• Fourth Quarter Revenue: Approximately $12.3 billion, a 9% increase driven by volume growth and higher inventory levels.
• Growth Portfolio Sales: Increased by 23%, representing slightly more than half of total revenue.
• Key Brand Performance: Significant growth in Reblozyl, KENZO, and Opdulag.
• Full Year Revenue Guidance for 2025: Estimated at approximately $45.5 billion.
• Non-GAAP Earnings Per Share Guidance for 2025: Expected to be in the range of $6.55 to $6.85.
• Gross Margin: Declined by about 240 basis points in the fourth quarter due to product mix.
• Operating Expenses: Increased by approximately 8%, driven by R&D investments.
• Cost Savings Achieved in 2024: Approximately $1.1 billion realized from a targeted $1.5 billion.
• Expanded Cost Savings Program: Additional $2 billion in savings identified, with $1 billion expected in 2025.
• Cash Flow from Operations: Approximately $4.4 billion in the fourth quarter.
• Cash and Equivalents: Approximately $11.2 billion as of December 31, 2024.
• Debt Repayment: Approximately $6 billion repaid out of a $10 billion commitment.
• Dividend Commitment: 2025 marks the 93rd consecutive year of dividend payments.

• Warning! GuruFocus has detected 6 Warning Signs with BMY.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bristol-Myers Squibb Co (NYSE:BMY) achieved double-digit revenue growth in 2024, driven by key products like BREYANZI, Krazati, Reblozyl, and Opdivo.
• The company successfully launched Cobenfy, a novel treatment for schizophrenia, marking a significant milestone in their neuroscience portfolio.
• Operational excellence and financial discipline led to significant cost savings, with $1.5 billion in savings targeted and most achieved in 2024.
• Bristol-Myers Squibb Co (NYSE:BMY) accelerated several late-stage pipeline programs, including CEMZIOS and the ADEPT-2 study, ahead of schedule.
• The company has identified an additional $2 billion in savings, with $1 billion expected to be realized in 2025, enhancing financial flexibility.

Negative Points

• Bristol-Myers Squibb Co (NYSE:BMY) faces near-term revenue impact due to generic competition across multiple products, including Revlimid and POMALYST.
• The company anticipates a decline in the legacy portfolio by 18% to 20% in 2025 due to loss of exclusivity and foreign exchange headwinds.
• Gross margin declined by 240 basis points in the fourth quarter of 2024, primarily due to product mix.
• The company is experiencing increased gross-to-net pressures from Medicare Part D redesign, impacting products like Eliquis.
• There are concerns about the potential impact of the Inflation Reduction Act (IRA) on pricing and market dynamics for key products.

Q & A Highlights

Q: How is the ramp-up of Cobenfy progressing, and what are the expectations for 2025? A: Adam Lenkowsky, Chief Commercialization Officer, stated that Cobenfy's launch is off to a strong start with approximately 1,000 TRxs per week. They have achieved over 90% Medicaid access and over 80% Medicare access. The focus is on educating customers about Cobenfy's differentiated profile, and they expect continued strong uptake through 2025.

Q: What are the plans for cost savings after the $2 billion program, and how will it affect the company long-term? A: Christopher Boerner, CEO, explained that the focus remains on investing for growth, including products and pipeline development. The cost program aims to make the company more agile and financially flexible. While this program provides strategic flexibility, the company will continue to align its organization with business needs.

Q: Can you provide an update on the Part D redesign impact for 2025 and the status of cendakimab? A: Adam Lenkowsky noted that Eliquis will benefit from the elimination of the coverage gap, with Q1 being the lowest sales quarter. The redesign is expected to be net neutral across the portfolio. Regarding cendakimab, the decision was made not to commercialize it, prioritizing investments in areas with competitive advantages.

Q: What are the expectations for Cobenfy's expansion opportunities, and how does the competitive landscape affect this? A: Christopher Boerner highlighted that competitive dynamics provide a significant long-term opportunity for Cobenfy. The company is focused on accelerating programs and exploring additional indications, such as dementia-associated psychosis and agitation disorders.

Q: How is the company managing the integration of new businesses and advancing pipeline timelines? A: Christopher Boerner emphasized the focus on operational excellence and R&D productivity, which has enabled the acceleration of several programs. Samit Hirawat added that prioritizing the portfolio and focusing on scientific rigor have been key to advancing timelines and delivering results.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.