On May 13, 2025, BMS completed the acquisition of 2seventy bio, which provided BMS with full U.S. rights to Abecma, a cell therapy for the treatment of adult patients with relapsed or refractory multiple myeloma. BMS acquired all of the issued and outstanding shares of 2seventy bio’s common stock for $5.00 per share in an all-cash transaction for total consideration of $287 million, or $114 million net of cash acquired. The transaction was accounted for as an asset acquisition as 2seventy bio did not meet the definition of a business, which requires inputs and processes that significantly contribute to the ability to create outputs. Net assets acquired primarily consisted of cash, right-of-use lease assets and liabilities, deferred tax assets and acquired marketed product rights for Abecma.

The results of operations and cash flows for 2seventy bio were included in the consolidated financial statements commencing on the acquisition date and were not material. Historical financial results of the acquired entity were not significant.

The following table summarizes the financial impact of divestitures including royalties, which is included in Other (income)/expense, net. Revenue and pretax earnings related to all divestitures were not material in all periods presented (excluding divestiture gains or losses).


	Three Months Ended June 30,
	Net Proceeds				Divestiture (Gains)/Losses				Royalty Income
Dollars in millions	2026		2025		2026		2025		2026		2025
Diabetes business - royalties	$	—	$	276	$	—	$	—	$	—	$	(286)
Mature products and other(a)	207		1		(138)		1		—		—
Total	$	207	$	277	$	(138)	$	1	$	—	$	(286)

	Six Months Ended June 30,
	Net Proceeds				Divestiture (Gains)/Losses				Royalty Income
Dollars in millions	2026		2025		2026		2025		2026		2025
Diabetes business - royalties	$	273	$	552	$	—	$	—	$	—	$	(558)
Mature products and other(a)	235		11		(162)		(7)		—		—
Total	$	508	$	563	$	(162)	$	(7)	$	—	$	(558)

(a) Includes net cash proceeds of $164 million and a divestiture gain of $109 million related to the sale of BMS's 60% ownership stake in Sino-American Shanghai Squibb Pharmaceuticals Limited during the three months ended June 30, 2026.

As part of the BMS diabetes termination agreement with AstraZeneca, BMS received royalty payments of 14% in 2025 based on net sales. Royalty payments under this agreement terminated as of December 31, 2025.

The following table summarizes the financial impact of Keytruda* royalties, Tecentriq* royalties, upfront licensing fees and milestones for products that have not obtained commercial approval, which are included in Other (income)/expense, net.


	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2026		2025		2026		2025
Keytruda* royalties	$	(149)	$	(132)	$	(308)	$	(284)
Tecentriq* royalties	(12)		(11)		(26)		(23)

Contingent milestone income	—		—		—		(40)
Amortization of deferred income	(12)		(12)		(24)		(24)
Other royalties and licensing income	(13)		(7)		(23)		(51)
Royalty and licensing income	$	(186)	$	(162)	$	(381)	$	(421)

BMS and Ono are parties to a global patent license agreement with Merck related to Merck's PD-1 antibody Keytruda*. Under the agreement, Merck is obligated to pay 2.5% royalties on global sales of Keytruda* from January 1, 2024 through December 31, 2026. The companies also granted certain rights to each other under their respective patent portfolios pertaining to PD-1. Payments and royalties are shared between BMS and Ono on a 75/25 percent allocation, respectively, after adjusting for each party's legal fees.

BMS and Ono are parties to a global patent license agreement with Roche related to Tecentriq*, Roche’s anti-PD-L1 antibody. Under the agreement, Roche is obligated to pay single-digit royalties on worldwide net sales of Tecentriq* through December 31, 2026. The royalties are shared between BMS and Ono consistent with existing agreements.

In May 2026, BMS and Hengrui entered into global strategic collaboration and license agreements to advance a portfolio of 13 early stage assets in oncology, hematology and immunology. BMS has exclusive worldwide rights to all assets outside of Chinese mainland, Hong Kong SAR and Macau SAR (the "Hengrui Territory"), and Hengrui has exclusive rights to all assets within the Hengrui Territory. The transaction closed in July 2026.

BMS will make an upfront payment to Hengrui of $600 million in the third quarter of 2026 and a $175 million anniversary payment, payable in 2027. Hengrui will also be eligible to receive a second $175 million anniversary payment, which will be payable in 2028 provided that there is no prior termination of the agreement by BMS, and up to $14.3 billion of contingent development, regulatory and sales-based milestones. Additionally, Hengrui will be eligible to receive tiered royalties on future net sales of all products outside of the Hengrui Territory.

BMS and Merck are parties to a global licensing agreement pursuant to which BMS licenses Reblozyl from Merck. Under the agreement, BMS is responsible for the development and commercialization of Reblozyl. BMS pays tiered royalties to Merck ranging from 20% to 24% of net sales, which are recorded in Cost of products sold. Royalty expense incurred by BMS under the agreement was $165 million and $289 million during the three and six months ended June 30, 2026 and $122 million and $228 million during the three and six months ended June 30, 2025, respectively.

Additionally, BMS and Merck are parties to a separate global licensing agreement pursuant to which Merck licenses Winrevair*, a novel activin signaling inhibitor indicated for the treatment of adults with pulmonary arterial hypertension, from BMS. Under the agreement, Merck is responsible for the development and commercialization of Winrevair*. BMS receives royalties from Merck equal to 22% of net sales, which are recorded in Other revenues. Royalties earned by BMS under the agreement were $131 million and $255 million during the three and six months ended June 30, 2026 and $78 million and $124 million during the three and six months ended June 30, 2025, respectively.