Bristol-Myers Squibb(BMY) - 2024 Q4 - Annual Results

Revenue Performance - Fourth quarter revenues were $12.3 billion, an increase of 8% year-over-year, or 9% when adjusted for foreign exchange[2]. - Full-year revenues reached$ 48.3 billion, a 7% increase compared to the previous year, or 9% when adjusted for foreign exchange[4]. - Growth Portfolio revenues for the fourth quarter were $6.4 billion, up 21% year-over-year, or 23% when adjusted for foreign exchange[12]. - Bristol Myers Squibb reported revenues of$ 48.3 billion, a 7% increase, or 9% when adjusted for foreign exchange impacts, driven by the Growth Portfolio and higher demand for Eliquis[21]. - U.S. revenues increased 9% to $34.1 billion, primarily due to higher demand for the Growth Portfolio and Eliquis, partially offset by generics on Sprycel, Revlimid, and Abraxane[21]. - International revenues increased 3% to$ 14.2 billion, or 8% when adjusted for foreign exchange impacts, mainly due to demand for Growth Portfolio products[21]. - Total revenues for the Growth Portfolio increased to $22.6 billion, a 17% growth compared to$ 19.4 billion in the prior year, or 19% when adjusted for foreign exchange impacts[26]. - Total revenues for 2024 reached $48.3 billion, a 7% increase compared to$ 45.0 billion in 2023[60]. Earnings and Losses - The company achieved a GAAP loss per share of $(4.41) for the full year, while non-GAAP EPS was$ 1.15, an 85% decrease from the previous year[4]. - The company reported a GAAP net loss of $8.9 billion, or$ (4.41) per share, compared to a profit of $8.0 billion, or$ 3.86 per share in the previous year[22]. - Non-GAAP net earnings were $2.3 billion, or$ 1.15 per share, down from $15.6 billion, or$ 7.51 per share for the same period a year ago[22]. - The company reported a net loss of $8,933 million for the full year 2024, compared to a net income of$ 8,040 million in 2023[54]. - The net earnings attributable to Bristol-Myers Squibb for Q4 2024 were $3,408 million, compared to a loss of$ 8,948 million in Q4 2023[78]. - Diluted earnings per share for Q4 2024 were $1.67, compared to a loss of$ 4.41 per share in Q4 2023[78]. Expenses and Cost Management - Research and development expenses increased 29% to $3.2 billion in the fourth quarter, primarily due to recent acquisitions[6]. - Research and development expenses increased 20% to$ 11.2 billion on a GAAP basis, primarily due to recent acquisitions and IPRD impairment charges[21]. - Marketing, selling, and administrative expenses increased 8% to $8.4 billion on a GAAP basis, attributed to the timing of spend and recent acquisitions[21]. - The company expanded its strategic productivity initiative to deliver approximately$ 2 billion in additional cost savings by the end of 2027[2]. - The company is expanding its strategic productivity initiative to achieve an additional $2 billion in annualized cost savings by the end of 2027[28]. Taxation - The effective tax rate on a GAAP basis was 56.6%, significantly impacted by intangible asset impairments[9]. - The effective tax rate on a non-GAAP basis increased from 14.7% to 56.8%, primarily due to a non-tax deductible charge related to the Karuna acquisition[21]. - The effective tax rate for Q4 2024 was 19.9%, compared to 56.6% in Q4 2023[78]. Future Guidance - The company provided 2025 guidance with expected revenues of approximately$ 45.5 billion and non-GAAP EPS in the range of $6.55 to$ 6.85[2]. - Bristol Myers Squibb is targeting approximately $45.5 billion in total revenues for 2025, reflecting an expected revenue decline of 18-20% in the Legacy Portfolio due to generics[31]. - The company anticipates a gross margin of approximately 72% and operating expenses of around$ 16 billion for 2025[32]. - The company anticipates continued growth in its pipeline and strategic initiatives, with a focus on capital allocation and productivity improvements[47]. Product Performance - Key drivers for the Growth Portfolio included increased demand for Reblozyl, Breyanzi, Camzyos, and Opdualag[26]. - Opdivo generated $9.3 billion in total revenue, with a 2% growth in the U.S. and 14% growth internationally[23]. - Reblozyl saw an 80% increase in U.S. revenue, contributing significantly to the Growth Portfolio's performance[26]. - Eliquis sales increased by 11% year-over-year to$ 3,195 million in Q4 2024, despite a 3% decline in international sales[56]. - Opdivo sales grew by 4% year-over-year to $2,479 million in Q4 2024, with international sales increasing by 7%[56]. - Reblozyl saw a significant increase in sales, up 71% year-over-year to$ 547 million in Q4 2024[56]. - Breyanzi's revenue surged by 105% to $747 million, up from$ 364 million in the previous year[60]. - Eliquis generated $13.3 billion, a 9% increase from$ 12.2 billion in 2023, despite a 1% decline in international sales[60]. Debt and Cash Position - Cash and cash equivalents decreased to $10,346 million in 2024 from$ 11,464 million in 2023, representing a decline of 9.8%[82]. - Total cash, cash equivalents, and marketable debt securities decreased to $11,179 million in 2024 from$ 12,644 million in 2023, a reduction of 11.6%[82]. - Short-term debt obligations improved to $(2,046) million in 2024 from$ (3,119) million in 2023, indicating a decrease of 34.4%[82]. - Long-term debt increased to $(47,603) million in 2024 from$ (36,653) million in 2023, reflecting an increase of 29.9%[82]. - The net debt position worsened to $(38,470) million in 2024 compared to$ (27,128) million in 2023, an increase of 42.0%[82]. Market and Regulatory Environment - Forward-looking statements indicate potential risks including pricing pressures and regulatory changes that could impact future financial performance[49]. - The company plans to include Puerto Rico revenues in International revenues starting in 2024, which may affect future reporting[61]. - Foreign exchange impacts were unfavorable, affecting revenue growth by approximately 2% in the Growth Portfolio for the year[64].