BRISTOL-MYERS SQUIBB COMPANY (Exact Name of Registrant as Specified in its Charter)

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act Of 1934 Date of Report (Date of earliest event reported): July 26, 2018 BRISTOL-MYERS SQUIBB COMPANY (Exact Name of Registrant as Specified in its Charter) Delaware (State or Other Jurisdiction of Incorporation) (Commission File Number) 430 E. 29th Street, 14FL, New York, N.Y (Address of Principal Executive Office) Registrant s telephone number, including area code: (212) (IRS Employer Identification Number) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( seegeneral Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c))

2 Item Results of Operations and Financial Condition. On July 26, 2018, Bristol-Myers Squibb Company (the Company ) issued a press release announcing its financial results for the second quarter of A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference. Also furnished and incorporated by reference as Exhibit 99.2 is certain supplemental information posted on the Company s website at Item Financial Statements and Exhibits. (d) Exhibits Press release of Bristol-Myers Squibb Company dated July 26, Certain supplemental information posted on Bristol-Myers Squibb Company s website at not included in the press release.

3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BRISTOL-MYERS SQUIBB COMPANY Dated: July 26, 2018 By: /s/ Katherine R. Kelly Name: Katherine R. Kelly Title: Corporate Secretary

4 EXHIBIT INDEX Exhibit No. Description 99.1 Press release of Bristol-Myers Squibb Company dated July 26, Certain supplemental information posted on Bristol-Myers Squibb Company s website at not included in the press release.

5 Exhibit 99.1 Bristol-Myers Squibb Reports Second Quarter Financial Results Increases Second Quarter Revenues 11% to $5.7 Billion Posts Second Quarter GAAP EPS of $0.23 and Non-GAAP EPS of $1.01 Achieves Significant Regulatory Milestones in Oncology Presents Important New Data on Immuno-Oncology Portfolio at ASCO Updates 2018 GAAP and Non-GAAP EPS Guidance (NEW YORK, July 26, 2018) - Bristol-Myers Squibb Company (NYSE:BMY) today reported results for the second quarter of 2018, which were highlighted by strong sales for Eliquis(apixaban) and Opdivo(nivolumab), and important regulatory progress in the company s Immuno-Oncology portfolio. We had a very good second quarter where we delivered strong performance for Eliquisand Opdivo,and achieved important regulatory and data milestones supporting our Immuno-Oncology portfolio, said Giovanni Caforio, M.D., chairman and chief executive officer, Bristol-Myers Squibb. Looking forward, we are focused on robust commercial execution and the evolution of our diversified pipeline to deliver transformational medicines to the patients we serve. Second Quarter $ amounts in millions, except per share amounts Change Total Revenues $ 5,704 $ 5, % GAAP Diluted EPS (59)% Non-GAAP Diluted EPS % 1

6 SECOND QUARTER FINANCIAL RESULTS Bristol-Myers Squibb posted second quarter 2018 revenues of $5.7 billion, an increase of 11% compared with the same period a year ago. Revenues increased 9% when adjusted for foreign exchange impact. U.S. revenues increased 13% to $3.2 billion in the quarter compared to the same period a year ago. International revenues increased 9%. When adjusted for foreign exchange impact, international revenues increased 4%. Gross margin as a percentage of revenue increased from 69.5% to 71.5% in the quarter primarily due to an impairment charge for a manufacturing site in the prior period. Marketing, selling and administrative expenses decreased 5% to $1.1 billion in the quarter. Research and development expenses increased 45% to $2.4 billion in the quarter, which includes a $1.1 billion charge resulting from the Nektar collaboration in the second quarter of The effective tax rate was 26.1% in the quarter, compared to 28.8% in the second quarter last year. The effective tax rate includes a nondeductible equity investment loss in the second quarter of The company reported net earnings attributable to Bristol-Myers Squibb of $373 million, or $0.23 per share, in the second quarter compared to net earnings of $916 million, or $0.56 per share, for the same period in The company reported non-gaap net earnings attributable to Bristol-Myers Squibb of $1.6 billion, or $1.01 per share, in the second quarter, compared to $1.2 billion, or $0.74 per share, for the same period in An overview of specified items is provided under the Use of Non-GAAP Financial Information section. Cash, cash equivalents and marketable securities were $8.2 billion, with a net cash position of $805 million, as of June 30,

7 SECOND QUARTER PRODUCT AND PIPELINE UPDATE ProductSales/BusinessHighlights Global revenues for the second quarter of 2018, compared to the second quarter of 2017, were driven by: Eliquis,which grew by $474 million or a 40% increase Opdivo,which grew by $432 million or a 36% increase Orencia,which grew by 9% Sprycel,which grew by 6% Yervoy, which decreased by 2% Opdivo Regulatory In July, the company announced the U.S. Food and Drug Administration (FDA) approved Opdivoplus low-dose Yervoy (injections for intravenous use) for the treatment of adult and pediatric patients 12 years and older with microsatellite instability high or mismatch repair deficient metastatic colorectal cancer that has progressed following treatment with a fluoropyrimidine, oxaliplatin and irinotecan. In June, the company announced the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) recommended expanded approval of the current indications for Opdivoto include the adjuvant treatment of adult patients with melanoma with involvement of lymph nodes or metastatic disease who have undergone complete resection. The CHMP recommendation will be reviewed by the European Commission (EC), which has the authority to approve medicines for the European Union. In June, the company announced the FDA accepted its supplemental Biologics License Application for Opdivoplus low-dose Yervoyfor the treatment of first-line advanced non-small cell lung cancer (NSCLC) in patients with tumor mutational burden (TMB) 10 mutations per megabase (mut/mb). In June, the China National Drug Administration approved Opdivofor the treatment of locally advanced or metastatic NSCLC after prior platinum-based chemotherapy in adult patients without EGFR or ALK genomic tumor aberrations. In May, the EMA validated a type II variation application for the Opdivoplus Yervoycombination for treatment in adult patients with first-line metastatic NSCLC who have TMB 10 mut/mb. Clinical In June, at the 2018 American Society of Clinical Oncology, the company announced important new data and analysis from four studies evaluating Opdivoas monotherapy and in combination with Yervoy, chemotherapy or NKTR-214: 3

