On July 26, 2024, Bristol-Myers Squibb Co (BMY, Financial) released its 8-K filing for the second quarter of 2024, showcasing a robust performance that surpassed analyst expectations. The company reported revenues of $12.2 billion, a 9% increase from the same period last year, and a non-GAAP EPS of $2.07, significantly higher than the estimated $1.71 EPS.
Bristol-Myers Squibb discovers, develops, and markets drugs for various therapeutic areas, such as cardiovascular, cancer, and immune disorders. A key focus for Bristol is immuno-oncology, where the firm is a leader in drug development. Bristol derives close to 70% of total sales from the U.S., showing a higher dependence on the U.S. market than most of its peer group.
Performance and Challenges
Bristol-Myers Squibb Co (BMY, Financial) posted second quarter revenues of $12.2 billion, an increase of 9%, or 11% when adjusted for foreign exchange impacts. This growth was primarily driven by the Growth Portfolio and Eliquis. U.S. revenues increased 13% to $8.8 billion, while international revenues decreased 1% to $3.4 billion, impacted by foreign exchange and Revlimid.
Despite the positive revenue growth, the company faced challenges, including a decrease in GAAP EPS from $0.99 to $0.83, primarily due to higher interest expenses from new debt issuance and a one-time impairment charge related to marketed product rights.
Financial Achievements
The company's Growth Portfolio revenues were $5.6 billion, an 18% increase, driven by higher demand for Opdivo, Reblozyl, Camzyos, and Opdualag. The Legacy Portfolio also showed resilience with revenues of $6.6 billion, a 2% increase, driven by Eliquis and Pomalyst.
On a non-GAAP basis, gross margin increased from 75.0% to 75.6% due to product mix, while research and development expenses remained relatively flat at $2.3 billion. The company reported non-GAAP net earnings of $4.2 billion, or $2.07 per share, compared to $3.7 billion, or $1.75 per share, for the same period last year.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total Revenues | $12.2 billion | $11.2 billion | 9% |
| GAAP EPS | $0.83 | $0.99 | (16%) |
| Non-GAAP EPS | $2.07 | $1.75 | 18% |
| Gross Margin (Non-GAAP) | 75.6% | 75.0% | 0.6% |
Product and Pipeline Updates
Bristol-Myers Squibb achieved several regulatory milestones, including U.S. FDA approval for Breyanzi in follicular lymphoma and mantle cell lymphoma. The company is also awaiting regulatory review for subcutaneous nivolumab in the U.S. and E.U.
"Our second quarter results reflect progress against our strategy to position BMS for long-term, sustainable growth," said Christopher Boerner, Ph.D., board chair and chief executive officer, Bristol Myers Squibb.
Analysis and Outlook
Bristol-Myers Squibb Co (BMY, Financial) has demonstrated strong commercial execution and pipeline advancement, positioning itself for sustained growth. The company's ability to achieve regulatory milestones and maintain a robust product portfolio underscores its leadership in the biopharmaceutical industry. However, challenges such as higher interest expenses and foreign exchange impacts need to be managed effectively to maintain this growth trajectory.
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Explore the complete 8-K earnings release (here) from Bristol-Myers Squibb Co for further details.
