 11% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
| Nulojix |
— | — | — | — | — | — | — | — | 2 | 2 | — | 2 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
| Onglyza/Kombiglyze(c) |
6 | 23 | 29 | 37 | 66 | 53 | 119 | 57 | 80 | 137 | 91 | 228 | 146% | * | 138% | * | ||||||||||||||||||||||||||||||||||||||||||||
| Mature Products and All Other(d) |
127 | 138 | 265 | 132 | 397 | 148 | 545 | 127 | 133 | 260 | 122 | 382 | (8)% | (4)% | ||||||||||||||||||||||||||||||||||||||||||||||
| 2010 | 2011 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||
| Net Sales by Therapeutic Area: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cardiovascular |
1,770 | 1,707 | 3,477 | 1,743 | 5,220 | 1,770 | 6,990 | 1,832 | 1,919 | 3,751 | 1,826 | 5,577 | 5% | 7% | ||||||||||||||||||||||||||||||||||||||||||
| Virology |
445 | 441 | 886 | 462 | 1,348 | 472 | 1,820 | 446 | 470 | 916 | 457 | 1,373 | (1)% | 2% | ||||||||||||||||||||||||||||||||||||||||||
| Oncology |
233 | 239 | 472 | 233 | 705 | 249 | 954 | 249 | 356 | 605 | 377 | 982 | 62% | 39% | ||||||||||||||||||||||||||||||||||||||||||
| Neuroscience |
473 | 494 | 967 | 464 | 1,431 | 538 | 1,969 | 460 | 518 | 978 | 506 | 1,484 | 9% | 4% | ||||||||||||||||||||||||||||||||||||||||||
| Immunoscience |
126 | 137 | 263 | 138 | 401 | 146 | 547 | 138 | 154 | 292 | 154 | 446 | 12% | 11% | ||||||||||||||||||||||||||||||||||||||||||
| Metabolics |
16 | 30 | 46 | 48 | 94 | 61 | 155 | 64 | 84 | 148 | 98 | 246 | 104% | 162% | ||||||||||||||||||||||||||||||||||||||||||
| Other Therapeutic Areas |
26 | 57 | 83 | 47 | 130 | 48 | 178 | 61 | 61 | 122 | 59 | 181 | 26% | 39% | ||||||||||||||||||||||||||||||||||||||||||
| * | In excess of +/- 200% |
| ** | The data is provided by Wolters Kluwer Health (WK), except for SPRYCEL, and based on the Source Prescription Audit which is a product of WK’s own recordkeeping and projection processes. As such, the data is subject to the inherent limitations of estimates based on sampling and may include a margin of error. The change in SPRYCEL demand is calculated based upon tablets sold through retail and mail order channels based upon data obtained from the IMS Health (IMS) National Sales Perspectives Audit, which is a product of IMS’s own recordkeeping and projection processes. As such, the data is subject to the inherent limitations of estimates based on sampling and may include a margin of error. ERBITUX and ORENCIA are parenterally administered products and do not have prescription-level data as physicians do not write prescriptions for these products. |
| (a) | Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. The following table provides a reconciliation of the impact for extending the term of the commercialization and manufacturing agreement and U.S. healthcare reform. |
| 2010 | 2011 | % Change | ||||||||||||||||||||||
| 3rd Qtr | 9 Months | 3rd Qtr | 9 Months | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||
| Abilify Net Sales As Reported |
462 | 1,423 | 505 | 1,482 | 9% | 4% | ||||||||||||||||||
| Contractual share change from 58% to 53.5% |
— | — | 42 | 125 | N/A | N/A | ||||||||||||||||||
| Incremental U.S. healthcare reform |
— | — | 6 | 11 | N/A | N/A | ||||||||||||||||||
|
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|
|||||||||||||
| Abilify Net Sales – Adjusted |
462 | 1,423 | 553 | 1,618 | 20% | 14% | ||||||||||||||||||
|
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|
|||||||||||||
