Bristol-Myers Squibb(BMY) - 2024 Q2 - Quarterly Results

Financial Performance - Second quarter revenues were $12.2 billion, an increase of 9% year-over-year, or 11% when adjusted for foreign exchange[1] - U.S. revenues increased 13% to $8.8 billion, driven by the Growth and Legacy Portfolios[4] - Revenues for the Legacy Portfolio were $6.6 billion, a 2% increase year-over-year[9] - Total revenues for the first half of 2024 were $24.066 billion, compared to $22.563 billion in the same period of 2023, reflecting a growth of 6.7%[43] - Total revenues for the quarter reached $24.066 billion, a 10% increase compared to $22.563 billion in the previous year[50] - The overall portfolio total revenues amounted to $8,801 million, reflecting a 13% increase year-over-year[47] - Total expenses for the first half of 2024 were $34.296 billion, significantly higher than $17.934 billion in the same period of 2023[43] - The company reported a net loss attributable to BMS of $1.680 billion in Q2 2024, compared to a net income of $2.073 billion in Q2 2023[43] Earnings and Guidance - GAAP EPS was $0.83, down 16% from the previous year, while Non-GAAP EPS increased 18% to $2.07[3] - The effective tax rate on a non-GAAP basis changed from 16.9% to 14.1% due to the release of income tax reserves[5] - The company is raising its 2024 Non-GAAP guidance[1] - Bristol Myers Squibb raised its 2024 total revenues guidance to the upper end of the low single-digit range, with gross margin expected between ~74% and ~75%[19] - Diluted EPS guidance for 2024 was updated to a range of $0.60 to $0.90, up from $0.40 to $0.70[19] Research and Development - Research and development expenses increased 28% to $2.9 billion, primarily due to an IPRD impairment charge[5] - Research and development expenses rose by 28% to $2,899 million for the three months ended June 30, 2024, compared to $2,258 million in the prior year[58] - The company incurred $590 million in IPRD impairments during the three months ended June 30, 2024, highlighting challenges in product development[60] - Research and development expenses for the three months ended June 30, 2024, were $2,899 million, which included $604 million in specified items, reflecting a focus on innovation[62] Product Approvals and Launches - The company achieved U.S. approval for Breyanzi in both follicular lymphoma and mantle cell lymphoma[1] - The FDA granted accelerated approval for Augtyro™ (repotrectinib) for adult and pediatric patients with solid tumors having NTRK gene fusion, based on Phase 1/2 TRIDENT-1 trial results[14] - The European Commission approved Opdivo in combination with cisplatin and gemcitabine for first-line treatment of unresectable or metastatic urothelial carcinoma, based on CheckMate-901 trial results[14] - The FDA accepted the Biologics License Application for subcutaneous nivolumab, with a PDUFA goal date of December 29, 2024[14] - The company announced the anticipated U.S. launch of KarXT in the second half of the year[2] - The FDA approved Breyanzi for adult patients with relapsed or refractory mantle cell lymphoma, based on Phase 1 TRANSCEND NHL 001 trial results[16] - The FDA granted accelerated approval for Breyanzi for adult patients with relapsed or refractory follicular lymphoma, based on Phase 2 TRANSCEND FL trial results[16] Portfolio Performance - Growth Portfolio revenues reached $5.6 billion, representing an 18% increase on a reported basis, or 21% when adjusted for foreign exchange[8] - Total Growth Portfolio revenues reached $3,785 million in the U.S. and $1,811 million internationally, marking a 21% increase year-over-year[47] - The Growth Portfolio generated $10.388 billion in revenue, reflecting a 15% growth year-over-year[50] - The Legacy Portfolio generated $5,016 million in total revenues, with a 7% increase compared to the previous year[47] - Opdivo generated $1,406 million in the U.S. and $981 million internationally, reflecting a 15% growth in the U.S. and 6% internationally[47] - Eliquis revenues were $2,544 million in the U.S., showing a 10% growth year-over-year[47] - Revlimid revenues decreased by 4% to $1,165 million in the U.S.[47] - Pomalyst/Imnovid experienced a 27% increase in revenues, totaling $716 million in the U.S.[47] - Reblozyl saw a significant increase of 96% in the U.S. with revenues of $348 million, compared to $178 million in the previous year[47] - Zeposia reported $111 million in the U.S. and $40 million internationally, achieving a 52% growth in the U.S.[47] Financial Challenges and Outlook - The company anticipates continued pricing pressures and regulatory challenges impacting future financial results[38] - Forward-looking statements indicate that the company is focused on business development and capital allocation strategies for 2024[36] - The company reported a net debt position of $(45,379) million as of June 30, 2024, compared to $(27,128) million at the end of 2023, indicating an increase in leverage[66] - The effective tax rate guidance for 2024 was lowered to ~66% from ~69%[19] - The operating margin for the three months ended June 30, 2024, was 33.7%, down from 37.0% in the prior year[58] - The gross margin for the three months ended June 30, 2024, was 73.2%, compared to 74.4% in the previous year[58] - The overall international revenue change was impacted by foreign exchange, with a 1% decline reported[53] - The company plans to include Puerto Rico revenues in International revenues starting in 2024, affecting future reporting[50]