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Church & Dwight reports fourth quarter and full year 2023 results

2023 Fourth Quarter Results

  • Net Sales growth +6.4%: Domestic +6.4%, Int’l +11.9%, SPD -9.2 %
  • Organic sales +5.3%: Domestic +5.7%, Int’l +9.0%, SPD -9.2%1
  • Gross Margin +260 bps
  • Reported EPS $0.62, Adjusted EPS $0.65, +4.8%1

2023 Full Year Results

  • Net Sales growth +9.2%; Organic Sales +5.3%1
  • Gross Margin +220 bps
  • Reported EPS $3.05, Adjusted EPS $3.17, +6.7%1
  • Cash from operations $1.03 billion

 

 

EWING, N.J. — (BUSINESS WIRE) — Church & Dwight Co., Inc. (NYSE: CHD) today announced full year net sales increased 9.2% to $5,867.9 million, ahead of the Company’s outlook of 9%. Organic sales increased 5.3% due to positive pricing of 4.4% and higher volume of 0.9%.1 Organic sales of consumer products increased 6.2%.

 

Full year EPS was $3.05, an increase of 81.5% compared to 2022 reported EPS. Full year 2023 Adjusted EPS was $3.17, an increase of 6.7% compared to 2022 Adjusted EPS.1 Full year Adjusted EPS exceeded the Company’s outlook of $3.15, driven by higher sales, higher gross margin and a lower tax rate, partially offset by higher SG&A.

 

Q4 net sales were $1,528.0 million, a $92.0 million or 6.4% increase compared to net sales in Q4 2022. This exceeded the Company’s outlook of 5% growth. Organic sales increased 5.3%1, exceeding the Company’s outlook of 4%, driven by 4.0% positive price and product mix and 1.3% higher volume. Reported EPS for Q4 was $0.62. Adjusted EPS in Q4 was $0.65 compared to $0.62 Adjusted EPS in Q4 2022.

 

Matthew Farrell, Chief Executive Officer, commented, “Our full year 2023 results illustrate the strength of our brands, innovative new products, and our focus on execution. We are exiting the year with strong momentum after posting two consecutive quarters of year-over-year volume growth. We expect volume to continue to drive growth into 2024. Our domestic brands grew consumption in 10 of 17 categories in 2023. We grew share on brands representing 60% of our sales. Global online sales accounted for 20% of total consumer sales in 2023, an increase of 26% compared to 2022.

 

“Our recent acquisitions, THERABREATH™ mouthwash and HERO™, the maker of MIGHTY PATCH™ acne care products, both experienced high consumption growth and grew market share throughout 2023. We expect these brands to deliver strong growth in 2024.

 

“Organic revenue growth for the Domestic Division grew 5.7% in 2023 driven by growth across much of the portfolio. Organic revenue growth for the International Division grew 8.5% in 2023, driven by broad-based growth in our country subsidiaries and our Global Markets Group. The International Division will continue to be a growth engine for the Company in 2024. Our Specialty Products Division declined 7.9% in 2023, largely due to declining sales of our MEGALAC dairy supplement within our Animal Nutrition business. We will be exiting this part of the Animal Nutrition business during Q1 2024.

 

“We were especially pleased by the strong gross margin expansion that we saw in 2023 with productivity, pricing, volume, and strong contributions from higher margin acquisitions more than offsetting inflation.

 

“Finally, strong sales and margin expansion along with efficient working capital management were all key drivers of our strong cash flow generation in 2023, achieving over $1 billion in cash from operations for the first time.

 

Fourth Quarter Review

Consumer Domestic net sales were $1,193.0 million, a $72.2 million or 6.4% increase driven by both household and personal care sales growth. Organic sales increased 5.7% due to price and product mix (+4.2%) and volume (+1.5%). This is the second consecutive quarter of volume growth, despite the impact of ceasing sub-optimal laundry promotions. Growth was led by HERO acne treatments, THERABREATH mouthwash, ARM & HAMMER™ Cat Litter, ARM & HAMMER™ baking soda and ARM & HAMMER™ unit dose laundry detergent.

 

Consumer International net sales were $258.8 million, a $27.5 million or 11.9% increase. Foreign currency exchange rates impacted sales favorably by (+2.7%). Organic sales increased 9.0% due to a combination of higher price and product mix (+5.1%) and higher volume (+3.9%). This is the fourth consecutive quarter of volume growth. Q4 organic sales were primarily driven by STERIMAR™, THERABREATH, ARM & HAMMER baking soda and HERO.

 

Specialty Products net sales were $76.2 million, a $7.7 million or a 9.2% decrease. Organic sales decreased 9.2% primarily due to lower volume (9.0%) driven by the dairy business, particularly MEGALAC which continues to be impacted by low-priced imports.

 

Gross margin increased 260 basis points to 44.6% due to improved pricing, volume, productivity, and the impact of the HERO acquisition, partially offset by higher manufacturing costs.

 

Marketing expense was $219.0 million, which was $29.3 million higher than prior year. Marketing expense as a percentage of net sales increased 110 basis points to 14.3%.

 

Selling, general, and administrative expense (SG&A) was $246.2 million, including $7.3 million of charges related to restricted stock that was issued for the HERO acquisition. Adjusted SG&A was $238.9 million or 15.6% of net sales, a 210 basis points increase, primarily due to higher incentive compensation from improved business performance, investment spending for future growth and minor asset write-offs related to our Specialty Products division.

 

Income from Operations was $216.1 million. Adjusted Income from Operations was $223.4 million, an increase of 2.2% inclusive of higher marketing and SG&A.

 

Other Expense was $20.9 million, a decrease of $4.6 million primarily due to higher interest income.

 

The effective tax rate decreased to 21.3% compared to 26.4% in Q4 2022. On an adjusted basis the tax rate was 20.5% compared to a rate of 21.3% in Q4 2022. The reported tax rate of 26.4% in Q4 2022 was unusually high due to the impact of the FLAWLESS™ intangible asset impairment charge.

 

Operating Cash Flow

For the full year 2023, cash from operations was $1,030.6 million, an increase of $145.4 million due to higher cash earnings and improvements in working capital. Capital expenditures for the full year were $223.5 million, a $44.7 million increase from the prior year as we invested in capacity expansion projects.

 

At December 31, 2023, cash on hand was $344.5 million, while total debt was $2.4 billion.

 

4% Dividend Increase and Share Repurchase

Consistent with the Company’s capital allocation strategy, the Company’s Board of Directors declared a 4% increase in the quarterly dividend from $0.2725 to $0.28375 per share, equivalent to an annual dividend of $1.135 per share. This raises the annual dividend payout from $267 million to approximately $276 million. The quarterly dividend will be payable March 1st, 2024, to stockholders of record at the close of business on February 15th, 2024. This is the 28th consecutive year in which the Company has increased the dividend. The Company has paid a consecutive quarterly dividend for 123 years.

 

In Q4, the Company spent $300 million to repurchase 3.3 million shares of common stock. Currently, the Company has approximately 246 million weighted average shares outstanding.

 

Mr. Farrell commented, “Our dividend increase and share repurchases reflect the Company’s desire for stockholders to benefit from our strong cash generation and reflects our confidence in continuing our strong performance. 2024 should be another year of strong cash flow. Our robust cash flow enables us to return cash to our stockholders while maintaining significant financial flexibility to aggressively pursue acquisitions and invest in our business.”

 

2024 New Products

Mr. Farrell commented, “Product innovation continues to be a big driver of our success and we are excited about our new product launches. In 2024, we expect new product launches to drive a significant increase in net sales as we lead with innovation in a number of key categories.”

 

ARM & HAMMER™ Laundry is launching Deep Clean™ Liquid and Deep Clean Unit Dose Laundry Detergent. Arm & Hammer Deep Clean will be our most premium Arm & Hammer laundry detergent, entering the mid-tier of the category using pH Power Technology to penetrate deep into fibers where dirt, odor, and stains linger, delivering a superior clean at a price consumers can afford.

 

ARM & HAMMER™ launched Power Sheets™ Laundry Detergent online in August 2023. This innovative laundry solution is effective, convenient, and eliminates plastic bottle waste. ARM & HAMMER™ is the first major brand to offer a detergent sheet in the U.S. and became the #2 detergent sheet on Amazon within 4 weeks of launch. It was the #1 top seller in the laundry category on Amazon Prime Day. Due to its online success, Power Sheets ™ will be available in select brick & mortar retailers in early 2024.

 

ARM & HAMMER™ Hardball™ Clumping Litter is being expanded nationally in early 2024, after successful in-market testing in 2023. This transformational plant-based substrate is lightweight and creates virtually indestructible clumps for no-mess scooping. We expect this new litter to help ARM & HAMMER capture a greater share of the lightweight litter category.

 

THERABREATH™, the #1 alcohol-free mouthwash brand, is entering the antiseptic segment of the category with the launch of TheraBreath™ Deep Clean Oral Rinse. Antiseptic mouthwashes account for 30% of the category. This product is formulated to kill 99.9% of germs that cause bad breath, plaque & gingivitis without the burn.

 

BATISTE™, the leader in dry shampoo, is meeting consumers’ desire for longer-lasting results with new BATISTE Sweat Activated and BATISTE Touch Activated dry shampoos. These breakthrough products are formulated with advanced technology and release a burst of fragrance whenever you sweat or touch your hair. Both new products deliver up to 24 hours of freshness.

 

HERO™ continues to drive the majority of growth in the acne category as the #1 patch brand in the U.S. In 2024, Hero will continue to launch innovative solutions in patches combined with new launches, such as Dissolve Away Daily Cleansing Balm, that will broaden our offerings of gentle and effective solutions for acne-prone skin.

