Financial results:- Bristol-Myers Squibb (BMS) reports fourth quarter and full year 2016 financial results

Bristol-Myers Squibb Company (NYSE:BMY) today reported results for the fourth quarter and full year of 2016, which were highlighted by strong sales for key products Opdivo and Eliquis, regulatory approvals for Opdivo in the U.S. and Europe, and strategic transactions in oncology and fibrosis that further strengthened the company's pipeline.

Fourth quarter financial results

• Bristol-Myers Squibb posted fourth quarter 2016 revenues of $5.2 billion, an increase of 22% compared to the same period a year ago. Global revenues increased 24% adjusted for foreign exchange impact.U.S. revenues increased 20% to $2.7 billion in the quarter compared to the same period a year ago. International revenues increased 25%. When adjusted for foreign exchange impact, international revenues increased 28%.
• Gross margin as a percentage of revenue decreased from 77.8% to 73.6% in the quarter primarily due to product mix.
• Marketing, selling and administrative expenses decreased 3% to $1.5 billion in the quarter.
• Research and development expenses decreased 27% to $1.4 billion in the quarter due to lower charges resulting from business development transactions and in-process research and development impairments.
• The effective tax rate was 17.3% in the quarter, compared to a benefit of 54.1% in the fourth quarter last year. Income taxes in both periods include net tax benefits attributed to specified items.
• The company reported net earnings attributable to Bristol-Myers Squibb of $894 million, or $0.53 per share, in the quarter compared to a net loss of $197 million, or $0.12 per share, a year ago. The results in the fourth quarter of 2015 included per share after tax charges of $0.24 from the Five Prime Therapeutics, Inc. and Cardioxyl Pharmaceuticals, Inc. business development transactions and $0.08 for the transfer of the Erbitux® business in North America to Eli Lilly and Company.
• The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $1.1 billion, or $0.63 per share, in the fourth quarter, compared to $647 million, or $0.38 per share, for the same period in 2015.
• Cash, cash equivalents and marketable securities were $9.1 billion, with a net cash position of $2.4 billion, as of December 31, 2016.

2017 financial results
Bristol-Myers Squibb is confirming its 2017 GAAP EPS guidance range of $2.47 - $2.67 and is adjusting its non-GAAP EPS guidance range from $2.85 - $3.05 to $2.70 - $2.90. Both GAAP and non-GAAP guidance assume current exchange rates. 2017 GAAP and non-GAAP line-item guidance assumptions include:

• Worldwide revenues increasing in the low-single digits.
• Gross margin as a percentage of revenue to be approximately 72% to 73% for both GAAP and non-GAAP.
• Marketing, selling and administrative expenses decreasing in the mid- to high-single digit range for both GAAP and non-GAAP.
• Research and development expenses increasing in the high-single digit range for both GAAP and non-GAAP.
• An effective tax rate of approximately 21% for both GAAP and non-GAAP.

As previously announced in the third quarter of 2016, the company's operating model is evolving, to drive the company's continued success in the near- and long-term. The majority of costs are expected to be incurred by 2020. Although GAAP operating expenses may increase initially as restructuring and other charges are incurred relating to this evolution, the company expects non-GAAP operating expenses to be roughly flat with 2016 levels through 2020.

"Bristol-Myers Squibb achieved outstanding operating and financial results in 2016, driven by strong commercial performance across our portfolio," said Giovanni Caforio, M.D., chief executive officer, Bristol-Myers Squibb. "In 2017, we will continue to advance our pipeline, drive strong commercial execution across the business and progress our broad portfolio of Immuno-Oncology medicines."