Bristol-Myers Squibb Company

10/30/2025 | Press release | Distributed by Public on 10/30/2025 10:05

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management's discussion and analysis of financial condition and results of operations is provided as a supplement to and should be read in conjunction with the consolidated financial statements and related footnotes included elsewhere in this Quarterly Report on Form 10-Q to enhance the understanding of our results of operations, financial condition and cash flows. Certain amounts in this Quarterly Report on Form 10-Q may not sum due to rounding. Percentages have been calculated using unrounded amounts.
EXECUTIVE SUMMARY
Our principal strategy is to combine the resources, scale and capability of a large pharmaceutical company with the speed, agility and focus on innovation typically found in the biotech industry. Our focus as a biopharmaceutical company is on discovering, developing and delivering transformational medicines for patients facing serious diseases in areas where we believe that we have an opportunity to make a meaningful difference: oncology, hematology, immunology, cardiovascular, neuroscience and other areas where we can also create long-term value. Our priorities are to focus on transformational medicines where we have a competitive advantage, drive operational excellence and strategically allocate capital for long-term growth and shareholder returns. We are driving commercial execution in our key first-in-class and/or best-in-class marketed products, where we continue to expand and see potential for further expansion into the future. For further information on our strategy, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations-Executive Summary-Strategy" in our 2024 Form 10-K. Refer to the Summary of Abbreviated Terms at the end of this Quarterly Report on Form 10-Q for terms used throughout the document.
In 2025, we have achieved multiple regulatory approvals across our portfolio, including the: (i) approval of Breyanzifor adults with relapsed or refractory FL in the EU, (ii) approval of Camzyosfor the treatment of symptomatic obstructive HCM in Japan, (iii) approval of Opdivo+ Yervoyas a first-line treatment of adult patients with unresectable or advanced HCC in both the U.S. and the EU, (iv) approval of Opdivo+ Yervoyfor first-line treatment of adults and pediatric patients 12 years and older with unresectable or metastatic MSI-H or dMMR colorectal cancer in the U.S. and Japan, (v) approval of Opdivoas a perioperative regimen for resectable high risk NSCLC in the EU and (vi) approval of Opdivo Qvantigfor use across multiple adult solid tumors in the EU. Additionally, we received label updates from the FDA that have reduced or removed certain patient monitoring requirements associated with the use of Camzyos, Breyanziand Abecma.
We continue to pursue activities to advance and expand our pipeline through our internal research and development efforts as well as through business development activities. In October 2025, BMS entered into a definitive agreement to acquire Orbital Therapeutics, which will provide the Company with full rights to OTX-201, a preclinical in vivoCAR T-cell therapy currently in IND-enabling studies for autoimmune disease. Additionally in 2025 the Company (i) entered into a strategic collaboration with BioNTech to co-develop and co-commercialize BioNTech's investigational bispecific antibody pumitamig (BNT327/BMS986545) across multiple solid tumor types, (ii) acquired a global exclusive license from Philochem for OncoACP3, a radiopharmaceutical therapeutic and diagnostic agent targeting prostate cancer, and (iii) expanded our development and manufacturing capabilities by opening a new radiopharmaceutical facility in Indianapolis, Indiana, which will support RPTs acquired in connection with the RayzeBio acquisition. For additional information relating to our acquisitions, divestitures, licensing and other arrangements refer to "Item 1. Financial Statements - Note 3. Alliances" and "Item 1. Financial Statements - Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements".
We remain committed to the strategic allocation of resources and investing in areas that maximize value and drive sustainable growth. As previously announced, our ongoing strategic productivity initiative includes acceleration of the delivery of medicines to patients by evolving and streamlining our enterprise operating model in key areas such as R&D, manufacturing, commercial and other functions. As a result of an expansion in 2025, we expect to realize annual cost savings of approximately $2.0 billion by the end of 2027. The exit costs resulting from these actions are included in our updated 2023 Restructuring Plan.
Financial Highlights
Three Months Ended September 30, Nine Months Ended September 30,
Dollars in millions, except per share data 2025 2024 2025 2024
Total Revenues $ 12,222 $ 11,892 $ 35,692 $ 35,958
Diluted earnings/(loss) per share
GAAP $ 1.08 $ 0.60 $ 2.93 $ (4.45)
Non-GAAP 1.63 1.80 4.89 (0.53)
Revenues increased 3% for the third quarter of 2025 and decreased 1% on a year-to-date basis. Demand increased across the Growth Portfolio and for Eliquis, which was offset by the impact of generics across the remainder of the Legacy Portfolio. Additionally, year-to-date revenues were impacted by the redesign of the U.S. Medicare Part D program.
The $0.48 increase in GAAP EPS for the third quarter of 2025 was primarily due to the impact of certain specified items, including lower amortization of acquired intangible assets, and cost savings from our ongoing strategic productivity initiative in 2025, partially offset by higher one-time Acquired IPRD charges. After adjusting for specified items, the $0.17 decrease in non-GAAP EPS was primarily due to higher one-time Acquired IPRD charges, partially offset by costs savings from our ongoing strategic productivity initiative in 2025.
The $7.38 increase in GAAP EPS year-to-date was primarily due to lower one-time Acquired IPRD charges, the impact of certain specified items, including lower amortization of acquired intangible assets, and cost savings from our ongoing strategic productivity initiative in 2025. After adjusting for specified items, the $5.42 increase in non-GAAP EPS was primarily due to lower one-time Acquired IPRD charges and cost savings from our ongoing strategic productivity initiative in 2025.
Our non-GAAP financial measures, including non-GAAP earnings and related EPS information, are adjusted to exclude specified items that represent certain costs, expenses, gains and losses and other items impacting the comparability of financial results. For further information and reconciliations relating to our non-GAAP financial measures refer to "-Non-GAAP Financial Measures."
Economic and Market Factors
Governmental Actions
As regulators continue to focus on prescription drugs, our products are facing increased pressures across the portfolio. These pressures stem from legislative and policy changes, including price controls, pharmaceutical market access, discounting, changes to tax and importation laws and other restrictions in the U.S., EU and other regions around the world. These pressures have resulted in lower prices, lower reimbursement rates and smaller populations for whom payers will reimburse, which can negatively impact our results of operations (including intangible asset impairment charges), operating cash flow, liquidity and financial flexibility. In August 2024, as part of the first round of government price setting pursuant to the IRA, the HHS announced the "maximum fair price" for a 30-day equivalent supply of Eliquis, which applies to the U.S. Medicare channel effective January 1, 2026. In January 2025, the HHS selected Pomalystas a medicine subject to "negotiation" for government-set prices beginning in 2027. It is possible that more of our products could be selected in future years based upon the selection criteria currently utilized by the HHS or potentially expanded future criteria. This could, among other things, accelerate revenue erosion prior to expiry of intellectual property protections. We continue to evaluate the impact of the IRA on our results of operations, and it is possible that these changes may result in a material impact on our business and results of operations.
In May 2025, President Trump issued an executive order entitled, "Delivering Most-Favored Nation Prescription Drug Pricing to American Patients," which, among various proposals, directs the HHS to facilitate direct-to-consumer purchasing programs for pharmaceutical manufacturers that sell their products to American patients at the most-favored-nation price and to communicate most-favored-nation price targets to manufacturers and propose a rulemaking plan to impose most-favored-nation pricing if "significant progress" is not made towards achieving such pricing. On July 31, 2025, the Trump administration sent letters to several pharmaceutical manufacturers, including BMS, which outlined steps that such manufacturers should take to advance certain objectives of the executive order. While there is significant uncertainty around the potential implementation of this executive order and related rule-making, it could result in reduced prices and reimbursement for certain of our U.S. products and may significantly impact our business and consolidated results of operations.
