earnings summary
Here are the key points from Bristol-Myers Squibb’s Q1 2024 10-Q filing:
Financial Highlights:
- Total revenues increased 5% to $11.9 billion, driven by the Growth Portfolio (primarily Reblozyl) and Eliquis, partially offset by Opdivo and Revlimid
- GAAP EPS decreased from $1.07 to a loss of $5.89, primarily due to higher one-time Acquired IPRD charges from the Karuna acquisition and SystImmune collaboration, as well as certain specified items
- Non-GAAP EPS decreased from $2.05 to a loss of $4.40, driven by the Acquired IPRD charges and higher operating and interest expenses from recent acquisitions
Recent Acquisitions:
- Completed acquisitions of Karuna (psychiatric and neurological conditions), RayzeBio (radiopharmaceutical therapeutics), and Mirati (targeted oncology)
- Entered strategic collaboration with SystImmune to co-develop BL-B01D1 for NSCLC
Pipeline Updates:
- Received FDA approvals for expanded indications for Abecma (earlier line multiple myeloma) and Breyanzi (CLL/SLL)
- Opdivo + cisplatin + gemcitabine approved for first-line unresectable/metastatic urothelial carcinoma
- Reblozyl approvals in EU and Japan for transfusion-dependent MDS anemia
Outlook:
- Remains committed to strategic allocation of resources, investing to maximize value and sustainable growth
- Executing $1.5 billion strategic productivity initiative to fund innovation and growth
- Will maintain strong investment grade credit rating, grow the dividend, and repay debt
- Eliquis selected for government drug price negotiation starting in 2026 under the IRA
acquisitions for the period
Acquisition and Collaboration Payments: During the first quarter of 2024, Bristol-Myers Squibb completed the following acquisitions and collaboration:
- Karuna acquisition for $14.0 billion, or $12.9 billion net of cash acquired
- RayzeBio acquisition for $4.1 billion, or $3.6 billion net of cash acquired
- Mirati acquisition for $4.8 billion, or $4.1 billion net of cash acquired
- SystImmune collaboration with an $800 million upfront payment
In total, the company paid approximately $20.1 billion in acquisition, collaboration and milestone payments during Q1 2024.
2024 Guidance: The 10-Q filing does not provide specific guidance on total expected acquisition spending for 2024. However, it does mention:
“During the first quarter of 2024, our net debt position increased by $18.5 billion primarily driven by payments for recent acquisitions, collaborations and milestones of $20.1 billion and $1.2 billion of dividend payments, partially offset by cash provided by operations of $2.8 billion.”
This suggests the $20.1 billion in Q1 was the bulk of the acquisition spending so far this year, but the filing does not rule out potential for additional business development. The company plans to repay some of the debt taken on to fund the recent acquisitions.