What's driving BMY's gross profit decline since 2022?

Bristol-Myers Squibb's gross margin has declined from 78.04% in 2022 to 76.24% in 2023. This decline is primarily due to changes in product mix and the impact of foreign exchange on international revenues.

1. **Product Mix Changes**: The decrease in gross margin is largely attributed to changes in product mix. The company's focus on the Growth Portfolio, which contributed significantly to revenue growth, also introduced variability in gross margins due to the nature of the products within this portfolio.
2. **Foreign Exchange Impact**: The negative impact from foreign exchange on international revenues has been a factor in the gross margin decline. This is particularly evident in the third quarter of 2024, where the negative impact was 4%. Bristol-Myers Squibb has seen a decrease in gross margin on a GAAP basis from 77.1% to 75.1%, and on a non-GAAP basis from 77.3% to 76.0%, primarily due to product mix and this foreign exchange impact.

In summary, the decline in gross profit margin for Bristol-Myers Squibb since 2022 is primarily driven by changes in product mix and the impact of foreign exchange on international revenues.