In July 2025, the OBBBA was enacted which, among other things, aims to achieve efficiencies in U.S. federal government healthcare spending over the next decade, primarily within Medicaid. Additionally, this legislation makes permanent many provisions of the TCJA and modifies certain rules, including within the international tax framework, thereby offering increased certainty for future business planning. The OBBBA also permits businesses to immediately deduct up to 100% of their qualifying domestic R&D expenses in the year they are incurred for tax years beginning after December 31, 2024, and allows businesses to accelerate deductions (over a one- or two-year period) of domestic R&D expenses that were deferred from 2022 to 2024. We are continuing to assess the full scope of this legislation and its potential commercial implications, and it is possible that these changes may impact our cash flows and results of operations.
At the state level, multiple states have passed, are pursuing or are considering government action via legislation or regulations to change drug pricing and reimbursement (e.g., establishing prescription drug affordability boards, implementing manufacturer mandates tied to the Federal Public Health Service Act drug pricing program, etc.). Some of these state-level actions may also influence federal and other state policies and legislation. Given the current uncertainty surrounding the adoption, timing and implementation of many of these measures, as well as pending litigation challenging such laws, we are unable to predict their full impact on our business. However, such measures could modify or decrease access, coverage, or reimbursement of our products, or result in significant changes to our sales or pricing practices, which could have a material impact on our revenues and results of operations. With respect to the Federal Public Health Service Act drug pricing program, certain states have enacted laws regulating manufacturer pricing obligations under the program to date. Several additional states are considering similar potential legislation or other government actions, and we expect other states may do the same in the future.
The United States and other countries have recently imposed, and may continue to impose, new tariffs. While pharmaceuticals are largely exempt from the recently imposed U.S. tariffs, such exemptions may be terminated or may not apply to any future tariffs. Additionally, pharmaceuticals are not exempt from certain tariffs recently imposed outside of the United States. We continue to evaluate the impacts of tariffs on our business and results of operations, and it is possible that these changes, or any future changes, may result in a material impact on our business and results of operations.
See risk factors on these items included under "Part I-Item 1A. Risk Factors-Product, Industry and Operational Risks-Increased pricing pressure and other restrictions in the U.S. and abroad continue to negatively affect our revenues and profit margins", "-We could lose market exclusivity of a product earlier than expected", "-We could experience difficulties, delays and disruptions in our supply chain as well as in the manufacturing, distribution and sale of our products" and "-Changes to tax regulations could negatively impact our earnings" in our 2024 Form 10-K.
Significant Product and Pipeline Approvals
The following is a summary of the significant approvals received in 2025 as of October 30, 2025:
Product Date Approval
Opdivo + Yervoy
August 2025
Japan's Ministry of Health Labour and Welfare approval of Opdivo+ Yervoyfor the treatment of unresectable advanced or recurrent microsatellite instability-high (MSI-High) colorectal cancer.
Opdivo + Yervoy June 2025
Japan's Ministry of Health Labour and Welfare approval of Opdivo+ Yervoyfor the treatment of unresectable HCC.
Inrebic June 2025
Japan's Ministry of Health Labour and Welfare approval of Inrebicfor the treatment of myelofibrosis.
Opdivo Qvantig May 2025
EC approval of Opdivo Qvantigfor use across multiple adult solid tumors as monotherapy, monotherapy maintenance following completion of intravenous Opdivoplus Yervoycombination therapy, or in combination with chemotherapy or cabozantinib.
Opdivo May 2025
EC approval for perioperative regimen of neoadjuvant Opdivoand chemotherapy followed by surgery and adjuvant Opdivofor the treatment of resectable NSCLC at high-risk of recurrence in adult patients whose tumors have PD-L1 expression ≥1%.
Opdivo + Yervoy April 2025
FDA approval of Opdivo+ Yervoyas a first-line treatment of adult patients with unresectable or metastatic HCC.
Opdivo + Yervoy April 2025
FDA approval of Opdivo+ Yervoyas a first-line treatment of adult and pediatric patients (12 years and older) with unresectable or metastatic microsatellite instability-high or mismatch repair deficient CRC.
Camzyos March 2025
Japan's Ministry of Health Labour and Welfare approval of Camzyosfor the treatment of oHCM.
Breyanzi March 2025
EC approval of Breyanzifor the treatment of adult patients with relapsed or refractory FL after two or more lines of systemic therapy.
Opdivo + Yervoy March 2025
EC approval of Opdivo+ Yervoyfor the first-line treatment of adult patients with unresectable or advanced HCC.
Augtyro
February 2025
EC approval for Augtyroas a treatment for adult patients with ROS1-positive NSCLC and for adult and pediatric patients 12 years of age and older with NTRK-positive solid tumors.
Refer to "-Product and Pipeline Developments" for a listing of other developments in our marketed products and late-stage pipeline since the start of the third quarter of 2025.
Acquisitions, Divestitures, Licensing and Other Arrangements
Refer to "Item 1. Financial Statements-Note 3. Alliances" and "-Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements" for information on significant acquisitions, divestitures, licensing and other arrangements.
RESULTS OF OPERATIONS
Regional Revenues
The composition of the changes in revenues was as follows:
Three Months Ended September 30, Nine Months Ended September 30,
Dollars in millions 2025 2024 % Change
Foreign Exchange(c)
2025 2024 % Change
Foreign Exchange(c)
United States $ 8,329 $ 8,232 1 % - % $ 24,721 $ 25,509 (3) % - %
International(a)
3,602 3,389 6 % 4 % 10,193 9,803 4 % 1 %
Other(b)
290 271 7 % - % 778 646 20 % - %
Total revenues $ 12,222 $ 11,892 3 % 1 % $ 35,692 $ 35,958 (1) % - %
(a) Includes Puerto Rico.
(b) Includes royalties and alliance-related revenues for products not sold by our regional commercial organizations.
(c) Foreign exchange impacts were derived by applying the prior period average currency rates to the current period revenues.
United States
•U.S. revenues increased 1% during the third quarter of 2025 and decreased 3% year-to-date, reflecting higher demand across the Growth Portfolio and for Eliquis, offset by the impact of generics on Revlimid, Sprycel,andAbraxane. Additionally, year-to-date revenues were impacted by the redesign of the U.S. Medicare Part D program. Average U.S. net selling prices decreased 5% year-to-date compared to the corresponding period a year ago.
International
•International revenues increased 6% during the third quarter of 2025 and 4% year-to-date, primarily due to higher demand across the Growth Portfolio and for Eliquis, partially offset by generic erosion within the remainder of the Legacy Portfolio. Excluding the impacts of foreign exchange, international revenues increased 3% during the third quarter of 2025 and year-to-date.
No single country outside the U.S. contributed more than 10% of total revenues during the nine months ended September 30, 2025 and 2024. Our business is typically not seasonal; however, in the first quarter we typically see an unwinding of sales channel inventory build-up from the fourth quarter of the prior year.
