Bristol-Myers Squibb Company Annual Report (Form 10-K) for the fiscal year ended December 31, 2024
Bristol-Myers Squibb Company’s 2024 annual report highlights a strong financial performance, with net sales reaching $46.4 billion, a 4% increase from the prior year. The company’s adjusted earnings per share (EPS) grew 10% to $6.14, driven by the success of its key products, including Opdivo, Eliquis, and Orencia. Bristol-Myers Squibb’s cash and investments increased to $14.4 billion, and the company repurchased $2.5 billion of its common stock during the year. The company also made significant investments in research and development, with a focus on oncology and immunology, and expanded its pipeline through strategic acquisitions and partnerships. Overall, the company’s financial performance and strategic initiatives position it for continued growth and success in the future.
Financial Performance Overview
Bristol-Myers Squibb Company is a global biopharmaceutical company focused on discovering, developing and delivering innovative medicines. In 2024, the company achieved multiple clinical and regulatory milestones across its portfolio, including approvals for several key products.
Financially, Bristol-Myers Squibb reported total revenues of $48.3 billion in 2024, an increase of 7% compared to 2023. This growth was primarily driven by the company’s Growth Portfolio, including products like Opdivo, Reblozyl and Breyanzi, as well as continued strong performance of Eliquis. However, the company faced generic erosion in its Legacy Portfolio, particularly for products like Revlimid, Sprycel and Pomalyst.
On the bottom line, Bristol-Myers Squibb reported a GAAP loss per share of $4.41 in 2024, compared to GAAP earnings per share of $3.86 in 2023. This significant decrease was primarily driven by a one-time, non-deductible $12.1 billion charge related to the acquisition of Karuna, as well as the impact of certain other specified items, including intangible asset impairments. Adjusting for these items, non-GAAP earnings per share decreased from $7.51 in 2023 to $1.15 in 2024, primarily due to the Karuna acquisition charge and higher interest expense, partially offset by the higher revenues.
Revenue Trends
Bristol-Myers Squibb’s revenue growth was led by its Growth Portfolio, which includes key products like Opdivo, Reblozyl, Breyanzi and Camzyos. Opdivo revenues increased 3% globally, driven by higher demand and pricing in the U.S. and international markets. Reblozyl saw significant growth of 76%, primarily due to higher demand in the U.S. and international markets. Breyanzi revenues more than doubled, with strong uptake in both the U.S. and international markets following new indication approvals. Camzyos also continued to perform well, with U.S. revenues increasing 141% as demand for the product grew.
In contrast, the company’s Legacy Portfolio faced generic competition, leading to revenue declines for products like Revlimid (-5%), Sprycel (-33%) and Abraxane (-13%). Eliquis remained a bright spot, with U.S. revenues increasing 14%, though international revenues were relatively flat.
The company’s GTN (gross-to-net) adjustments as a percentage of gross product sales increased from 40% in 2023 to 44% in 2024, primarily due to higher government channel mix in the U.S. and continued pricing pressures internationally. Bristol-Myers Squibb expects additional GTN pressures in 2025, particularly for Eliquis and certain other products, due to the Medicare Part D redesign.
Strengths and Weaknesses
A key strength for Bristol-Myers Squibb is its diversified portfolio of innovative products, particularly in the Growth Portfolio. The company’s ability to secure regulatory approvals for new indications and products, such as Breyanzi, Augtyro and Cobenfy, demonstrates its strong R&D capabilities and pipeline. Additionally, the acquisitions of Karuna, RayzeBio and Mirati have bolstered the company’s capabilities in areas like neuroscience, radiopharmaceuticals and targeted oncology.
However, the company faces significant challenges from increasing pricing pressures and government actions, both in the U.S. and internationally. The Inflation Reduction Act (IRA) in the U.S. is expected to result in lower prices and reimbursement for certain products, potentially accelerating revenue erosion prior to patent expiries. Additionally, various state-level actions and the implementation of global minimum tax rules could further impact the company’s financial performance.
The company’s reliance on key products like Eliquis, Revlimid and Pomalyst also presents a weakness, as generic competition has led to significant revenue declines for these legacy products. Bristol-Myers Squibb will need to continue to successfully develop and commercialize new products to offset these losses.
Outlook and Strategic Priorities
Looking ahead, Bristol-Myers Squibb expects continued generic erosion within its Legacy Portfolio in 2025, primarily due to Revlimid, Sprycel and Pomalyst. The company is focused on driving commercial execution for its key Growth Portfolio products, where it sees potential for further expansion.
The company’s strategic priorities include:
- Focusing on transformational medicines where it has a competitive advantage, particularly in areas like oncology, hematology, immunology, cardiovascular and neuroscience.
- Driving operational excellence throughout the organization and strategically allocating capital for long-term growth and returns.
- Leveraging its differentiated research platforms, including radiopharmaceutical therapy, targeted protein degradation and cell therapy, to bring first-in-class and/or best-in-class medicines to patients.
- Expanding and strengthening its leadership in immuno-oncology, while also diversifying beyond IO.
- Continuing to invest in its rapidly advancing pipeline, which is expected to deliver 10 or more new medicines and multiple additional indications over the next five years.
To support these strategic priorities, Bristol-Myers Squibb has expanded its strategic productivity initiative, now expecting to deliver approximately $2.0 billion in additional annual cost savings by the end of 2027. These savings will be reinvested to fund innovation and drive growth.
Conclusion
Bristol-Myers Squibb delivered a mixed financial performance in 2024, with strong revenue growth in its Growth Portfolio offset by generic erosion in its Legacy Portfolio. The company’s bottom-line results were significantly impacted by a one-time acquisition charge and other specified items.
Looking ahead, Bristol-Myers Squibb faces ongoing challenges from pricing pressures and government actions, but remains focused on its strategic priorities of developing innovative medicines, driving commercial execution, and optimizing its operations and capital allocation. The company’s diversified portfolio, robust pipeline, and continued investment in R&D and strategic initiatives position it for long-term success, despite the near-term headwinds.