| (b) | The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. The change in U.S. total prescriptions growth for the Sustiva Franchise includes both branded Sustiva and Atripla prescription units. |
| (c) | Kombiglyze was launched in Q4 2010. Includes Kombiglyze sales of $5M in 2010 and $20M and $38M for the three and nine months ended September 30, 2011 respectively. |
| (d) | Represents all other products, including those which have lost their exclusivity in major markets and over the counter brands. |
8
BRISTOL-MYERS SQUIBB COMPANY
INTERNATIONAL NET SALES FROM OPERATIONS BY PRODUCT
QUARTERLY SALES TREND ANALYSIS
($ in millions)
| 2010 | 2011 | % Change | FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||
| TOTAL |
1,718 | 1,663 | 3,381 | 1,663 | 5,044 | 1,827 | 6,871 | 1,761 | 1,872 | 3,633 | 1,868 | 5,501 | 12% | 9% | 8% | 6% | ||||||||||||||||||||||||||||||||||||||||||||
| Key Products |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Plavix |
135 | 131 | 266 | 124 | 390 | 122 | 512 | 121 | 118 | 239 | 116 | 355 | (6)% | (9)% | 7% | 4% | ||||||||||||||||||||||||||||||||||||||||||||
| Avapro/Avalide |
128 | 137 | 265 | 135 | 400 | 134 | 534 | 130 | 118 | 248 | 95 | 343 | (30)% | (14)% | 5% | 6% | ||||||||||||||||||||||||||||||||||||||||||||
| Abilify(a) |
147 | 142 | 289 | 146 | 435 | 172 | 607 | 164 | 189 | 353 | 186 | 539 | 27% | 24% | 10% | 9% | ||||||||||||||||||||||||||||||||||||||||||||
| Reyataz |
187 | 172 | 359 | 186 | 545 | 180 | 725 | 185 | 207 | 392 | 207 | 599 | 11% | 10% | 8% | 7% | ||||||||||||||||||||||||||||||||||||||||||||
| Sustiva Franchise(b) |
121 | 118 | 239 | 115 | 354 | 133 | 487 | 128 | 143 | 271 | 137 | 408 | 19% | 15% | 10% | 7% | ||||||||||||||||||||||||||||||||||||||||||||
| Baraclude |
174 | 181 | 355 | 182 | 537 | 215 | 752 | 227 | 241 | 468 | 260 | 728 | 43% | 36% | 10% | 9% | ||||||||||||||||||||||||||||||||||||||||||||
| Erbitux |
3 | 4 | 7 | 4 | 11 | 5 | 16 | 3 | 6 | 9 | 4 | 13 | — | 18% | 4% | 4% | ||||||||||||||||||||||||||||||||||||||||||||
| Sprycel |
93 | 90 | 183 | 97 | 280 | 108 | 388 | 111 | 125 | 236 | 133 | 369 | 37% | 32% | 10% | 9% | ||||||||||||||||||||||||||||||||||||||||||||
| Yervoy |
— | — | — | — | — | — | — | — | — | — | 12 | 12 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
| Orencia |
43 | 41 | 84 | 46 | 130 | 56 | 186 | 61 | 76 | 137 | 79 | 216 | 72% | 66% | 15% | 11% | ||||||||||||||||||||||||||||||||||||||||||||
| Onglyza/Kombiglyze |
4 | 5 | 9 | 10 | 19 | 20 | 39 | 24 | 32 | 56 | 36 | 92 | * | * | * | * | ||||||||||||||||||||||||||||||||||||||||||||
| Mature Products and All Other(c) |
683 | 642 | 1,325 | 618 | 1,943 | 682 | 2,625 | 607 | 617 | 1,224 | 603 | 1,827 | (2)% | (6)% | 9% | 6% | ||||||||||||||||||||||||||||||||||||||||||||
| 2010 | 2011 | % Change | FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||
| Net Sales by Therapeutic Area: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cardiovascular |
359 | 362 | 721 | 343 | 1,064 | 341 | 1,405 | 330 | 317 | 647 | 288 | 935 | (16)% | (12)% | 6% | 5% | ||||||||||||||||||||||||||||||||||||||||||||
| Virology |
500 | 488 | 988 | 501 | 1,489 | 545 | 2,034 | 551 | 605 | 1,156 | 623 | 1,779 | 24% | 19% | 9% | 7% | ||||||||||||||||||||||||||||||||||||||||||||
| Oncology |
202 | 205 | 407 | 210 | 617 | 229 | 846 | 217 | 235 | 452 | 252 | 704 | 20% | 14% | 9% | 8% | ||||||||||||||||||||||||||||||||||||||||||||
| Neuroscience |
162 | 156 | 318 | 154 | 472 | 177 | 649 | 171 | 196 | 367 | 192 | 559 | 25% | 18% | 10% | 7% | ||||||||||||||||||||||||||||||||||||||||||||
| Immunoscience |