GTN Adjustments
The reconciliation of gross product sales to net product sales by each significant category of GTN adjustments was as follows:
Three Months Ended September 30, Nine Months Ended September 30,
Dollars in millions 2025 2024 % Change 2025 2024 % Change
Gross product sales $ 22,494 $ 21,223 6 % $ 64,548 $ 61,298 5 %
GTN adjustments
Charge-backs and cash discounts (3,475) (2,967) 17 % (9,840) (8,366) 18 %
Medicaid and Medicare rebates (4,887) (4,577) 7 % (13,244) (11,525) 15 %
Other rebates, returns, discounts and adjustments (2,281) (2,196) 4 % (6,819) (6,440) 6 %
Total GTN adjustments (10,644) (9,740) 9 % (29,903) (26,331) 14 %
Net product sales $ 11,850 $ 11,483 3 % $ 34,645 $ 34,967 (1) %
GTN adjustments percentage 47 % 46 % 1 % 46 % 43 % 3 %
U.S. 54 % 52 % 2 % 53 % 48 % 5 %
Non-U.S. 18 % 20 % (2) % 19 % 20 % (1) %
Reductions/(increases) to provisions for product sales made in prior periods resulting from changes in estimates were $87 million and $418 million for the three and nine months ended September 30, 2025 and $42 million and $103 million for the three and nine months ended September 30, 2024, respectively. The reductions to provisions recognized for the nine months ended September 30, 2025 primarily relate to lower than expected Medicaid utilization.
GTN adjustments are primarily a function of product sales volume, regional and payer channel mix, contractual or legislative discounts and rebates. U.S. GTN adjustments percentage increased primarily due to higher government channel rebates and mix, including the impact of the redesign of the Medicare Part D program, which requires manufacturers to be responsible for 10% of costs up to the $2,000 cap and 20% after that cap is reached.
Product Revenues
Three Months Ended September 30, Nine Months Ended September 30,
Dollars in millions 2025 2024 % Change 2025 2024 % Change
Growth Portfolio
Opdivo $ 2,532 $ 2,360 7 % $ 7,356 $ 6,825 8 %
U.S. 1,454 1,366 6 % 4,293 3,927 9 %
Non-U.S. 1,077 994 8 % 3,063 2,898 6 %
Opdivo Qvantig
67 - N/A 105 - N/A
U.S. 60 - N/A 97 - N/A
Non-U.S. 7 - N/A 8 - N/A
Orencia 964 936 3 % 2,697 2,682 1 %
U.S. 721 706 2 % 1,987 2,020 (2) %
Non-U.S. 243 230 6 % 710 662 7 %
Yervoy 739 642 15 % 2,090 1,855 13 %
U.S. 455 399 14 % 1,300 1,171 11 %
Non-U.S. 284 243 17 % 790 684 15 %
Reblozyl 615 447 37 % 1,661 1,226 35 %
U.S. 494 358 38 % 1,336 999 34 %
Non-U.S. 121 89 35 % 324 227 43 %
Opdualag 299 233 28 % 835 674 24 %
U.S. 259 216 20 % 739 637 16 %
Non-U.S. 40 17 122 % 96 37 156 %
Breyanzi 359 224 60 % 966 484 100 %
U.S. 251 173 45 % 709 382 86 %
Non-U.S. 109 51 115 % 257 102 153 %
Camzyos 296 156 89 % 714 379 88 %
U.S. 238 135 76 % 578 342 69 %
Non-U.S. 57 21 177 % 137 37 >200%
Zeposia 161 147 9 % 418 408 2 %
U.S. 113 105 8 % 278 288 (3) %
Non-U.S. 48 42 13 % 139 120 16 %
Abecma 137 124 9 % 326 301 8 %
U.S. 51 77 (34) % 156 183 (15) %
Non-U.S. 86 47 80 % 170 118 44 %
Sotyktu 80 66 21 % 206 163 26 %
U.S. 51 51 - % 126 126 - %
Non-U.S. 29 15 91 % 80 37 112 %
Krazati 53 34 58 % 149 87 72 %
U.S. 48 32 52 % 139 82 70 %
Non-U.S. 5 2 144 % 10 5 94 %
Cobenfy
43 - N/A 105 - N/A
U.S. 43 - N/A 104 - N/A
Non-U.S. - - N/A - - N/A
Three Months Ended September 30, Nine Months Ended September 30,
Dollars in millions 2025 2024 % Change 2025 2024 % Change
Growth Portfolio(cont.)
Other Growth Products(a)
514 443 16 % 1,388 1,116 24 %
U.S. 195 182 8 % 570 511 12 %
Non-U.S. 319 261 22 % 817 605 35 %
Total Growth Portfolio
$ 6,857 $ 5,812 18 % $ 19,016 $ 16,200 17 %
U.S. 4,432 3,800 17 % 12,413 10,668 16 %
Non-U.S. 2,425 2,012 20 % 6,603 5,532 19 %
Legacy Portfolio
Eliquis $ 3,746 $ 3,002 25 % $ 10,991 $ 10,138 8 %
U.S. 2,631 2,045 29 % 7,930 7,410 7 %
Non-U.S. 1,115 957 16 % 3,060 2,728 12 %
Revlimid 575 1,412 (59) % 2,349 4,434 (47) %
U.S. 485 1,212 (60) % 2,027 3,830 (47) %
Non-U.S. 89 200 (55) % 322 604 (47) %
Pomalyst/Imnovid 675 898 (25) % 2,041 2,722 (25) %
U.S. 596 697 (15) % 1,717 2,010 (15) %
Non-U.S. 79 201 (61) % 324 712 (55) %
Sprycel 119 290 (59) % 413 1,088 (62) %
U.S. 69 225 (69) % 263 848 (69) %
Non-U.S. 49 65 (24) % 150 240 (37) %
Abraxane 74 253 (71) % 284 701 (59) %
U.S. 24 151 (84) % 97 450 (79) %
Non-U.S. 50 102 (50) % 187 251 (25) %
Other Legacy Products(b)
177 225 (21) % 599 675 (11) %
U.S. 92 102 (11) % 274 293 (7) %
Non-U.S. 85 123 (29) % 324 382 (14) %
Total Legacy Portfolio
$ 5,365 $ 6,080 (12) % $ 16,676 $ 19,758 (16) %
U.S. 3,897 4,432 (12) % 12,308 14,841 (17) %
Non-U.S. 1,468 1,648 (11) % 4,368 4,917 (11) %
Total Revenues
$ 12,222 $ 11,892 3 % $ 35,692 $ 35,958 (1) %
U.S. 8,329 8,232 1 % 24,721 25,509 (3) %
Non-U.S.(c)
3,893 3,660 6 % 10,971 10,449 5 %
(a) Includes Augtyro, Onureg, Inrebic, Nulojix, Emplicitiand royalty revenues.
(b) Includes other mature brands.
(c) Includes international and other.
Growth Portfolio
Opdivo (nivolumab) - a fully human monoclonal antibody that binds to the PD-1 on T and NKT cells. It has been approved for several anti-cancer indications including bladder, blood, CRC, head and neck, RCC, HCC, lung, melanoma, MPM, stomach and esophageal cancer. The Opdivo+Yervoyregimen also is approved in multiple markets for the treatment of NSCLC, melanoma, MPM, RCC, CRC, HCC and various gastric and esophageal cancers.
•U.S. revenues increased 6% during the third quarter of 2025 and 9% year-to-date, primarily due to higher average net selling prices and higher demand.