 

Outlook for 2024

Mr. Farrell stated, “We exited 2023 with strong consumption growth across the majority of our categories. We are confident about 2024 and remain focused on offering high quality products to consumers at the right value.

 

“We are evolving our long-term Evergreen business model in 2024. The last revision was in 2018. Our new annual Evergreen model reflects our expectation of faster topline growth, greater margin expansion, and a higher cadence of growth investment, specifically in ecommerce and international. The revised evergreen model calls for 4% organic net sales growth (previously 3%), 25 to 50 basis points of gross margin expansion (previously 25 bps), marketing as a percentage of sales continues to approximate 11% (no change), and SG&A leverage of 0-25 bps (previously 25 bps) reflecting investments which will help sustain accelerated growth for years to come. We are maintaining our 8% industry leading annual EPS growth target.

 

“In 2024 we expect full year reported and organic sales growth to be approximately 4-5%.1 The organic sales outlook excludes Megalac from both years and the impact from foreign currency. We expect full year reported gross margin to expand approximately 50 to 75 basis points versus 2023. We expect an increase in manufacturing costs primarily due to capacity related investments, third party manufacturing cost increases, and moderate commodity inflation. We expect to more than offset our cost increases through carryover product pricing, mix, higher volume and productivity. We expect marketing as a percentage of sales to be approximately 11% and we expect to leverage SG&A while making investments in our International and ecommerce infrastructure.

 

“Our Adjusted EPS expectation for 2024 is 7-9% growth (mid-point $3.42 Adjusted EPS), inclusive of a 1% EPS drag related to exiting the MEGALAC business. Excluding the MEGALAC impact, Adjusted EPS growth expectation is 8-10%. Our tax rate is expected to increase 170 bps to approximately 23%. The higher tax rate represents a 2% drag to Adjusted EPS. This outlook reflects strong operating fundamentals including organic sales growth, volume growth, margin expansion and operating income growth.

 

“Other expense for 2024 is expected to be approximately $85 million, compared to $90 million in 2023.

 

“Cash flow from operations is expected to be approximately $1.0 billion. We expect 2024 capital expenditures of approximately $180 million as we complete the major capacity investments that were initiated in 2023. We expect capital spending to return to historical levels (2% of sales) in 2025. We will pursue accretive acquisitions that meet our strict criteria, with an emphasis on fast-moving consumable products, similar to our last 3 acquisitions (ZICAM, THERABREATH, and HERO).

 

“In past years, we have highlighted and discussed 14 power brands within our portfolio. In the future, we will focus our communication on seven brands that we expect to be the key drivers of growth. These brands, which today represent 70% of our sales and profits, primarily compete in larger categories and have the potential for global expansion. The seven brands are ARM & HAMMER™, OXICLEAN™, BATISTE™, VITAFUSION™, WATERPIK™, THERABREATH™ and HERO™.

 

“For Q1, we expect reported and organic sales growth of approximately 4%1, gross margin expansion and higher marketing spending (+100 basis points) to support our strong innovation pipeline. As a result of the shift in marketing spend to Q1, we expect Adjusted EPS of $0.85 per share, flat versus last year’s adjusted Q1 EPS.”1

 

1 Organic Sales, Adjusted SG&A, Adjusted Income from Operations, Adjusted Tax Rate and Adjusted EPS are non-GAAP measures. See Non-GAAP reconciliations included at the end of this release.

 

Church & Dwight Co., Inc. (NYSE: CHD) will host a webcast to discuss fourth quarter and year end 2023 results on Feb. 2, 2024, at 12:00 p.m. (ET). The presentation will broadcast online at investor.churchdwight.com/investors/news-events. Click on Church & Dwight Co., Inc. 2024 Analyst Day to register for the webcast.

 

Church & Dwight Co., Inc. (NYSE: CHD) founded in 1846, is the leading U.S. producer of sodium bicarbonate, popularly known as baking soda. The Company manufactures and markets a wide range of personal care, household, and specialty products under recognized brand names such as ARM & HAMMER®, TROJAN®, OXICLEAN®, SPINBRUSH®, FIRST RESPONSE®, NAIR®, ORAJEL®, XTRA®, L’IL CRITTERS® and VITAFUSION®, BATISTE®, WATERPIK®, ZICAM®, THERABREATH® and HERO®. For more information, visit the Company’s website.

 

Church & Dwight has a strong heritage of commitment to people and the planet. In the early 1900’s, we began using recycled paperboard for all packaging of household products. Today, virtually all our paperboard packaging is from certified, sustainable sources. In 1970, the ARM & HAMMER brand introduced the first nationally distributed, phosphate-free detergent. That same year, Church & Dwight was honored to be the sole corporate sponsor of the first annual Earth Day. In 2023, our continued progress earned continued public recognition, including the Newsweek Magazine’s Americas Most Responsible and America’s Greenest Companies lists, the EPA’s Green Power Partnership-Top 100 list, the 2023 Wall Street Journal Management Top 250 List, the 2022/2023 Forbes Magazine: Americas Best Midsize Employer Award and the FTSE4Good Index Series, amongst others.

 

For more information, see the Church & Dwight 2022 Sustainability Report at: https://churchdwight.com/responsibility/

This press release contains forward-looking statements, including, among others, statements relating to net sales and earnings growth; gross margin changes; trade, marketing, and SG&A spending; recessionary conditions; interest rates; inflation; sufficiency of cash flows from operations; earnings per share; cost savings programs; consumer demand and spending; the effects of competition; the effect of product mix; volume growth, including the effects of new product launches into new and existing categories; the impact of acquisitions (including earn-outs); and capital expenditures. Other forward-looking statements in this release may be identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make” or other comparable terms. These statements represent the intentions, plans, expectations and beliefs of the Company, and are based on assumptions that the Company believes are reasonable but may prove to be incorrect. In addition, these statements are subject to risks, uncertainties and other factors, many of which are outside the Company’s control and could cause actual results to differ materially from such forward-looking statements. Factors that could cause such differences include a decline in market growth, retailer distribution and consumer demand (as a result of, among other things, political, economic and marketplace conditions and events), including those relating to the outbreak of contagious diseases; other impacts of the COVID-19 pandemic and its impact on the Company’s operations, customers, suppliers, employees, and other constituents, and market volatility and impact on the economy (including contributions to recessionary conditions), resulting from global, nationwide or local or regional outbreaks or increases in infections, new variants, and the risk that the Company will not be able to successfully execute its response plans with respect to the pandemic or localized outbreaks and the corresponding uncertainty; the impact of new legislation such as the U.S. CARES Act, the EU Medical Device Regulation, new cosmetic and device regulations in Mexico, and the U.S. Modernization of Cosmetic Regulation Act; the impact on the global economy of the Russia/Ukraine war and increased conflict in the Middle East, including the impact of export controls and other economic sanctions; potential recessionary conditions or economic uncertainty; the impact of continued shifts in consumer behavior, including accelerating shifts to on-line shopping; unanticipated increases in raw material and energy prices, including as a result of the Russia/Ukraine war, increased conflict in the Middle East or other inflationary pressures; delays and increased costs in manufacturing and distribution; increases in transportation costs; labor shortages; the impact of price increases for our products; the impact of inflationary conditions; the impact of supply chain and labor disruptions; the impact of severe or inclement weather on raw material and transportation costs; adverse developments affecting the financial condition of major customers and suppliers; competition; changes in marketing and promotional spending; growth or declines in various product categories and the impact of customer actions in response to changes in consumer demand and the economy, including increasing shelf space or on-line share of private label and retailer-branded products or other changes in the retail environment; consumer and competitor reaction to, and customer acceptance of, new product introductions and features; the Company’s ability to maintain product quality and characteristics at a level acceptable to our customers and consumers; disruptions in the banking system and financial markets; the Company’s borrowing capacity and ability to finance its operations and potential acquisitions; higher interest rates; foreign currency exchange rate fluctuations; transition to, and shifting economic policies in the United States; potential changes in export/import and trade laws, regulations and policies of the United States and other countries, including any increased trade restrictions or tariffs; increased or changing regulation regarding the Company’s products and its suppliers in the United States and other countries where it or its suppliers operate; market volatility; issues relating to the Company’s information technology and controls; the impact of natural disasters, including those related to climate change, on the Company and its customers and suppliers, including third party information technology service providers; integrations of acquisitions or divestiture of assets; the outcome of contingencies, including litigation, pending regulatory proceedings and environmental matters; and changes in the regulatory environment in the countries where we do business.

 

For a description of additional factors that could cause actual results to differ materially from the forward-looking statements, please see Item 1A, “Risk Factors” in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the U.S. federal securities laws. You are advised, however, to consult any further disclosures the Company makes on related subjects in its filings with the United States Securities and Exchange Commission.

 

This press release also contains non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of the Company’s financial performance, identifying trends in its results and providing meaningful period-to-period comparisons. The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for these reconciliations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP financial measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read in connection with the Company’s financial statements presented in accordance with GAAP.

