Company Overview - Bristol-Myers Squibb (BMS) has a strong presence in the healthcare sector, particularly in immunology, cardiology, and neuroscience, with a focus on innovative drug development [3]. Leadership and Experience - Roland Chen, Head of Development for Immunology, Cardiology, and Neuroscience at BMS, has been with the company for approximately 25 years, contributing significantly to development, safety, and outcomes research [3]. Pipeline and Future Prospects - BMS is currently experiencing a pivotal moment with a rich and innovative pipeline of assets, including several key late-stage readouts expected in the coming years [4].

Core Viewpoint - Rowley Law PLLC is investigating potential securities law violations related to the proposed acquisition of 2seventy bio, Inc. by Bristol Myers Squibb, which is valued at approximately $286 million [1] Group 1: Acquisition Details - The proposed acquisition will provide stockholders of 2seventy bio with $5.00 for each share they hold [1] - The transaction is expected to close in the second quarter of 2025 [1] Group 2: Legal Investigation - Rowley Law PLLC is representing shareholders in the investigation concerning the acquisition [1] - The firm specializes in class actions and derivative lawsuits in complex corporate litigation [3]

Acquisition Details - Bristol Myers Squibb & Co (BMY) has agreed to acquire 2seventy bio, Inc (TSVT) at $5.00 per share, totaling an equity value of approximately $286 million, or $102 million net of estimated cash, representing an 88% premium to TSVT's closing price of $2.66 on March 7, 2025 [1] - The acquisition is expected to close in the second quarter of 2025 [1] Financial Implications - The decision to acquire 2seventy bio is anticipated to conserve over $80 million in near-term expenditures and accelerate the path to breakeven for 2seventy bio in 2025, according to the CEO Chip Baird [3] Recent Developments - In September, the companies discontinued enrollment in the Phase 3 KarMMa-9 study of Abecma for newly diagnosed multiple myeloma patients [2] - The FDA approved Abecma for adult patients with relapsed or refractory multiple myeloma after two or more prior lines of therapy in April 2024 [4] Market Reaction - Following the acquisition announcement, TSVT stock increased by 76.4% to $4.9, while BMY stock decreased by 1.04% to $62.45 during the premarket session [4]

Investment Rating - The investment rating for the pharmaceutical industry is "Outperform the Market" (maintained) [1] Core Insights - The main growth driver remains the launch of innovative products, particularly in the GLP-1 category, with significant revenue increases reported by companies like Eli Lilly and Novo Nordisk [3] - The report highlights the strong performance of key products across various therapeutic areas, including oncology, metabolism, and immunology, with notable sales growth percentages [3] Summary by Sections 01 Overview of Overseas Pharmaceutical Companies Q4 2024 and Annual Performance - Eli Lilly's revenue increased by 32% in 2024, driven by GLP-1 products [3] - Novo Nordisk's sales reached approximately $40.5 billion, a 25% increase, with significant contributions from GLP-1 products [29] - AstraZeneca and Merck also reported strong growth, with revenue increases of 21% and 10% respectively [3] 02 Performance Review of Overseas Pharmaceutical Companies - Eli Lilly's Q4 sales reached $13.5 billion, a 45% increase, with GLP-1 products contributing significantly [18] - Novo Nordisk's GLP-1 products achieved sales of approximately $22.5 billion, with a 20% increase in the diabetes segment [29] - JNJ's pharmaceutical segment reported $14.3 billion in Q4, with oncology products driving growth [40] R&D Investment - The top 15 pharmaceutical companies invested over $150 billion in R&D in 2024, a 7% increase year-on-year, with a research expense ratio of 21.8% [8] Sales Performance in China - Seven overseas pharmaceutical companies reported combined sales of approximately 515 billion RMB in Q4 2024, with a year-on-year growth of 10% [14]