8 Sprycel Regulatory CheckMate -227: Results from a part of the Phase 3 trial evaluating Opdivoplus low-dose Yervoyand Opdivoplus chemotherapy versus chemotherapy in patients with first-line advanced NSCLC with PD-L1 expression <1%, across squamous and non-squamous tumor histologies (Part 1b). (link) CheckMate -238: Results from the Phase 3 trial evaluating Opdivoversus Yervoyin patients with stage IIIB/C or stage IV melanoma who are at high risk of recurrence following complete surgical resection. (link) CheckMate -214: Patient-reported outcomes from the Phase 3 trial evaluating Opdivoplus low-dose Yervoyversus sunitinib over a two-year follow-up period in intermediate- and poor-risk patients with advanced renal cell carcinoma. (link) Results from the Phase 1/2 dose-escalation study with Nektar Therapeutics, evaluating the safety, efficacy and biomarker data of NKTR-214 in combination with Opdivofor patients enrolled in the Phase 1 dose-escalation stage of the study and for the first patients consecutively enrolled in select dose expansion cohorts in Phase 2. (link) In July, the company announced the EC has expanded the indication for Sprycelto include the treatment of children and Empliciti Clinical adolescents aged 1 year to 18 years with Philadelphia chromosome-positive chronic myeloid leukemia in chronic phase, and to include a powder for oral suspension formulation. In June, the company announced the Phase 2 study evaluating the addition of Emplicitito pomalidomide and low-dose dexamethasone in patients with relapsed/refractory multiple myeloma showed a statistically significant and clinically meaningful improvement in progression free survival for patients treated with EPd compared with pomalidomide and dexamethasone alone. (link) 4

9 SECOND QUARTER BUSINESS DEVELOPMENT UPDATE In July, the company and Tsinghua University announced a collaboration to discover therapeutic agents against novel targets for autoimmune diseases and cancers. The collaboration brings together the respective scientific expertise and capabilities of both organizations with a focus on validating new targets and generating early drug candidates for clinical development. In April, the company and Nektar Therapeutics completed the agreement for the development and commercialization of NKTR-214 with Opdivoand Opdivoplus Yervoy, originally announced in February In April, the company and Flatiron Health announced a three-year agreement to curate regulatory-grade real-world data for cancer research and real-world evidence generation FINANCIAL GUIDANCE Bristol-Myers Squibb is decreasing its 2018 GAAP EPS guidance range from $ $2.80 to $ $2.78 and increasing its non-gaap EPS guidance range from $ $3.45 to $ $3.65. Both GAAP and non-gaap guidance assume current exchange rates. Key revised 2018 GAAP and non-gaap line-item guidance assumptions are: Worldwide revenues increasing in the mid- to high-single digits. The financial guidance for 2018 excludes the impact of any potential future strategic acquisitions and divestitures, and any specified items that have not yet been identified and quantified. The non-gaap 2018 guidance also excludes other specified items as discussed under Use of Non-GAAP Financial Information. Details reconciling adjusted non-gaap amounts with the amounts reflecting specified items are provided in supplemental materials available on the company s website. Use of Non-GAAP Financial Information This press release contains non-gaap financial measures, including non-gaap earnings and related EPS information, that are adjusted to exclude certain costs, expenses, gains and losses and other specified items that are evaluated on an individual basis. These items are adjusted after considering their quantitative and qualitative aspects and typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods including restructuring costs, accelerated depreciation and impairment of property, plant and equipment and intangible assets, R&D charges in connection with the acquisition or licensing of third party intellectual property rights, divestiture and equity investment gains or losses, upfront payments from out-licensed assets, pension charges, legal and other contractual settlements and debt redemption gains or losses, among other items. 5

