The increase in operating cash flow for Q3 2024 was driven primarily by **higher customer collections**, which contributed an additional **$2.6 billion** after adjusting for rebates, discounts, and alliance payments. Additionally, **lower income tax payments** reduced cash outflows by **$1.0 billion**, further boosting the net cash provided by operating activities. These positive factors, however, were partially offset by **acquisition-related expenses** (including cash settlements for unvested stock awards of **$1.0 billion**), **higher interest payments on debt** (an increase of **$500 million**), and variations in the timing of routine payments.  **[0000014272-24-000147_bmy-20240930.htm:65]** **[0000014272-24-000147_bmy-20240930.htm:4]** 

Why did Operating Cash Flow increase in Q3 2024?

The drastic decline in net earnings in Q1 2024 was driven by several significant factors. The most impactful was the **$12,949 million charge for acquired in-process research and development (IPRD)** associated with acquisitions, such as Karuna Therapeutics and the SystImmune collaboration.  **[0000014272-24-000094_q12024ex991-filing.htm:1]** **[0000014272-24-000094_q12024ex991-filing.htm:0]** **[0000014272-24-000096_bmy-20240331.htm:2]**  Additional factors included **higher marketing, selling, and administrative expenses** (a **34% increase** to **$2,367 million**), **increased research and development expenses** (a **16% increase** to **$2,695 million**), and **higher amortization of acquired intangible assets** (a **4% increase** to **$2,357 million**) due to acquisitions like Mirati Therapeutics and RayzeBio.  **[0000014272-24-000094_q12024ex991-filing.htm:1]** **[0000014272-24-000096_bmy-20240331.htm:2]**  Moreover, the absence of **$400 million in litigation and settlement income** that benefited Q1 2023, combined with **increased interest expenses** from additional debt issuance of **$13 billion at a 5.3% interest rate**, further contributed to the net loss.  **[0000014272-24-000096_bmy-20240331.htm:49]** **[BMY_3380716_16]** **[0000014272-24-000094_q12024ex991-filing.htm:1]** 

What caused the drastic decline in net earnings in Q1 2024?

The surge in **Acquired IPRD** in Q1 2024 was primarily driven by the **Karuna asset acquisition** and the **SystImmune collaboration**, which resulted in substantial upfront or contingent milestone payments associated with asset acquisitions or licensing of third-party intellectual property rights.  **[0000014272-24-000096_bmy-20240331.htm:48]** **[0000014272-24-000094_q12024ex991-filing.htm:1]** 

What drove the surge in Acquired IPRD in Q1 2024?

The spike in **impairment charges** during Q4 2024 was primarily due to significant write-downs associated with portfolio and pipeline prioritization. Specifically, the company recorded a **$390 million charge** for an investigational compound and a **$590 million charge** for alnuctamab—both acquired via the Celgene acquisition and subsequently discontinued or reprioritized.  **[0000014272-25-000039_bmy-20241231.htm:165]**  Additionally, **intangible asset impairments** added approximately **$1.8 billion** to the charges, reflecting adjustments in asset expectations amid shifts in the competitive and regulatory landscape.  **[0000014272-25-000039_bmy-20241231.htm:92]** 

Why did impairment charges spike in Q4 2024?

The dramatic increase in acquisition payments in Q1 2024 was primarily driven by **payments related to recent acquisitions, collaborations, and milestone payments**. Specifically, transactions such as the purchases of **Karuna Therapeutics**, **RayzeBio**, **Mirati Therapeutics**, and **SystImmune** significantly contributed to rising the amount from **$78 million in Q1 2023** to **$20,053 million in Q1 2024**.  **[0000014272-24-000096_bmy-20240331.htm:4]** **[0000014272-24-000094_q12024ex991-filing.htm:0]** **[0000014272-24-000096_bmy-20240331.htm:53]** 

What explains the dramatic increase in acquisition payments in Q1 2024?

