About Bristol-Myers Squibb Company
Pharmaceutical giant Bristol-Myers Squibb (BMS) treats an array of maladies through its vast lineup of therapies. The company's blockbuster drugs include Eliquis for stroke prevention, cancer treatment Opdivo, and rhemuatoid arthritis treatment Orencia. Most of the firm's sales come from products in the areas of hematology, oncology, cardiovascular, fibrosis, and immunology. BMS has global research facilities and manufacturing plants, mainly in the US and Europe. The US accounts for about 60% of sales.
BMS operates in one segment: Biopharmaceuticals. The company has five blockbuster drugs experiencing growing sales. An oral Factor Xa inhibitor, targeted at stroke prevention in adult patients with NVAF and the prevention and treatment of VTE disorders Eliquis brings in about $8 billion and anti-cancer indications including bladder, blood, colon, head and neck, kidney, liver, lung, melanoma and stomach Opdivo brings in more than $7 billion in sales, or about 30% of annual revenue, each. Rheumatoid arthritis drug Orencia earns about $3 billion and leukemia medication Sprycel earns about $2 billion (about 10% of sales each), while melanoma drug Yervoy brings in about $1.5 billion (some 5%). The company added three more blockbuster drugs through its 2019 purchase of Celgene. Another promising drug experiencing rising sales is Empliciti for multiple myeloma.
Established brands include Baraclude, Vidaza and other brands generate about 10%.
BMS' R&D efforts are focused on medicines that address serious unmet medical needs, with a special emphasis on immuno-oncology and other cancer therapies. Other core therapeutic areas include immunoscience (especially lupus, rheumatoid arthritis, psoriasis, and inflammatory bowel disease), cardiovascular care (heart disease), and fibrotic disease (lung and liver).
While New York City-based BMS serves a global customer base, the US market accounts for about 60% of its annual revenue. Europe accounts for about 25% of sales, rest of the world and other generate more than 15% of sales.
The company operates about 260 manufacturing, R&D, administration, storage and distribution sites around the globe. BMS has four significant manufacturing sites in the US and three in Europe. It has around 10 major research and development facilities in the US and one in Europe.
Sales and Marketing
US wholesale drug distributors McKesson, Cardinal Health, and AmerisourceBergen together account for about 65% of BMS' annual sales. In addition to wholesalers, the company also sells some products directly to customers including hospitals, clinics, government agencies, retailers, and pharmacies.
BMS employs a direct sales force to promote products to doctors, pharmacists, nurses, physician assistants, hospitals, pharmacy benefit managers (PBMs), and managed-care organizations (MCOs). The company also uses television, radio, print, and digital advertising and promotion activities to market its products to consumers.
Advertising and product promotion costs are included in marketing, selling and administrative expenses and were $633 million in 2019, $672 million in 2018 and $740 million in 2017, respectively.
BMS has seen steady revenue growth over the past five years with a growth of 58% between 2015 and 2019. On the other hand, net income has been volatile for the last five years.
The company reported a 16% revenue increase in 2019 to some $26.1 billion as a result of higher demand for its prioritized brands including Eliquis and Opdivo and the Celgene acquisition, which contributed $1.9 billion of revenues, representing approximately one half of the growth.
Net income declined 30% from $4.9 billion in 2018 to $3.4 billion in 2019.
The company ended 2019 with $12.8 billion in cash, up $5.9 billion from 2018. Operating activities contributed $8.1 billion, while investing activities used $9.8 billion (mostly acquisition and other payments, net of cash acquired), and financing activities provided $7.6 billion from issuance of long-term debt.
BMS's strategy is to combine the resources, scale and capability of a pharmaceutical company with the speed and focus on innovation of the biotech industry. Its focus as a biopharmaceutical company is on discovering, developing and delivering transformational medicines for patients facing serious diseases in areas where it believes that the company has an opportunity to make a meaningful difference: oncology (both solid tumors and hematology), immunology, cardiovascular and fibrosis. BMS's four strategic priorities as a combined company are to drive enterprise performance, maximize the value of its commercial portfolio, ensure the long-term sustainability of its pipeline through combined internal and external innovation and establish its new culture and embed its people strategy.
Mergers and Acquisitions
Acquisitions are a major piece of BMS' growth goals. In 2019 the company acquired New Jersey-based, biopharma firm Celgene. Celgene became a wholly-owned subsidiary of Bristol-Myers Squibb Company. Under the terms of the transaction, Celgene shareholders received one share of Bristol-Myers Squibb common stock and $50.00 in cash for each share of Celgene common stock. Celgene shareholders also received one contingent value right (the CVR) representing the right to receive $9.00 in cash, which is subject to the achievement of future regulatory milestones, for each share of Celgene common stock. Based on the closing share price of our common stock in late 2019, the aggregate purchase price was approximately $80.3 billion, including approximately $35.7 billion in cash and approximately $40.4 billion in Bristol-Myers Squibb common stock. Celgene and BMS sold one of Celgene's major drug offerings, Otezla, to Amgen for $13.4 billion to meet FTC merger approval requirements.
Squibb was founded by Dr. Edward Squibb in New York City in 1858. Bristol-Myers was founded as Clinton Pharmaceutical in Clinton, New York, in 1887 by William Bristol and John Myers to sell bulk pharmaceuticals. Bristol-Myers Squibb was formed through the merger of Bristol-Myers and Squibb in 1989. The firm was renamed after its founders in 1900. In 1929, the company was publicly held on the New York Exchange company.
430 E 29th St FL 14
New York, NY 10016-8367
Phone: 1 (212) 546-4000
Employer Type: Publicly Owned
Stock Symbol: BMY
Stock Exchange: , NYSE
EVP, CFO, and Global Business Operations: Charles A. Bancroft
Chairman and CEO: Giovanni Caforio
SVP and CIO: Paul von Autenried
Employees (This Location): 1,200
Employees (All Locations): 30,000
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