10 Deferred and current income taxes attributed to these items are also adjusted for considering their individual impact to the overall tax expense, deductibility and jurisdictional tax rates. Non-GAAP information is intended to portray the results of our baseline performance, supplement or enhance management, analysts and investors overall understanding of our underlying financial performance and facilitate comparisons among current, past and future periods. For example, non-gaap earnings and EPS information is an indication of our baseline performance before items that are considered by us to not be reflective of our ongoing results. In addition, this information is among the primary indicators we use as a basis for evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting for future periods. This information is not intended to be considered in isolation or as a substitute for net earnings or diluted EPS prepared in accordance with GAAP. Statement on Cautionary Factors This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to goals, plans and projections regarding the company s financial position, results of operations, market position, product development and business strategy. These statements may be identified by the fact that they use words such as "anticipate", "estimates", "should", "expect", "guidance", "project", "intend", "plan", "believe" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Such forwardlooking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. These factors include, among other things, effects of the continuing implementation of governmental laws and regulations related to Medicare, Medicaid, Medicaid managed care organizations and entities under the Public Health Service 340B program, pharmaceutical rebates and reimbursement, market factors, competitive product development and approvals, pricing controls and pressures (including changes in rules and practices of managed care groups and institutional and governmental purchasers), economic conditions such as interest rate and currency exchange rate fluctuations, judicial decisions, claims and concerns that may arise regarding the safety and efficacy of in-line products and product candidates, changes to wholesaler inventory levels, variability in data provided by third parties, changes in, and interpretation of, governmental regulations and legislation affecting domestic or foreign operations, including tax obligations, changes to business or tax planning strategies, difficulties and delays in product development, manufacturing or sales including any potential future recalls, patent positions and the ultimate outcome of any litigation matter. These factors also include the company s ability to successfully execute its strategic plans, including its business development strategy, the expiration of patents or data protection on certain products, including assumptions about the company s ability to retain patent exclusivity of certain products, and the impact and result of governmental investigations. There can be no guarantees with respect to pipeline products that future clinical studies will support the data described in this release, that the compounds will receive necessary regulatory approvals, or that they will prove to be commercially successful; nor are there guarantees that regulatory approvals will be sought, or sought within currently expected timeframes, or that contractual milestones will be achieved. For further details and a discussion of these and other risks and uncertainties, see the company's periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. 6

11 Company and Conference Call Information Bristol-Myers Squibb is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. For more information about Bristol-Myers Squibb, visit us at BMS.com or follow us on LinkedIn, Twitter, YouTube and Facebook. There will be a conference call on July 26, 2018 at 10:30 a.m. EDT during which company executives will review financial information and address inquiries from investors and analysts. Investors and the general public are invited to listen to a live webcast of the call at or by calling the U.S. toll free or international , confirmation code: Materials related to the call will be available at the same website prior to the conference call. A replay of the call will be available beginning at 1:30 p.m. EDT on July 26, 2018 through 1:30 p.m. EDT on August 9, The replay will also be available through or by calling the U.S. toll free or international , confirmation code: For more information, contact: Communications: Lisa McCormick Lavery, , lisa.mccormicklavery@bms.com Investor Relations: John Elicker, , john.elicker@bms.com, Tim Power, , timothy.power@bms.com or Bill Szablewski, , william.szablewski@bms.com. 7

12 Three Months Ended June 30, Prioritized Brands BRISTOL-MYERS SQUIBB COMPANY PRODUCT REVENUE FOR THE THREE MONTHS ENDED JUNE 30, 2018 AND 2017 (Unaudited, dollars in millions) Worldwide Revenues U.S. Revenues % Change Opdivo $ 1,627 $ 1, % $ 1,024 $ % Eliquis 1,650 1, % % Orencia % % Sprycel % % Yervoy (2)% (7)% Empliciti % % % Change Established Brands Baraclude (34)% 9 12 (25)% Sustiva Franchise (61)% (95)% Reyataz Franchise (38)% (38)% Hepatitis C Franchise (89)% (2) 30 ** Other Brands (12)% (15)% Total $ 5,704 $ 5, % $ 3,230 $ 2, % 8

13 Six Months Ended June 30, Prioritized Brands BRISTOL-MYERS SQUIBB COMPANY PRODUCT REVENUE FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017 (Unaudited, dollars in millions) Worldwide Revenues U.S. Revenues % Change Opdivo $ 3,138 $ 2, % $ 1,962 $ 1, % Eliquis 3,156 2, % 1,864 1, % Orencia 1,304 1, % % Sprycel (1)% Yervoy (13)% (20)% Empliciti % % % Change Established Brands Baraclude (27)% (27)% Sustiva Franchise (58)% (94)% Reyataz Franchise (37)% (40)% Hepatitis C Franchise (95)% 3 72 (96)% Other Brands (16)% (14)% Total $ 10,897 $ 10,073 8 % $ 6,008 $ 5,603 7 % 9

14 BRISTOL-MYERS SQUIBB COMPANY CONSOLIDATED STATEMENTS OF EARNINGS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 AND 2017 (Unaudited, dollars and shares in millions except per share data) Three Months Ended June 30, Six Months Ended June 30, Net product sales $ 5,461 $ 4,770 $ 10,433 $ 9,350 Alliance and other revenues Total Revenues 5,704 5,144 10,897 10,073 Cost of products sold 1,625 1,569 3,209 2,834 Marketing, selling and administrative 1,131 1,187 2,111 2,272 Research and development 2,435 1,679 3,685 2,982 Other income (net) (4) (586) (404) (1,265) Total Expenses 5,187 3,849 8,601 6,823 Earnings Before Income Taxes 517 1,295 2,296 3,250 Provision for Income Taxes Net Earnings ,877 2,448 Net Earnings/(Loss) Attributable to Noncontrolling Interest (42) Net Earnings Attributable to BMS $ 373 $ 916 $ 1,859 $ 2,490 Average Common Shares Outstanding: Basic 1,633 1,644 1,633 1,653 Diluted 1,636 1,650 1,638 1,660 Earnings per Common Share Basic $ 0.23 $ 0.56 $ 1.14 $ 1.51 Diluted Other income (net) Interest expense $ 45 $ 52 $ 91 $ 97 Investment income (38) (29) (74) (55) Loss/(gain) on equity investments 356 (5) 341 (12) Provision for restructuring Litigation and other settlements (1) (5) (1) (489) Equity in net income of affiliates (27) (20) (51) (38) Divestiture gains (25) (70) (127) Royalties and licensing income (353) (685) (720) (884) Transition and other service fees (1) (13) (5) (20) Pension and postretirement (19) (11) (30) (10) Intangible asset impairment 64 Loss on debt redemption Other 22 6 (6) (15) Other income (net) $ (4) $ (586) $ (404) $ (1,265) 10