 

 

CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

(In millions, except per share data)

2023

2022

2023

2022

Net Sales

$

1,528.0

$

1,436.0

$

5,867.9

$

5,375.6

Cost of sales

846.7

833.5

3,279.4

3,125.6

Gross Profit

681.3

602.5

2,588.5

2,250.0

Marketing expenses

219.0

189.7

641.3

535.2

Selling, general and administrative expenses

246.2

611.2

889.8

1,117.0

Income from Operations

216.1

(198.4

)

1,057.4

597.8

Equity in earnings of affiliates

0.6

2.3

8.7

12.3

Other income (expense), net

(21.5

)

(27.8

)

(98.7

)

(86.8

)

Income before Income Taxes

195.2

(223.9

)

967.4

523.3

Income taxes

41.5

(59.2

)

211.8

109.4

Net Income

$

153.7

$

(164.7

)

$

755.6

$

413.9

Net Income per share – Basic

$

0.63

$

(0.68

)

$

3.09

$

1.70

Net Income per share – Diluted

$

0.62

$

(0.67

)

$

3.05

$

1.68

Dividends per share

$

0.27

$

0.26

$

1.09

$

1.05

Weighted average shares outstanding – Basic

244.6

243.6

244.9

242.9

Weighted average shares outstanding – Diluted

247.0

246.1

247.6

246.3

CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in millions)

Dec. 31, 2023

Dec. 31, 2022

Assets

Current Assets

Cash and Cash Equivalents

$

344.5

$

270.3

Accounts Receivable

526.9

422.0

Inventories

613.3

646.6

Other Current Assets

45.0

57.0

Total Current Assets

1,529.7

1,395.9

Property, Plant and Equipment (Net)

927.7

761.1

Equity Investment in Affiliates

12.0

12.7

Trade Names and Other Intangibles

3,302.3

3,431.6

Goodwill

2,431.5

2,426.8

Other Long-Term Assets

366.0

317.5

Total Assets

$

8,569.2

$

8,345.6

Liabilities and Stockholders’ Equity

Short-Term Debt

$

3.9

$

74.0

Current portion of Long-Term debt

199.9

0.0

Other Current Liabilities

1,218.2

1,109.8

Total Current Liabilities

1,422.0

1,183.8

Long-Term Debt

2,202.2

2,599.5

Other Long-Term Liabilities

1,089.6

1,072.4

Stockholders’ Equity

3,855.4

3,489.9

Total Liabilities and Stockholders’ Equity

$

8,569.2

$

8,345.6

Contacts

Rick Dierker

Chief Financial Officer

609-806-1200

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AM Best revises outlooks to negative for Amica Mutual Insurance Company and subsidiaries

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance — AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) of Amica Mutual Insurance Company (Amica Mutual) and its wholly owned subsidiary, Amica Property and Casualty Insurance Company (together known as Amica Mutual Group).

 

At the same time, AM Best has revised the outlooks to negative from stable and affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-” (Superior) of Amica Life Insurance Company (Amica Life), a wholly owned subsidiary of Amica Mutual. All companies are domiciled in Lincoln, RI.

The Credit Ratings (ratings) reflect Amica Mutual Group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

 

The ratings of Amica Life reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM.

 

The negative outlooks for Amica Mutual Group reflect the decline in its balance sheet strength, specifically a deterioration in risk-adjusted capitalization in recent years. Increased loss costs in both the auto and homeowner’s line of business have driven substantial underwriting losses in 2022 and 2023, which has significantly impacted the group’s surplus position and overall liquidity. Nonetheless, the group’s liquidity profile remains supported by Federal Home Loan Bank borrowing capacity, reinsurance and portfolio cash flow. Additionally, Amica Mutual Group’s results rely heavily on net investment income and realized capital gains, which have contributed collectively to positive net earnings in most years. However, this benefit was muted in 2022 and 2023 due to the turbulent investment markets and rapid increases in interest rates, which caused underwriting losses to outpace investment earnings.

 

AM Best notes that Amica has implemented multiple strategic initiatives, which are expected to correct performance gradually. These include substantial rate increases in both the auto and homeowners’ line of business, as well as a renewed focus on profitable geographic areas and reducing dividends. While this is expected to improve the group’s operating performance in the more near term, it is not expected to replenish its loss of surplus within that same time frame. Additionally, the negative outlooks further reflect the potential for continued capital erosion as management’s strategic action plan comes to fruition.

 

The negative outlooks for Amica Life follow that of Amica Mutual and reflect the potential removal of rating enhancement provided by the property/casualty parent. Given the strong parental support that includes continuous capital contributions, ample liquidity access and the sharing of brand names and consumer base, Amica Life benefits from its relationship with its parent.

 

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Cristian Sieira
Financial Analyst
+1 908 882 2315
cristian.sieira@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

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Director
+1 908 882 2120
erik.miller@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

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Fork & Good hosts first ever tasting of hybrid cultivated meat at Davos

The food startup shared its product with thought leaders and local residents at its first large-scale tasting since the launch of its pilot facility last year

 

 

DAVOS, Sz. — (BUSINESS WIRE) — On Jan. 16, heads of state, industry experts and business leaders gathered for the annual World Economic Forum conference at Davos.

 

At the same time, a smaller, though no less consequential, event took place just 10 minutes away at Sonas Irish Pub. Food startup Fork & Good conducted the city’s first blind tasting of hybrid cultivated meat to gather feedback from an eclectic group of 40 people.

 

Participants each received two small dishes distinguished by blue and yellow stickers. One contained 100% conventional pork and the other a blend of 30% cultivated and 70% conventional pork. (Willing vegetarians also had a chance to enjoy dumplings made with a blend of plant and cultivated pork).

 

“Mixing cultivated meat with conventional meat has many advantages,” said Fork & Good Chief Scientific Officer Gabor Forgacs.

 

“It helps alleviate the rising supply chain and environmental challenges meat producers face. It also allows for the gradual introduction of cultured meat through products consumers are already used to.”

 

Perhaps most importantly, it tastes just like meat — because it is 100% meat. As Fork & Good co-founders expected, participants at the blind tasting found no major difference between the two samples. An informal poll after the tasting showed more than half of the group preferred the 30/70 blend over conventional meat on its own. The group was equally split when asked to guess which dish contained cultivated meat.

 

The tasting was led by Fork & Good CEO Niya Gupta, who said, “We are aiming to serve everyone everywhere with affordable meat so it’s exciting to get input in this open and democratic way. We had everyone, from an American professor to a Swedish nonprofit worker to a Chinese student — even a regular Swiss person walking in off the street looking for a beer. Their feedback has been critical to us as we continue our product development journey.”

 

One of the participants, global data science leader Dr. Richard Kerr, said, “I wasn’t able to tell the difference between the samples, to the point that I thought it was going to be revealed that all the samples were 100% cultured. I love the idea, and will continue to follow [Fork & Good’s] progress with interest.”

 

The lunchtime tasting was a part of UnDavos, an informal entrepreneurship-focused gathering that takes place the same week as the WEF conference. Mark Turrell, founder of UnDavos and CTO of Fresh Solutions AI, invited Fork & Good to present their product at a “meal for the future” event.

 

“It was amazing to physically experience technology being integrated into our food — the food in our mouths,” Turrell said.

 

In addition to the blind tasting, Fork & Good was invited to the main WEF conference as a Technology Pioneer, one of just 100 early-stage startups developing innovative technologies to address global challenges. Gupta participated in back-to-back meetings and roundtables, including a bilateral meeting with one of the world’s largest meat producers who couldn’t tell the difference between conventional meat and Fork & Good’s hybrid cultivated meat.

 

Founded in 2018, Fork & Good launched its pilot facility in Jersey City, New Jersey. The facility is already capable of producing six to ten times more meat per square foot than is currently possible by conventional means. Fork & Good’s cultivated meat is ready for market, pending regulatory approval by the FDA and USDA.

 

ABOUT FORK AND GOOD

From its facility in Jersey City, Fork & Good is on a mission to grow the best of meat for everyone, everywhere. The company takes a novel approach to cultivating meat by growing muscle cells directly in proprietary bioreactors for maximum flavor and nutritional value—while drastically reducing the amount of land and water used in conventional livestock production. The team has 150+ years of combined experience that spans food, agriculture, and science, and is committed to helping build the industry in a safe, transparent way. Learn more at: www.forkandgood.com.

 

Contacts

Emily Bogan, Business Operations Manager

Email: hello@forkandgood.com
Phone: (201) 201-1392

Categories
Business Economics Healthcare Lifestyle Local News Science

Bristol Myers Squibb reports fourth quarter and full-year financial results for 2023

Results Reflect Continued Strength of In-Line and New Products, Pipeline Execution and Business Development Activity, Supporting Growth Momentum into 2024

 

  • Reports Fourth Quarter Revenues of $11.5 Billion; GAAP EPS of $0.87 and Non-GAAP EPS of $1.70
    • In-Line and New Product Portfolio Revenues Increased 9% to $9.8 Billion
  • Reports Full-Year Revenues of $45.0 Billion; GAAP EPS of $3.86 and Non-GAAP EPS of $7.51
    • In-Line and New Product Portfolio Revenues Increased 7% to $37.9 Billion
  • Strengthens Long-Term Growth Profile Through Multiple Transactions, Including Planned Acquisitions of Karuna Therapeutics and RayzeBio and Strategic Collaboration with SystImmune; Completes Purchase of Mirati Therapeutics
  • Advances Research Pipeline Including U.S. Approval of Augtyro and FDA Acceptance of sBLAs for Breyanzi in Follicular Lymphoma and Mantle Cell Lymphoma for Priority Review
  • Provides 2024 Guidance with Revenues Increasing by Low Single-Digits; Non-GAAP EPS Range $7.10 to $7.40, Excludes Impact of Pending Transactions

 

 

PRINCETON, N.J. — (BUSINESS WIRE) — Bristol Myers Squibb (NYSE: BMY) today reports results for the fourth quarter and full year of 2023, which reflect strong pipeline acceleration, continued portfolio diversification, and momentum in our business.

