Financial Performance Overview

Bristol-Myers Squibb Company is a global biopharmaceutical company focused on discovering, developing and delivering innovative medicines. 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, including products like Opdivo, Reblozyl and Breyanzi, as well as continued strong performance of Eliquis. However, the company faced generic erosion in its Legacy Portfolio, particularly for products like Revlimid, Sprycel and Pomalyst.

On the bottom line, Bristol-Myers Squibb reported a GAAP loss per share of $4.41 in 2024, compared to GAAP earnings per share of $3.86 in 2023. This significant decrease was primarily driven by a one-time, non-deductible $12.1 billion charge related to the acquisition of Karuna. After adjusting for this and other specified items, non-GAAP earnings per share decreased from $7.51 in 2023 to $1.15 in 2024, mainly due to the Karuna acquisition charge and higher interest expense, partially offset by higher revenues.

Revenue Trends

Bristol-Myers Squibb’s revenue growth was led by its Growth Portfolio, which includes newer and recently launched products. Key contributors to this growth included:

• Opdivo (nivolumab), the company’s flagship immuno-oncology product, saw a 3% increase in global sales, driven by higher demand and additional indication approvals.
• Reblozyl (luspatercept-aamt) for the treatment of anemia saw an impressive 76% increase in global sales, primarily due to higher demand.
• Breyanzi (lisocabtagene maraleucel), the company’s CAR-T cell therapy, more than doubled its global sales as it received approvals for additional indications in lymphoma and leukemia.
• Camzyos (mavacamten) for the treatment of obstructive hypertrophic cardiomyopathy continued its strong launch, with U.S. sales increasing 141%.

These growth drivers helped offset the impact of generic competition on the company’s Legacy Portfolio, particularly for products like Revlimid, Sprycel and Pomalyst. The company expects continued generic erosion within the Legacy Portfolio in 2025, primarily due to the loss of exclusivity for these products.

Strengths and Weaknesses

Key strengths of Bristol-Myers Squibb include:

• Diversified portfolio of innovative medicines, with a focus on high-growth areas like oncology, hematology, immunology and cardiovascular diseases.
• Robust pipeline of late-stage assets, with the potential to deliver 10 or more new medicines and multiple additional indications over the next five years.
• Successful integration of recent acquisitions, such as Karuna, RayzeBio and Mirati, which have expanded the company’s capabilities in areas like radiopharmaceuticals and targeted oncology.
• Strong commercial execution, with continued growth of key products like Opdivo, Reblozyl and Breyanzi.
• Commitment to strategic capital allocation, including investments in R&D and targeted acquisitions, to drive long-term growth and shareholder value.

Weaknesses and challenges facing the company include:

• Significant impact from the one-time, non-deductible charge related to the Karuna acquisition, which weighed heavily on the company’s 2024 GAAP financial results.
• Ongoing pricing pressures and government actions, such as the Inflation Reduction Act in the U.S., which are expected to continue negatively impacting the company’s revenues and profit margins.
• Generic competition eroding sales of legacy products like Revlimid, Sprycel and Pomalyst, which will likely continue to be a headwind in the near-term.
• Integration and execution risks associated with the recent acquisitions, which will require careful management to fully realize the expected benefits.

Outlook and Future Prospects

Looking ahead, Bristol-Myers Squibb’s strategy is focused on combining the resources and scale of a large pharmaceutical company with the speed and innovation of a biotech. The company’s priorities include:

1. Focusing on transformational medicines in its core therapeutic areas, leveraging its differentiated research platforms like radiopharmaceuticals, targeted protein degradation and cell therapy.
2. Driving commercial execution for its key first-in-class and/or best-in-class marketed products, such as Opdivo, Reblozyl and Breyanzi.
3. Strategically allocating capital to maximize value and drive sustainable growth, including investments in R&D, targeted acquisitions and a productivity initiative to generate cost savings.
4. Continuing to operate with effective governance, uncompromising quality and compliance, and the highest ethical standards to deliver on its mission and create long-term value for shareholders.

The company’s pipeline is expected to be a key driver of future growth, with a number of registrational data readouts anticipated over the next 24 months. These could potentially lead to 10 or more new medicine approvals and multiple additional indications over the next five years.

In oncology, Bristol-Myers Squibb is focused on extending its leadership in immuno-oncology while also diversifying beyond this area, including through the acquisition of RayzeBio and its radiopharmaceutical platform. In hematology, the company is leveraging its expertise in targeted protein degradation and cell therapy to develop potentially first-in-class treatments for multiple myeloma and lymphoma.

In immunology, the company is advancing a LPA1 antagonist targeting pulmonary fibrosis, while in cardiovascular diseases, it is partnering with Johnson & Johnson on the development of milvexian for various indications. The company’s neuroscience portfolio has also been bolstered by the addition of Cobenfy for the treatment of schizophrenia.

Overall, Bristol-Myers Squibb appears well-positioned to navigate the challenges it faces, such as pricing pressures and generic competition, through its diversified portfolio, robust pipeline, and strategic focus on high-growth therapeutic areas. However, the company will need to carefully manage the integration and execution of its recent acquisitions to fully realize their potential and drive sustainable long-term growth.