15 BRISTOL-MYERS SQUIBB COMPANY SPECIFIED ITEMS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 AND 2017 (Unaudited, dollars in millions) Three Months Ended June 30, Six Months Ended June 30, Impairment charges $ $ 127 $ 10 $ 127 Accelerated depreciation and other shutdown costs Cost of products sold Marketing, selling and administrative 1 License and asset acquisition charges 1, , IPRD impairments 75 Site exit costs and other Research and development 1, , Loss/(gain) on equity investments Provision for restructuring Litigation and other settlements (481) Divestiture gains (25) (68) (100) Royalties and licensing income (25) (497) (75) (497) Pension and postretirement Intangible asset impairment 64 Loss on debt redemption Other income (net) 380 (337) 387 (721) Increase to pretax income 1, , Income taxes on specified items (218) 20 (226) 92 Income taxes attributed to U.S. tax reform 3 (29) Income taxes (215) 20 (255) 92 Increase to net earnings 1, , Noncontrolling interest (59) Increase to net earnings used for diluted Non-GAAP EPS calculation $ 1,273 $ 302 $ 1,334 $

16 BRISTOL-MYERS SQUIBB COMPANY RECONCILIATION OF CERTAIN GAAP LINE ITEMS TO CERTAIN NON-GAAP LINE ITEMS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 AND 2017 (Unaudited, dollars in millions) GAAP Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Specified Items (a) Non- GAAP GAAP Gross Profit $ 4,079 $ 14 $ 4,093 $ 7,688 $ 27 $ 7,715 Marketing, selling and administrative 1,131 1,131 2,111 (1) 2,110 Research and development 2,435 (1,094) 1,341 3,685 (1,174) 2,511 Other income (net) (4) (380) (384) (404) (387) (791) Earnings Before Income Taxes 517 1,488 2,005 2,296 1,589 3,885 Provision for Income Taxes 135 (215) (255) 674 Noncontrolling interest Specified Items (a) Non- GAAP Net Earnings Attributable to BMS used for Diluted EPS Calculation $ 373 $ 1,273 $ 1,646 $ 1,859 $ 1,334 $ 3,193 Average Common Shares Outstanding - Diluted 1,636 1,636 1,636 1,638 1,638 1,638 Diluted Earnings Per Share $ 0.23 $ 0.78 $ 1.01 $ 1.13 $ 0.82 $ 1.95 Effective Tax Rate 26.1% (8.6)% 17.5% 18.2% (0.9)% 17.3% GAAP Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Specified Items (a) Non- GAAP GAAP Gross Profit $ 3,575 $ 130 $ 3,705 $ 7,239 $ 130 $ 7,369 Marketing, selling and administrative 1,187 1,187 2,272 2,272 Research and development 1,679 (489) 1,190 2,982 (686) 2,296 Other income (net) (586) 337 (249) (1,265) 721 (544) Earnings Before Income Taxes 1, ,577 3, ,345 Provision for Income Taxes Noncontrolling interest 6 6 (42) (59) 17 Specified Items (a) Non- GAAP Net Earnings Attributable to BMS used for Diluted EPS Calculation $ 916 $ 302 $ 1,218 $ 2,490 $ 128 $ 2,618 Average Common Shares Outstanding - Diluted 1,650 1,650 1,650 1,660 1,660 1,660 Diluted Earnings Per Share $ 0.56 $ 0.18 $ 0.74 $ 1.50 $ 0.08 $ 1.58 Effective Tax Rate 28.8% (6.4)% 22.4% 24.7% (3.5)% 21.2% (a) Refer to the Specified Items schedule for further details. Effective tax rate on the Specified Items represents the difference between the GAAP and Non-GAAP effective tax rate. 12

17 BRISTOL-MYERS SQUIBB COMPANY NET CASH/(DEBT) CALCULATION AS OF JUNE 30, 2018 AND MARCH 31, 2018 (Unaudited, dollars in millions) June 30, 2018 March 31, 2018 Cash and cash equivalents $ 4,999 $ 5,342 Marketable securities - current 1,076 1,428 Marketable securities - non-current 2,117 2,252 Cash, cash equivalents and marketable securities 8,192 9,022 Short-term debt obligations (1,716) (1,925) Long-term debt (5,671) (5,775) Net cash position $ 805 $ 1,322 13