43 | 41 | 84 | 46 | 130 | 56 | 186 | 61 | 76 | 137 | 79 | 216 | 72% | 66% | 15% | 11% | ||||||||||||||||||||||||||||||||||||||||||||
| Metabolics |
21 | 25 | 46 | 27 | 73 | 36 | 109 | 43 | 55 | 98 | 60 | 158 | 122% | 116% | 14% | 13% | ||||||||||||||||||||||||||||||||||||||||||||
| Other Therapeutic Areas |
431 | 386 | 817 | 382 | 1,199 | 443 | 1,642 | 388 | 388 | 776 | 374 | 1,150 | (2)% | (4)% | 9% | 6% | ||||||||||||||||||||||||||||||||||||||||||||
| * | In excess of +/- 200% |
| (a) | Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. |
| (b) | The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. |
| (c) | Represents all other products, including those which have lost their exclusivity in major markets and over the counter brands. |
9
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS
TO NON-GAAP RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011
(Unaudited, amounts in millions except per share data)
| GAAP | Specified Items |
Non GAAP |
||||||||||
| Net Sales |
$ | 5,345 | — | $ | 5,345 | |||||||
| Cost of products sold |
1,407 | (19) | 1,388 | |||||||||
|
|
|
|
|
|||||||||
| Gross Profit |
3,938 | 19 | 3,957 | |||||||||
| Gross profit as a % of sales |
73.7 | % | 0.3 | % | 74.0 | % | ||||||
| Marketing, selling and administrative |
1,019 | (5) | 1,014 | |||||||||
| Advertising and product promotion |
205 | — | 205 | |||||||||
|
|
|
|
|
|||||||||
| Total SG&A |
1,224 | (5) | 1,219 | |||||||||
| SG&A as a % of sales |
22.9 | % | (0.1) | % | 22.8 | % | ||||||
| Research and development |
973 | (82) | 891 | |||||||||
| R&D as a % of sales |
18.2 | % | (1.5) | % | 16.7 | % | ||||||
| Operating Margin |
1,741 | 106 | 1,847 | |||||||||
| Operating Margin as a % of sales |
32.6 | % | 2.0 | % | 34.6 | % | ||||||
| Provision for restructuring, net |
8 | (8) | — | |||||||||
| Equity in net income of affiliates |
(71 | ) | — | (71 | ) | |||||||
| Other (income)/expense, net |
(26 | ) | 2 | (24 | ) | |||||||
|
|
|
|
|
|||||||||
| Earnings Before Income Taxes |
$ | 1,830 | 112 | $ | 1,942 | |||||||
| Provision for income taxes |
475 | 37 | 512 | |||||||||
|
|
|
|
|
|||||||||
| Net Earnings |
$ | 1,355 | 75 | $ | 1,430 | |||||||
| Net Earnings – Attributable to Noncontrolling Interest |
386 | 386 | ||||||||||
|
|
|
|
|
|||||||||
| Net Earnings – Attributable to BMS |
$ | 969 | 75 | $ | 1,044 | |||||||
| Contingently convertible debt interest expense and earnings attributable to unvested shares |
(2 | ) | (2 | ) | ||||||||
|
|
|
|
|
|||||||||
| Net Earnings used for Diluted EPS Calc – Attributable to BMS |
$ | 967 | 75 | $ | 1,042 | |||||||
| Average Common Shares Outstanding – Diluted |
1,715 | 1,715 | ||||||||||
| Diluted EPS – Attributable to BMS |
$ | 0.56 | 0.05 | $ | 0.61 | |||||||
| Net Earnings Attributable to BMS as a % of sales |
18.1 | % | 1.4 | % | 19.5 | % | ||||||
| Effective Tax Rate |
26.0 | % | 0.4 | % | 26.4 | % | ||||||
10
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS
TO NON-GAAP RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
(Unaudited, amounts in millions except per share data)
| GAAP | Specified Items |
Non GAAP |
||||||||||
| Net Sales |
$ | 15,790 | — | $ | 15,790 | |||||||
| Cost of products sold |
4,231 | (60) | 4,171 | |||||||||
|
|
|
|
|
|
|
|||||||
| Gross Profit |
11,559 | 60 | 11,619 | |||||||||
| Gross profit as a % of sales |
73.2 | % | 0.4 | % | 73.6 | % | ||||||
| Marketing, selling and administrative |
2,987 | (19) | 2,968 | |||||||||
| Advertising and product promotion |
672 | — | 672 | |||||||||
|
|
|
|
|
|||||||||
| Total SG&A |
3,659 | (19) | 3,640 | |||||||||
| SG&A as a % of sales |
