Yes my ACAD friend you are missing something.

 

There is a huge difference between GAAP and Non GAAP EPS. You are looking at the latter which excludes the intangible amortization primarily relating to the Celgene acquisition. Let me try to explain this mathematically in layman’s terms (i try):

 

ACAD was making a profit of say $1B and had 100M shares outstanding. No amortization. So GAAP & NON GAAP EPS are both $10.

 

ACAD acquires TGTX for $30B and all patents expire in 5 years. TGTX generates $6B in profits. Annual amortization is also $6B.

 

ACAD would have a GAAP EPS of $1B + $6B less $6B amortization = $1B

 

ACAD would have a non GAAP EPS of $1B + $6B = $7B! 

The annual BMY amortization is TOO HUGE TO IGNORE and it primarily relates to Revlimid revenues. It is circa $10B annually for the next 3 years = ~$4.50 per share.

 

Now tell me which EPS should you be looking at!