18 Exhibit 99.2 BRISTOL-MYERS SQUIBB COMPANY QUARTERLY TREND ANALYSIS OF REVENUES (Unaudited, dollars in millions) Revenues % Change FX Impact 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year United States $ 2,738 $ 2,865 $ 5,603 $ 2,864 $ 8,467 $ 2,891 $ 11,358 $ 2,778 $ 3,230 $ 6, % 7 % Europe 1,146 1,188 2,334 1,262 3,596 1,392 4,988 1,406 1,408 2, % 21 % 9% 12% Rest of the World , ,858 1,019 3, ,796 (4)% (5)% 1% 2% Other % 13 % N/A N/A Total $ 4,929 $ 5,144 $ 10,073 $ 5,254 $ 15,327 $ 5,449 $ 20,776 $ 5,193 $ 5,704 $ 10, % 8 % 2% 3% Qtr vs. Qtr YTD vs. YTD Qtr vs. Qtr YTD vs. YTD % of Revenues st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year 1st Qtr 2nd Qtr 6 Months United States 55.5% 55.7% 55.6% 54.5% 55.2% 53.1% 54.7% 53.5% 56.6% 55.1% Europe 23.3% 23.1% 23.2% 24.0% 23.5% 25.5% 24.0% 27.1% 24.7% 25.8% Rest of the World 18.8% 18.7% 18.7% 18.5% 18.6% 18.7% 18.7% 16.8% 16.2% 16.5% Other 2.4% 2.5% 2.5% 3.0% 2.7% 2.7% 2.6% 2.6% 2.5% 2.6% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 3rd Qtr 9 Months 4th Qtr Year 1

19 BRISTOL-MYERS SQUIBB COMPANY EARNINGS FROM OPERATIONS (Unaudited, dollars and shares in millions except per share data) % Change 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year Net product sales $ 4,580 $ 4,770 $ 9,350 $ 4,862 $ 14,212 $ 5,046 $ 19,258 $ 4,972 $ 5,461 $ 10, % 12 % Alliance and other revenues , , (35)% (36)% Total Revenues $ 4,929 $ 5,144 $ 10,073 $ 5,254 $ 15,327 $ 5,449 $ 20,776 $ 5,193 $ 5,704 $ 10, % 8 % Cost of products sold 1,265 1,569 2,834 1,579 4,413 1,681 6,094 1,584 1,625 3,209 4 % 13 % Marketing, selling and administrative 1,085 1,187 2,272 1,163 3,435 1,316 4, ,131 2,111 (5)% (7)% Research and development 1,303 1,679 2,982 1,561 4,543 1,939 6,482 1,250 2,435 3, % 24 % Other income (net) (679) (586) (1,265) (232) (1,497) (185) (1,682) (400) (4) (404) (99)% (68)% Total Expenses 2,974 3,849 6,823 4,071 10,894 4,751 15,645 3,414 5,187 8, % 26 % Earnings Before Income Taxes $ 1,955 $ 1,295 $ 3,250 $ 1,183 $ 4,433 $ 698 $ 5,131 $ 1,779 $ 517 $ 2,296 (60)% (29)% Provision for Income Taxes ,129 3,027 4, (64)% (48)% Net Earnings/(Loss) $ 1,526 $ 922 $ 2,448 $ 856 $ 3,304 $ (2,329) $ 975 $ 1,495 $ 382 $ 1,877 (59)% (23)% Net Earnings/(Loss) Attributable to Noncontrolling Interest (48) 6 (42) 11 (31) (1) (32) % ** Net Earnings/(Loss) Attributable to BMS $ 1,574 $ 916 $ 2,490 $ 845 $ 3,335 $ (2,328) $ 1,007 $ 1,486 $ 373 $ 1,859 (59)% (25)% Qtr vs. Qtr YTD vs. YTD Diluted Earnings/(Loss) per Common Share* $ 0.94 $ 0.56 $ 1.50 $ 0.51 $ 2.02 $ (1.42) $ 0.61 $ 0.91 $ 0.23 $ 1.13 (59)% (25)% Average Common Shares Outstanding - Diluted 1,671 1,650 1,660 1,645 1,655 1,635 1,652 1,640 1,636 1,638 (1)% (1)% Dividends declared per common share $ 0.39 $ 0.39 $ 0.78 $ 0.39 $ 1.17 $ 0.40 $ 1.57 $ 0.40 $ 0.40 $ % 3 % % of Total Revenues 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year Gross Margin 74.3% 69.5% 71.9% 69.9% 71.2% 69.2% 70.7% 69.5% 71.5% 70.6% Other Ratios Effective tax rate 21.9% 28.8% 24.7% 27.6% 25.5% 433.7% 81.0% 16.0% 26.1% 18.2% Other income (net) % Change 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year Interest expense $ 45 $ 52 $ 97 $ 48 $ 145 $ 51 $ 196 $ 46 $ 45 $ 91 (13)% (6)% Investment income (26) (29) (55) (32) (87) (39) (126) (36) (38) (74) 31 % 35 % Loss/(gain) on equity investments (7) (5) (12) (5) (17) (11) (28) (15) ** ** Provision for restructuring ** (68)% Litigation and other settlements (484) (5) (489) (489) 2 (487) (1) (1) (80)% (100)% Equity in net income of affiliates (18) (20) (38) (21) (59) (16) (75) (24) (27) (51) 35 % 34 % Divestiture (gains)/losses (127) (127) 1 (126) (38) (164) (45) (25) (70) N/A (45)% Royalties and licensing income (199) (685) (884) (209) (1,093) (258) (1,351) (367) (353) (720) (48)% (19)% Qtr vs. Qtr YTD vs. YTD

