Bristol Myers Squibb Announces Q2 2024 Financial Results

Bristol Myers Squibb has reported its financial performance for the second quarter of 2024, showcasing a clear trajectory toward long-term sustainable growth. According to CEO and Board Chair Christopher Boerner, the company remains focused on seizing growth opportunities and enhancing operational efficiency as it progresses into the latter half of the year. The anticipated U.S. launch of KarXT is among the significant developments expected to drive future growth.

In the second quarter, Bristol Myers Squibb's total revenues increased by 9% to $12.2 billion, compared to $11.2 billion in the same period last year. When adjusting for foreign exchange impacts, the growth is 11%. This growth was primarily driven by the company's Growth Portfolio, notably including the drug Eliquis. U.S. revenues surged by 13% to $8.8 billion, supported by both the Growth and Legacy Portfolios. However, international revenues experienced a slight decline of 1% to $3.4 billion due to a 7% negative impact from foreign exchange and reduced sales of Revlimid, partially mitigated by increased sales of Opdivo.

The company's GAAP gross margin decreased slightly from 74.4% to 73.2% due to a one-time impairment charge, whereas the non-GAAP gross margin rose from 75.0% to 75.6%, reflecting favorable product mix changes. Marketing, selling, and administrative expenses remained stable at $1.9 billion on both GAAP and non-GAAP bases. Research and development expenses on a GAAP basis surged 28% to $2.9 billion, primarily due to an impairment charge related to the discontinuation of alnuctamab development. Non-GAAP research and development expenses were steady at $2.3 billion.

Acquired in-process research and development (IPRD) expenses decreased to $132 million from $158 million in the previous year, while licensing income increased to $37 million from $20 million. Amortization of acquired intangible assets went up by 7% to $2.4 billion, mainly due to the acquisition of RayzeBio and the approval of Augtyro.

The company reported a GAAP net income of $1.7 billion, or $0.83 per share, a decrease from $2.1 billion, or $0.99 per share, in the same period last year. The decline was attributed to increased interest expenses from new debt issuance for recent acquisitions. On a non-GAAP basis, net earnings were $4.2 billion, or $2.07 per share, up from $3.7 billion, or $1.75 per share, in the same period last year.

The Growth Portfolio showed robust performance, with worldwide revenues increasing to $5.6 billion from $4.7 billion, reflecting an 18% growth or 21% adjusted for foreign exchange. This growth was driven by increased demand for key products such as Opdivo, Reblozyl, Camzyos, and Opdualag, though partially offset by Abecma. The Legacy Portfolio also saw a modest increase in revenues to $6.6 billion from $6.5 billion, representing a 2% growth, or 3% when adjusted for foreign exchange impacts. This was primarily due to higher demand for Eliquis and Pomalyst, despite a decline in Revlimid sales due to generic competition.

Bristol Myers Squibb has also achieved several significant milestones in its product pipeline and regulatory approvals. The Phase 3 trial for cendakimab in treating eosinophilic esophagitis met its primary endpoints. Regulatory bodies, including the U.S. FDA and European Medicines Agency (EMA), have approved multiple treatments, such as Breyanzi for certain lymphomas and Krazati for specific colorectal cancers. Additionally, the EMA has validated new applications for Opdivo plus Yervoy and subcutaneous nivolumab.

Overall, Bristol Myers Squibb's second-quarter results reflect a strategic focus on driving growth through an enhanced product portfolio and operational excellence, positioning the company for continued success in the biopharmaceutical sector.