•International revenues increased 8% during the third quarter of 2025 and 6% year-to-date, primarily due to higher demand for additional indication launches and foreign exchange impacts of 3% and (1)%, respectively. Excluding foreign exchange impacts, revenues increased 6% and 7%, respectively.
Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) - is a subcutaneously administered PD-1 inhibitor indicated for most previously approved adult, solid tumor Opdivoindications as monotherapy, monotherapy maintenance following completion of Opdivoplus Yervoycombination therapy, or in combination with chemotherapy or cabozantinib. Opdivo Qvantig was launched in the U.S. and Puerto Rico in January 2025. Additionally, in May 2025, the product was approved by the EC.
Orencia (abatacept) - a fusion protein indicated for adult patients with moderate to severe active RA and PsA. It has indications for (i) reducing signs and symptoms in certain pediatric patients with moderately to severely active polyarticular JIA and (ii) for the treatment of aGVHD, in combination with a calcineurin inhibitor and methotrexate.
•U.S. revenues increased 2% during the third quarter of 2025, primarily due to higher demand, partially offset by lower average net selling prices.
•U.S. revenues decreased 2% year-to-date, primarily due to lower average net selling prices, partially offset by higher demand.
•International revenues increased 6% during the third quarter of 2025 and 7% year-to-date, primarily due to higher demand and foreign exchange impacts of 2% during the third quarter. Excluding foreign exchange impacts, revenues increased 3% and 7%, respectively.
•BMS is not aware of any Orenciabiosimilars on the market in the U.S., EU and Japan. Formulation and additional patents expire in 2026 and beyond.
Yervoy (ipilimumab) - a CTLA4 immune checkpoint inhibitor. Yervoyis a monoclonal antibody for the treatment of patients with unresectable or metastatic melanoma. The Opdivo+Yervoyregimen is approved in multiple markets for the treatment of NSCLC, melanoma, MPM, RCC, CRC, HCC and esophageal cancer.
•U.S. revenues increased 14% during the third quarter of 2025 and 11% year-to-date, primarily due to higher demand and higher average net selling prices.
•International revenues increased 17% during the third quarter of 2025 and 15% year-to-date, primarily due to higher demand and foreign exchange impacts of 4% during the third quarter. Excluding foreign exchange impacts, revenues increased 13% and 15%, respectively.
•In the U.S., the estimated minimum market exclusivity date was March 2025. BMS is not aware of any Yervoybiosimilars on the market.
Reblozyl (luspatercept-aamt) - an erythroid maturation agent indicated for the treatment of anemia in (i) adult patients with transfusion dependent and non-transfusion dependent beta thalassemia who require regular red blood cell transfusions, (ii) adult patients with very low- to intermediate-risk MDS who have ring sideroblasts and require red blood cell transfusions, as well as (iii) adult patients without previous erythropoiesis stimulating agent use (ESA-naïve) with very low- to intermediate-risk MDS who may require regular red blood cell transfusions, regardless of RS status.
•U.S. revenues increased 38% during the third quarter of 2025 and 34% year-to-date, primarily due to higher demand.
•International revenues increased 35% during the third quarter of 2025 and 43% year-to-date, primarily due to higher demand and foreign exchange impacts of 4% and 2%, respectively. Excluding foreign exchange impacts, revenues increased 31% and 41%, respectively.
Opdualag (nivolumab and relatlimab-rmbw) - a combination of nivolumab, a PD-1 blocking antibody, and relatlimab, a LAG-3 blocking antibody, indicated for the treatment of adult and pediatric patients 12 years of age or older with unresectable or metastatic melanoma.
•U.S. revenues increased 20% during the third quarter of 2025 and 16% year-to-date, primarily due to higher demand.
Breyanzi(lisocabtagene maraleucel) - a CD19-directed genetically modified autologous CAR-T cell therapy indicated for the treatment of adult patients with relapsed or refractory LBCL after one or more lines of systemic therapy, including DLBCL not otherwise specified, high-grade B-cell lymphoma, primary mediastinal LBCL, grade 3B FL and relapsed or refractory FL after at least two prior lines of systemic therapy, relapsed or refractory CLL or SLL, and relapsed or refractory MCL in patients who have received at least two prior lines of systemic therapy, including a Bruton tyrosine kinase inhibitor and a B-cell lymphoma 2 inhibitor.
•U.S. revenues increased 45% during the third quarter of 2025 and 86% year-to-date, primarily due to higher demand for core indications and additional indication launches.
•International revenues increased by 115% during the third quarter of 2025 and 153% year-to-date, primarily due to higher demand driven by new indication launches and launches in new markets as well as foreign exchange impacts of 10% and 8%, respectively. Excluding foreign exchange impacts, revenues increased 104% and 145%, respectively.
Camzyos (mavacamten) - a cardiac myosin inhibitor indicated for the treatment of adults with symptomatic oHCM to improve functional capacity and symptoms.
•U.S. revenues increased 76% during the third quarter of 2025 and 69% year-to-date, primarily due to higher demand.
Zeposia(ozanimod) - an oral immunomodulatory drug used to treat relapsing forms of multiple sclerosis, to include clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease, in adults and to treat moderately to severely active UC in adults.
•U.S. revenues increased 8% during the third quarter of 2025, primarily due to higher demand, partially offset by lower average net selling prices.
•U.S. revenues decreased 3% year-to-date, primarily due to lower average net selling prices.
•International revenues increased 13% during the third quarter of 2025 and 16% year-to-date, primarily due to higher demand and foreign exchange impacts of 6% and 3%, respectively. Excluding foreign exchange impacts, revenues increased 6% and 13%, respectively.
Abecma(idecabtagene vicleucel) - is a BCMA genetically modified autologous CAR-T cell therapy indicated for the treatment of adult patients with relapsed or refractory multiple myeloma after two or more prior lines of therapy, including an immunomodulatory agent, a proteasome inhibitor, and an anti-cyclic ADP ribose hydrolase monoclonal antibody.
•U.S. revenues decreased 34% during the third quarter of 2025 and 15% year-to-date, primarily due to lower demand from increased competition in BCMA targeted therapies.
•International revenues increased 80% during the third quarter of 2025 and 44% year-to-date, primarily due to a one-time favorable GTN adjustment in 2025 and foreign exchange impacts of 9% and 4%, respectively. Excluding foreign exchange impacts, revenues increased 71% and 40%, respectively.
Sotyktu(deucravacitinib) - an oral, selective, allosteric tyrosine kinase 2 inhibitor indicated for the treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy.
•U.S. revenues were relatively flat during the third quarter of 2025 and year-to-date, primarily driven by higher demand, offset by lower average net selling prices.
Krazati(adagrasib) - a highly selective and potent oral small-molecule inhibitor of the KRASG12C mutation, indicated for the treatment of adult patients with KRASG12C-mutated locally advanced or metastatic NSCLC, as determined by an FDA-approved test, who have received at least one prior systemic therapy and, in combination with cetuximab, for the treatment of adult patients with KRASG12C-mutated locally advanced or metastatic CRC, as determined by an FDA-approved test, who have received prior treatment with fluoropyrimidine-, oxaliplatin-, and irinotecan-based chemotherapy. Krazatiwas brought into the BMS portfolio as part of the Mirati acquisition completed in 2024.
•U.S. revenues increased 52% during the third quarter of 2025 and 70% year-to-date, primarily due to higher demand, partially offset by lower average net selling prices.