Company Performance - Bristol Myers Squibb (BMY) closed at $60.18, with a daily increase of +0.6%, outperforming the S&P 500's loss of 1.78% [1] - Over the past month, BMY shares gained 0.18%, while the Medical sector increased by 0.26% and the S&P 500 decreased by 3.48% [1] Financial Projections - The upcoming earnings per share (EPS) for Bristol Myers Squibb is projected at $1.55, representing a significant increase of 135.23% from the same quarter last year [2] - Revenue is estimated to be $10.69 billion, reflecting a decline of 9.94% compared to the equivalent quarter last year [2] Annual Estimates - For the entire year, earnings are forecasted at $6.75 per share, indicating a remarkable increase of 486.96%, while revenue is projected at $45.59 billion, showing a decrease of 5.6% compared to the previous year [3] Analyst Sentiment - Recent changes to analyst estimates for Bristol Myers Squibb reflect evolving short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3][4] Zacks Rank and Performance - The Zacks Rank system, which evaluates estimate changes, currently ranks Bristol Myers Squibb at 3 (Hold), with the consensus EPS estimate moving 3.96% lower over the last 30 days [5] - Historically, 1 ranked stocks in the Zacks Rank system have yielded an average annual return of +25% since 1988 [5] Valuation Metrics - Bristol Myers Squibb has a Forward P/E ratio of 8.87, indicating a discount compared to its industry's Forward P/E of 19.4 [6] - The company has a PEG ratio of 2.22, while the Medical - Biomedical and Genetics industry has an average PEG ratio of 1.57 [7] Industry Context - The Medical - Biomedical and Genetics industry, part of the Medical sector, holds a Zacks Industry Rank of 66, placing it in the top 27% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - Bristol-Myers Squibb Company participated in the 45th Annual TD Cowen Health Care Conference, highlighting its ongoing transformation and strong performance in 2024 [1][3] - The company emphasized the success of its growth portfolio, including products like Breyanzi, Camzyos, and Opdualag, which have shown exceptional performance [3][4] - A significant milestone for the company was the approval and launch of Cobenfy, marking the first new mechanism of action in schizophrenia treatment in decades, along with the approval of Opdivo Qvantig [4][5] Company Performance - The year 2024 was described as a pivotal year for the company, focusing on organizational transformation and delivering strong execution across its product portfolio [3] - The growth portfolio's performance was underscored, with specific mention of the successful products contributing to the company's overall success [3][4] Product Development - Cobenfy's approval and launch were highlighted as a key achievement, representing a significant advancement in schizophrenia treatment options [4] - The approval of Opdivo Qvantig at the end of the year was also noted as a critical development for the company [4][5]

Group 1 - Bristol-Myers Squibb (NYSE: BMY) reported financial results for Q4 2024, exceeding Wall Street analysts' expectations for the fourth consecutive quarter [1] Group 2 - Allka Research has over two decades of experience in investment, focusing on uncovering undervalued assets in ETFs, commodities, technology, and pharmaceutical sectors [2] - The firm aims to simplify investment strategies and empower both seasoned and novice investors through its analyses and insights [2] - Allka Research contributes to the Seeking Alpha community by providing thought-provoking analyses and fostering a community of informed investors [2]

Core Points - BioArctic AB has received clearance from the U.S. Federal Trade Commission to out-license its PyroGlu-Aβ antibody program to Bristol Myers Squibb, with the agreement now closed and an upfront payment of USD 100 million received [1][2] - The global license agreement includes up to USD 1.25 billion in potential development, regulatory, and commercial milestones, along with tiered low double-digit royalties on global product sales [2] - BioArctic retains the option to co-commercialize the products in the Nordic region and has kept all other rights for the use of its BrainTransporter technology [4] Company Overview - BioArctic is a Swedish biopharma company focused on innovative treatments for neurodegenerative diseases, including Alzheimer's and Parkinson's diseases [9] - The company is known for developing Leqembi® (lecanemab), the first drug proven to slow the progression of early Alzheimer's disease [9] - BioArctic's proprietary BrainTransporter technology enhances the delivery of biological drugs across the blood-brain barrier, potentially improving efficacy and safety [7][9] Product Details - The PyroGlu-Aβ antibody program targets a specific truncated form of amyloid-beta, which is associated with Alzheimer's disease [3] - The agreement encompasses both BAN1503 and BAN2803 antibodies, with BAN2803 utilizing BioArctic's BrainTransporter technology [3] - The BrainTransporter technology may have applications in various therapy areas for delivering biologic molecules to the brain, presenting future partnership opportunities for BioArctic [4]