20 Transition and other service fees (7) (13) (20) (12) (32) (5) (37) (4) (1) (5) (92)% (75)% Pension and postretirement 1 (11) (10) (19) (29) 28 (1) (11) (19) (30) 73 ** Intangible asset impairment N/A Equity investment impairment 5 5 Loss on debt redemption (100)% (100)% Other (21) 6 (15) (11) (26) 10 (16) (28) 22 (6) ** (60)% $ (679) $ (586) $ (1,265) $ (232) $ (1,497) $ (185) $ (1,682) $ (400) $ (4) $ (404) (99)% (68)% * Quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations. ** In excess of +/- 100% 2

21 BRISTOL-MYERS SQUIBB COMPANY RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT FOR THE PERIOD ENDED JUNE 30, 2018 (Unaudited, dollars in millions) QUARTER-TO-DATE Growth $ Growth % Favorable / (Unfavorable) FX Impact $ * 2018 Excluding FX Favorable / (Unfavorable) FX Impact % * Growth % Excluding FX Revenues $ 5,704 $ 5,144 $ % $ 107 $ 5,597 2 % 9 % Gross profit 4,079 3, % N/A N/A N/A N/A Gross profit excluding specified items (a) 4,093 3, % N/A N/A N/A N/A Gross profit excluding specified items as a % of revenues 71.8% 72.0% Marketing, selling and administrative 1,131 1,187 (56) (5)% (20) 1,111 (1)% (6)% Marketing, selling and administrative excluding specified items (a) 1,131 1,187 (56) (5)% (20) 1,111 (1)% (6)% Marketing, selling and administrative excluding specified items as a % of revenues 19.8% 23.1% Research and development 2,435 1, % (9) 2,426 (1)% 44 % Research and development excluding specified items (a) 1,341 1, % (9) 1,332 (1)% 12 % Research and development excluding specified items as a % of revenues 23.5% 23.1% YEAR-TO-DATE Growth $ Growth % Favorable / (Unfavorable) FX Impact $ * 2018 Excluding FX Favorable / (Unfavorable) FX Impact % * Growth % Excluding FX Revenues $ 10,897 $ 10,073 $ % $ 308 $ 10,589 3 % 5 % Gross profit 7,688 7, % N/A N/A N/A N/A Gross profit excluding specified items (a) 7,715 7, % N/A N/A N/A N/A Gross profit excluding specified items as a % of revenues 70.8% 73.2% Marketing, selling and administrative 2,111 2,272 (161) (7)% (55) 2,056 (3)% (10)% Marketing, selling and administrative excluding specified items (a) 2,110 2,272 (162) (7)% (55) 2,055 (3)% (10)% Marketing, selling and administrative excluding specified items as a % of revenues 19.4% 22.6% Research and development 3,685 2, % (31) 3,654 (1)% 23 % Research and development excluding specified items (a) 2,511 2, % (25) 2,486 (1)% 8 % Research and development excluding specified items as a % of revenues 23.0% 22.8% (a) Refer to the Specified Items schedule for further details. * Foreign exchange impacts were derived by applying the prior period average currency rates to the current period sales and expenses. 3

22 BRISTOL-MYERS SQUIBB COMPANY WORLDWIDE REVENUES QUARTERLY REVENUES TREND ANALYSIS (Unaudited, dollars in millions) Prioritized Brands 1st Qtr 2nd Qtr Growth $ % Change 6 Months 3rd Qtr 9 Months 4th Qtr Year 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year Qtr vs. Qtr YTD vs. YTD Qtr vs. Qtr YTD vs. YTD Opdivo $ 1,127 $ 1,195 $ 2,322 $ 1,265 $ 3,587 $ 1,361 $ 4,948 $ 1,511 $ 1,627 $ 3,138 $ 432 $ % 35 % Eliquis 1,101 1,176 2,277 1,232 3,509 1,363 4,872 1,506 1,650 3, % 39 % Orencia , , , , % 10 % Sprycel , , % Yervoy , (7) (88) (2)% (13)% Empliciti % 10 % Established Brands Baraclude , (94) (151) (34)% (27)% Sustiva Franchise (a) (115) (215) (61)% (58)% Reyataz Franchise (71) (140) (38)% (37)% Hepatitis C Franchise (b) (100) (259) (89)% (95)% Other Brands , , (58) (152) (12)% (16)% Total $ 4,929 $ 5,144 $ 10,073 $ 5,254 $ 15,327 $ 5,449 $ 20,776 $ 5,193 $ 5,704 $ 10,897 $ 560 $ % 8 % (a) The Sustiva Franchise includes sales of Sustiva, BMS's share of Atripla revenues in Europe, and U.S. Atripla royalty revenue beginning January 1, (b) Includes Daklinza (daclatasvir) and Sunvepra (asunaprevir) revenues. 4

23 BRISTOL-MYERS SQUIBB COMPANY U.S. REVENUES QUARTERLY REVENUES TREND ANALYSIS (Unaudited, dollars in millions) Prioritized Brands % Change 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year Qtr vs. Qtr YTD vs. YTD Opdivo $ 761 $ 768 $ 1,529 $ 778 $ 2,307 $ 795 $ 3,102 $ 938 $ 1,024 $ 1, % 28 % Eliquis , , , , % 33 % Orencia (a) , , % 9 % Sprycel , % (1)% Yervoy (7)% (20)% Empliciti % 7 % Established Brands Baraclude (25)% (27)% Sustiva Franchise (b) (95)% (94)% Reyataz Franchise (38)% (40)% Hepatitis C Franchise (c) (2) 3 ** (96)% Other Brands (15)% (14)% Total (d) $ 2,738 $ 2,865 $ 5,603 $ 2,864 $ 8,467 $ 2,891 $ 11,358 $ 2,778 $ 3,230 $ 6, % 7 % ** In excess of +/- 100% (a) In 2018, U.S. Sustiva Franchise revenues include sales of Sustiva only. (b) Includes revenues of Daklinza (daclastasvir) only. (c) Includes United States and Puerto Rico. 5