Cobenfy(xanomeline and trospium chloride) - a combination of xanomeline, a M1/M4 muscarinic agonist, and trospium chloride, a peripheral muscarinic antagonist, indicated for the treatment of schizophrenia in adults. Cobenfy was approved by the FDA in September 2024 and launched in the U.S. in October 2024 and Puerto Rico in January 2025.
Other growth products - includes Augtyro, Onureg, Inrebic, Nulojix, Empliciti and royalty revenues.
Legacy Portfolio
Eliquis(apixaban) - an oral Factor Xa inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE and reduction in risk of recurrence following initial therapy.
•U.S. revenues increased 29% during the third quarter of 2025 and 7% year-to-date, primarily due to higher demand and changes in average net selling prices. Average net selling prices increased during the third quarter of 2025 and decreased on a year-to-date basis, mainly driven by the redesign of the Medicare Part D program.
•International revenues increased 16% during the third quarter of 2025 and 12% year-to-date, primarily due to higher demand and foreign exchange impacts of 6% and 3%, respectively. Excluding foreign exchange impacts, revenues increased 11% and 9%, respectively.
•Following the May 2021 expiration of regulatory exclusivity for Eliquisin Europe, generic manufacturers have sought to challenge our Eliquispatents and related SPCs and have begun marketing generic versions of Eliquisin certain countries prior to the expiry of our patents and related SPCs, which has led to the filing of infringement and invalidity actions involving our Eliquispatents and related SPCs being filed in various countries in Europe. We believe in the innovative science behind Eliquisand the strength of our intellectual property, which we will defend against infringement. Refer to "Item 1. Financial Statements-Note 18. Legal Proceedings and Contingencies-Intellectual Property" for further information.
Revlimid (lenalidomide) - an oral immunomodulatory drug that in combination with dexamethasone is indicated for the treatment of patients with multiple myeloma. Revlimidas a single agent is also indicated as a maintenance therapy in patients with multiple myeloma following autologous hematopoietic stem cell transplant. Revlimidhas received approvals for several indications in hematological malignancies including lymphoma and MDS.
•U.S. revenues decreased 60% during the third quarter of 2025 and 47% year-to-date, primarily due to lower demand driven by generic erosion and lower average net selling prices. Lower average net selling prices were impacted by the redesign of the Medicare Part D program during 2025.
•International revenues decreased 55% during the third quarter of 2025 and 47% year-to-date, primarily due to lower demand driven by generic erosion and foreign exchange impacts of (1)% year-to-date. Excluding foreign exchange impacts, revenues decreased 56% and 46%, respectively.
•In the U.S., certain third parties have been granted volume-limited licenses to sell generic lenalidomide. Pursuant to these licenses, several generics have entered or are expected to enter the U.S. market with volume-limited quantities of generic lenalidomide. These licenses will no longer be volume limited beginning on January 31, 2026. In the EU and Japan, generic lenalidomide products have entered the market.
Pomalyst/Imnovid (pomalidomide) - a proprietary, distinct, small molecule that is administered orally and modulates the immune system and other biologically important targets. Pomalyst/Imnovidis indicated for patients with multiple myeloma who have received at least two prior therapies including lenalidomide and a proteasome inhibitor and have demonstrated disease progression on or within 60 days of completion of the last therapy.
•U.S. revenues decreased 15% during the third quarter of 2025 and year-to-date, primarily due to lower average net selling prices. Lower average net selling prices were impacted by the redesign of the Medicare Part D program during 2025.
•International revenues decreased 61% during the third quarter of 2025 and 55% year-to-date, primarily due to generic erosion and foreign exchange impacts of 1% during the third quarter. Excluding foreign exchange impacts, revenues decreased 61% and 55%, respectively.
•Generic pomalidomide products entered the EU market in August 2024 and are expected to enter the U.S. market in March 2026.
Sprycel (dasatinib) - an oral inhibitor of multiple tyrosine kinase indicated for the first-line treatment of patients with Philadelphia chromosome-positive CML in chronic phase and the treatment of adults with chronic, accelerated, or myeloid or lymphoid blast phase CML with resistance or intolerance to prior therapy, including Gleevec* (imatinib mesylate) and the treatment of children and adolescents aged 1 year to 18 years with chronic phase Philadelphia chromosome-positive CML.
•U.S. revenues decreased 69% during the third quarter of 2025 and year-to-date, primarily due to lower demand driven by generic erosion.
•International revenues decreased 24% during the third quarter of 2025 and 37% year-to-date, primarily due to lower demand driven by generic erosion and foreign exchange impacts of 1% and (1)%, respectively. Excluding foreign exchange impacts, revenues decreased 25% and 37%, respectively.
•In the U.S. (September 2024), EU and Japan, generic dasatinib products have entered the market.
Abraxane (paclitaxel albumin-bound particles for injectable suspension) - a solvent-free protein-bound chemotherapy product that combines paclitaxel with albumin using our proprietary Nab®technology platform, and is used to treat breast cancer, NSCLC and pancreatic cancer, among others.
•U.S. revenues decreased 84% during the third quarter of 2025 and 79% year-to-date, primarily due to lower demand driven by generic erosion.
Other legacy products - includes other mature brands.
Estimated End-User Demand
Pursuant to the SEC Consent Order described under "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations- SEC Consent Order" in our 2024 Form 10-K, we monitor inventory levels on hand in the U.S. wholesaler distribution channel and outside of the U.S. in the direct customer distribution channel. We disclose products with levels of inventory in excess of one month on hand or expected demand, subject to certain limited exceptions. There were none as of September 30, 2025, for our U.S. distribution channels, and as of June 30, 2025, for our non-U.S. distribution channels.
In the U.S., we generally determine our months on hand estimates using inventory levels of product on hand and the amount of out-movement provided by our three largest wholesalers, which accounted for approximately 85% of total gross sales of U.S. products during the nine months ended September 30, 2025. Factors that may influence our estimates include generic erosion, seasonality of products, wholesaler purchases in light of increases in wholesaler list prices, new product launches, new warehouse openings by wholesalers and new customer stockings by wholesalers. In addition, these estimates are calculated using third-party data, which may be impacted by their recordkeeping processes.
Camzyosis only available through a restricted program called the CamzyosREMS Program. Product distribution is limited to REMS certified pharmacies, and enrolled pharmacies must only dispense to patients who are authorized to receive Camzyos. Revlimid and Pomalystare distributed in the U.S. primarily through contracted pharmacies under the Lenalidomide REMS (Revlimid) and PomalystREMS programs, respectively. These are proprietary risk-management distribution programs tailored specifically to provide for the safe and appropriate distribution and use of Revlimid and Pomalyst. Internationally, Revlimid and Imnovidare distributed under mandatory risk-management distribution programs tailored to meet local authorities' specifications to provide for the products' safe and appropriate distribution and use. These programs may vary by country and, depending upon the country and the design of the risk-management program, the product may be sold through hospitals or retail pharmacies.