[Business Overview](index=5&type=section&id=Item%201.%20BUSINESS.) Bristol-Myers Squibb is a global biopharmaceutical company focused on discovering, developing, and delivering innovative medicines across oncology, hematology, immunology, cardiovascular, and neuroscience - BMS's core strategy is to deliver transformational medicines in key therapeutic areas, aiming to blend large pharma scale with biotech innovation[13](index=13&type=chunk) - In 2024, the company completed significant acquisitions of Karuna, RayzeBio, and Mirati to expand its presence in neuroscience and oncology[13](index=13&type=chunk)[18](index=18&type=chunk) Revenue by Region | Region | 2024 Revenue % | 2023 Revenue % | 2022 Revenue % | | :--- | :--- | :--- | :--- | | United States | 71% | 69% | 68% | | International | 27% | 29% | 30% | | Other | 2% | 2% | 2% | | **Total Revenues** | **$48,300M** | **$45,006M** | **$46,159M** | [Products and Intellectual Property](index=6&type=section&id=Products,%20Intellectual%20Property%20and%20Product%20Exclusivity) BMS's product portfolio is structured into Growth and Legacy segments, heavily relying on patent rights and regulatory exclusivity to protect against generic and biosimilar competition - The company's portfolio is structured into a **Growth Portfolio** (e.g., Opdivo, Reblozyl, Camzyos) and a **Legacy Portfolio** (e.g., Eliquis, Revlimid, Pomalyst)[20](index=20&type=chunk)[22](index=22&type=chunk) Estimated Minimum Market Exclusivity Dates | Product | U.S. Exclusivity | EU Exclusivity | Japan Exclusivity | | :--- | :--- | :--- | :--- | | **Eliquis** | 2028 | ^^ | 2026 | | **Opdivo** | 2028 | 2030 | 2031 | | **Yervoy** | 2025 | 2026 | 2025 | | **Reblozyl** | 2031 | 2030 | ++ | | **Camzyos** | 2034 | 2034 | ++ | | **Zeposia** | 2029 | 2034 | ++ | | **Revlimid** | ^^ | ^^ | ^^ | *^^ See product footnote for more information. Generics have entered or are expected to enter certain markets.* *++ Not currently marketed in the region.* - For Eliquis, generic manufacturers have begun marketing in certain EU countries while legal proceedings are pending, with U.S. settlements permitting generic launch in **2028** subject to challenges[52](index=52&type=chunk) - For Revlimid, volume-limited generic entry has begun in the U.S., with licenses becoming non-volume-limited on **January 31, 2026**, and generics have already entered the market in the EU and Japan[57](index=57&type=chunk) [Research and Development](index=13&type=section&id=Research%20and%20Development) BMS's R&D efforts focus on oncology, hematology, immunology, cardiovascular diseases, and neuroscience, with significant investment in a pipeline of over 40 unique assets R&D Expenses | Expense Category | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | R&D Expenses | $11.2B | $9.3B | $9.5B | | Acquired IPRD Expenses | $13.4B | $0.9B | $0.8B | - Acquired IPRD expenses in 2024 included a significant **$12.1 billion** related to the acquisition of Karuna[65](index=65&type=chunk) - The R&D pipeline includes over **40 unique assets** across key therapeutic areas, focusing on novel modalities like cell therapies, protein degraders, ADCs, and radiopharmaceuticals[60](index=60&type=chunk)[68](index=68&type=chunk) - Key late-stage assets include arlo-cel (Multiple Myeloma), iberdomide (Multiple Myeloma), milvexian (Cardiovascular), and Cobenfy (Neuroscience), with multiple registrational readouts anticipated through **2025/2026**[98](index=98&type=chunk) [Competition](index=21&type=section&id=Competition) BMS faces intense competition from other global research-based pharmaceutical companies, smaller specialized firms, and generic drug manufacturers - The company competes with other large biopharmaceutical companies, smaller research firms, and generic manufacturers[110](index=110&type=chunk) - Immuno-oncology (IO) products, particularly Opdivo, face a highly competitive market with pressure from existing and new IO agents and combination therapies[111](index=111&type=chunk) - Upon loss of market exclusivity, BMS typically