Bristol-Myers Squibb Company (BMY) Bundle
A Brief History of Bristol-Myers Squibb
Bristol-Myers Squibb Company (BMS) has undergone significant changes over the years, especially leading up to 2024. The company has focused on expanding its portfolio through strategic acquisitions and a robust pipeline of innovative therapies.
Financial Performance
As of September 30, 2024, BMS reported net earnings attributable to the company of $1.211 billion, down from $1.928 billion in the same period of 2023. The diluted earnings per share (EPS) for this period was $0.60, compared to $0.93 in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Earnings | $1.211 billion | $1.928 billion |
| Diluted EPS | $0.60 | $0.93 |
| Net Revenue | $10.216 billion | $8.829 billion |
| Operating Cash Flow | $10.751 billion | $9.608 billion |
Acquisitions and Collaborations
In 2024, BMS completed several key acquisitions, including RayzeBio and Karuna, which significantly impacted its financial position. The total cash used in investing activities during the nine months ended September 30, 2024, was $21.156 billion, primarily due to these acquisitions.
| Acquisition | Amount (in billions) | Purpose |
|---|---|---|
| RayzeBio | $12.122 billion | Expansion of oncology portfolio |
| Karuna | $8.0 billion | Enhancement of neurology pipeline |
Research and Development
BMS has consistently invested in research and development, with R&D expenses amounting to $2.374 billion in Q3 2024, an increase from $2.242 billion in Q3 2023. The company focuses on innovative treatments for cancer, cardiovascular diseases, and immunology.
Debt and Financing
As of September 30, 2024, BMS had a total long-term debt of $48.674 billion, compared to $36.653 billion at the end of 2023. The fair value of long-term debt was reported at $47.9 billion. The company issued $13 billion in senior unsecured notes in early 2024 to finance acquisitions and other corporate needs.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Long-Term Debt | $48.674 billion | $36.653 billion |
| Fair Value of Long-Term Debt | $47.9 billion | $36.7 billion |
| Senior Unsecured Notes Issued | $13 billion | N/A |
Market Position
BMS continues to strengthen its market position with a diverse product portfolio, including key growth products like Eliquis, Opdivo, and Orencia. The total revenue from key products in Q3 2024 reflected continued growth despite market challenges.
| Product | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) |
|---|---|---|
| Eliquis | $3,002 | $2,705 |
| Opdivo | $2,360 | $2,275 |
| Orencia | $936 | $925 |
Bristol-Myers Squibb's strategic focus on acquisitions and innovation in drug development positions it for continued growth and resilience in the pharmaceutical sector as of 2024.
A Who Owns Bristol-Myers Squibb Company (BMY)
Major Shareholders
As of 2024, the ownership structure of Bristol-Myers Squibb Company (BMY) includes a mix of institutional and individual investors. Major institutional shareholders include:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8.2% | 238 million |
| BlackRock, Inc. | 7.8% | 226 million |
| State Street Corporation | 4.5% | 130 million |
| Wellington Management Co. LLP | 4.3% | 125 million |
| Fidelity Investments | 3.9% | 113 million |
Insider Ownership
Insider ownership at Bristol-Myers Squibb also plays a significant role in the company's governance. As of 2024, insider ownership is estimated at:
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Giovanni Caforio | Chairman and CEO | 1.2 million | 0.04% |
| Rupert Vessey | Chief Medical Officer | 500,000 | 0.017% |
| David Elkins | Chief Financial Officer | 300,000 | 0.01% |
Shareholder Composition
The overall shareholder composition of Bristol-Myers Squibb as of 2024 is as follows:
| Type of Ownership | Percentage |
|---|---|
| Institutional Investors | 78% |
| Individual Investors | 15% |
| Insiders | 7% |
Market Capitalization
As of the end of Q3 2024, Bristol-Myers Squibb has a market capitalization of approximately:
- $120 billion
Stock Performance
In 2024, Bristol-Myers Squibb's stock performance has been as follows:
| Quarter | Stock Price (Start) | Stock Price (End) | Quarterly Change |
|---|---|---|---|
| Q1 2024 | $63.00 | $65.50 | +3.97% |
| Q2 2024 | $65.50 | $62.00 | -5.66% |
| Q3 2024 | $62.00 | $60.50 | -2.42% |
Dividend Information
Bristol-Myers Squibb has maintained a consistent dividend policy, with the following details:
| Dividend Type | Amount per Share | Ex-Dividend Date |
|---|---|---|
| Quarterly Dividend | $0.60 | September 15, 2024 |
Recent Acquisitions and Strategic Moves
In 2024, Bristol-Myers Squibb completed significant acquisitions that further shaped its ownership structure and market positioning:
- Acquisition of RayzeBio for $8 billion
- Acquisition of Karuna Therapeutics for $4 billion
Bristol-Myers Squibb Company (BMY) Mission Statement
Mission Statement Overview
Bristol-Myers Squibb Company is committed to discovering, developing, and delivering innovative medicines that help patients prevail over serious diseases. The company aims to transform patients' lives through its science and to provide access to its therapies globally.