Our non-U.S. businesses have significantly more direct customers. Information on available direct customer product level inventory and corresponding out-movement information and the reliability of third-party demand information varies widely. We limit our direct customer sales channel inventory reporting to where we can influence demand. When this information does not exist or is otherwise not available, we have developed a variety of methodologies to estimate such data, including using historical sales made to direct customers and third-party market research data related to prescription trends and end-user demand. Given the difficulties inherent in estimating third-party demand information, we evaluate our methodologies to estimate direct customer product level inventory and to calculate months on hand on an ongoing basis and make changes as necessary. Factors that may affect our estimates include generic competition, seasonality of products, price increases, new product launches, new warehouse openings by direct customers, new customer stockings by direct customers and expected direct customer purchases for governmental bidding situations. As such, all of the information required to estimate months on hand in the direct customer distribution channel for non-U.S. business during the nine months ended September 30, 2025 is not available prior to the filing of this Quarterly Report on Form 10-Q. We will disclose any product with levels of inventory in excess of one month on hand or expected demand for the current quarter, subject to certain limited exceptions, in our next annual report on Form 10-K.
Expenses
Three Months Ended September 30, Nine Months Ended September 30,
Dollars in millions 2025 2024 % Change 2025 2024 % Change
Cost of products sold(a)
$ 3,435 $ 2,957 16 % $ 9,839 $ 9,156 7 %
Selling, general and administrative
1,789 1,983 (10) % 5,086 6,278 (19) %
Research and development 2,528 2,374 6 % 7,365 7,968 (8) %
Acquired IPRD 633 262 142 % 2,328 13,343 (83) %
Amortization of acquired intangible assets 831 2,406 (65) % 2,491 7,179 (65) %
Other (income)/expense, net (108) 234 (146) % 725 588 23 %
Total Expenses $ 9,108 $ 10,216 (11) % $ 27,834 $ 44,512 (37) %
(a) Excludes amortization of acquired intangible assets.
Cost of Products Sold
Cost of products sold increased by $478 million in the third quarter of 2025 and $683 million year-to-date, primarily due to higher alliance profit sharing and product mix. The year-to-date increase was partially offset by an impairment charge of $280 million recorded in 2024.
Selling, General and Administrative
Selling, general and administrative expense decreased by $194 million in the third quarter of 2025 and $1.2 billion year-to-date, primarily due to cost savings from the Company's ongoing strategic productivity initiative, including investment prioritization decisions. Additionally, year-to-date 2024 included cash settlements of unvested stock awards and other acquisition-related expenses of $372 million.
Research and Development
Research and development expense increased by $154 million in the third quarter of 2025, primarily due to an $85 million IPRD impairment charge and higher drug development costs as a result of recent acquisitions, partially offset by cost savings from the Company's ongoing strategic productivity initiative in 2025.
On a year-to-date basis, Research and development expense decreased $603 million, primarily due to the cash settlements of unvested stock awards and other acquisition-related expenses in 2024 ($348 million) as well as lower IPRD impairment charges ($205 million) and cost savings from the Company's ongoing strategic productivity initiative in 2025.
Acquired IPRD
Acquired IPRD charges resulting from upfront or contingent milestone payments in connection with asset acquisitions or licensing of third-party intellectual property rights were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
Dollars in millions 2025 2024 2025 2024
Karuna asset acquisition (Note 4) $ - $ - $ - $ 12,122
BioNTech upfront fee (Note 3)
- - 1,500 -
Philochem upfront fee (Note 4)
350 - 350 -
SystImmune upfront fee and milestone (Note 3)
250 - 250 800
BioArctic upfront fee (Note 4) - - 100 -
Evotec designation and opt-in license fees 25 125 108 170
RayzeBio rights buy-out - 92 - 92
Prothena opt-in license fee - - - 80
Other 8 45 20 79
Acquired IPRD $ 633 $ 262 $ 2,328 $ 13,343
Amortization of Acquired Intangible Assets
Amortization of acquired intangible assets decreased by $1.6 billion in the third quarter of 2025 and $4.7 billion year-to-date, primarily due to the lower amortization expense related to Revlimid. The Revlimidacquired marketed product right was fully amortized in the fourth quarter of 2024.
Other (Income)/Expense, Net
Other (income)/expense, net changed by $342 million in the third quarter of 2025 and $137 million year-to-date as discussed below.
Three Months Ended September 30, Nine Months Ended September 30,
Dollars in millions 2025 2024 2025 2024
Interest expense $ 480 $ 505 $ 1,459 $ 1,451
Royalty income - divestitures (286) (284) (844) (820)
Royalty and licensing income (276) (180) (697) (532)
Provision for restructuring 75 78 432 558
Investment income (161) (94) (438) (364)
Integration expenses 36 69 110 214
Litigation and other settlements 165 - 424 71
Acquisition expenses - - 5 50
Intangible asset impairments - 47 - 47
Equity investment (gains)/losses (190) (12) (90) (221)
Contingent consideration
- - 336 -
Other 48 105 29 134
Other (income)/expense, net
$ (108) $ 234 $ 725 $ 588
•Interest expense decreased in the third quarter of 2025 and increased year-to-date, primarily due to the timing of additional borrowings and maturities of debt instruments. Refer to "Item 1. Financial Statements-Note 10. Financing Arrangements" for further information.
•Royalties and licensing income includes $85 million of income recognized during the third quarter of 2025 in connection with the out-license of five early-stage immunology assets to a company that was newly-formed with Bain Capital Life Sciences. Refer to "Item 1. Financial Statements-Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements" for more information.
•Provision for restructuring includes exit and other costs primarily related to certain restructuring activities including the plans discussed further in "Item 1. Financial Statements-Note 6. Restructuring".
•Investment income increased in the third quarter of 2025 and year-to-date due to higher cash balances.
•Litigation and other settlements includes amounts related to a securities litigation matter in the third quarter of 2025. Year-to-date 2025 also includes amounts related to a pricing, sales and promotional practices dispute. Refer to "Item 1. Financial Statements- Note 18. Legal Proceedings and Contingencies" for more information.
•Equity investments generated higher gains during the third quarter of 2025, primarily driven by investments that have readily determinable fair values. Equity investments generated lower gains year-to-date 2025, driven by limited partnerships and other investments. Refer to "Item 1. Financial Statements-Note 9. Financial Instruments and Fair Value Measurements" for more information.
•Contingent consideration year-to-date 2025 reflects the change in fair value of the contingent value rights associated with the Mirati acquisition. Refer to "Item 1. Financial Statements-Note 9. Financial Instruments and Fair Value Measurements" for more information.
•Other includes pension settlement charges of $100 million and $119 million for the third quarter and year-to-date 2024, respectively, related to the termination of the Bristol-Myers Squibb Puerto Rico. Inc. Retirement Income pension plan.
Income Taxes
Three Months Ended September 30, Nine Months Ended September 30,
Dollars in millions 2025 2024 2025 2024
Earnings/(Loss) before income taxes $ 3,114 $ 1,676 $ 7,858 $ (8,554)
Income tax provision
919 461 1,888 455
Effective tax rate 29.5 % 27.5 % 24.0 % (5.3) %
Impact of specified items (7.2) % (9.0) % (6.1) % 193.7 %
Effective tax rate excluding specified items 22.3 % 18.5 % 17.9 % 188.4 %
Provision for income taxes in interim periods is determined based on the estimated annual effective tax rates and the tax impact of discrete items that are reflected immediately. The estimated tax impacts from the OBBBA are reflected in the Company's income tax provision for the three and nine months ended September 30, 2025. For additional information on the impacts of the OBBBA, refer to "Item 1. Financial Statements - Note 7. Income Taxes".
