Why did BMY's R&D expenses surge in Q2 2024?

Bristol-Myers Squibb's (BMY) R&D expenses increased by 28% year-over-year in Q2 2024, reaching $2.9 billion. This surge in R&D spending can be attributed to several strategic initiatives and factors:

1. **Acquisitions and Portfolio Support Costs**: Recent acquisitions, such as those of Karuna Therapeutics, RayzeBio, Mirati Therapeutics, and SystImmune, have contributed to the rise in R&D expenses. These acquisitions bring in new drug pipelines and technologies that require investment for integration and development.
2. **Strategic Productivity Initiatives**: BMY is executing strategic productivity efforts aimed at saving approximately $1.5 billion by the end of 2025. While these initiatives are expected to streamline operations, the short-term investments in innovation and growth are reflected in the increased R&D expenses.

In conclusion, BMY's R&D expenses surge in Q2 2024 primarily due to strategic acquisitions and portfolio support costs, and strategic productivity initiatives. These investments are crucial for maintaining a competitive edge in the pharmaceutical sector and securing future growth opportunities despite the challenges posed by patent expirations and market dynamics.

|code|Ticker|Name|Date|R&D Expenses YoY|market_code|
|---|---|---|---|---|---|
|BMY|BMY.N|Bristol-Myers Squibb|2024 Q1|16.113744075829384|169|
|BMY|BMY.N|Bristol-Myers Squibb|2024 Q2|28.387953941541188|169|