“We saw good performance in the fourth quarter from our in-line and new products and took several actions to strengthen the company and build a foundation for sustainable growth,” said Christopher Boerner, Ph.D., chief executive officer, Bristol Myers Squibb.

 

“In 2024, our focus is on delivering strong commercial execution and accelerating opportunities that enhance our growth profile in the middle of the decade and beyond.”

 

 

Fourth Quarter

Full Year

$ in millions, except per share amounts

2023

2022

Change

Change Excl.

F/X**

2023

2022

Change

Change Excl.

F/X**

Total Revenues

$11,477

$11,406

1%

1%

$45,006

$46,159

(2)%

(2)%

EPS — GAAP*

0.87

0.95

(8)%

N/A

3.86

2.95

31%

N/A

EPS — Non-GAAP*

1.70

1.82

(7)%

N/A

7.51

7.70

(2)%

N/A

Acquired IPRD charge and Licensing Income Net Impact (Decrease)/Increase

(0.20)

(0.01)

N/A

N/A

(0.28)

(0.24)

N/A

N/A

* GAAP and Non-GAAP earnings per share include the net impact of Acquired IPRD charges and licensing income.

** See “Use of Non-GAAP Financial Information”.

 

 

FOURTH QUARTER RESULTS

All comparisons are made versus the same period in 2022 unless otherwise stated.

  • Bristol Myers Squibb posted fourth quarter revenues of $11.5 billion, an increase of 1% both on a reported and when adjusted for foreign exchange basis, primarily due to higher sales of new product portfolio, as well as Eliquis and Opdivo, partially offset by lower sales of Revlimid.
  • U.S. revenues increased 1% to $8.0 billion primarily due to higher sales of new product portfolio, Eliquis and Opdivo, partially offset by lower sales of Revlimid.
  • International revenues remained relatively flat at $3.5 billion, primarily due to lower sales of Revlimid, offset by higher sales ofnew product portfolio and Opdivo.
  • On a GAAP basis, gross margin decreased from 77.3% to 76.1% and on a non-GAAP basis, gross margin decreased from 77.9% to 76.4% primarily due to product mix and lower hedge settlement gains.
  • On a GAAP and non-GAAP basis, marketing, selling and administrative expenses decreased 9% to $2.1 billion primarily due to timing of spend.
  • On a GAAP and non-GAAP basis, research and development expenses remained relatively flat at $2.5 billion.
  • On a GAAP and non-GAAP basis, Acquired IPRD increased to $600 million from $52 million primarily due to the reacquired mavacamten rights of $445 million in China and certain other Asian territories. On a GAAP and non-GAAP basis, licensing income was $67 million compared to $16 million during the same period a year ago.
  • On a GAAP basis, amortization of acquired intangible assets decreased 3% to $2.3 billion primarily due to the Abraxane marketed product right being fully amortized in the fourth quarter of 2022.
  • On a GAAP basis, income tax benefit was $88 million despite pre-tax earnings of $1.7 billion primarily due to a valuation allowance reversal related to unrealized equity investment losses and foreign currency. In 2022, the income tax benefit was $166 million despite pre-tax earnings of $1.9 billion primarily due to the release of income tax reserves. On a non-GAAP basis, the effective tax rate changed from 10.9% to 14.9%, primarily due to release of income tax reserves in 2022.
  • The company reported on a GAAP basis net earnings attributable to Bristol Myers Squibb of $1.8 billion, or $0.87 per share, compared to $2.0 billion, or $0.95 per share, for the same period a year ago. In addition to the items above, the decrease in GAAP EPS was driven by lower losses in equity investments. The company reported on a non-GAAP basis net earnings attributable to Bristol Myers Squibb of $3.5 billion, or $1.70 per share, compared to $3.9 billion, or $1.82 per share, for the same period a year ago. The EPS results in the fourth quarter of 2023 also include the impact of lower weighted-average common shares outstanding.

 

 

FOURTH QUARTER PRODUCT REVENUE HIGHLIGHTS

($ amounts in millions)

Quarter Ended December

31, 2023

% Change from Quarter

Ended December 31,

2022

% Change from

Quarter Ended

December 31,

2022 Ex-F/X**

U.S.(c)

Int’l

WW(d)

U.S.(c)

Int’l

WW(d)

Int’l

WW(d)

In-Line Products

Eliquis

$

1,899

$

975

$

2,874

11%

1%

7%

(3)%

6%

Opdivo

1,411

976

2,387

12%

3%

8%

4%

8%

Orencia

766

219

985

8%

8%

8%

11%

9%

Pomalyst/Imnovid

632

258

890

1%

2%

1%

—%

1%

Yervoy

343

223

566

(1)%

—%

— %

1%

—%

Sprycel

417

109

526

—%

(32)%

(9)%

(31)%

(9)%

Mature and other products (a)

202

278

480

9%

(6)%

—%

(5)%

1%

Total In-Line Products

5,670

3,038

8,708

8%

(1) %

5 %

(1)%

5%

New Product Portfolio

Reblozyl

274

46

320

75%

10%

61%

5%

60%

Opdualag

187

3

190

80%

N/A

83%

N/A

83%

Abecma

56

44

100

(40)%

42%

(20)%

39%

(21)%

Zeposia

101

32

133

74%

52%

68%

43%

66%

Breyanzi

85

16

101

*

23%

84%

23%

84%

Camzyos

84

4

88

*

N/A

*

N/A

*

Sotyktu

56

7

63

*

N/A

*

N/A

*

Onureg

31

16

47

15%

60%

27%

50%

24%

Inrebic

19

10

29

12%

67%

26%

67%

26%

Augtyro

1

—

1

N/A

N/A

N/A

N/A

N/A

Total New Product Portfolio

894

178

1,072

71%

45%

66%

39%

65%

Total In-Line and New Product Portfolio

6,564

3,216

9,780

13%

1%

9%

1%

9%

Recent LOE Products (b)

Revlimid

1,262

188

1,450

(38)%

(21)%

(36)%

(20)%

(36)%

Abraxane

177

70

247

53%

11%

38%

22%

42%

Total Recent LOE Products

1,439

258

1,697

(33)%

(15)%

(30)%

(11)%

(30)%

Total Revenues

$

8,003

$

3,474

$

11,477

1%

—%

1%

—%

1%

*

In excess of +100%

**

See “Use of Non-GAAP Financial Information”.

(a)

Includes over-the-counter (OTC) products, royalty revenue and mature products.

(b)

Recent LOE Products includes products with significant expected decline in revenue from a prior reporting period as a result of a loss of exclusivity.

(c)

Includes Puerto Rico.

(d)

Worldwide (WW) includes U.S. and International (Int’l).

 

 

FOURTH QUARTER PRODUCT REVENUE HIGHLIGHTS

In-Line Products

Revenues for in-line products in the fourth quarter were $8.7 billion compared to $8.3 billion in the prior year period. In-line products revenue was largely driven by:

  • Eliquis worldwide revenues increased 7%, or 6% when adjusted for foreign exchange impacts. U.S. revenues were $1.9 billion compared to $1.7 billion in the prior year period, representing an increase of 11% primarily due to higher demand, partially offset by GTN adjustments in 2023. International revenues were $975 million compared to $970 million in the prior year period, representing an increase of 1%, or a decrease of 3% when adjusted for foreign exchange impacts, primarily driven by lower average net selling prices and generic erosion in several European countries.
  • Opdivo worldwide revenues increased 8% both on a reported and when adjusted for foreign exchange basis. U.S. revenues increased 12% to $1.4 billion compared to $1.3 billion in the prior year period primarily due to higher demand. International revenues were $976 million compared to $951 million in the prior year period, representing an increase of 3%, or 4% when adjusted for foreign exchange impacts, primarily due to higher demand as a result of launches for new indications and core indications.

New Product Portfolio

  • New product portfolio worldwide revenues increased to $1.1 billion compared to $645 million in the prior year period, representing a growth of 66%, or 65% when adjusted for foreign exchange impacts, primarily driven by higher demand across the portfolio, including for Reblozyl, Opdualag, Camzyos, Sotyktu, Zeposia and Breyanzi.

Recent LOE Products

  • Revlimid worldwide revenues declined to $1.5 billion compared to $2.3 billion in the prior year period, representing a decline of 36%, both on a reported and when adjusted for foreign exchange basis, primarily due to generic erosion.

PRODUCT AND PIPELINE UPDATE

The company recently achieved several important regulatory and clinical milestones. In November 2023, Augtyro received U.S. regulatory approval in non-small cell lung cancer. The U.S. Food and Drug Administration (FDA) also accepted supplemental Biologics License Applications (sBLAs) for Breyanzi to expand into follicular lymphoma and mantle cell lymphoma.

Oncology

Category

Asset

Milestone

Regulatory

KRAZATI®

(adagrasib)

The European Commission (EC) granted conditional marketing authorization for KRAZATI as a targeted treatment option for adult patients with KRASG12C -mutated advanced non-small cell lung cancer (NSCLC) and disease progression after at least one prior systemic therapy.

repotrectinib

The European Medicines Agency (EMA) validated the marketing authorization application for repotrectinib as a treatment for ROS1 tyrosine kinase inhibitor (TKI)-naïve and -pretreated adult patients with ROS1-positive locally advanced or metastatic NSCLC and TKI naïve- and -pretreated adult and pediatric patients 12 years and older with NTRK-positive locally advanced or metastatic solid tumors. The application was based on the registrational Phase 1/2 TRIDENT-1 trial and CARE study. Application validation confirms the submission is complete and begins the EMA’s centralized review procedure.