The change in the effective tax rate for the three and nine months ended September 30, 2025 was primarily driven by changes in jurisdictional earnings mix and income tax reserves. During the third quarter of 2025, additional reserves of $160 million were recorded for certain transfer pricing matters. Further, the effective tax rate for the nine months ended September 30, 2024 reflects a $12.1 billion one-time, non-tax deductible charge for the acquisition of Karuna as well as the release of income tax reserves related to the resolution of the Celgene 2017-2019 IRS audit.
Excluding the impact of specified items, the change in effective tax rate for the three and nine months ended September 30, 2025 was primarily driven by jurisdictional earnings mix. On a year-to-date basis, the change in the effective tax rate was further impacted by the Karuna acquisition in 2024.
Non-GAAP Financial Measures
Our non-GAAP financial measures, such as non-GAAP earnings and related EPS information, 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 past or future operating results. These items are excluded from non-GAAP earnings and related EPS information because the Company believes they neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods, including (i) amortization of acquired intangible assets, including product rights that generate a significant portion of our ongoing revenue and will recur until the intangible assets are fully amortized, (ii) unwinding of inventory purchase price adjustments, (iii) acquisition and integration expenses, (iv) restructuring costs, (v) accelerated depreciation and impairment of property, plant and equipment and intangible assets, (vi) divestiture gains or losses, (vii) stock compensation resulting from acquisition-related equity awards, (viii) pension, legal and other contractual settlement charges, (ix) equity investment and contingent value rights fair value adjustments (including fair value adjustments attributed to limited partnerships and other investments), and (x) amortization of fair value adjustments of debt acquired from Celgene in our 2019 exchange offer, among other items. 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, as well as certain other significant tax items. We also provide international revenues for our priority products excluding the impact of foreign exchange. We calculate foreign exchange impacts by converting our current-period local currency financial results using the prior period average currency rates and comparing these adjusted amounts to our current-period results. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in Exhibit 99.1 to our Form 8-K filed on October 30, 2025 and are incorporated herein by reference.
Non-GAAP information is intended to portray the results of our baseline performance, supplement or enhance management's, analysts' and investors' overall understanding of our underlying financial performance and facilitate comparisons among current, past and future periods. This information is not intended to be considered in isolation or as a substitute for the related financial measures prepared in accordance with GAAP and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
Specified items were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
Dollars in millions 2025 2024 2025 2024
Inventory purchase price accounting adjustments $ 13 $ 13 $ 38 $ 34
Intangible asset impairment
- - - 280
Site exit and other costs 110 88 114 105
Cost of products sold 122 101 152 419
Acquisition related charges(a)
- - 19 372
Site exit and other costs 1 7 6 19
Selling, general and administrative
1 7 25 391
IPRD impairments 85 - 385 590
Acquisition related charges(a)
- - - 348
Site exit and other costs 10 21 49 36
Research and development 95 21 434 974
Amortization of acquired intangible assets 831 2,406 2,491 7,179
Interest expense(b)
(12) (12) (36) (37)
Provision for restructuring 75 78 432 558
Integration expenses 36 69 110 214
Litigation and other settlements 179 - 425 61
Acquisition expenses - - 5 50
Intangible asset impairment
- 47 - 47
Equity investment (gains)/losses (190) (13) (92) (222)
Contingent consideration - - 336 -
Other 10 106 10 116
Other (income)/expense, net 98 275 1,189 787
Increase to earnings/(loss) before income taxes
1,148 2,810 4,291 9,750
Income taxes on items above (190) (371) (447) (1,296)
Specified tax charge/(benefit)(c)
160 - 160 (502)
Income taxes (31) (371) (287) (1,798)
Increase to net earnings/(loss) attributable to BMS
$ 1,117 $ 2,439 $ 4,004 $ 7,952
(a) Includes cash settlement of unvested stock awards, and other related costs incurred in connection with the recent acquisitions.
(b) Includes amortization of purchase price adjustments to Celgene debt.
(c) Includes additional reserves for certain transfer pricing matters in 2025 and the release of tax reserves related to the resolution of the Celgene 2017-2019 IRS audit in 2024.
The reconciliations from GAAP to Non-GAAP were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
Dollars in millions, except per share data 2025 2024 2025 2024
Net earnings/(loss) attributable to BMS
GAAP $ 2,201 $ 1,211 $ 5,967 $ (9,020)
Specified items 1,117 2,439 4,004 7,952
Non-GAAP $ 3,318 $ 3,650 $ 9,971 $ (1,068)
Weighted-average common shares outstanding - diluted 2,039 2,031 2,039 2,026
Diluted earnings/(loss) per share attributable to BMS
GAAP $ 1.08 $ 0.60 $ 2.93 $ (4.45)
Specified items 0.55 1.20 1.96 3.92
Non-GAAP $ 1.63 $ 1.80 $ 4.89 $ (0.53)
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES
Our net debt position was as follows:
Dollars in Millions September 30,
2025 		December 31,
2024
Cash and cash equivalents $ 15,726 $ 10,346
Marketable debt securities - current 776 513
Marketable debt securities - non-current 406 320
Total cash, cash equivalents and marketable debt securities 16,909 11,179
Short-term debt obligations (4,509) (2,046)
Long-term debt (44,469) (47,603)
Net debt position $ (32,069) $ (38,470)
We believe that our existing cash, cash equivalents and marketable debt securities, together with our ability to generate cash from operations and our access to short-term and long-term borrowings, are sufficient to satisfy our existing and anticipated cash needs, including dividends, capital expenditures, milestone payments, working capital, income taxes, restructuring initiatives, business development, business combinations, asset acquisitions, repurchase of common stock, debt maturities, as well as any debt repurchases through redemptions or tender offers. During the nine months ended September 30, 2025, our net debt position decreased by $6.4 billion primarily driven by cash provided by operations of $12.2 billion, partially offset by dividend payments of $3.8 billion and payments for recent acquisitions, collaborations and milestones of $2.2 billion.
During the nine months ended September 30, 2025, $229 million 3.875% Notes and €575 million 1.000% Euro Notes matured and were repaid.
During the nine months ended September 30, 2024, BMS issued an aggregate principal amount of $13.0 billion of senior unsecured notes ("2024 Senior Unsecured Notes"), with proceeds, net of discount and loan issuance costs, of $12.9 billion. The Company used the net proceeds from this offering to partially fund the acquisitions of RayzeBio and Karuna and used the remaining net proceeds for general corporate purposes. Additionally, $2.5 billion 2.900% Notes and $395 million 3.625% Notes matured and were repaid.
Under our commercial paper program, we may issue a maximum of $5.0 billion of unsecured notes that have maturities of not more than 365 days from the date of issuance.
As of September 30, 2025, we had a five-year $5.0 billion revolving credit facility expiring in January 2030, which is extendable annually by one year with the consent of the lenders. Additionally, in February 2024, we entered into a $2.0 billion 364-day revolving credit facility, which expired in January 2025. The facilities provide for customary terms and conditions with no financial covenants and may be used to provide backup liquidity for our commercial paper borrowings. No borrowings were outstanding under any revolving credit facility as of September 30, 2025 and December 31, 2024.
Dividend payments were $3.8 billion during the nine months ended September 30, 2025. The decision to authorize dividends is made on a quarterly basis by our Board of Directors.
During the nine months ended September 30, 2025 and 2024, income tax payments were $2.2 billion and $3.1 billion, including $991 million and $799 million, respectively, for the transition tax following the TCJA enactment.