23.2 | % | (0.1) | % | 23.1 | % | ||||||
| Research and development |
2,831 | (235) | 2,596 | |||||||||
| R&D as a % of sales |
17.9 | % | (1.5) | % | 16.4 | % | ||||||
| Operating Margin |
5,069 | 314 | 5,383 | |||||||||
| Operating Margin as a % of sales |
32.1 | % | 2.0 | % | 34.1 | % | ||||||
| Provision for restructuring, net |
92 | (92) | — | |||||||||
| Equity in net income of affiliates |
(215 | ) | — | (215 | ) | |||||||
| Other (income)/expense, net |
(195 | ) | 78 | (117 | ) | |||||||
|
|
|
|
|
|||||||||
| Earnings Before Income Taxes |
$ | 5,387 | 328 | $ | 5,715 | |||||||
| Provision for income taxes |
1,358 | 170 | 1,528 | |||||||||
|
|
|
|
|
|||||||||
| Net Earnings |
$ | 4,029 | 158 | $ | 4,187 | |||||||
| Net Earnings – Attributable to Noncontrolling Interest |
1,172 | 1,172 | ||||||||||
|
|
|
|
|
|||||||||
| Net Earnings – Attributable to BMS |
$ | 2,857 | 158 | $ | 3,015 | |||||||
| Contingently convertible debt interest expense and earnings attributable to unvested shares |
(6 | ) | (6 | ) | ||||||||
|
|
|
|
|
|||||||||
| Net Earnings used for Diluted EPS Calc – Attributable to BMS |
$ | 2,851 | 158 | $ | 3,009 | |||||||
| Average Common Shares Outstanding – Diluted |
1,717 | 1,717 | ||||||||||
| Diluted EPS – Attributable to BMS |
$ | 1.66 | 0.09 | $ | 1.75 | |||||||
| Net Earnings Attributable to BMS as a % of sales |
18.1 | % | 1.0 | % | 19.1 | % | ||||||
| Effective Tax Rate |
25.2 | % | 1.5 | % | 26.7 | % | ||||||
11
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
($ in millions)
Three months ended September 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 |
$ | — | $ | — | $ | — | $ | 8 | $ | — | $ | 8 | ||||||||||||
| Accelerated depreciation, asset impairment and other shutdown costs |
19 | — | — | — | — | 19 | ||||||||||||||||||
| Process standardization implementation costs |
— | 5 | — | — | — | 5 | ||||||||||||||||||
| Gain on sale of product lines, businesses and assets |
— | — | — | — | (12 | ) | (12 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Restructuring |
19 | 5 | — | 8 | (12 | ) | 20 | |||||||||||||||||
| Other: |
||||||||||||||||||||||||
| Upfront, milestone and other licensing payments |
— | — | 69 | — | — | 69 | ||||||||||||||||||
| In-process research and development (IPRD) impairment |
— | — | 13 | — | — | 13 | ||||||||||||||||||
| Product liability charges |
— | — | — | — | 10 | 10 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 19 | $ | 5 | $ | 82 | $ | 8 | $ | (2 | ) | 112 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income taxes on items above |
(37 | ) | ||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Decrease to Net Earnings |
$ | 75 | ||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Three months ended September 30, 2010
|
||||||||||||||||||||||||
| 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 |
$ | 68 | ||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
12
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
($ in millions)
Nine months ended September 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 |
$ | — | $ | — | $ | — | $ | 85 | $ | — | $ | 85 | ||||||||||||
| Accelerated depreciation, asset impairment and other shutdown costs |
60 | 4 | — | 7 | — | 71 | ||||||||||||||||||
| Process standardization implementation costs |
— | 15 | — | — | — | 15 | ||||||||||||||||||
| Gain on sale of product lines, businesses and assets |
— | — | — | — | (12 | ) | (12 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Restructuring |
60 | 19 | — | 92 | (12 | ) | 159 | |||||||||||||||||