Opdivo®

(nivolumab)

The FDA accepted the sBLA for Opdivo in combination with cisplatin-based chemotherapy as a first-line treatment for adult patients with unresectable or metastatic urothelial carcinoma. The FDA granted the application Priority Review and assigned a Prescription Drug User Fee Act (PDUFA) goal date of April 5, 2024.

In addition, the EMA validated the type II variation application for Opdivo in combination with cisplatin-based chemotherapy as a first-line treatment for adult patients with unresectable or metastatic urothelial carcinoma. Application validation confirms the submission is complete and begins the EMA’s centralized review procedure.

The FDA’s sBLA acceptance and the EMA’s application validation are based on results from the Phase 3 CheckMate -901 trial.

AugtyroTM

(repotrectinib)

The FDA approved Augtyro, a TKI, for the treatment of adult patients with locally advanced or metastatic ROS1-positive NSCLC. The approval is based on results from the pivotal TRIDENT-1 study.

Clinical &

Research

Subcutaneous

nivolumab

Data from the Phase 3 CheckMate -67T trial, evaluating the subcutaneous formulation of Opdivo (nivolumab) co-formulated with Halozyme’s proprietary recombinant human hyaluronidase compared to intravenous Opdivo in patients with advanced or metastatic clear cell renal cell carcinoma who have received prior systemic therapy, demonstrated noninferiority for the co-primary endpoints of Cavgd28 (time-averaged Opdivo serum concentration over 28 days) and Cminss (trough serum concentration at steady state) compared to intravenous Opdivo. In addition, subcutaneous nivolumab displayed noninferior objective response rate as assessed by Blinded Independent Central Review (BICR) versus intravenous Opdivo.

Opdivo

Four-year follow-up results from the CheckMate -9ER trial evaluating Opdivo in combination with CABOMETYX® (cabozantinib) vs. sunitinib in patients with previously untreated advanced or metastatic renal cell carcinoma (RCC) continued to show superior progression-free survival (PFS) and objective response rates in patients treated with Opdivo plus CABOMETYX over sunitinib, regardless of risk classification based on International Metastatic Renal Cell Carcinoma Database Consortium (IMDC) scores. Superior overall survival (OS) was also observed in patients treated with the combination.

Opdivo+Yervoy

Eight-year data from the Phase 3 CheckMate -214 trial evaluating Opdivo plus Yervoy versus sunitinib continued to demonstrate long-term survival results, reducing the risk of death by 28% in patients with previously untreated advanced or metastatic RCC, regardless of IMDC risk group. Patients treated with Opdivo plus Yervoy maintained superior survival and more durable response benefits compared to those who received sunitinib in both patients with intermediate- and poor-risk prognostic factors and across all randomized patients.

The Phase 3 CheckMate -8HW trial evaluating Opdivo plus Yervoy compared to investigator’s choice of chemotherapy as a first-line treatment for patients with microsatellite instability-high or mismatch repair deficient metastatic colorectal cancer (MSI-H/dMMR mCRC) met the dual primary endpoint of PFS as assessed by BICR at a pre-specified interim analysis. The study is ongoing to assess the other dual primary endpoint of PFS per BICR in patients receiving Opdivo plus Yervoy compared to Opdivo alone, as well as secondary endpoints, including overall survival.

In addition, data from the Phase 3 CheckMate -8HW trial showed that the combination of Opdivo plus Yervoy reduced the risk of disease progression or death by 79% versus chemotherapy as a first-line treatment for patients with MSI-H/dMMR mCRC compared to chemotherapy. Opdivo plus Yervoy is the first dual immunotherapy regimen to demonstrate significant efficacy benefit compared to chemotherapy in MSI-H/dMMR mCRC.

OpdualagTM

(nivolumab and

relatlimab)

The Phase 3 RELATIVITY-123 trial evaluating the fixed-dose combination of nivolumab and relatlimab for the treatment of microsatellite stable metastatic colorectal cancer patients whose disease has progressed following at least one, but no more than four, prior lines of therapy for metastatic disease will be discontinued due to futility based on a planned analysis conducted by an independent data monitoring committee. It was determined that the trial was unlikely to meet its primary endpoints upon completion. The recommendation to stop the study was not based on safety concerns.

Hematology

Category

Asset

Milestone

Regulatory

Abecma®

(idecabtagene

vicleucel)

The Committee for Medicinal Products for Human Use (CHMP) of the EMA has recommended marketing authorization approval of Abecma for the treatment of adult patients with relapsed and refractory multiple myeloma who have received at least two prior therapies, including an immunomodulatory agent, a proteasome inhibitor, and an anti-CD38 monoclonal antibody. The CHMP recommendation will now be reviewed by the EC, which has the authority to approve medicines for the European Union.

Reblozyl®

(luspatercept-

aamt)

Japan’s Ministry of Health, Labour and Welfare (MHLW) granted manufacturing and marketing approval for Reblozyl 25 mg/75 mg injection for subcutaneous use indicated for myelodysplastic syndrome (MDS)-related anemia. The approval is based on the results of the global Phase 3 COMMANDS trial and the Phase 3 MEDALIST study, as well as a Japanese Phase 2 study (Study MDS-003) in red blood cell transfusion-independent low-risk MDS patients.

Breyanzi®

(lisocabtagene

maraleucel)

The FDA accepted sBLAs for Breyanzi to expand into new indications to include the treatment of adult patients with relapsed or refractory follicular lymphoma (FL) and relapsed or refractory mantle cell lymphoma (MCL) after a Bruton tyrosine kinase inhibitor. The FDA granted both applications Priority Review and assigned a PDUFA goal date of May 23, 2024, for Breyanzi in relapsed or refractory FL and May 31, 2024, for Breyanzi in relapsed or refractory MCL.

In addition, Japan’s MHLW has also accepted the company’s supplemental New Drug Application (sNDA) for Breyanzi for the treatment of relapsed or refractory FL.

In relapsed or refractory FL, the applications for Breyanzi in the U.S. and Japan are based on results from the TRANSCEND FL study. In relapsed or refractory MCL, the application for Breyanzi in the U.S. is based on results from the MCL cohort of the TRANSCEND NHL 001 study.

Abecma

Japan’s MHLW granted manufacturing and marketing approval of the sNDA for an additional indication for Abecma for patients with relapsed or refractory multiple myeloma who have received at least two prior therapies, including an immunomodulatory agent, a proteasome inhibitor, and an anti-CD38 antibody. The approval is based on the interim analysis from the KarMMa-3 trial.

Breyanzi

The FDA accepted the sBLA for Breyanzi to expand its current indication to include the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia or small lymphocytic lymphoma who received a prior Bruton tyrosine kinase inhibitor and B-cell lymphoma 2 inhibitor. The FDA granted the application Priority Review and assigned a PDUFA goal date of March 14, 2024.

Clinical &

Research

Abecma

Results from the preplanned final progression-free survival (PFS) analysis of the pivotal Phase 3, open-label, global, randomized controlled KarMMa-3 trial demonstrated a significantly improved PFS maintained with Abecma compared to standard regimens, with a 51% reduction in the risk of disease progression or death.

Breyanzi

First disclosure of primary analysis results from the high-risk, second-line cohort of the Phase 2 TRANSCEND FL trial evaluating Breyanzi in patients with relapsed or refractory FL demonstrated 95.7% complete response for patients with high-risk relapsed or refractory FL treated in a second-line setting.

Reblozyl

Updated results from the primary analysis of the Phase 3 COMMANDS trial, comparing Reblozyl versus epoetin alfa for the treatment of anemia in erythropoiesis stimulating agent (ESA)-naïve patients with lower-risk myelodysplastic syndromes who may require red blood cell transfusions, confirmed positive outcome of the interim analysis with superior efficacy and durability compared to ESAs.

 

 

FULL YEAR FINANCIAL RESULTS

All comparisons are made versus the same period in 2022 unless otherwise stated.

  • Bristol Myers Squibb posted revenues of $45.0 billion, a decrease of 2%, both on a reported and when adjusted for foreign exchange basis, primarily due to lower sales of Revlimid, partially offset by higher sales of our new product portfolio and Opdivo.
  • U.S. revenues decreased 1%to$31.6 billion due to lower sales of Revlimid resulting from generic erosion and, as previously disclosed, an increase in the number of patients receiving free drug product for Revlimid, and to a lesser extent Pomalyst, from the Bristol Myers Squibb Patient Assistance Foundation, a separate and independent 501(c)(3) entity to which BMS donates products. This was partially offset by an increase in demand for Opdivo, Eliquis and new product portfolio.
  • International revenues decreased 6% to $13.5 billion, or 5% when adjusted for foreign exchange impacts, primarily due to lower sales of Revlimid and Eliquis, partially offset by an increase in demand for Opdivo and new product portfolio.
  • On a GAAP basis, gross margin decreased from 78.0% to 76.2% and on a non-GAAP basis, gross margin decreased from 78.8% to 76.6%, primarily due to product mix and lower hedge settlement gains.
  • On a GAAP and non-GAAP basis, marketing, selling and administrative expenses decreased 1% to $7.8 billion and $7.7 billion, respectively.
  • On a GAAP basis, research and development expenses decreased 2% to $9.3 billion. On a non-GAAP basis, research and development expenses decreased 1% to $9.1 billion.
  • On a GAAP and non-GAAP basis, Acquired IPRD increased 12% to $913 million. On a GAAP and non-GAAP basis, licensing income was $142 million during the year compared to $103 million in 2022.
  • On a GAAP basis, amortization of acquired intangible assets decreased 6% to $9.0 billion. The decrease was primarily due to the Abraxane marketed product right being fully amortized in the fourth quarter of 2022.
  • On a GAAP basis, effective tax rate changed from 17.7% to 4.7% primarily due to the receipt of a non-U.S. tax ruling regarding the deductibility of a statutory impairment and changes in income tax reserves, valuation allowances and IRS guidance regarding deductibility of certain non-U.S. research and development expenses. On a non-GAAP basis, the effective tax rate changed from 15.3% to 14.7%.
  • The company reported on a GAAP basis net earnings attributable to Bristol Myers Squibb of $8.0 billion, or $3.86 per share, compared to $6.3 billion, or $2.95 per share. In addition to the items above, the GAAP EPS was impacted by lower losses on equity investments as well as litigation and other settlement income in 2023. On a non-GAAP basis, net earnings attributable to Bristol Myers Squibb were $15.6 billion, or $7.51 per share, compared to $16.5 billion, or $7.70 per share. In addition to the non-GAAP drivers noted above, the non-GAAP EPS was impacted by higher royalty and investment income, as well as lower weighted-average common shares outstanding.

