Bristol-Myers Squibb Reports Third Quarter 2013 Financial Results

Bristol-Myers Squibb Company has reported results for the third quarter of 2013 highlighted by the strong performance of key marketed products such as Yervoy, Orencia and Sprycel, the presentation of important clinical data for its immuno-oncology pipeline, and the presentation of key cardiovascular outcomes data for Onglyza. The company also confirmed GAAP EPS and non-GAAP EPS guidance ranges for 2013.

“In the third quarter, we demonstrated solid financial performance and presented new clinical data further characterising key brands from our immuno-oncology and diabetes franchises,” said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb. “As we continue to execute against our strategy today, we remain focused on investing in the meaningful opportunities that will drive the long-term growth of our company.”

THIRD QUARTER FINANCIAL RESULTS

• Bristol-Myers Squibb posted third quarter 2013 net sales of $4.1 billion, an increase of 9% compared with the same period a year ago.

• US net sales increased 1% to $2.0 billion in the quarter compared with the same period a year ago. International net sales increased 18% to $2.0 billion.

• Gross margin as a percentage of net sales was 71.1% in the quarter compared with 73.6% in the same period a year ago.

• Marketing, selling and administrative expenses decreased 8% to $980 million in the quarter.

• Advertising and product promotion spending increased 16% to $194 million in the quarter.

• Research and development expenses decreased 6% to $893 million in the quarter.

• The effective tax rate on earnings before income taxes was 15.4% in the quarter, compared with a tax benefit rate of 43.4% in the third quarter last year.

• The company reported net earnings attributable to Bristol-Myers Squibb of $692 million, or $0.42 per share, in the quarter compared to a net loss of $711 million, or $0.43 per share, a year ago.

• The 2012 tax benefit rate and net loss were due to a non-cash impairment charge included in the third quarter of 2012 resulting from the discontinued development of BMS-986094.

• The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $768 million, or $0.46 per share, in the third quarter, compared to $685 million, or $0.41 per share, for the same period in 2012. An overview of specified items is discussed under the “Use of Non-GAAP Financial Information” section.

• Cash, cash equivalents and marketable securities were $6.3 billion, with a net debt position of $867 million as of September 30, 2013.