Cash Flows
The following is a discussion of cash flow activities:
Nine Months Ended September 30,
Dollars in millions 2025 2024
Cash flow provided by/(used in):
Operating activities $ 12,182 $ 10,751
Investing activities (2,674) (21,156)
Financing activities (4,319) 6,769
Operating Activities
The $1.4 billion increase in cash provided by operating activities compared to 2024 was primarily driven by lower expenses due to the ongoing strategic productivity initiative, lower tax payments, and lower acquisition-related expenses, including the cash settlement of unvested stock awards in 2024, partially offset by higher GTN payments.
Investing Activities
The $18.5 billion change in cash used in investing activities compared to 2024 was due to higher acquisition-related payments of $19.5 billion in 2024, partially offset by lower net proceeds from marketable debt securities of $1.0 billion.
Financing Activities
The $11.1 billion change in cash provided by/(used in) financing activities compared to 2024 was primarily due to net debt borrowings of $10.5 billion in 2024 to fund our acquisitions.
Product and Pipeline Developments
Our R&D programs are managed on a portfolio basis from early discovery through late-stage development and include a balance of early-stage and late-stage programs to support future growth. Our late-stage R&D programs in Phase III development include both investigational compounds for initial indications and additional indications or formulations for marketed products. The following are the developments in our marketed products and our late-stage pipeline since the start of the third quarter of 2025 as of October 30, 2025:
Product Indication Date Developments
Breyanzi
MZL
August 2025
Announced that the FDA accepted the sBLA for Breyanzias a potential treatment for adults with relapsed or refractory MZL who have received at least two prior lines of systemic therapy. The FDA has assigned a PDUFA goal date of December 5, 2025. The application is based on the results from the Phase II TRANSCEND FL study.
Camzyos
oHCM
August 2025
Presented results from COLLIGO-HCM, a global retrospective real-world data study, at the European Society of Cardiology Congress 2025. The analysis showed that Camzyos(mavacamten) was associated with reductions in left ventricular outflow tract (LVOT) obstruction and improvements in symptom burden in a racially diverse population of patients with symptomatic oHCM treated in an international, real-world setting. The effectiveness and safety demonstrated in COLLIGO-HCM are consistent with results from randomized, controlled clinical trials and further support the growing body of evidence for Camzyos, the first and only approved cardiac myosin inhibitor, as a standard of care for New York Heart Association (NYHA) class II-III symptomatic oHCM.
iberdomide
RRMM
September 2025
Announced that the Phase III EXCALIBER-RRMM study evaluating iberdomide combined with standard therapies in patients with RRMM demonstrated a statistically significant improvement in minimal residual disease (MRD) negativity rates, compared with the control arm, in a planned interim analysis of the MRD endpoint. The safety profile of iberdomide in combination with daratumumab and dexamethasone in this study is generally consistent with previous studies.
izalontamab brengitecan
NSCLC
August 2025
Announced, with SystImmune, that the FDA granted Breakthrough Therapy Designation to izalontamab brengitecan (iza-bren) for the treatment of patients with locally advanced or metastatic NSCLC with mutated epidermal growth factor (EGFR) exon 19 deletions or exon 21 L858R substitution mutations whose disease has progressed on or after treatment with an EGFR tyrosine kinase inhibitor (TKI) and platinum-based chemotherapy. The FDA's decision was based on the efficacy and safety data from three ongoing clinical trials: BL-B01D1-101, BL-B01D1-203 and BL-B01D1-LUNG-101.
Opdivo + Yervoy
CRC
August 2025
Announced that Japan's Ministry of Health Labour and Welfare approved Opdivo+ Yervoyfor the treatment of unresectable advanced or recurrent microsatellite instability-high (MSI-High) colorectal cancer. This approval is based on the results from the Phase III CheckMate-8HW study.
Reblozyl
Myelofibrosis-Associated Anemia
July 2025
Announced that the Phase III INDEPENDENCE trial evaluating Reblozylwith concomitant janus kinase inhibitor therapy in adult patients with myelofibrosis-associated anemia receiving red blood cell (RBC) transfusion did not meet its primary endpoint of RBC transfusion independence.
Sotyktu PsA October 2025
Announced that the Phase III POETYK PsA-1 trial further confirmed the efficacy and safety of Sotyktuin adults with active PsA who were not previously treated with a biologic disease-modifying antirheumatic drug. The trial demonstrated that Sotyktuimproved and maintained meaningful clinical responses, inhibition of radiographic progression and patient-reported outcomes through Week 52 in adults with active PsA.
July 2025
The FDA accepted for review the supplemental New Drug Application (sNDA) for Sotyktufor the treatment of adults with active psoriatic arthritis. The FDA assigned PDUFA goal date of March 6, 2026.
In addition, China's Center for Drug Evaluation of National Medical Products Administration and Japan's Ministry of Health, Labour and Welfare accepted sNDAs for Sotyktuin the same indication. The EMA has also validated the Type II variation application to expand the indication for Sotyktuto include this disease. The regulatory applications are based on the pivotal Phase III POETYK PsA-1 and POETYK PsA-2 trials.
Critical Accounting Policies
The preparation of financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses. Our critical accounting policies are those that significantly impact our financial condition and results of operations and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Because of this uncertainty, actual results may vary from these estimates. For a discussion of our critical accounting policies, refer to "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2024 Form 10-K. There have been no material changes to our critical accounting policies during the nine months ended September 30, 2025. For information regarding the impact of recently adopted accounting standards, refer to "Item 1. Financial Statements-Note 1. Basis of Presentation and Recently Issued Accounting Standards."
Special Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q (including documents incorporated by reference) and other written and oral statements we make from time to time contain certain "forward-looking" statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act. You can identify these forward-looking statements by the fact they use words such as "should," "could," "expect," "anticipate," "estimate," "target," "may," "project," "guidance," "intend," "plan," "believe," "will" and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on our current expectations and projections about our future financial results, goals, plans and objectives and involve inherent risks, assumptions and uncertainties, including internal or external factors that could delay, divert or change any of them in the next several years, and could cause our future financial results, goals, plans and objectives to differ materially from those expressed in, or implied by, the statements. These statements are likely to relate to, among other things, our goals, plans and objectives regarding our financial position, results of operations, cash flows, market position, product development, product approvals, sales efforts, expenses, performance or results of current and anticipated products, our business development strategy and in relation to our ability to realize the projected benefits of our acquisitions, alliances and other business development activities, the impact of any pandemic or epidemic on our operations and the development and commercialization of our products, potential laws and regulations to lower drug prices, including the potential for international reference pricing and most-favored nation drug pricing for our products, government actions relating to the imposition of new tariffs, market actions taken by private and government payers to manage drug utilization and contain costs, the expiration of patents or data protection on certain products, including assumptions about our ability to retain marketing exclusivity of certain products, and the outcome of contingencies such as legal proceedings and financial results. No forward-looking statement can be guaranteed. This Quarterly Report on Form 10-Q, our 2024 Form 10-K, particularly under the section "Item 1A. Risk Factors," and our other filings with the SEC, include additional information on the factors that we believe could cause actual results to differ materially from any forward-looking statement.
Although we believe that we have been prudent in our plans and assumptions, no assurance can be given that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. Additional risks that we may currently deem immaterial or that are not presently known to us could also cause the forward-looking events discussed in this Quarterly Report on Form 10-Q not to occur. Except as otherwise required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise after the date of this Quarterly Report on Form 10-Q.
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