 

 

FULL YEAR PRODUCT REVENUE HIGHLIGHTS

($ amounts in millions)

Year Ended December 31,

2023

% Change from Year

Ended December 31,

2022

% Change from

Year Ended

December 31,

2022 Ex-F/X**

U.S.(c)

Int’l

WW(d)

U.S.(c)

Int’l

WW(d)

Int’l

WW(d)

In-Line Products

Eliquis

$

8,592

$

3,614

$

12,206

10%

(10)%

4%

(10)%

3%

Opdivo

5,283

3,726

9,009

10%

8%

9%

11%

10%

Orencia

2,754

847

3,601

4%

3%

4%

6%

5%

Pomalyst/Imnovid

2,357

1,084

3,441

(3)%

2%

(2)%

3%

(1)%

Yervoy

1,388

850

2,238

6%

3%

5%

5%

6%

Sprycel

1,446

484

1,930

(3)%

(28)%

(11)%

(25)%

(10)%

Mature and other products (a)

772

1,123

1,895

3%

(13)%

(7)%

(11)%

(6)%

Total In-Line Products

22,592

11,728

34,320

6%

(3)%

3%

(2)%

4%

New Product Portfolio

Reblozyl

811

197

1,008

37%

56%

41%

54%

40%

Opdualag

617

10

627

*

N/A

*

N/A

*

Abecma

358

114

472

21%

25%

22%

24%

21%

Zeposia

324

110

434

83%

51%

74%

47%

72%

Breyanzi

303

61

364

*

97%

100%

*

*

Camzyos

226

5

231

*

N/A

*

N/A

*

Sotyktu

157

13

170

*

N/A

*

N/A

*

Onureg

117

51

168

23%

76%

35%

72%

35%

Inrebic

74

36

110

7%

*

29%

*

29%

Augtyro

1

—

1

N/A

N/A

N/A

N/A

N/A

Total New Product Portfolio

2,988

597

3,585

80%

63%

77%

61%

76%

Total In-Line and New Product Portfolio

25,580

12,325

37,905

12%

(1)%

7%

—%

8%

Recent LOE Products (b)

Revlimid

5,266

831

6,097

(37)%

(49)%

(39)%

(47)%

(39)%

Abraxane

709

295

1,004

22%

28%

24%

39%

27%

Total Recent LOE Products

5,975

1,126

7,101

(33)%

(39)%

(34)%

(36)%

(34)%

Total Revenues

$

31,555

$

13,451

$

45,006

(1)%

(6)%

(2)%

(5)%

(2)%

 

Contacts

For more information, contact:
Media: media@bms.com
Investor Relations: investor.relations@bms.com

Read full story here

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Align appoints Vinod Paul as president of Align Managed Services

Vinod Paul to Lead Strategic Direction and Expansion of Align’s Managed Services Portfolio

NEW YORK — (BUSINESS WIRE) — #ITservices — Align, the leading global provider of technology infrastructure solutions and Managed IT Services, announces the appointment of Vinod Paul as President of Align Managed Services, effective immediately.

 

In his new role, Vinod will continue to drive the strategic direction, expansion, and profitability of Align’s managed services portfolio, including cloud solutions, cybersecurity, and tailored products designed for the financial services community. Vinod’s vision and leadership will be instrumental in shaping the company’s growth strategy, while overseeing client services, technology and thought leadership in both the financial services and Managed Services industries.

 

Vinod joined Align in 2017 and has since served as Chief Operating Officer, before being appointed as President. Under his leadership, Align has expanded its global customer base and broadened its managed services offerings in the financial services sector. In 2023, Align was named MSP of the Year by Channel Futures and was ranked 60th in the global MSP 501 list. Other accolades include Best Cloud Services Provider by Hedgeweek, CRN’s Triple Crown Award by Channel Co. and more – click here to view our full list of awards.

 

Vinod has more than 20 years of experience in the Managed Services industry, with a proven track record of delivering innovative and customer-centric solutions. Prior to Align, he held senior leadership roles at several global IT firms, including ECI, IBM Global Services, Lucent Technologies, and Tyco Submarine Systems. In 2022, he received the honor of being included in Channel Futures’ Most Influential MSP leaders of 2022 List. Vinod was also recognized as a 2023 Honoree by Help for Children (HFC). Founded with a mission to make a profound difference in the lives of children in need, HFC is a renowned charitable organization dedicated to the prevention and treatment of child abuse for youth across the globe.

 

“Vinod is a visionary leader who has transformed our managed services business and delivered exceptional results for our customers and the broader financial services industry,” said Jim Dooling, CEO and President of Align Communications.

 

“He has a deep understanding of the market dynamics, customer needs, and technology trends that impact our industry. I am confident he will continue to drive growth and innovation for our managed services division and for Align.”

 

“I am honored and excited to take on this new role and lead our talented and dedicated team of managed services professionals,” said Vinod.

 

“Align is renowned for delivering top-notch and cost-efficient IT solutions and managed services to clients within the financial services sector. I am enthusiastic about actively contributing to our continued success, enhancing value for our customers, partners, and team members alike. Our dedication is to cultivate enduring partnerships with our clients, and I am excited to collaborate with our leaders to ensure an unparalleled client experience as a leading managed services provider.”

 

About Align

Align is a premier global provider of technology infrastructure solutions. For over 36 years, leading firms worldwide have relied on Align to guide them through IT challenges, delivering complete, secure solutions for business change and growth. Align is headquartered in Dallas, Texas and has offices in New York City, London, Chicago, San Francisco, Arizona, New Jersey, Texas and Virginia.

 

To learn more about Align Managed Services, visit our website here: https://www.align.com/managed-services and follow Align on LinkedIn and at @AlignITAdvisor on Twitter.

Contacts

Media
Ashley Holbrook
Director of Marketing, Align

aholbrook@align.com

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Flipkart’s co-founder Binny Bansal resigns after selling his entire stake in the company

—  Flipkart co-founder Binny Bansal has resigned from the e-commerce group’s board

 

 

Manish Singh / TechCrunch:

 

 

Binny Bansal, Flipkart co-founder, and Sachin Bansal, the Bengaluru-headquartered startup’s other co-founder, experienced a scuffle with the investors, and Binny has resigned from the e-commerce group’s board, the two said Saturday.

 

Binny Bansal, who reserved the rights to stay on Flipkart’s board, (which was acquired by Walmart in 2018), as long as he preferred, instead opted to leave. He cited conflict of interest with his new venture as the reason for the move.

 

Bansal launched OppDoor, a cross-border e-commerce startup, late last year. OppDoor offers end-to-end solutions — including market entry analysis, demand mapping, inventory management, cross-border logistics and taxation assistance — to businesses, according to its website.

 

The move also follows Bansal selling his entire stake in Flipkart, which was acquired by Walmart in 2018 for $16 billion, in recent years ahead of the e-commerce group’s much-awaited IPO, which is now slated for 2025. Bansal — who is also on the board of PhonePe, a position he is maintaining — has become a prolific investor in recent years, backing a number of startups including PhonePe.

 

“I am proud of the Flipkart Group’s achievements over the past 16 years. Flipkart is in a robust position, with a strong leadership team and a clear path forward, and with this confidence, I have decided to step aside, knowing the company is in capable hands,” Bansal said in a statement.

 

After leaving Flipkart, Sachin Bansal founded Navi, a financial services firm that is looking to go public. In 2022, Navi filed the paperworks for its initial public offering, but deterred the plan after the market conditions worsened.

 

“Flipkart is the outcome of a great idea and a lot of hard work, built by teams committed to transforming how India shops,” Flipkart Group chief executive Kalyan Krishnamurthy said in a statement Saturday. “We wish Binny the best as he embarks on his next venture and thank him for the deep impact he has enabled for the Indian retail ecosystem.”

 

 

 

Read More

 

 

— Techmeme

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The AACCNJ plans to host a Town Hall Meeting to address  ‘The Fierce Urgency of Now’ — A Presentation on the State’s Disparity Study

TRENTON, N.J. —  “The African American Chamber of Commerce of New Jersey (AACCNJ) will host a town hall meeting topic: “The Fierce Urgency of Now” – A Presentation on the State’s newly released Disparity Study, conducted by Mason Tillman Associates, LTD.

 

The Town Hall Meeting will be held at The Crowne Plaza Princeton, N.J. on Feb. 6 from 3 to 5 p.m., and is a free event. The Presentation will be led by Dr. Denise Anderson, Founder & CEO, Denise Anderson & Associates (DA&A) LLC, moderated by John E. Harmon, Sr., IOM, Founder, President & CEO, AACCNJ, and will include a Q&A session with the audience.

