How Does Bristol-Myers Squibb’s Revenue And Other Key Metrics Compare With That of Merck?

by Trefis Team
Bristol-Myers Squibb
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Bristol-Myers Squibb (NYSE: BMY) and Merck (NYSE: MRK) primarily serve the pharmaceuticals products markets. The companies discover, develop, and sell pharmaceutical products globally. Their drugs are used for the treatment of various types of diseases, including cancer, heart-related, and infectious, among others. Merck also operates in the animal health market. Although Merck has higher revenues and offers drugs for more therapeutic areas than its peer, its growth rate over the recent years has been slower than Bristol-Myers Squibb. However, Merck has better diversification of revenues geographically, and its adjusted net income margin is marginally higher than that of Bristol-Myers Squibb, which implies that its operations are more efficient than its peer. In this note, we have analyzed the revenues and other key metrics of both the pharmaceutical companies over recent years. You can look at our interactive dashboard analysis ~ Bristol-Myers Squibb vs. Merck: How Have Revenues & Other Key Metrics Changed Over Recent Years? ~ for more details.

Comparing Bristol-Myers Squibb’s Estimated 2019 Revenues With That of Merck

  • Bristol-Myers Squibb’s Total Revenue Contribution For 2019 (Estimated):
    • Oncology: $11.1 Bil (46%)
    • Cardiovascular: $7.8 Bil (32%)
    • Immunology: $2.6 Bil (11%)
    • Mature Products: $1.4 Bil (6%)
    • Virology: $1.2 Bil (5%)
  • Merck’s Total Revenue Contribution For 2019 (Estimated):
    • Mature Drugs: $12.3 Bil (26%)
    • Anti-Infectious: $11.5 Bil (25%)
    • Oncology: $11.1 Bil (24%)
    • Alimentary & Metabolism: $5.5 Bil (12%)
    • Musculoskeletal: $1.9 Bil (4%)
    • Contraceptives: $1.8 Bil (4%)
    • Cardiovascular: $1.3 Bil (3%)
    • Respiratory: $1.1 Bil (2%)

Merck’s Revenue of $47 Billion Are Roughly 2x That of Bristol-Myers Squibb

  • Bristol-Myers Squibb’s total revenues likely grew from $19.4 billion in 2016 to an estimated $24.1 billion in 2019, primarily led by its blockbuster drugs, Eliquis and Opdivo. Look at our interactive dashboard analysis for more details on Bristol-Myers Squibb’s revenues.
  • Merck’s revenues grew from $39.8 billion to an estimated $46.6 billion over the same period, primarily led by the success of Keytruda. Look at our analysis on Merck’s revenues for more details.

Bristol-Myers Squibb’s Revenues Grew At A Higher Pace On Average When Compared To Merck

  • Bristol-Myers Squibb’s revenue likely grew at a CAGR of 7.4% between 2014 and 2019, while the figure was 5.4% for Merck over the same period. The jump in Merck’s revenue in 2019 can be attributed to higher expected sales of Keytruda, which garnered multiple regulatory approvals over the year.

United States Accounts For A Significant Portion of Revenues For Both The Companies

  • The U.S. accounted for 56% of total sales for Bristol-Myers Squibb in 2018, and the figure will likely be 59% in 2019.
  • For Merck, the figure stood at 43%.

Both Companies’ Cancer Drugs Portfolio Is Estimated To Be Around the $11 Billion Mark In 2019

  • Bristol-Myers Squibb’s cancer drugs sales grew from $6.8 billion in 2016 to an estimated $11.1 billion in 2019.
  • For Merck, the figure grew from $2.2 billion to an estimated $11.1 billion over the same period.
  • For Bristol-Myers Squibb, cancer drugs sales are largely driven by Opdivo, while in the case of Merck, it is Keytruda seeing stellar growth over the recent years.

Gross Profit Margin For Bristol-Myers Squibb Is Slightly Better Than That For Merck

  • Gross Profit Margin for Bristol-Myers Squibb likely declined from 74% to 71% between 2016 and 2019.
  • This can be attributed to higher profit sharing costs associated with Eliquis.
  • Merck’s Gross Profit Margin grew from 65% to 70% over the same period.

Bristol-Myers Squibb And Merck’s Adjusted Net Income Margin Has Expanded

  • Bristol-Myers Squibb’s adjusted net income margin likely grew from 24.5% in 2016 to 28.5% in 2019.
  • Merck’s adjusted net income margin grew from 26.5%to 28.8% over the same period.

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