experiences a major loss of a product's revenue in a very short period due to intense price competition from generics[112](index=112&type=chunk) [Pricing and Market Access](index=23&type=section&id=Pricing,%20Price%20Constraints%20and%20Market%20Access) The company's product pricing is subject to significant pressure from government regulations and the negotiating power of large managed care organizations - BMS faces increasing pricing pressure from government regulations, such as the IRA, and the growing consolidation and power of MCOs and PBMs like Optum, CVS Health, and Express Scripts[117](index=117&type=chunk) - In many international markets, governments directly control drug pricing and reimbursement, often leading to restricted access, price cuts, and significant delays in bringing new medicines to patients[119](index=119&type=chunk) [Manufacturing and Quality Assurance](index=27&type=section&id=Manufacturing%20and%20Quality%20Assurance) BMS operates a global manufacturing network of internal sites and third-party contractors, with complex and highly regulated processes, especially for biologics and cell therapies - BMS operates significant manufacturing facilities in the U.S., Puerto Rico, the Netherlands, Ireland, and Switzerland, with ongoing capital investment to maintain compliance and capacity[136](index=136&type=chunk) - The company relies on third-party manufacturers for all or a portion of the active ingredient or drug substance for many key products, including Eliquis, Opdivo, Pomalyst/Imnovid, and Yervoy[137](index=137&type=chunk) - BMS is heavily investing in its cell therapy manufacturing network, with facilities in Washington, New Jersey, Massachusetts, Illinois, and the Netherlands to support products like Breyanzi and Abecma[136](index=136&type=chunk) [Human Capital](index=29&type=section&id=Human%20Capital%20Management%20and%20Resources) As of December 31, 2024, BMS employed approximately 34,100 people globally, with a people strategy focused on fostering an inclusive culture to attract and retain diverse talent - As of December 31, 2024, the company had approximately **34,100 employees**, with **57%** in the U.S. and **43%** internationally[147](index=147&type=chunk) - The People Strategy is designed to foster an inclusive work environment to attract, develop, and retain a diverse workforce, which is seen as a competitive advantage[148](index=148&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20RISK%20FACTORS.) BMS faces significant risks including intense pricing pressure, dependence on new product development, intellectual property litigation, manufacturing disruptions, and high indebtedness - The Inflation Reduction Act (IRA) poses a significant risk by allowing the government to set prices for key Medicare drugs, with Eliquis selected for **2026** and Pomalyst for **2027**[162](index=162&type=chunk) - The company's future success is highly dependent on its R&D pipeline, as key products like Eliquis and Opdivo will face declining sales after losing market exclusivity, coupled with a high rate of failure in drug development[165](index=165&type=chunk) - BMS faces the risk of losing market exclusivity earlier than expected due to patent litigation, with generic manufacturers already marketing versions of Eliquis in some EU countries despite pending legal challenges[173](index=173&type=chunk)[174](index=174&type=chunk) - Manufacturing and supply chain disruptions are a key risk, especially for complex products like CAR-T cell therapies, which have evolving and expensive manufacturing processes and require a complex chain of custody for patient materials[180](index=180&type=chunk)[182](index=182&type=chunk) - The company has significant indebtedness following the acquisitions of Celgene, MyoKardia, Mirati, Karuna, and RayzeBio, which could reduce financial flexibility[212](index=212&type=chunk) [Cybersecurity](index=53&type=section&id=Item%201C.