0fcc3afe7ea96943e4cdd792bf5bc28c669bfee5138e912d32b0a83f4b260f98

Bristol-Myers Squibb’s cash and cash equivalents fell sharply in Q2 2024 primarily due to **substantial payments for acquisitions and collaborations totaling $21.4 billion** and **dividend payments of $2.4 billion**, which outweighed the **$5.2 billion provided by operations**. This decline was further compounded by **significant cash used in investing activities amounting to $20.9 billion** and the strategic issuance of Senior Unsecured Notes, with net proceeds of **$12.9 billion** being used to fund these acquisitions and other corporate purposes.  **[0000014272-24-000123_bmy-20240630.htm:58]** **[0000014272-24-000123_bmy-20240630.htm:3]** **[0000014272-24-000123_bmy-20240630.htm:59]** 

Why did Cash and cash equivalents fall sharply in Q2 2024?

The **spike in Total Assets in Q1 2024** was primarily driven by a significant **increase in Other Intangible Assets**—up about **$5,688 million** due to acquisitions, including those related to the Mirati and RayzeBio transactions—and a moderate **increase in Goodwill** of **$580 million**. These gains partly offset a reduction in cash and cash equivalents (a decrease of **$2,134 million**), while a minor uptick in property, plant, and equipment also contributed to the overall **increase of $3,872 million** in Total Assets.  **[0000014272-24-000096_bmy-20240331.htm:3]** **[0000014272-24-000096_bmy-20240331.htm:19]** **[0000014272-24-000096_bmy-20240331.htm:53]** 

What drove the spike in Total Assets in Q1 2024?

The **long-term debt** jump in Q1 2024 was primarily driven by the issuance of **$13.0 billion in unsecured senior notes** (the "2024 Senior Unsecured Notes"), which generated **net proceeds of $12.9 billion** used to partially finance the acquisitions of **RayzeBio** and **Karuna**, as well as support general corporate purposes. Additionally, the company terminated a **$10.0 billion 364-day senior unsecured delayed draw term loan facility** that had been set up for bridge financing these acquisitions, further influencing the shift in its debt profile.  **[0000014272-24-000096_bmy-20240331.htm:53]** **[0000014272-24-000096_bmy-20240331.htm:18]** 

Why did Long-term debt jump in Q1 2024?

The drop in **short-term debt obligations** in Q3 2024 was primarily driven by two factors. First, **BMY repaid approximately $3.0 billion in commercial paper** that had been issued in the first quarter of 2024, and this repayment was completed by the end of Q3 2024.  **[0000014272-24-000147_bmy-20240930.htm:64]** **[0000014272-24-000147_bmy-20240930.htm:21]**  Second, **the maturation and repayment of long-term debt**, specifically **$2.5 billion of 2.900% Notes** and **$395 million of 3.625% Notes**, reduced the current portion of long-term debt included in the short-term obligations.  **[0000014272-24-000147_bmy-20240930.htm:64]** **[0000014272-24-000147_bmy-20240930.htm:22]** 

What contributed to the drop in Short-term debt obligations in Q3 2024?

392235ab7d455da301979e1106f7faa8c2cfc1144021c41e081857a4f0c6ae93

What drove the massive spike in Acquired IPRD in Q1 2024?

In Q1 2024, **total expenses** were significantly higher primarily due to several factors. The increase was mainly driven by a dramatic rise in **acquired in-process research and development (IPRD) charges**, which surged to **$12,949 million** due to the Karuna asset acquisition and the SystImmune upfront fee, compared to only **$75 million** in Q1 2023.  **[0000014272-24-000096_bmy-20240331.htm:48]**  Additionally, **marketing, selling, and administrative expenses** increased by **$605 million** to **$2,367 million**, **research and development expenses** rose by **$374 million** reaching **$2,695 million**, and **amortization of acquired intangible assets** grew by **$101 million** to **$2,357 million**.  **[0000014272-24-000096_bmy-20240331.htm:48]**  Furthermore, there was an additional expense change of **$494 million** in the other (income)/expense category, driven by factors such as litigation and settlements, equity investments, and interest expense.  **[0000014272-24-000096_bmy-20240331.htm:49]** 

Why are total expenses so high in Q1 2024?

