Financial Performance Overview

Bristol-Myers Squibb Company is a global biopharmaceutical company focused on discovering, developing and delivering innovative medicines to help patients with serious diseases. In 2024, the company achieved multiple clinical and regulatory milestones across its portfolio, including approvals for several key products.

Financially, Bristol-Myers Squibb reported total revenues of $48.3 billion in 2024, an increase of 7% compared to 2023. This growth was primarily driven by the company’s “Growth Portfolio” of newer products, as well as continued strong performance of the blood thinner Eliquis. However, the company faced generic competition and pricing pressures that negatively impacted sales of some of its “Legacy Portfolio” products.

On the bottom line, Bristol-Myers Squibb reported a GAAP loss per share of $4.41 in 2024, compared to earnings per share of $3.86 in 2023. This significant decline was largely due to a one-time, non-deductible charge related to the acquisition of Karuna Therapeutics. Adjusting for this and other one-time items, the company’s non-GAAP earnings per share decreased from $7.51 in 2023 to $1.15 in 2024, primarily due to the Karuna acquisition charge and higher interest expense.

Revenue and Profit Trends

Bristol-Myers Squibb’s revenue growth in 2024 was driven by strong performance in its Growth Portfolio, which includes newer products like Opdivo, Reblozyl, Breyanzi, Camzyos and Cobenfy. These products collectively grew 17% year-over-year, offsetting declines in the company’s Legacy Portfolio, which includes older products like Revlimid, Sprycel and Abraxane that faced generic competition.

The company’s top-selling product, the cancer immunotherapy Opdivo, saw 3% revenue growth in 2024, with strong performance in both the U.S. and international markets. Other key Growth Portfolio products like Reblozyl (76% growth), Breyanzi (105% growth) and Camzyos (161% growth) also contributed significantly to the company’s top-line expansion.

On the other hand, revenues for Legacy Portfolio products declined, with Revlimid down 5%, Sprycel down 33% and Abraxane down 13%, primarily due to generic competition. The company expects continued generic erosion of its Legacy Portfolio in 2025, particularly for Revlimid, Sprycel and Pomalyst outside the U.S.

The sharp decline in Bristol-Myers Squibb’s GAAP earnings per share was largely attributable to a one-time, non-deductible charge of $12.1 billion related to the acquisition of Karuna Therapeutics. Adjusting for this and other one-time items, the company’s non-GAAP earnings per share decreased by $6.36, primarily due to the Karuna acquisition charge and higher interest expense, partially offset by the higher revenues.

Strengths and Weaknesses

One of Bristol-Myers Squibb’s key strengths is its diversified portfolio of innovative products, particularly in the Growth Portfolio. The company has achieved multiple regulatory approvals for new indications and new products, which should continue to drive revenue growth in the coming years. Products like Opdivo, Reblozyl, Breyanzi and Camzyos have demonstrated strong clinical performance and commercial success, positioning the company well for the future.

However, the company faces significant challenges from pricing pressures and generic competition, particularly for its Legacy Portfolio products. The Inflation Reduction Act (IRA) in the U.S. is expected to further increase pricing pressures, as it directs the federal government to “negotiate” prices for select high-cost Medicare drugs. This could accelerate revenue erosion for some of Bristol-Myers Squibb’s products prior to the expiration of their intellectual property protections.

Additionally, the company’s reliance on acquisitions and licensing deals to bolster its pipeline and product portfolio exposes it to integration risks and the potential for impairment charges, as evidenced by the significant one-time charge related to the Karuna acquisition.

Outlook and Future Prospects

Looking ahead, Bristol-Myers Squibb’s strategy is focused on continuing to strengthen its position in its core therapeutic areas, including oncology, hematology, immunology, cardiovascular and neuroscience. The company has a robust pipeline of late-stage development programs that could potentially have a significant impact on its revenue and earnings in the next few years, if regulatory approvals are obtained and the products are successfully commercialized.

Key pipeline developments include potential new indications for products like Opdivo, Breyanzi, Camzyos, Cobenfy and Sotyktu, as well as the advancement of early-stage assets in areas like radiopharmaceuticals, targeted protein degradation and cell therapy. The company is also exploring opportunities to expand its neuroscience portfolio, which was bolstered by the acquisition of Karuna and the approval of Cobenfy for schizophrenia.

To support its growth strategy, Bristol-Myers Squibb is driving operational excellence and strategic capital allocation, including a focus on cost savings and productivity initiatives. The company expects to deliver approximately $2.0 billion in additional annual cost savings by the end of 2027, which it plans to reinvest in innovation and growth.

Overall, Bristol-Myers Squibb faces a mix of opportunities and challenges in the years ahead. Its diversified portfolio of innovative products, robust pipeline, and strategic initiatives provide a solid foundation for future growth. However, the company must navigate the evolving pricing and regulatory landscape, as well as the risks associated with its acquisition and licensing activities, to successfully deliver on its mission of helping patients prevail over serious diseases.