“We made good progress in 2024, which was capped by a fourth quarter of strong topline growth driven by key products and important pipeline advancements. We also achieved the landmark U.S. approval of Cobenfy last year for the treatment of schizophrenia in adults, and we expect this medicine to have a meaningful impact on patients and the company as a new growth driver,” said Christopher Boerner, Ph.D., board chair and chief executive officer, Bristol Myers Squibb. “Our collective focus on execution has established a solid foundation to navigate the multi-year journey toward achieving top-tier sustainable growth and long-term shareholder returns.”
Financial Performance and Key Highlights
Bristol Myers Squibb (BMS) reported strong financial performance for Q4 2024, reflecting significant progress in its growth portfolio and strategic realignments. The company's total revenue for the quarter reached $12.3 billion, contributing to a full-year revenue of $48.3 billion, marking a 7% year-over-year (YoY) increase and a 9% increase excluding foreign exchange (Ex-FX). The revenue growth was driven by robust performance in oncology, cardiovascular, immunology, and neuroscience portfolios.
Operating expenses stood at $5.3 billion for Q4 and $19.6 billion for FY 2024 on a GAAP basis, while non-GAAP expenses were slightly lower at $4.9 billion (Q4) and $17.8 billion (FY). BMS achieved significant cost efficiencies, implementing a $1.5 billion cost-saving initiative, with funds reinvested into high-growth areas. The gross margin was 74% on a non-GAAP basis and 71.1% for the full year.
The non-GAAP diluted EPS came in at $1.67 for Q4 and $6.85 for FY 2024, indicating stable profitability. However, GAAP diluted EPS was significantly lower at $0.04 (Q4) and a loss of $4.41 (FY), largely due to a $13.4 billion impact from acquired in-process R&D (IPR&D) expenses, mainly from the Karuna asset acquisition ($12.1B) and SystImmune collaboration ($0.8B).
Revenue Breakdown by Business Segment
Growth Portfolio Driving Expansion
BMS's growth portfolio showed double-digit sales growth across multiple therapeutic areas. The growth portfolio revenue surged 21% YoY (23% Ex-FX) in Q4 and 17% YoY (19% Ex-FX) for the full year. Meanwhile, the legacy portfolio experienced a decline of 8% YoY due to the loss of exclusivity for Revlimid and other mature brands.
Oncology Segment
Oncology remains a cornerstone of BMS’s business, led by Opdivo, Yervoy, and Opdualag:
Cardiovascular Segment
Hematology Segment
Immunology Segment
Neuroscience Segment
Strategic Growth Initiatives and Pipeline Development
BMS is positioning itself for long-term growth through R&D acceleration, productivity improvements, and portfolio expansion. Key milestones include:
Regulatory submissions and pivotal trials for novel therapies such as Opdualag in adjuvant melanoma, Reblozyl in MF-associated anemia, Camzyos in non-obstructive hypertrophic cardiomyopathy (nHCM), and Iberdomide in RRMM.
Upcoming launches of CD19 NEX-T for autoimmune diseases, Milvexian in cardiovascular indications, and Iza-bren for solid tumors.
Expanded neuroscience presence with Cobenfy, targeting Alzheimer’s, schizophrenia, and bipolar disorders. New pipeline entrants like Golcadomide (FL), MYK-224 (HFpEF), and an anti-MTBR-tau therapy for Alzheimer’s.
Capital Allocation and Financial Strategy
Bristol Myers Squibb (BMS) continues to prioritize financial discipline and shareholder returns through a balanced capital allocation strategy. The company holds $11.2 billion in cash reserves, providing flexibility for strategic investments and operational stability. Meanwhile, total debt stands at $49.6 billion, with a structured repayment plan of approximately $10 billion by the first half of 2026, including $6 billion repaid in 2024. BMS also maintains a $5 billion share repurchase authorization, reinforcing its commitment to returning value to shareholders. Additionally, dividend payments remain a priority, subject to board approval, further underscoring BMS’s dedication to long-term shareholder value.
2025 Guidance and Outlook
For fiscal year 2025, Bristol Myers Squibb (BMS) anticipates generating total revenue of approximately $45.5 billion, factoring in a $500 million impact from foreign exchange fluctuations. The company projects non-GAAP earnings per share (EPS) range of $6.55 to $6.85, reflecting its focus on sustained profitability. Operating expenses are expected to be around $16 billion, supported by ongoing efficiency initiatives, including a $2 billion cost-cutting program, with $1 billion in savings targeted for 2025. BMS forecasts a gross margin of approximately 72%, maintaining financial resilience despite an expected 18-20% decline in legacy portfolio sales, particularly from Revlimid, which is projected to contribute $2 - $2.5 billion in revenue.
Bristol Myers Squibb delivered a strong Q4 and FY 2024 performance, with revenue growth led by its expanding growth portfolio. The oncology, cardiovascular, and immunology segments drove double-digit sales growth, while Cobenfy positioned BMS as a serious player in neuroscience. Cost efficiencies, strategic investments, and pipeline advancements are expected to sustain long-term top-tier growth. However, the company faces challenges from generic erosion in hematology and continued reliance on legacy drugs. The $2 billion cost-cutting program and robust late-stage pipeline should help mitigate these headwinds, keeping BMS well-positioned for sustained growth.