The drastic net loss in Q1 2024 was due to several factors. **Acquired In-Process Research and Development (IPRD) charges** played a major role – including a **one-time charge of $12.1 billion** for the Karuna Therapeutics acquisition and an additional **$800 million** related to the SystImmune collaboration.  **[0000014272-24-000094_q12024ex991-filing.htm:1]** **[BMY_3380716_6]** **[0000014272-24-000096_bmy-20240331.htm:52]**  In addition, **operating expenses increased significantly**, with marketing, selling, and administrative expenses jumping by **34% on a GAAP basis** to $2.4 billion and research and development expenses rising by **16% on a GAAP basis** to $2.7 billion.  **[0000014272-24-000094_q12024ex991-filing.htm:1]**  Furthermore, the loss was compounded by the absence of **$400 million in litigation and settlement income** that was present in Q1 2023  **[0000014272-24-000096_bmy-20240331.htm:49]** **[0000014272-24-000094_q12024ex991-filing.htm:1]** , as well as **higher interest expenses** resulting from additional debt issuance at a **5.3% interest rate**.  **[0000014272-24-000096_bmy-20240331.htm:49]** **[BMY_3380716_16]** **[0000014272-24-000094_q12024ex991-filing.htm:1]**  The company also experienced a **decline in gross margin**, down from **77.4% to 75.3%**, and a stark reversal in other income, which shifted from **$413 million in income to $81 million in expense** due to lower royalty income and higher restructuring and integration costs.  **[0000014272-24-000096_bmy-20240331.htm:49]** **[0000014272-24-000094_q12024ex991-filing.htm:1]** 

What factors contributed to the drastic net loss in Q1 2024?

EPS turned negative in Q1 2024 because the company incurred a number of significant charges and increased expenses compared to Q1 2023. These factors included a substantial one-time, non-tax-deductible acquired IPRD charge of about **$12.1 billion** related to the Karuna acquisition, along with notable increases in **marketing, selling, and administrative expenses** (up by **34%**) as well as **research and development expenses** (up by **16%**). In addition, higher **amortization expenses** due to recent acquisitions, increased **interest expense** from new debt issuances, and lower litigation and settlement income collectively contributed to shifting earnings to a loss per share of **$(5.89)** in Q1 2024.  **[0000014272-24-000094_q12024ex991-filing.htm:0]** **[0000014272-24-000094_q12024ex991-filing.htm:1]** 

Why did EPS plummet to a negative level in Q1 2024?

The sharp increase in Cost of Products Sold in Q4 2024 was primarily driven by **intangible asset impairment charges** rising by **$1.8 billion**, **higher royalties and profit sharing costs** increasing by **$800 million**, and **higher sales volume** contributing to the overall escalation in expenses.  **[0000014272-25-000039_bmy-20241231.htm:92]** 

What caused the sharp increase in Cost of Products Sold in Q4 2024?

fc880bfde0425d644b58ca92c03f163ed15512c4d3dad57f58efe01d3a214d6f

Cash and cash equivalents (USD, millions)

Marketable debt securities - Current (USD, millions)

Receivables (USD, millions)

Inventories (USD, millions)

Other current assets (USD, millions)

Total Current assets (USD, millions)

Property, plant and equipment (USD, millions)

Goodwill (USD, millions)

Other intangible assets (USD, millions)

Deferred income taxes - Non-Current Assets (USD, millions)

Marketable debt securities - Non-Current (USD, millions)

Other non-current assets (USD, millions)

Total Assets (USD, millions)

Short-term debt obligations (USD, millions)

Accounts payable (USD, millions)

