What caused BMY's operating profit to drop sharply in Q1 2024?

Bristol-Myers Squibb Co's operating profit dropped sharply in Q1 2024 primarily due to lower sales of Revlimid and a decrease in gross margin resulting from product mix and lower hedge settlement gains:

1. **Impact of Lower Sales**: The most significant factor contributing to the decline in operating profit is the decreased sales of Revlimid. Revlimid, a multiple myeloma drug, has been a key revenue generator for the company. However, due to various factors such as competition from generic alternatives and market dynamics, its sales have declined, thereby impacting the total revenue and profit margins.
2. **Gross Margin Pressure**: The company has also experienced a decrease in gross margin due to product mix and lower hedge settlement gains. This indicates that the cost structure of the company's operations has not been favorable, which directly affects the profitability of the business. Gross margin is a critical indicator of a company's operational efficiency and its ability to convert revenue into profit.
3. **Strategic Acquisitions and Product Portfolio**: Despite the challenges, Bristol-Myers Squibb has been actively pursuing strategic acquisitions and expanding its product portfolio. The planned acquisitions of Karuna Therapeutics and RayzeBio, as well as the completion of the Mirati Therapeutics purchase, are expected to bolster the company's product pipeline and contribute to future growth.

In conclusion, the drop in BMY's operating profit in Q1 2024 is primarily due to lower sales of Revlimid and a decrease in gross margin. These factors, combined with the company's strategic initiatives, provide a comprehensive understanding of the underlying causes of the profit decline.