Bristol-Myers Squibb(US:BMY)2025-10-30 16:04Financial Performance - Total revenues for Q3 2025 were $12,222 million, a 3% increase from $11,892 million in Q3 2024[145] - Year-to-date revenues decreased by 1% to $35,692 million compared to $35,958 million in the same period of 2024[145] - GAAP EPS for Q3 2025 increased by $0.48 to $1.08, primarily due to lower amortization of acquired intangible assets and cost savings initiatives[146] - Non-GAAP EPS for Q3 2025 was $1.63, a decrease of $0.17 compared to $1.80 in Q3 2024, impacted by higher one-time charges[146] - U.S. revenues for Q3 2025 were $8,329 million, a 1% increase from $8,232 million in Q3 2024[158] - International revenues for Q3 2025 were $3,602 million, reflecting a 6% increase from $3,389 million in Q3 2024[158] - Gross product sales reached $22,494 million in Q3 2025, a 6% increase from $21,223 million in Q3 2024, while year-to-date gross product sales were $64,548 million, up 5% from $61,298 million[162] - Total expenses decreased by 11% in Q3 2025 to $9.108 billion from $10.216 billion in Q3 2024[196] - GAAP net earnings for Q3 2025 were $2,201 million, compared to $1,211 million in Q3 2024, while Non-GAAP net earnings were $3,318 million in Q3 2025 versus $3,650 million in Q3 2024[214] Revenue Drivers - The Growth Portfolio generated $6,857 million in Q3 2025, an 18% increase from $5,812 million in Q3 2024, with year-to-date revenues of $19,016 million, up 17% from $16,200 million[167] - Eliquis revenue increased by 25% to $3,746 million in Q3 2025, with year-to-date revenue of $10,991 million, an 8% increase from $10,138 million[167] - Revlimid revenue decreased by 59% to $575 million in Q3 2025, with year-to-date revenue of $2,349 million, down 47% from $4,434 million[167] - Opdivo revenue reached $2,532 million in Q3 2025, a 7% increase from $2,360 million in Q3 2024, with year-to-date revenue of $7,356 million, up 8% from $6,825 million[165] - U.S. revenues increased by 1% in Q3 2025, but decreased by 3% year-to-date, impacted by higher demand for the Growth Portfolio and Eliquis, offset by generics on Revlimid, Sprycel, and Abraxane[160] - International revenues rose by 6% in Q3 2025 and 4% year-to-date, driven by demand for the Growth Portfolio and Eliquis, with a 3% increase excluding foreign exchange impacts[161] Cost and Expenses - Cost of products sold increased by $478 million in Q3 2025 and $683 million year-to-date, primarily due to higher alliance profit sharing and product mix[197] - Selling, general and administrative expenses decreased by $194 million in Q3 2025 and $1.2 billion year-to-date, mainly due to cost savings from strategic productivity initiatives[198] - Research and development expenses increased by $154 million in Q3 2025, primarily due to an $85 million IPRD impairment charge and higher drug development costs[199] - Acquired IPRD charges were $633 million in Q3 2025, a 142% increase compared to $262 million in Q3 2024[201] - Amortization of acquired intangible assets decreased by $1.6 billion in Q3 2025, primarily due to the full amortization of Revlimid in Q4 2024[202] Strategic Initiatives - The company expects to achieve annual cost savings of approximately $2.0 billion by the end of 2027 through strategic productivity initiatives[144] - The company entered into a definitive agreement to acquire Orbital Therapeutics to enhance its pipeline with OTX-201, a preclinical CAR T-cell therapy[143] - The company is facing increased pricing pressures due to governmental actions, including price controls and reimbursement changes, which may impact future revenues[148] Regulatory and Product Developments - The company received multiple regulatory approvals in 2025, including Opdivo + Yervoy for advanced HCC in the U.S. and EU[142] - New product Opdivo Qvantig launched in January 2025, expanding treatment options for various solid tumors[170] - The FDA accepted the supplemental Biologics License Application for Breyanzi, with a PDUFA goal date of December 5, 2025[226] - The Phase III EXCALIBER-RRMM study for iberdomide showed statistically significant improvement in minimal residual disease negativity rates[226] - The FDA granted Breakthrough Therapy Designation to izalontamab for treating advanced or metastatic NSCLC[226] Cash Flow and Debt Management - Cash flow from operating activities increased by $1.4 billion to $12,182 million in the nine months ended September 30, 2025, compared to $10,751 million in the same period of 2024[222][223] - The net debt position improved by $6.4 billion during the nine months ended September 30, 2025, primarily due to cash provided by operations of $12.2 billion, offset by $3.8 billion in dividends and $2.2 billion for acquisitions[215] - The total cash, cash equivalents, and marketable debt securities reached $16,909 million as of September 30, 2025, up from $11,179 million at the end of 2024[215] - The company issued $13.0 billion in senior unsecured notes in 2024 to fund acquisitions, with net proceeds of $12.9 billion[217] - The company has a five-year $5.0 billion revolving credit facility expiring in January 2030, with no borrowings outstanding as of September 30, 2025[219] Inventory and Demand - Estimated end-user demand indicates no products with inventory levels exceeding one month on hand as of September 30, 2025[191] - U.S. revenues for a legacy product decreased 60% during Q3 2025 and 47% year-to-date, primarily due to lower demand from generic erosion[186] - International revenues for the same legacy product decreased 55% during Q3 2025 and 47% year-to-date, impacted by foreign exchange[186] - U.S. revenues for another legacy product decreased 84% during Q3 2025 and 79% year-to-date, primarily due to lower demand from generic erosion[189] - U.S. revenues for a different legacy product decreased 69% during Q3 2025 and year-to-date, primarily due to lower demand driven by generic erosion[190]