 

“The Study, as expected, revealed that African American businesses received little of the $ 18.5 billion the Murphy administration spent on contracts for construction, professional services and goods and services from 2015 to 2020,” said John E. Harmon, Sr.

 

“While expecting the worst, little did we know that the Study would document African Americans received less than one (1) percent of the $18.5 billion dollars the State awarded to contractors. African American businesses received a pittance despite the fact that we represent, 14 percent of the population, and over 10 percent of the businesses in New Jersey willing and able to contract with the State.”

 

The Study also documented that all ethnic groups received fewer contracts than expected given the number of New Jersey businesses owned by people of color. More than 25 percent of the businesses the Study identified as willing and able to contract with the State were owned by African Americans, Asian Americans, Hispanic Americans, and Native Americans.

 

“Now that the State’s commissioned study has documented the institutional discrimination our members have long experienced, we must demand that the Murphy Administration immediately establish a race and gender-based program with minority and woman-owned business utilization goals to end the discriminatory practices in its award of contracts,” said Harmon.

 

“As we move forward, we ask the Governor and his administration to also hold a statewide meeting, to discuss the results of the disparity study,” said Harmon.

 

“We plan to work in partnership with the State to put forth best practices that will provide the constituency of the AACCNJ, and others, with consistent access to opportunities and resources that they can leverage to strengthen their enterprises and ideals while mitigating past underperformance,” said Harmon.

“Our mutual goal henceforth is to have a more equitable participation in every area of the public sector wherein economic opportunities exist.”

 

“These times remind me of words that were expressed by the late Dr. Martin Luther King, Jr.: “The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy,” said Harmon.

 

 

About the African American Chamber of Commerce of New Jersey

The AACCNJ performs an essential role in the economic viability of New Jersey. While providing a platform for New Jersey’s African American business leaders, to speak with a collective voice, the AACCNJ advocates and promotes economic diversity fostering a climate of business growth through major initiatives centering on education and public policy. The Chamber serves as a proactive advocacy group with a 501(c) 3 tax exemption, which is shared by the National Black Chamber of Commerce.

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Top resolution for 2024 New Year: To avoid financial pitfalls by prioritizing savings as big safety net

NEW YORK — After more than two and a half years of struggling with high inflation, financial analysts are urging Americans to make building a solid nest egg of savings their top New Year’s resolution.

 

The prolonged period of high inflation has created severe financial stress for most U.S. households, as they are forced to pay more for everyday needs like food and housing. Low-income households have been particularly hard hit.

 

Despite the economic volatility in 2023, a recent study by USA Today found that more than four in five Americans feel some level of positivity about the U.S. economy going into 2024. However, Real Estate Developer, Serial Entrepreneur, TV Producer and Talk Show Host Dee Brown warns that there are several steps all households must take to help secure their financial foothold.

 

According to Brown, securing a financial future should be a priority for families. To assist with this, Brown recommends the following three steps:

 

1. Establishing an Emergency Fund: Setting aside a portion of income into an emergency fund can provide a safety net for unexpected expenses and financial hardships.

 

2. Budgeting and Expense Tracking: Creating a detailed budget and tracking expenses can help families prioritize spending, identify areas for saving and avoid unnecessary financial stress.

 

3. Investing in Retirement Accounts: Contributing to retirement accounts such as 401(k)s or IRAs can help build long-term financial security and ensure a comfortable retirement.

 

By taking these steps, Brown believes that households can secure their financial future and mitigate the impact of high inflation and economic volatility.

 

Dee Brown quote/tips:

“Building a solid nest egg of savings is a lifeline in times of economic uncertainty. By establishing an emergency fund, budgeting wisely and investing in retirement accounts, families can take control of their financial future and secure their foothold in today’s challenging economy.”

 

More on Dee Brown:

Dee Brown is a multifaceted entrepreneur, award-winning producer, director, writer, author, talk show host and philanthropist. He is the Founder and CEO of the P3 Group Inc., the nation’s largest African American owned, public-private partnership real estate development firm. Brown has amassed more than 30 years of solid, record breaking experience in real estate sales and development, management, construction, infrastructure, water/sewer and environmental projects in the private and governmental sectors. He also serves as the Founder and Chairman Emeritus of the nonprofit Brown Foundation Community Development Corporation.

 

He is also a proud 2023 recipient of President Biden’s Lifetime Achievement Award.

 

Brown holds a bachelor’s degree from the University of Memphis, an MBA from Bethel University and numerous professional certifications. He is a lifetime member of Kappa Alpha Psi Fraternity Inc., NAACP, Producers Guild of America, National Academy of Television, Arts & Sciences, the International Documentary Association and Entrepreneur Leadership Network. He also serves on the Documentary and Nonfictional Committee for the Producers Guild of America. As a contributing writer for Forbes.com, Entrepreneur.com, Metro & Peoria Magazines, Brown shares his insights and vast business experience with readers around the world.

 

Dee Brown is also the Executive Producer and Director of Tiger Run: The Untold Story. This highly acclaimed documentary compiles interviews, game footage and other behind the scenes video of Coach Prime — NFL Legend Deion Sanders — and showcases his mission to transform the lives of players at Jackson State University at its annual Pro Day event.

 

https://www.youtube.com/watch?v=KC73Xj-FDCE

www.DeeBrownCeo.com

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Business Culture Economics Entertainment News International & World Lifestyle

Brazilian world sales company O2 Play nabs Marcelo Gomes’ ‘Portrait of a Certain Orient’ ahead of Rotterdam premiere

Marcelo Gomes’ new film “Portrait of a Certain Orient” will be represented for world sales by Brazil’s O2 Play.

 

The deal was sealed ahead of the film’s premiere at the International Film Festival Rotterdam, where it plays as part of the Big Screen Competition.

 

(Courtesy of IFFR)

                                                                      

O2 Play is the distribution arm of O2 Filmes group, a production, post-production and advertising company owned by Fernando Meirelles, the Oscar-nominated director behind “City of God,” “The Constant Gardener” and “The Two Popes.” Meirelles heads the company alongside Andrea Barata and Paulo Morelli. Founded by Igor Kupstas in 2013, O2 Play has theatrically released over a hundred films in Brazil, including Ryusuke Hamaguchi’s “Drive My Car,” Martin Scorsese’s “The Irishman” and, most recently, Sofia Coppola’s “Priscilla.”

 

Gomes, whose 2005 feature debut “Cinema, Aspirins and Vultures” was funded by IFFR’s Hubert Bals Fund, returns to the festival with his eighth feature, an adaptation of eminent Brazilian-Lebanese writer Milton Hatoum’s eponymous 1989 novel about a trio of Lebanese immigrants heading to Brazil.

 

Gomes said: “In my film, I try to show that the only way to deconstruct prejudices is by viewing the world through the eyes of others as an antidote to fanaticism. In view of the many crises engulfing us around the world that seems more important today than ever.”

 

Igor Kuptsas, director of O2 Play, said: “Marcelo’s body of work is proof that he is one of the most renowned Brazilian filmmakers working today, and his sensitive and incisive treatment of questions of migration and belonging go to the heart of one of today’s most pressing global issues in a family saga that is universally relatable.”

 

Speaking exclusively to Variety ahead of the film’s premiere, Gomes says he was attracted to Hatoum’s novel due to it being “unfilmable,” going on to explain he appreciated the idea of adapting a book featuring several streams of consciousness. The story, which follows two Catholic Lebanese siblings who meet a Muslim Lebanese man on a boat to Brazil, felt like a “puzzle” to the “Joaquim” director.

 

(Marcelo Gomes, Courtesy of Getty)

“I wanted to show the Amazon through the eyes of someone who had never been there, to show Brazil from the perspective of a foreigner. My first film is about a foreigner in the northeast of Brazil and I think that film made me understand my country better than any other films,” he added. “I love the thought of someone coming from the Middle East, from the desert, and landing in the Amazon.”

 

The director went on to describe the making of a film as a “saga.” “This film is a miracle! We were three days into shooting when we had to stop because of the pandemic. We all went back home and had to raise money again later on to restart production.” Still, even with the difficulties, Gomes managed to produce a film in several languages including Arabic, French and the Tucano Indigenous language, and featuring an international cast including Wafa’a Celine Halawi, Charbel Kamel, Zakaria Al Kaakour and Eros Galbiati.

 

This was vital to the director because, in the book, the Brazilian city of Manaus is described as a Babylon, with immigrants coming from countries such as Spain, Portugal and Lebanon to work in the region’s many plantations and factories. “It was a very cosmopolitan city, so I thought this film needed to be in multiple languages,” said Gomes. “I had to invite Lebanese actors because I needed actors speaking in their language and their own accents and I also wanted actors who had never seen the country with their own eyes. I thought this would give a truth to the film that was very important.”

 

Of broaching contemporary issues such as land demarcation and immigration in a period film, the director said: “Immigrants want a place to call home. This is a problem we have in Brazil. In the Amazon, farmers want to steal the land from the natives. The book was written in 1981, but I am a person living in 2024 and touched by the issues that are going on around me. I had to include Indigenous issues in the film, I had to mention the Middle East issues in the film and the immigration crisis.”

 

Premiering the film in Rotterdam has a special meaning to Gomes, who claims the festival to be “the most important of my career.” “I have shown my shorts there and, when I was developing the script for my first feature back in the late 90s, I had no money. So I applied for the Hubert Bals Fund and received the grant. Because of that grant, I wrote the script, applied for other grants, succeeded to make my film and then presented it at Cannes. The festival is like my mother.”

