Bristol-Myers Squibb Reports 8% Revenue Growth, Net Loss Due to Acquisition-Related Charges and Restructuring Costs

Bristol-Myers Squibb Company (BMS) reported its financial results for the three and nine months ended September 30, 2024, showing significant changes in revenue and profitability compared to the previous fiscal period. Total revenues for Q3 2024 reached $11,892 million, an 8% increase from $10,966 million in Q3 2023. For the nine months ended September 30, 2024, total revenues were $35,958 million, up 7% from $33,529 million in the same period last year. This growth was primarily driven by the company's Growth Portfolio and the performance of its leading product, Eliquis, despite facing generic erosion from products like Sprycel and Revlimid.

Net product sales for the three months ended September 30, 2024, were $11,483 million, an 8% increase from $10,645 million in Q3 2023. For the nine-month period, net product sales rose to $34,967 million from $32,610 million. The U.S. market contributed significantly, with revenues of $8,232 million in Q3 2024, a 9% increase from $7,542 million in Q3 2023.

Despite the revenue growth, BMS reported a net loss of $(9,009) million for the nine months ended September 30, 2024, compared to net earnings of $6,278 million for the same period in 2023. This decline was largely attributed to a one-time, non-tax deductible charge of $12.1 billion related to the acquisition of Karuna, along with substantial impairment charges on intangible assets.

BMS has been active in strategic acquisitions, including the $14 billion purchase of Karuna, which provided rights to the recently FDA-approved Cobenfy for schizophrenia. Other acquisitions included RayzeBio for $4.1 billion and Mirati for $4.8 billion, enhancing BMS's capabilities in oncology and neurological treatments. The company also reported a cash settlement of $90 million from Eisai following the termination of their collaboration on MORAb-202.

The company is undergoing a restructuring plan aimed at streamlining operations, with expected costs of approximately $1.5 billion through 2026. This includes significant charges related to employee terminations and integration expenses from recent acquisitions.

BMS's cash flow from operating activities increased to $10,751 million for the nine months ended September 30, 2024, compared to $9,608 million in 2023. However, cash used in investing activities surged to $(21,156) million, primarily due to acquisition-related expenses. The company’s net debt position increased by $14.2 billion during the same period, reflecting its aggressive acquisition strategy.

Overall, while BMS experienced revenue growth, its profitability was significantly impacted by substantial acquisition-related charges and restructuring costs, leading to a notable net loss for the year-to-date period.