Other current liabilities (USD, millions)

Total Current liabilities (USD, millions)

Deferred income taxes - Non-Current Liabilities (USD, millions)

Long-term debt (USD, millions)

Other non-current liabilities (USD, millions)

Total Liabilities (USD, millions)

Common stock (USD, millions)

Capital in excess of par value of stock (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Retained earnings (USD, millions)

Less cost of treasury stock (USD, millions)

Total BMS Shareholders’ Equity (USD, millions)

Noncontrolling interest (USD, millions)

Total Equity (USD, millions)

Total Liabilities and Equity (USD, millions)

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Net (loss)/earnings (USD, millions)

Depreciation and amortization, net (USD, millions)

Deferred income taxes (USD, millions)

Stock-based compensation (USD, millions)

Divestiture gains and royalties (USD, millions)

Acquired IPRD (USD, millions)

Equity investment (gains)/losses, net (USD, millions)

Other adjustments (USD, millions)

Net cash provided by operating activities (USD, millions)

Sale and maturities of marketable debt securities (USD, millions)

Purchase of marketable debt securities (USD, millions)

Proceeds from sales of equity investments (USD, millions)

Capital expenditures (USD, millions)

Divestiture and other proceeds (USD, millions)

Acquisition and other payments, net of cash acquired (USD, millions)

Net cash used in investing activities (USD, millions)

Proceeds from issuance of short-term debt obligations (USD, millions)

Other short-term financing obligations, net (USD, millions)

Proceeds from issuance of long-term debt (USD, millions)

Dividends (USD, millions)

Stock option proceeds and other, net (USD, millions)

Net cash provided by/(used in) financing activities (USD, millions)

Effect of exchange rates on cash, cash equivalents and restricted cash (USD, millions)

(Decrease)/increase in cash, cash equivalents and restricted cash (USD, millions)

Issuance of long-term debt (USD, millions)

Cash, cash equivalents and restricted cash at beginning of period (USD, millions)

Cash, cash equivalents and restricted cash at end of period (USD, millions)

34ff8f8cefc0bcb5061f0ff4064aacb134a3e4dfa0daffc3780b3392c1c3ad12

Net Product Sales (USD, millions)

Alliance and Other Revenues (USD, millions)

Total Revenues (USD, millions)

Cost of Products Sold (USD, millions)

Marketing, Selling and Administrative Expenses (USD, millions)

Research and Development Expenses (USD, millions)

Amortization of Acquired Intangible Assets (USD, millions)

Other (Income)/Expense, Net (USD, millions)

Total Expenses (USD, millions)

(Loss)/Earnings Before Income Taxes (USD, millions)

Income Tax Provision (USD, millions)

Net (Loss)/Earnings (USD, millions)

Noncontrolling Interest (USD, millions)

Net (Loss)/Earnings Attributable to BMS (USD, millions)

Basic (Loss)/Earnings per Common Share (USD)

Diluted (Loss)/Earnings per Common Share (USD)

746fc8066f1e8124aa4816642a946afbce75d43c6a8f6970cb12bc92a46f4f98

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

471604c6924b9539bd5e439a43d688809fa1ac7a461343c7df23833d976aafd8

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

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edebee6c94daa0c63454b4286158dc3fc081084f565b8c772a3e807d5f67f6d5

GTN Adjustments Percentage (percentage)

U.S. GTN Adjustments Percentage (percentage)

Non-U.S. GTN Adjustments Percentage (percentage)

269bf7564e48cad91987ff8cf638ec1071dd374e37f0c30b8b5937b949f66382

United States

Europe

Rest of the World

International

Other

Total Revenue

25a38e7b293528593c06fec5289dbfd0974b68e9e568bbb98f009f0279c2cd55

1c1386117c9107a4f55eba5e3f2c73b54da1adf5c882476e67edec5e56f39129

BRISTOL MYERS SQUIBB (BMY)

Financials