%20CYBERSECURITY) BMS manages cybersecurity risk through a comprehensive program aligned with the NIST framework, overseen by the Audit Committee and the Board of Directors - Cybersecurity is managed as part of the overall enterprise risk management strategy, with oversight from the Audit Committee and the Board, and the program is assessed against the NIST Cybersecurity Framework[226](index=226&type=chunk) - The company focuses on managing human risk through employee education and training, as well as third-party supply chain risks through a dedicated risk management program[227](index=227&type=chunk)[229](index=229&type=chunk) - Governance is structured with a CISO who reports to the Executive Vice President, Chief Digital and Technology Officer, and the Audit Committee receives periodic updates on cybersecurity threats and risk management strategies[232](index=232&type=chunk)[233](index=233&type=chunk) [Management's Discussion and Analysis (MD&A)](index=59&type=section&id=Item%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS.) This section provides management's analysis of the company's financial performance and condition, highlighting revenue growth, a significant net loss due to IPRD charges, and increased debt [Executive Summary](index=59&type=section&id=EXECUTIVE%20SUMMARY) In 2024, BMS achieved key regulatory milestones and completed significant acquisitions, leading to revenue growth but a GAAP net loss primarily due to a one-time IPRD charge Financial Metrics | Financial Metric | 2024 | 2023 | | :--- | :--- | :--- | | Total Revenues | $48,300M | $45,006M | | GAAP Diluted (Loss)/EPS | $(4.41) | $3.86 | | Non-GAAP Diluted EPS | $1.15 | $7.51 | - The significant decrease in GAAP EPS was primarily due to a one-time, non-deductible Acquired IPRD charge from the Karuna asset acquisition and the SystImmune collaboration[256](index=256&type=chunk) - The Inflation Reduction Act (IRA) is expected to materially impact the business, with HHS announcing the "maximum fair price" for Eliquis effective **Jan 1, 2026**, and selecting Pomalyst for price negotiation for **2027**[258](index=258&type=chunk) - The company is executing a strategic productivity initiative, now expanded to deliver approximately **$2.0 billion** in additional annual cost savings by the end of **2027**[270](index=270&type=chunk) [Results of Operations](index=66&type=section&id=RESULTS%20OF%20OPERATIONS) Total 2024 revenues increased 7% to $48.3 billion, driven by the Growth Portfolio, while total expenses surged 55% due to a $13.4 billion Acquired IPRD charge Portfolio Revenue | Portfolio | 2024 Revenue | % Change vs 2023 | | :--- | :--- | :--- | | Growth Portfolio | $22,563M | 17% | | Legacy Portfolio | $25,737M | 0% | | **Total Revenues** | **$48,300M** | **7%** | - Key growth drivers included Reblozyl (**+76%**), Breyanzi (**+105%**), Camzyos (**+161%**), and Opdualag (**+48%**)[280](index=280&type=chunk) - Acquired IPRD expense increased dramatically to **$13.4 billion** in 2024 from **$0.9 billion** in 2023, mainly due to the **$12.1 billion** Karuna acquisition charge and an **$800 million** upfront fee for the SystImmune collaboration[315](index=315&type=chunk)[316](index=316&type=chunk) - Total Gross-to-Net (GTN) adjustments rose to **44%** of gross product sales in 2024, up from **40%** in 2023, primarily due to a higher government channel mix in the U.S. and pricing pressures[278](index=278&type=chunk) [Liquidity and Capital Resources](index=84&type=section&id=Financial%20Position,%20Liquidity%20and%20Capital%20Resources) BMS's net debt position significantly increased to $38.5 billion at the end of 2024, primarily to fund acquisitions, while cash flow from operations remained robust at $15.2 billion Financial Position | Metric (in millions) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash, cash equivalents & marketable securities | $11,179 | $12,644 | | Total Debt (Short & Long-term) | $49,649 | $39,772 | | **Net Debt Position** | **$(38,470)** | **$(27,128)** | - Issued **$13.0 billion** of new senior unsecured notes in 2024, with proceeds used to partially fund the acquisitions of RayzeBio and Karuna[336](index=336&type=chunk)[563](index=563&type=chunk) Cash Flow | Cash Flow (in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Operating Activities | $15,190 | $13,860 | | Investing Activities | $(21,352) | $(2,295) | | Financing Activities | $5,127 | $(9,416) | - The remaining share repurchase capacity under the authorized program was **$5.0 billion** as of December 31, 2024, with no shares repurchased during 2024[337](index=337&type=chunk)[598](index=598&type=chunk) [Critical Accounting Policies](index=88&type=section&id=Critical%20Accounting%20Policies) Management identifies critical accounting policies requiring significant judgment, including revenue recognition, valuation of intangible assets, and accounting for income taxes and legal contingencies - Revenue recognition is