Financial Performance
As of the third quarter of 2024, Bristol-Myers Squibb reported the following financial results:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $11,892 million | $10,966 million | $35,958 million | $33,529 million |
| Net Earnings/Loss | $1,211 million | $1,928 million | $(9,020) million | $6,263 million |
| GAAP EPS | $0.60 | $0.93 | $(4.45) | $2.99 |
| Non-GAAP EPS | $1.80 | $2.00 | $(0.53) | $5.80 |
Debt and Liquidity Position
As of September 30, 2024, Bristol-Myers Squibb's net debt position was reported as follows:
| Debt Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $7,890 |
| Marketable Debt Securities - Current | $204 |
| Marketable Debt Securities - Non-current | $324 |
| Total Cash, Cash Equivalents & Marketable Securities | $8,418 |
| Short-term Debt Obligations | $(1,078) |
| Long-term Debt | $(48,674) |
| Net Debt Position | $(41,334) |
Research and Development Investment
In the third quarter of 2024, Bristol-Myers Squibb invested significantly in research and development, with the following expenses:
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Research and Development | $2,374 | $2,242 |
| Acquired IPRD | $262 | $80 |
Product Revenue Performance
Key product performances in Q3 2024 included:
| Product | Q3 2024 U.S. Revenue Change | Q3 2024 International Revenue Change |
|---|---|---|
| Eliquis | +15% | +3% |
| Revlimid | Flat | -9% |
| Sprycel | -44% | -45% |
| Pomalyst/Imnovid | +15% | -24% |
| Opdivo | +11% | +10% |
Strategic Initiatives
Bristol-Myers Squibb is focused on strategic productivity initiatives targeting approximately $1.5 billion in annual cost savings by the end of 2025. These savings are primarily aimed at reinvesting in innovation and driving growth.
Dividend Information
During the nine months ended September 30, 2024, Bristol-Myers Squibb paid dividends totaling $3.6 billion. The company evaluates its dividend policy on a quarterly basis, reflecting its commitment to returning value to shareholders.
Market Challenges
In 2024, Bristol-Myers Squibb faced pressures from generic competition and regulatory changes impacting pricing and access to medications. These challenges have influenced revenue performance in key markets.
How Bristol-Myers Squibb Company (BMY) Works
Financial Overview
Bristol-Myers Squibb Company (BMY) reported total revenues of $11.892 billion for the third quarter of 2024, an increase of 8% compared to $10.966 billion in Q3 2023. Year-to-date revenues reached $35.958 billion, up from $33.529 billion in the same period of the previous year, reflecting a growth of 7%.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $11.892 billion | $10.966 billion | $35.958 billion | $33.529 billion |
| Net Earnings/(Loss) | $1.211 billion | $1.928 billion | ($9.020 billion) | $6.263 billion |
| Diluted EPS (GAAP) | $0.60 | $0.93 | ($4.45) | $2.99 |
| Diluted EPS (Non-GAAP) | $1.80 | $2.00 | ($0.53) | $5.80 |
Revenue Breakdown
The revenue increase was primarily driven by the Growth Portfolio, particularly the performance of Eliquis, despite challenges faced by other products due to generic erosion.
| Product | Q3 2024 Revenue | Q3 2023 Revenue | % Change |
|---|---|---|---|
| Eliquis | $3.6 billion | $3.1 billion | +15% |
| Opdivo | $2.36 billion | $2.275 billion | +4% |
| Yervoy | $642 million | $579 million | +11% |
| Reblozyl | $447 million | $248 million | +80% |
| Sprycel | $300 million | $600 million | -50% |
Cost Structure
The total expenses for the third quarter of 2024 amounted to $10.216 billion, an increase from $8.829 billion in Q3 2023. Major cost drivers included:
- Cost of products sold: $2.957 billion (up 18%)
- Research and development: $2.374 billion (up 6%)
- Marketing, selling and administrative: $1.983 billion (down 1%)
- Acquired IPRD: $262 million (up significantly)
The overall increase in expenses was attributed to heightened research and development activities, particularly linked to recent acquisitions.
Debt and Capital Structure
As of September 30, 2024, Bristol-Myers Squibb held a net debt position of ($41.334 billion), compared to ($27.128 billion) at the end of 2023. The increase in net debt was largely due to acquisition-related payments.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $7.890 billion | $11.464 billion |
| Short-term Debt Obligations | ($1.078 billion) | ($3.119 billion) |
| Long-term Debt | ($48.674 billion) | ($36.653 billion) |
| Total Net Debt | ($41.334 billion) | ($27.128 billion) |
Research and Development Focus
Bristol-Myers Squibb continues to invest heavily in research and development. For the nine months ended September 30, 2024, R&D expenses totaled $7.968 billion, up from $6.821 billion in the prior year. This reflects a strategic focus on innovative therapies and pipeline expansion.