 

“Portrait of a Certain Orient” will premiere at IFFR on Jan. 27.

 

 

 

— Variety EXCLUSIVE

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Leading Independent Proxy Advisory Firm Glass Lewis recommends shareholders vote ONLY on the WHITE proxy card ‘FOR’ all of Ocean Power Technologies Board nominees

Both Leading Independent Proxy Advisory Firms – ISS and Glass Lewis – Now Recommend Voting “FOR ALL” of the Board’s Highly Qualified and Experienced Nominees

 

OPT Continues to Urge All Holders to Vote ONLY on the WHITE Proxy Card Today “FOR” All the Company’s Board Nominees and Other Proposals

 

 

MONROE TWP., N.J. — (BUSINESS WIRE) — Ocean Power Technologies, Inc. (NYSE American: OPTT)

“(OPT” or the “Company),” a leader in innovative and cost-effective low-carbon marine power, data, and service solutions, today announced that Glass, Lewis & Co., LLC (“Glass Lewis”), a leading independent proxy advisory firm, has joined Institutional Shareholder Services Inc.

 

 

“(ISS)” in recommending that the Company’s shareholders vote ONLY on the WHITE proxy card “FOR” all of the OPT Board of Directors’ (the “Board)” highly qualified and experienced director nominees at the upcoming 2023 Annual Meeting of Stockholders “(2023 Annual Meeting),” scheduled to be held on Wednesday, Jan. 31, 2024, via live webcast.

 

In its report recommending support for all of OPT’s director nominees, Glass Lewis notes that:1

  • “[…] the incumbent directors appear to have appropriate qualifications and expertise to oversee the Company and that the board is sufficiently independent.”
  • “[…] we note that the incumbent chairman, Mr. Cryan, has considerable turnaround experience, including at three companies and has served in an executive position at a firm that consults companies facing challenges.”
  • “We observe that the board has also undergone significant refreshment in recent years, five out of six incumbent directors were appointed to the board in 2020 or 2021 and that average tenure of the incumbent directors is four years.”

In addition, Glass Lewis shares the Company’s concerns as to the purpose of Paragon’s interest in OPT:

  • “[…] we do question the nature of Paragon’s interest in the Company and we share the concern raised by the incumbent board that Paragon may have an undisclosed agenda.”

 

As a reminder, shareholders may receive proxy materials from an activist investor, Paragon Technologies, Inc. “(Paragon)” (OTC Pink: PGNT). A vote for any of Paragon’s purported nominees on theblue proxy card will not be counted at the 2023 Annual Meeting. Shareholders are urged not to sign or return any blue proxy card and to discard Paragon’s materials. Please vote only on the WHITE proxy card. If a shareholder previously signed a blue proxy card sent by Paragon, that proxy card can be revoked by voting on a new WHITE proxy card. Only the latest-dated proxy card will count.

 

Shareholders are urged to protect their investment by voting “FOR” all of OPT’s proposals, including voting “FOR ALL” of the OPT Board’s highly qualified and experienced director nominees, by promptly signing, dating, and returning each of the WHITE proxy cards they have received or by voting by telephone or internet. Time is short so shareholders are urged to vote TODAY the WHITE proxy card to ensure that their votes are received in time to be counted at the 2023 Annual Meeting.

 

***

THE OPT BOARD UNANIMOUSLY RECOMMENDS A VOTE “FOR” ALL THE COMPANY’S PROPOSALS, INCLUDING A VOTE “FOR ALL” THE OPT BOARD’S NOMINEES ON THE WHITE PROXY CARD

OPT SHAREHOLDERS ARE REMINDED THAT THEIR VOTE IS VERY IMPORTANT, NO MATTER HOW MANY OR HOW FEW SHARES THEY OWN

TIME IS SHORT SO PLEASE VOTE THE WHITE PROXY CARD TODAY

PLEASE COMPLETE, DATE, SIGN, AND RETURN EVERY WHITE PROXY CARD YOU RECEIVE

DO NOT SIGN OR RETURN ANY BLUE PROXY CARD SENT BY PARAGON

***

 

If shareholders have any questions or require assistance in voting your WHITEproxy card, please contact Morrow Sodali, our proxy solicitation firm, at:

MORROW SODALI

509 Madison Avenue Suite 1206

New York, NY 10022

Shareholders Call Toll Free: (800) 662-5200

Banks, Brokers, Trustees, and Other Nominees Call Collect: (203) 658-9400

Email: OPT@investor.MorrowSodali.com

 

About Ocean Power Technologies

OPT provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets. Our PowerBuoy® platforms provide clean and reliable electric power and real-time data communications for remote maritime and subsea applications. We also provide WAM-V® autonomous surface vessels (ASVs) and marine robotics services. The Company’s headquarters is in Monroe Township, New Jersey and has an additional office in Richmond, Calif. To learn more, visit www.OceanPowerTechnologies.com.

 

Forward-Looking Statements

This press release may contain forward-looking statements that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements in this release are identified by certain words or phrases such as “may”, “will”, “aim”, “will likely result”, “believe”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “project”, “should”, “will pursue” and similar expressions or variations of such expressions. These forward-looking statements reflect OPT’s current expectations about its future performance, plans, and objectives. By their nature, forward-looking statements rely on a number of assumptions and estimates that could be inaccurate and involve risks and uncertainties that could cause actual results to materially differ from those anticipated or expressed in any forward-looking statement. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control, including, without limitation risks related to our ability to execute on our strategy, drive growth, and create value for our stockholders; our ability to develop, market, and commercialize our products; our ability to monetize our opportunity pipeline; our ability to achieve and, thereafter, sustain profitability; our ability to win government contracts, including in the defense and security sectors; the possibility that we may not be able to obtain the necessary facility and personnel clearances to qualify for certain government contracts, including in the defense and security sectors; our ability to continue the development of our proprietary technologies; our expected continued use of cash from operating activities unless or until we achieve positive cash flow from the commercialization of our products and services; our ability to obtain additional funding, as and if needed; our history of operating losses, which we expect to continue for at least the short term and possibly longer; our ability to control our expenses; our ability to attract and retain qualified personnel, including executive management; our ability to manage and mitigate risks associated with our internal cyber security protocols and protection of the data we collect and distribute; our ability to protect our intellectual property portfolio; the impact of inflation related to the U.S. dollar on our business, operations, customers, suppliers and manufacturers, and personnel; our ability to meet product development, manufacturing and customer delivery deadlines; our ability to identify and penetrate markets for our products, services, and solutions; and the risks related to the actions of Paragon Technologies, Inc. against OPT and the related litigation brought against OPT in the Delaware Court of Chancery, including the amount of related costs incurred by OPT and the disruption caused to OPT’s business activities by these actions.

 

Many of these factors are beyond our ability to control or predict. These factors are not intended to represent a complete list of the general or specific factors that may affect us. Additional factors are described in OPT’s Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports). Any forward-looking statements speak only as of the date on which such statements are made, and OPT undertakes no obligation or intent to update such forward-looking statements to reflect events or circumstances arising after such date. OPT cautions investors not to place undue reliance on any such forward-looking statements. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

 

Important Additional Information And Where To Find It

OPT has filed with the SEC a revised definitive proxy statement on Schedule 14A on December 4, 2023, including a form of WHITEproxy card, and other relevant documents with respect to its solicitation of proxies for OPT’s 2023 Annual Meeting of Stockholders scheduled to be held on January 31, 2024 (the “2023 Annual Meeting”). INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REVISED DEFINITIVE PROXY STATEMENT (INCLUDING THE SUPPLEMENT THERETO FILED WITH THE SEC ON JANUARY 3, 2024 AND ANY OTHER AMENDMENTS OR SUPPLEMENTS TO OPT’S REVISED DEFINITIVE PROXY STATEMENT) FILED BY OPT AND ANY OTHER RELEVANT DOCUMENTS THAT OPT FILES WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT OPT’S SOLICITATION. Investors and security holders may obtain copies of these documents and other documents filed with the SEC by OPT free of charge through the website maintained by the SEC at www.sec.gov. Copies of the documents filed by OPT are also available free of charge by accessing OPT’s corporate website at www.oceanpowertechnologies.com, by writing to OPT’s Corporate Secretary at Ocean Power Technologies, Inc., 28 Engelhard Drive, Suite B, Monroe Twp., N.J. 08831, or by contacting OPT at (609) 730-0400.

 

Certain Participant Information

OPT, its directors, and executive officers may be deemed to be participants in the solicitation of proxies with respect to a solicitation by OPT in connection with matters to be considered at OPT’s 2023 Annual Meeting. Information about OPT’s executive officers and directors, including information regarding the direct and indirect interests, by security holdings or otherwise, is available in OPT’s revised definitive proxy statement for the 2023 Annual Meeting (including the schedules and appendices thereto), which was filed with the SEC on Dec. 4, 2023. To the extent holdings of OPT securities reported in the revised definitive proxy statement for the 2023 Annual Meeting have changed or subsequently change, such changes have been or will be reflected on Statements of Change in Ownership on Forms 3, 4, or 5 filed with the SEC. These documents are or will be available free of charge at the SEC’s website at www.sec.gov.

___________________________________

1 Permission to quote Glass Lewis was neither sought nor obtained. Emphases added.

Contacts

Investors:

609-730-0400 x401 or

InvestorRelations@oceanpowertech.com

Media:

609-730-0400 x402 or

MediaRelations@oceanpowertech.com
Or

Longacre Square Partners

Joe Germani / Dan Zacchei

jgermani@longacresquare.com / dzacchei@longacresquare.com