| Other: |
||||||||||||||||||||||||
| Litigation recovery |
— | — | — | — | (102 | ) | (102 | ) | ||||||||||||||||
| Upfront, milestone and other licensing payments |
— | — | 207 | — | — | 207 | ||||||||||||||||||
| In-process research and development (IPRD) impairment |
— | — | 28 | — | — | 28 | ||||||||||||||||||
| Product liability charges |
— | — | — | — | 36 | 36 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 60 | $ | 19 | $ | 235 | $ | 92 | $ | (78 | ) | 328 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income taxes on items above |
(99 | ) | ||||||||||||||||||||||
| Specified tax benefit |
(71 | ) | ||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Decrease to Net Earnings |
$ | 158 | ||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
Nine months ended September 30, 2010
| 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, milestone and other licensing 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 |
$ | 309 | ||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
13
BRISTOL-MYERS SQUIBB COMPANY
SELECTED BALANCE SHEET INFORMATION
($ in millions)
| March 31, 2010 |
June 30, 2010 |
September 30, 2010 |
December 31, 2010 |
March 31, 2011 |
June 30, 2011 |
September 30, 2011 |
December 31, 2011 | |||||||||||||||||||||||
| Cash and cash equivalents |
$ | 5,135 | $ | 5,918 | $ | 7,581 | $ | 5,033 | $ | 3,405 | $ | 3,665 | $ | 4,471 | ||||||||||||||||
| Marketable securities – current |
1,641 | 1,536 | 778 | 2,268 | 3,388 | 4,005 | 3,722 | |||||||||||||||||||||||
| Marketable securities – long term |
2,997 | 2,795 | 2,562 | 2,681 | 3,065 | 2,734 | 2,819 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
| Cash, cash equivalents and marketable securities |
9,773 | 10,249 | 10,921 | 9,982 | 9,858 | 10,404 | 11,012 | |||||||||||||||||||||||
| Short-term borrowings |
208 | 290 | 243 | 117 | 135 | 187 | 182 | |||||||||||||||||||||||
| Long-term debt |
6,081 | 6,248 | 6,479 | 5,328 | 5,276 | 5,332 | 5,437 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
| Net (debt) /cash |
$ | 3,484 | $ | 3,711 | $ | 4,199 | $ | 4,537 | $ | 4,447 | $ | 4,885 | $ | 5,393 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
14
BRISTOL-MYERS SQUIBB COMPANY
2011 FULL YEAR PROJECTED DILUTED EPS FROM OPERATIONS
EXCLUDING PROJECTED SPECIFIED ITEMS
| Full Year 2011 | ||||
| Projected Diluted Earnings Attributable to Shareholders per Common Share – GAAP |
$ | 2.13 to $2.18 | ||
| Projected Specified Items: |
||||
| Downsizing and streamlining of worldwide operations |
0.06 | |||
| Accelerated depreciation and other shutdown costs |
0.05 | |||
| Upfront, milestone and other licensing payments |
0.08 | |||
| Litigation recoveries/product liability charges |
(0.02 | ) | ||
| Certain tax-related items |
(0.06 | ) | ||
|
|
|
|||
| Total |
0.11 | |||
|
|
|
|||
| Projected Diluted Earnings Attributable to Shareholders per Common Share – Non-GAAP |
$ | 2.25 to $2.30 | ||
|
|
|
|||
Gross margin as a percentage of sales on a GAAP basis for the nine months ended September 30, 2011 was 73.2%, which included specified items of $60 million and had a 0.4% adverse impact on gross margin in aggregate. On a non-GAAP basis, for the nine months ended September 30, 2011 gross margin as a percentage of sales was 73.6%. On a non-GAAP basis, the Company projects gross margin as a percentage of sales for the full year 2011 to remain consistent with last year. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on gross margin. See GAAP to Non-GAAP PL Reconciliation – September YTD tab.
