Bristol-Myers Squibb Company Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2024
Bristol-Myers Squibb Company reported a net income of $2,149 million for the quarter ended March 31, 2024, with total revenue of $10,957 million. The company’s cash and cash equivalents stood at $14,247 million, while total assets were valued at $69,245 million. The quarter saw strong performance in the pharmaceutical and biotechnology sectors, with the company’s key products driving growth.
Financial Highlights
Revenue: Total revenue for the first quarter of 2024 was $11.9 billion, up 5% compared to $11.3 billion in the first quarter of 2023. Growth was driven by strong sales of new products like Reblozyl, Opdualag, and Camzyos, as well as continued growth from Eliquis. This growth offset declines in older products like Revlimid.
Earnings: GAAP earnings per share was $(5.89) in the first quarter of 2024, down from $1.07 in the first quarter of 2023. The decrease was primarily due to one-time charges related to acquisitions. Excluding certain items, non-GAAP earnings per share was $(4.40) in the first quarter of 2024, down from $2.05 in the first quarter of 2023. The non-GAAP decrease was mainly due to acquisition-related expenses.
Outlook: The company tightened its 2024 guidance for total revenue to be in the range of $47 billion to $48 billion. GAAP earnings per share is expected to be in the range of $(2.25) to $(1.95) and non-GAAP earnings per share in the range of $7.20 to $7.50.
Business Highlights
- The growth portfolio, including new products like Reblozyl, Opdualag, and Camzyos, continued strong growth, up 8% operationally compared to the first quarter of 2023. This offset declines in the legacy portfolio like Revlimid.
- Strategic acquisitions remain a priority to drive future growth, with three significant deals completed in the quarter - RayzeBio, Karuna Therapeutics, and SystImmune. Total acquisition charges were $12.9 billion in the quarter.
- The product pipeline advanced significantly, with 15 major approvals, submissions or data readouts in the quarter. Highlights included approvals for Abecma in earlier lines of multiple myeloma and Opdivo in 1st-line bladder cancer.
- Issued $13 billion in new debt to fund acquisitions. The balance sheet remains healthy with $10 billion in cash and marketable securities. The dividend was maintained at $0.57 per share.
Financial Analysis
Revenues
- Total revenues grew 5% operationally compared to the first quarter of 2023.
- The growth portfolio grew 8% compared to the first quarter of 2023, driven by strong volume growth from new products like Reblozyl (+88%), Opdualag (+71%), and Camzyos (more than doubled).
- The legacy portfolio declined 5%, primarily due to generic erosion and pricing pressure on drugs like Revlimid.
| Revenue Summary | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Total Revenues | $11.9 billion | $11.3 billion | 5% |
| - U.S. | $8.5 billion | $8.0 billion | 7% |
| - International | $3.4 billion | $3.4 billion | 0% |
| Growth Portfolio | $4.8 billion | $4.4 billion | 8% |
| Legacy Portfolio | $7.1 billion | $6.9 billion | 2% |
Expenses
- Operating expenses increased significantly compared to the first quarter of 2023, driven by recent acquisitions.
- Acquired IPR&D charges were $12.9 billion due to upfront payments for the Karuna and SystImmune deals. This was a one-time charge.
- Excluding specified items, non-GAAP operating expenses increased 11% operationally compared to the first quarter of 2023.
| Expense Summary | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| GAAP Operating Expenses | $23.4 billion | $8.6 billion | >100% |
| - Excluding Specified Items | $9.1 billion | $8.2 billion | 11% |
EPS and Cash Flow
- GAAP EPS was $(5.89) in the quarter, down from $1.07 in the first quarter of 2023, primarily due to one-time acquisition charges.
- Non-GAAP EPS was $(4.40) in the quarter, down from $2.05 in the first quarter of 2023.
- Operating cash flow was $2.8 billion. Capital expenditures were $0.3 billion.
In summary, Bristol Myers Squibb delivered solid revenue and earnings growth in the first quarter of 2024 excluding the impact of significant acquisition charges. The growth portfolio continued to perform well and the pipeline advanced significantly. The financial position remains healthy with ample liquidity to fund future acquisitions and business development.
