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August 16, 2025 • 3 min read
Bristol Myers Squibb (BMY), a global biopharmaceutical powerhouse, recently released its financial results for the second quarter of 2025. This mid-year check-in, detailed in its Quarterly Report on Form 10-Q, offers a fascinating glimpse into a company navigating a major strategic transition. Let's dive into the income statement to see how BMY is performing as it balances the decline of older blockbusters with the rise of new medicines.
A look at Bristol Myers Squibb's revenue reveals a clear strategy: managing the decline of its "Legacy Portfolio" while aggressively promoting its "Growth Portfolio." For the quarter, total revenues were nearly flat at $12.3 billion, but this stability masks a dramatic shift happening under the surface.
The Growth Portfolio, featuring newer drugs, is firing on all cylinders. Sales from this group surged 18% to $6.6 billion compared to the same quarter last year. Key performers include:
Meanwhile, the Legacy Portfolio saw revenues shrink by 14% to $5.7 billion. This was expected, as blockbuster drugs like the cancer treatment Revlimid (down 38%) and Sprycel (down 72%) face increasing generic competition. One bright spot in this group remains Eliquis, the anticoagulant co-developed with Pfizer, which still grew a respectable 8% to $3.7 billion. The key takeaway is that BMY's new products are successfully filling the revenue gap left by its aging stars.
While revenues held steady, net earnings attributable to BMS fell to $1.3 billion from $1.7 billion in the second quarter of 2024. To understand why, we need to look at the company's expenses.
The following flow diagram illustrates how Bristol Myers Squibb's revenue is allocated across its various costs and expenses to arrive at its final profit.
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The most significant factor impacting profitability was a massive $1.5 billion charge for Acquired In-Process Research and Development (IPRD). IPRD represents the cost of acquiring or licensing drug candidates that are still in development. This specific charge stems from an upfront payment for a major new collaboration with BioNTech to develop next-generation cancer therapies. While it hits the current quarter's earnings hard, it represents a major investment in the company's future pipeline.
On the other hand, a non-cash expense called Amortization of Acquired Intangible Assets fell sharply from $2.4 billion to $830 million. This expense relates to writing down the value of patents from previous acquisitions, most notably the 2019 Celgene deal. The company also showed cost discipline, with both Research & Development and administrative expenses declining year-over-year.
Bristol Myers Squibb's Q2 report tells the story of a company in a critical transition period. The performance of its Growth Portfolio is encouraging and essential for offsetting the predictable erosion of its legacy drugs. The significant drop in net income is not a sign of operational failure but rather a reflection of a bold, strategic investment in future growth through the BioNTech partnership.
In the highly competitive pharmaceutical industry, where patent cliffs are a constant threat, BMY's strategy of aggressive R&D investment and collaboration is a necessary path forward. The company's future success will depend on its ability to continue this transition, ensuring its pipeline of new drugs can more than make up for the decline of its past champions.
Last updated: August 16, 2025