Research and development expenses on a GAAP basis for the nine months ended September 30, 2011 were $2,831 million, which included specified items of $235 million. On a non-GAAP basis, for the nine months ended September 30, 2011 research and development expenses were $2,596 million. On a non-GAAP basis, the Company projects research and development expense for the full year 2011 to increase in the mid single digit range compared to 2010. It is estimated that 30% to 40% of the research and development expenses in 2011 will be incurred on late-stage development programs. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on research and development. See GAAP to Non-GAAP PL Reconciliation – September YTD tab.
Marketing, selling and administrative expenses, on a GAAP basis for the nine months ended September 30, 2011 were $2,987 million, which included specified items of $19 million. On a non-GAAP basis, for the nine months ended September 30 2011 marketing, selling and administrative expenses were $2,968 million. On a non-GAAP basis, the Company projects marketing, selling and administrative expenses for the full year 2011 to grow in the low-double digit range compared to 2010. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on marketing, selling and administrative expense. See GAAP to Non-GAAP PL Reconciliation – September YTD tab.
The effective tax rate on a GAAP basis for the nine months ended September 30, 2011 was 25.2%, which included specified items of $170 million in the tax provision, and had a 1.5% impact on the effective tax rate in aggregate. On a non-GAAP basis, for the nine months ended September 30, 2011 the effective tax rate was 26.7%. On a non-GAAP basis, based on historical trends in 2010 the Company projects an annual effective tax rate of approximately 26% for the full year 2011. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on the tax rate. See GAAP to Non-GAAP PL Reconciliation – September YTD tab.
The GAAP financial results for the full year 2011 will include specified items that may occur and impact results, including expected charges associated with downsizing and streamlining worldwide operations, accelerated depreciation, upfront, milestone and other licensing payments, charges and recoveries relating to significant legal proceedings, asset and IPR&D impairments and certain tax-related items. The GAAP financial results for the full year 2011 could also include other specified items that have not yet been identified and quantified, including any gains or losses from acquisitions or divestitures, additional upfront, milestone and other licensing payments, copromotion or alliance charges and charges for in-process research and development impairments, charges and recoveries relating to significant legal proceedings, restructuring activities and significant tax events. For a fuller discussion of certain litigation and other matters that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Company Reports Financial Results For The Third Quarter of 2011, October 27, 2011 including “2011 Guidance” and “Use of Non-GAAP Financial Information” therein.
The annual EPS impact of U.S. healthcare reform is expected to increase from $0.10 in 2010 to approximately $0.23 in 2011. In 2011, we expect a reduction of net sales of approximately $270 million resulting from new discounts associated with the Medicare Part D coverage gap and an increase in marketing, sales and administrative expenses of approximately $220 million due to the new annual non-tax-deductible pharmaceutical company fee. The non-tax deductibility on our share of the net pharmaceutical company fee is expected to increase our effective tax rate by approximately 1% in 2011 which is considered in our effective tax rate guidance above.
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