24 BRISTOL-MYERS SQUIBB COMPANY INTERNATIONAL REVENUES QUARTERLY REVENUES TREND ANALYSIS (Unaudited, dollars in millions) Prioritized Brands % Change 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year Qtr vs. Qtr YTD vs. YTD Opdivo $ 366 $ 427 $ 793 $ 487 $ 1,280 $ 566 $ 1,846 $ 573 $ 603 $ 1, % 48 % Eliquis , , , % 48 % Orencia % 12 % Sprycel % Yervoy % 6 % Empliciti % 17 % Established Brands Baraclude (35)% (27)% Sustiva Franchise (a) ** ** Reyataz Franchise (38)% (34)% Hepatitis C Franchise (b) (2) (83)% (94)% Other Brands , , (11)% (16)% Total (c) $ 2,191 $ 2,279 $ 4,470 $ 2,390 $ 6,860 $ 2,558 $ 9,418 $ 2,415 $ 2,474 $ 4,889 9 % 9 % ** In excess of +/- 100% (a) The Sustiva Franchise includes BMS's share of Atripla revenues in Europe, and U.S. Atripla royalty revenue beginning January 1, (b) Includes Daklinza (daclatasvir) and Sunvepra (asunaprevir) revenues. (c) When adjusted for foreign exchange impact, total revenues increased 4% for the second quarter. 6

25 BRISTOL-MYERS SQUIBB COMPANY SPECIFIED ITEMS (Unaudited, dollars in millions) 1st Qtr 2nd Qtr 6 Months 3rd Qtr Months 4th Qtr Year 1st Qtr Impairment charges $ $ 127 $ 127 $ 1 $ 128 $ 18 $ 146 $ 10 $ $ 10 Accelerated depreciation and other shutdown costs Cost of products sold nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year Marketing, selling and administrative License and asset acquisition charges , ,075 1,135 IPRD impairments Site exit costs and other Research and development , , ,094 1,174 Loss/(gain) on equity investments (15) Provision for restructuring Litigation and other settlements (481) (481) (481) (481) Divestiture gains (100) (100) (100) (26) (126) (43) (25) (68) Royalties and licensing income (497) (497) (497) (497) (50) (25) (75) Pension and postretirement Intangible asset impairment Loss on debt redemption Other income (net) (384) (337) (721) 50 (671) 131 (540) Increase/(decrease) to pretax income (187) , ,488 1,589 Income taxes on specified items (41) 51 (138) (87) (8) (218) (226) Income taxes attributed to U.S. tax reform 2,911 2,911 (32) 3 (29) Income taxes (41) 51 2,773 2,824 (40) (215) (255) Increase/(decrease) to net earnings (115) ,451 4, ,273 1,334 Noncontrolling interest (59) (59) (59) (59) Increase/(decrease) to net earnings used for diluted Non-GAAP EPS calculation $ (174) $ 302 $ 128 $ 384 $ 512 $3,451 $3,963 $ 61 $1,273 $ 1,334 7

26 BRISTOL-MYERS SQUIBB COMPANY RECONCILIATION OF CERTAIN GAAP LINE ITEMS TO CERTAIN NON-GAAP LINE ITEMS (Unaudited, dollars in millions) st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year Gross Profit $ 3,664 $ 3,575 $ 7,239 $ 3,675 $ 10,914 $ 3,768 $ 14,682 $ 3,609 $ 4,079 $ 7,688 Specified items (a) Gross profit excluding specified items 3,664 3,705 7,369 3,676 11,045 3,786 14,831 3,622 4,093 7,715 Marketing, selling and administrative 1,085 1,187 2,272 1,163 3,435 1,316 4, ,131 2,111 Specified items (a) (1) (1) (1) (1) Marketing, selling and administrative excluding specified items 1,085 1,187 2,272 1,163 3,435 1,315 4, ,131 2,110 Research and development 1,303 1,679 2,982 1,561 4,543 1,939 6,482 1,250 2,435 3,685 Specified items (a) (197) (489) (686) (374) (1,060) (528) (1,588) (80) (1,094) (1,174) Research and development excluding specified items 1,106 1,190 2,296 1,187 3,483 1,411 4,894 1,170 1,341 2,511 Other income (net) (679) (586) (1,265) (232) (1,497) (185) (1,682) (400) (4) (404) Specified items (a) (50) 671 (131) 540 (7) (380) (387) Other income (net) excluding specified items (295) (249) (544) (282) (826) (316) (1,142) (407) (384) (791) (a) Refer to the Specified Items schedule for further details. 8