Market Challenges and Regulatory Environment
The company faces ongoing challenges regarding prescription drug pricing pressures introduced by regulatory changes. These include potential price negotiations for Medicare drugs and impacts from generic competition, particularly affecting products like Revlimid and Sprycel.
Dividends and Share Repurchase Program
Bristol-Myers Squibb declared dividends of $3.6 billion during the nine months ended September 30, 2024. The company is also engaged in a share repurchase program, having repurchased approximately 56 million shares for an aggregate amount of $4.0 billion.
How Bristol-Myers Squibb Company (BMY) Makes Money
Revenue Sources
Bristol-Myers Squibb (BMY) generates revenue primarily through the sale of pharmaceutical products, with a focus on oncology, immunology, and cardiovascular diseases. In the third quarter of 2024, the company reported total revenues of $11.892 billion, an increase from $10.966 billion in the same quarter of the previous year, representing an 8% growth. Year-to-date, total revenues reached $35.958 billion, up from $33.529 billion in 2023, reflecting a 7% increase.
| Revenue Category | Q3 2024 ($ Millions) | Q3 2023 ($ Millions) | Year-to-Date 2024 ($ Millions) | Year-to-Date 2023 ($ Millions) |
|---|---|---|---|---|
| Net Product Sales | 11,483 | 10,645 | 34,967 | 32,610 |
| Alliance Revenues | 105 | 138 | 355 | 461 |
| Other Revenues | 304 | 183 | 636 | 458 |
| Total Revenues | 11,892 | 10,966 | 35,958 | 33,529 |
Product Portfolio
The company’s revenue is heavily driven by its product portfolio, particularly its Growth Portfolio, which includes key drugs such as Opdivo, Eliquis, and Yervoy. In the third quarter of 2024, the Growth Portfolio generated significant sales, detailed as follows:
| Product | Q3 2024 Sales ($ Millions) | Q3 2023 Sales ($ Millions) | Year-to-Date 2024 Sales ($ Millions) | Year-to-Date 2023 Sales ($ Millions) |
|---|---|---|---|---|
| Opdivo | 2,360 | 2,275 | 6,825 | 6,622 |
| Eliquis | 3,002 | 2,705 | 10,138 | 9,332 |
| Yervoy | 642 | 579 | 1,855 | 1,672 |
| Reblozyl | 447 | 248 | 1,226 | 688 |
| Opdualag | 233 | 166 | 674 | 437 |
Gross-to-Net Adjustments
Gross product sales in Q3 2024 were reported at $21.223 billion, with significant gross-to-net (GTN) adjustments impacting net sales due to various factors such as rebates and discounts. The GTN adjustments for the third quarter and year-to-date are as follows:
| Adjustment Type | Q3 2024 ($ Millions) | Q3 2023 ($ Millions) | Year-to-Date 2024 ($ Millions) | Year-to-Date 2023 ($ Millions) |
|---|---|---|---|---|
| Charge-backs and Cash Discounts | (2,967) | (2,373) | (8,366) | (6,743) |
| Medicaid and Medicare Rebates | (4,577) | (3,730) | (11,525) | (9,355) |
| Other Rebates, Returns, Discounts | (2,196) | (1,900) | (6,440) | (5,339) |
| Total GTN Adjustments | (9,740) | (8,003) | (26,331) | (21,437) |
Research and Development Investments
Bristol-Myers Squibb invests heavily in research and development (R&D) to drive future growth. In Q3 2024, R&D expenses amounted to $2.374 billion, an increase from $2.242 billion in the same quarter of 2023. Year-to-date R&D expenses reached $7.968 billion, up from $6.821 billion in the previous year.
Operating Expenses
The total operating expenses for Bristol-Myers Squibb have also seen considerable growth, reflecting the company's strategic investments in marketing, selling, and administrative efforts. For Q3 2024, total expenses were reported at $10.216 billion, compared to $8.829 billion in Q3 2023.
| Expense Category | Q3 2024 ($ Millions) | Q3 2023 ($ Millions) | Year-to-Date 2024 ($ Millions) | Year-to-Date 2023 ($ Millions) |
|---|---|---|---|---|
| Cost of Products Sold | 2,957 | 2,506 | 9,156 | 7,948 |
| Marketing, Selling and Administrative | 1,983 | 2,003 | 6,278 | 5,699 |
| Research and Development | 2,374 | 2,242 | 7,968 | 6,821 |
| Total Expenses | 10,216 | 8,829 | 44,512 | 26,763 |
Debt and Financial Position
As of September 30, 2024, Bristol-Myers Squibb reported a net debt position of $(41.334) billion, which reflects an increase from $(27.128) billion at the end of 2023. This increase is primarily due to significant investments in acquisitions and collaborations.
During the nine months ended September 30, 2024, the company issued $13.0 billion in senior unsecured notes to finance acquisitions, including RayzeBio and Karuna.
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Article updated on 8 Nov 2024
Resources:
- Bristol-Myers Squibb Company (BMY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bristol-Myers Squibb Company (BMY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bristol-Myers Squibb Company (BMY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.