a critical policy due to significant estimates required for GTN adjustments, including charge-backs, Medicaid/Medicare rebates, and returns[360](index=360&type=chunk)[361](index=361&type=chunk) - Valuation of acquired intangible assets and IPRD is complex, requiring significant estimates of future revenues, operating profits, probability of success, and appropriate discount rates[372](index=372&type=chunk)[374](index=374&type=chunk) - Long-lived assets, including goodwill and intangible assets, are reviewed for impairment annually or when triggering events occur, with impairment charges in 2024 totaling **$2.9 billion**[376](index=376&type=chunk) [Financial Statements and Supplementary Data](index=100&type=section&id=Item%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA.) This section presents the company's audited consolidated financial statements for the fiscal year ended December 31, 2024, and accompanying detailed notes [Consolidated Financial Statements](index=100&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present the company's financial performance and position, reporting total revenues of $48.3 billion and a net loss of $8.9 billion in 2024 Statement of Earnings (in millions) | Statement of Earnings (in millions) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Total Revenues | $48,300 | $45,006 | $46,159 | | (Loss)/Earnings Before Income Taxes | $(8,379) | $8,440 | $7,713 | | Net (Loss)/Earnings Attributable to BMS | $(8,948) | $8,025 | $6,327 | Balance Sheet (in millions) | Balance Sheet (in millions) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $92,603 | $95,159 | | Total Liabilities | $76,215 | $65,674 | | Total BMS Shareholders' Equity | $16,335 | $29,430 | [Note 2: Revenue](index=108&type=section&id=Note%202.%20Revenue) This note details the company's revenue, primarily from net product sales, and provides a breakdown of Gross-to-Net (GTN) adjustments, which totaled $36.9 billion in 2024 GTN Adjustments (in millions) | GTN Adjustments (in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Gross product sales | $83,671 | $73,679 | | Charge-backs and cash discounts | $(11,510) | $(9,144) | | Medicaid and Medicare rebates | $(16,551) | $(13,411) | | Other rebates, returns, etc. | $(8,832) | $(7,346) | | **Total GTN adjustments** | **$(36,893)** | **$(29,901)** | | **Net product sales** | **$46,778** | **$43,778** | - The three largest U.S. wholesalers (McKesson, Cencora, Cardinal Health) accounted for a combined **85%** of U.S. gross revenues in 2024[444](index=444&type=chunk) [Note 3: Alliances](index=111&type=section&id=Note%203.%20Alliances) BMS has several significant collaboration alliances, with the Pfizer alliance for Eliquis being the largest, involving substantial profit sharing - In 2024, BMS entered into a global strategic collaboration with SystImmune for the co-development of iza-bren, paying an **$800 million** upfront fee included in Acquired IPRD[463](index=463&type=chunk) Pfizer Alliance (Eliquis) - in millions | Pfizer Alliance (Eliquis) - in millions | 2024 | 2023 | | :--- | :--- | :--- | | Total Revenues for BMS | $13,333 | $12,206 | | Profit Sharing to Pfizer | $6,419 | $5,833 | - The collaboration with 2seventy bio for Abecma generated U.S. net product sales of **$242 million** in 2024, with related profit sharing costs of **$43 million**[473](index=473&type=chunk) [Note 4: Acquisitions, Divestitures, and Licensing](index=114&type=section&id=Note%204.%20ACQUISITIONS,%20DIVESTITURES,%20LICENSING%20AND%20OTHER%20ARRANGEMENTS) 2024 was a significant year for acquisitions, with BMS acquiring Karuna for $14.0 billion, RayzeBio for $4.1 billion, and Mirati for $4.8 billion, expanding its neuroscience and oncology pipelines - Acquired Karuna for **$14.0 billion** in an all-cash transaction, accounted for as an asset acquisition, resulting in a **$12.1 billion** expense to Acquired IPRD[475](index=475&type=chunk)[476](index=476&type=chunk) - Acquired RayzeBio for **$4.1 billion** in cash, adding **$3.7 billion** in intangible assets, including **$1.7 billion** of IPRD and **$2.0 billion** of R&D technology[479](index=479&type=chunk)[480](index=480&type=chunk)[483](index=483&type=chunk) - Acquired Mirati for **$4.8 billion** in cash plus a non-tradeable CVR, adding **$4.2 billion** in intangible assets, including **$3.5 billion** of IPRD[484](index=484&type=chunk)[487](index=487&type=chunk) [Note 15: Goodwill and Other Intangible Assets](index=138&type=section&id=Note%2015.