27 BRISTOL-MYERS SQUIBB COMPANY RECONCILIATION OF GAAP TO NON-GAAP EPS (Unaudited, dollars in millions) st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year 1st Qtr 2nd Qtr 6 Months 3rd Qtr 9 Months 4th Qtr Year Earnings before income taxes $ 1,955 $ 1,295 $ 3,250 $ 1,183 $ 4,433 $ 698 $ 5,131 $ 1,779 $ 517 $ 2,296 Specified items (a) (187) , ,488 1,589 Earnings before income taxes excluding specified items 1,768 1,577 3,345 1,608 4,953 1,376 6,329 1,880 2,005 3,885 Provision for income taxes ,129 3,027 4, Tax on specified items (a) (41) 51 (138) (87) (8) (218) (226) Income taxes attributed to U.S. tax reform (a) 2,911 2,911 (32) 3 (29) Provision for income taxes excluding tax on specified items and income taxes attributed to U.S. tax reform , , Net Earnings/(Loss) Attributable to Noncontrolling Interest (48) 6 (42) 11 (31) (1) (32) Specified items (a) (59) (59) (59) (59) Net Earnings/(Loss) Attributable to Noncontrolling Interest excluding specified items (1) Net Earnings/(Loss) Attributable to BMS used for Diluted EPS Calculation - GAAP 1, , ,335 (2,328) 1,007 1, ,859 Specified items (a) (174) ,451 3, ,273 1,334 Net Earnings Attributable to BMS used for Diluted EPS Calculation excluding specified items - Non-GAAP 1,400 1,218 2,618 1,229 3,847 1,123 4,970 1,547 1,646 3,193 Weighted-average Common Shares Outstanding - Diluted- GAAP 1,671 1,650 1,660 1,645 1,655 1,635 1,652 1,640 1,636 1,638 Weighted-average Common Shares Outstanding - Diluted- Non-GAAP 1,671 1,650 1,660 1,645 1,655 1,642 1,652 1,640 1,636 1,638 Diluted Earnings/(Loss) Per Share - GAAP $ 0.94 $ 0.56 $ 1.50 $ 0.51 $ 2.02 $ (1.42) $ 0.61 $ 0.91 $ 0.23 $ 1.13 Diluted Earnings/(Loss) Per Share Attributable to Specified Items (0.10) Diluted Earnings Per Share - Non-GAAP $ 0.84 $ 0.74 $ 1.58 $ 0.75 $ 2.32 $ 0.68 $ 3.01 $ 0.94 $ 1.01 $ 1.95 Effective Tax Rate 21.9 % 28.8 % 24.7 % 27.6 % 25.5 % % 81.0 % 16.0% 26.1 % 18.2 % Specified items (a) (1.7)% (6.4)% (3.5)% (4.7)% (3.7)% (415.2)% (60.0)% 1.2% (8.6)% (0.9)% Effective Tax Rate excluding specified items 20.2 % 22.4 % 21.2 % 22.9 % 21.8 % 18.5 % 21.0 % 17.2% 17.5 % 17.3 % (a) Refer to the Specified Items schedule for further details. Effective tax rate on the Specified Items represents the difference between the GAAP and Non-GAAP effective tax rate. 9

28 BRISTOL-MYERS SQUIBB COMPANY SELECTED BALANCE SHEET INFORMATION (Unaudited, dollars in millions) March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Cash and cash equivalents $ 3,910 $ 3,470 $ 4,644 $ 5,421 $ 5,342 $ 4,999 Marketable securities - current 2,199 3,035 2,478 1,391 1,428 1,076 Marketable securities - non-current 2,685 2,580 2,526 2,480 2,252 2,117 Cash, cash equivalents and marketable securities 8,794 9,085 9,648 9,292 9,022 8,192 Short-term debt obligations (1,197) (1,306) (1,461) (987) (1,925) (1,716) Long-term debt (7,237) (6,911) (6,982) (6,975) (5,775) (5,671) Net cash position $ 360 $ 868 $ 1,205 $ 1,330 $ 1,322 $

29 BRISTOL-MYERS SQUIBB COMPANY 2018 FULL YEAR PROJECTED DILUTED EPS FROM OPERATIONS EXCLUDING PROJECTED SPECIFIED ITEMS Full Year 2018 Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP Pre-tax Tax After-tax $2.68 to $2.78 Projected Specified Items: Restructuring, accelerated depreciation and other exit costs (1) Divestiture gains and licensing income (0.14) (0.04) (0.10) Research and development license and asset acquisition charges Pension charges Loss/(gain) on equity investments 0.21 (0.01) 0.22 Other Total Projected Diluted Earnings Attributable to Shareholders per Common Share - Non-GAAP $3.55 to $3.65 (1) Includes items recognized in Cost of products sold, Research and development and Other income (net). The following table summarizes the company's 2018 financial guidance: Line item GAAP Non-GAAP Worldwide revenues Increasing in the mid- to high-single digits Increasing in the mid- to high-single digits Gross margin as a percent of revenue Approximately 70% Approximately 70% Marketing, selling and administrative expense Decreasing in the low- to mid-single digit range Decreasing in the low- to mid-single digit range Research and development expense Increasing in the low-single digits Increasing in the high-single digits Effective tax rate Between 17%-18% Between 17%-18% The GAAP financial results for the full year 2018 will include specified items, including charges associated with restructuring, downsizing and streamlining worldwide operations, gains/losses on divestitures and equity investments, license and asset acquisition charges, pension charges and other specified items that have not yet been identified and quantified, including litigation and other settlements, licensed asset impairments and finalization of the deemed repatriation tax, among other items. For a fuller discussion of items that could impact full year GAAP results, as well as the use of non-gaap financial information, see Bristol-Myers Squibb Reports Second Quarter 2018 Financial Results, July 26, 2018 including 2018 Financial Guidance and Use of non-gaap Financial Information therein. 11