• Reports Fourth Quarter Revenues of $7.9 Billion; $26.1 Billion for Full Year
• Posts Fourth Quarter GAAP Loss Per Share of $0.55 and Non-GAAP EPS of $1.22
• Completes Acquisition of Celgene; Integration and Synergy Capture on Track
• Presents Important New Data from Leading Hematology Portfolio at ASH Annual Meeting
• Announces Two U.S. FDA Filing Acceptances for Opdivo plus Yervoy Regimen
• Announces $5 Billion Increase to Share Repurchase Authorization
• Provides Financial Guidance for 2020 and 2021

NEW YORK--(BUSINESS WIRE)-- Bristol-Myers Squibb Company (NYSE:BMY) today reports results for the fourth quarter and full year of 2019, which highlight continued strong sales and robust operating performance, along with the ongoing advancement of the company’s pipeline.

“By all measures, 2019 was a transformative year for Bristol-Myers Squibb as we progressed our strategy through the acquisition of Celgene, delivered strong operational and financial performance, and continued to drive important science for patients,” said Giovanni Caforio, M.D., chairman and chief executive officer, Bristol-Myers Squibb. “With an expanded portfolio of high-performing brands, eight potential commercial launch opportunities, a deep and broad early pipeline, and the financial flexibility to continue to invest in innovation, the company enters 2020 uniquely positioned to transform patients’ lives through science and create long-term sustainable growth.”

FOURTH QUARTER FINANCIAL RESULTS

All comparisons are made versus the same period in 2018 unless otherwise stated.

• Bristol-Myers Squibb posted fourth quarter revenues of $7.9 billion, an increase of 33%, primarily due to the Celgene acquisition (closed on November 20, 2019). Revenues increased 34% when adjusted for foreign exchange impact.
• U.S. revenues increased 42% to $4.8 billion in the quarter. International revenues increased 21% to $3.2 billion in the quarter. When adjusted for foreign exchange impact, international revenues increased 23%.
• Gross margin as a percentage of revenue decreased from 72.0% to 68.6% in the quarter primarily due to unwinding of inventory purchase price accounting adjustments, partially offset by product mix.
• Marketing, selling and administrative expenses increased 30% to $1.7 billion in the quarter primarily due to $400 million costs associated with the Celgene acquisition.
• Research and development expenses increased 52% to $2.1 billion in the quarter primarily due $500 million related to the Celgene acquisition.
• Amortization of acquired intangible assets was $1.1 billion in the quarter primarily due to the Celgene acquisition.
• Income taxes were $931 million despite pre-tax loss of $129 million in the current quarter primarily due to the Otezla® (apremilast) divestiture, certain non-deductible expenses and purchase price adjustments. The effective tax rate was 23.1% in the same period a year ago.
• The company reported net loss attributable to Bristol-Myers Squibb of $1.1 billion, or $0.55 per share, in the fourth quarter, compared to net earnings of $1.2 billion, or $0.71 per share, for the same period a year ago. The results in the current quarter include costs and expenses resulting from purchase price accounting, contingent value right fair value adjustments and other acquisition and integration expenses.
• The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $2.4 billion, or $1.22 per share, in the fourth quarter, compared to net earnings of $1.5 billion, or $0.94 per share, for the same period a year ago. A discussion of the non-GAAP financial measures is included under the “Use of Non-GAAP Financial Information” section.
• Cash, cash equivalents and marketable debt securities were $16.2 billion and debt was $46.7 billion as of December 31, 2019.

ACQUISITION OF CELGENE CORPORATION

• In November, the company announced the completion of its acquisition of Celgene Corporation following the receipt of regulatory approval from all government authorities required by the merger agreement. (link)
• As announced in August 2019, in connection with the regulatory approval process of the acquisition of Celgene, Celgene entered into an agreement to divest the global rights to Otezla® to Amgen Inc. for $13.4 billion in cash. On November 21, 2019, the Otezla® divestiture was completed.

Otezla® is a trademark of Amgen Inc.

FOURTH QUARTER PRODUCT AND PIPELINE UPDATE

Product Revenue Highlights

Global product revenue increases in the fourth quarter of 2019, as compared to the fourth quarter of 2018, drove revenue increases.

* Represents product revenues for Celgene products only from November 20, 2019, which was the date of the closing of the acquisition, through December 31, 2019. See “Worldwide Product Revenue,” which is available on bms.com/investors, for information on the revenue for these products and other products of the company and Celgene presented on a quarterly basis for 2018 and 2019.

Oncology

Opdivo

Regulatory

• In January, the company announced that the U.S. Food and Drug Administration (U.S. FDA) has accepted for priority review its supplemental Biologics License Application (sBLA) for Opdivo plus Yervoy for the first-line treatment of patients with metastatic or recurrent NSCLC with no EGFR or ALK genomic tumor aberrations with an FDA action date of May 15, 2020.
• In January, the company announced that it has withdrawn its European application for Opdivo (nivolumab) plus Yervoy (ipilimumab) for the first-line treatment of advanced non-small cell lung cancer (NSCLC).
• In November, the company announced that the U.S. FDA accepted its sBLA and granted Breakthrough Therapy Designation for Opdivo plus Yervoy for the treatment of patients with advanced hepatocellular carcinoma (HCC) previously treated with sorafenib with an FDA action date of March 10, 2020.

Clinical

• In November, the company announced results from CheckMate -915, a randomized Phase 3 study evaluating Opdivo plus Yervoy versus Opdivo alone for the adjuvant treatment of patients who have had a complete surgical removal of stage IIIb/c/d or stage IV (no evidence of disease) melanoma. The study did not meet one of its co-primary endpoints of recurrence-free survival (RFS) in patients whose tumors expressed PD-L1