%20GOODWILL%20AND%20OTHER%20INTANGIBLE%20ASSETS) As of December 31, 2024, BMS had $21.7 billion in goodwill and $23.3 billion in other intangible assets, recording significant impairment charges totaling $2.9 billion during the year Intangible Assets (in millions) | Intangible Assets (in millions) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Goodwill | $21,719 | $21,169 | | Other intangible assets, net | $23,307 | $27,072 | - Total impairment charges for other intangible assets were **$2.9 billion** in 2024[589](index=589&type=chunk) - Significant 2024 impairments included: **$1.4 billion** for Augtyro (marketed product), **$590 million** for alnuctamab (IPRD), and **$390 million** for another IPRD compound[590](index=590&type=chunk)[593](index=593&type=chunk)[594](index=594&type=chunk) [Note 20: Legal Proceedings and Contingencies](index=149&type=section&id=Note%2020.%20LEGAL%20PROCEEDINGS%20AND%20CONTINGENCIES) BMS is involved in numerous legal proceedings, including ongoing patent litigation for Eliquis in Europe, challenges to the IRA's drug-pricing program, and lawsuits related to Celgene CVRs - BMS is engaged in widespread patent litigation across Europe to defend Eliquis from generic competition prior to patent expiry, with generics already launched in the UK and Finland[633](index=633&type=chunk)[636](index=636&type=chunk) - The company filed a lawsuit challenging the constitutionality of the Inflation Reduction Act's (IRA) drug-pricing program, with an initial unfavorable court decision currently under appeal[648](index=648&type=chunk) - BMS is defending against multiple lawsuits related to the Contingent Value Rights (CVRs) from the Celgene merger, which allege the company failed to use "diligent efforts" to meet a key FDA approval milestone[643](index=643&type=chunk)

Core Viewpoint - Bristol Myers (BMY) reported better-than-expected fourth-quarter results, but the outlook for 2025 indicates a revenue decline due to generic competition and foreign exchange impacts [1][2][3]. Financial Performance - Adjusted earnings per share (EPS) for Q4 were $1.67, exceeding the Zacks Consensus Estimate of $1.46, but down from $1.70 in the same quarter last year [1]. - Total revenues reached $12.3 billion, surpassing the Zacks Consensus Estimate of $11.6 billion, marking an 8% increase from the previous year [1]. 2025 Outlook - BMY anticipates revenues of approximately $45.5 billion in 2025, a decrease from $48.3 billion in 2024 [2]. - The company expects a revenue decline of about 18-20% from its Legacy Portfolio due to generic competition [2]. - Adjusted EPS guidance for 2025 is projected to be between $6.55 and $6.85 [2]. Drug Portfolio and Competition - BMY's Legacy Portfolio generated $25.7 billion in revenues in 2024, accounting for over 53% of total revenues, with Eliquis being the largest contributor [4]. - Eliquis sales in 2024 were $13.3 billion, reflecting a 9% year-over-year growth, with expectations for continued growth in 2025 despite initial sales growth being tempered [5]. - Generic competition is expected to significantly impact revenues from Revlimid, Pomalyst, Sprycel, and Abraxane [6]. New Drug Contributions - Newer drugs like Reblozyl, Breyanzi, Camzyos, and Opdualag are helping to stabilize BMY's revenue amid generic competition [7]. - Reblozyl has shown strong performance and is expected to contribute significantly in the coming decade [7]. - Opdualag and Camzyos are also experiencing robust sales growth, contributing positively to the top line [8]. Cost-Cutting Initiatives - BMY announced a strategic cost-reduction plan aimed at achieving approximately $1.5 billion in savings by the end of 2025, with $1.1 billion already realized [12]. - An expansion of the strategic productivity initiative is expected to yield an additional $2 billion in annualized cost savings by the end of 2027 [13]. Debt and Valuation - As of December 31, 2024, BMY had cash and equivalents of $10.3 billion and long-term debt of $47.6 billion, raising concerns about its high debt ratio [14]. - BMY shares currently trade at a price/earnings ratio of 8.06x forward earnings, lower than its historical mean and the large-cap pharma industry average [18]. Estimate Revisions - The Zacks Consensus Estimate for 2025 earnings has decreased from $7.03 to $6.81 per share over the past week, with a similar downward trend for 2026 [19].