Summary of Bristol-Myers Squibb Company (BMY) FY Conference Call Company Overview - **Company**: Bristol-Myers Squibb Company (BMY) - **Date of Conference**: June 11, 2025 - **Speakers**: Chris Boerner (Chairman and CEO), Adam Wenkowski (Chief Commercial Officer) Key Industry Insights - **External Operating Environment**: The pharmaceutical sector is facing policy-related uncertainties, but discussions with the administration are constructive. The company agrees with the administration's focus on fair pricing and the role of middlemen in the U.S. healthcare system [2][3][4][6][7]. - **Investment Commitment**: The company announced a potential investment of $40 billion in U.S. manufacturing and R&D over the next five years, reflecting a commitment to align investments with business needs and government policies [10][11][12]. Strategic Partnerships and Acquisitions - **BioNTech Partnership**: The partnership focuses on a PD-L1 VEGF bispecific asset, with a total deal consideration of up to $11 billion, including $1.5 billion upfront and $2 billion in milestone payments. The partnership aims to address difficult-to-treat tumors, such as lung cancer and triple-negative breast cancer [13][14][18][19]. - **Business Development Focus**: Business development remains a top priority, with a focus on oncology and immuno-oncology, leveraging the company's experience in the field [25][26][27]. Product Launches and Performance - **Cobenfi**: The product is tracking ahead of expectations with over 30,000 TRxs. The launch is seen as critical for the company, with positive feedback from physicians regarding its efficacy and cognitive benefits [38][39][40]. - **Kamsios**: The product has seen strong performance with approximately 15,000 patients prescribed since launch. The company is preparing for emerging competition but remains confident in its market position [58][61][62]. - **BRYANZI**: The product has shown significant growth, surpassing Yescarta as the number one CD19 directed CAR T in the U.S. The company is expanding its use in outpatient settings [63][64][65]. Pipeline and Future Opportunities - **Pipeline Milestones**: The company has over a dozen upcoming pipeline milestones, with a focus on Cobenfi and Movexian as key growth drivers. The expectation is to launch 10 new products and 30 new indications by 2030 [69][70][71][72]. - **Alzheimer's Disease Studies**: The company is conducting multiple studies in Alzheimer's disease psychosis, with significant potential for growth in this area [43][44][45]. Financial Discipline and Cost Management - **Cost-Cutting Initiatives**: The company is on track to achieve $2 billion in operational efficiencies, aiming to become more agile and financially disciplined in a competitive biopharma landscape [30][31][32]. Regulatory and Market Considerations - **Opdivo and Qvantig**: The company is advocating for the exclusion of Opdivo plus Qvantig from IRA negotiations, emphasizing the clinical benefits and innovation these products bring to the market [49][50][51][52][54][55]. Conclusion - **Overall Outlook**: Bristol-Myers Squibb is positioned for growth through strategic partnerships, a robust pipeline, and a commitment to operational efficiency. The company is focused on addressing market needs while navigating regulatory challenges in the pharmaceutical industry [76][75].

Financial Data and Key Metrics Changes - Total company revenues for Q1 2025 were approximately $11.2 billion, reflecting strong demand across the growth portfolio, with an 18% increase in global sales of the growth portfolio [29][38] - Gross margin was approximately 73%, primarily due to product mix, and diluted earnings per share were $1.80 [37][38] - The company is increasing its full-year revenue guidance to a range of $45.8 billion to $46.8 billion, reflecting strong performance and a favorable impact of approximately $500 million related to foreign exchange rates [42][45] Business Line Data and Key Metrics Changes - The immuno-oncology (IO) portfolio, Breyanzi, Reblozyl, and Camzyos were key contributors to the growth portfolio, with Breyanzi's sales more than doubling and international sales tripling [10][32] - Cobenfi, launched in Q1, generated approximately $27 million in sales, tracking ahead of all branded schizophrenia launch benchmarks [36][116] - Eliquis global sales were down 3% due to the impact of Medicare Part D redesign, while Camzyos sales nearly doubled, benefiting from strong global demand [33][34] Market Data and Key Metrics Changes - The growth portfolio's global sales increased approximately 18%, driven by key brands, while the legacy portfolio is expected to decline approximately 16% to 18% for the year [29][42] - The company is seeing strong early uptake of Cobenfi, with approximately 40% to 50% of prescriptions now in second and third-line treatments [56][116] - The company expects total Eliquis revenue to be stronger in the second half of the year due to the Part D redesign and elimination of the coverage gap [34] Company Strategy and Development Direction - The company is focused on maximizing its growth portfolio, accelerating its R&D pipeline, driving operational excellence, and strategically allocating capital [8][22] - Business development remains a top priority, with the company actively pursuing opportunities that can enhance its growth profile [22][94] - The company is taking deliberate actions to rightsize its cost structure and become more efficient, expecting to realize approximately $2 billion in annual cost savings by the end of 2027 [24][40] Management's Comments on Operating Environment and Future Outlook - The current global operating climate presents uncertainty related to tariffs and potential economic downturns, but the company remains confident in its ability to navigate these complexities [25][26] - Management emphasized the importance of strong execution and maintaining a robust pipeline with significant growth potential [26][68] - The company is committed to innovating for patients and advancing first and/or best-in-class medicines through internal discovery and business development [22][68] Other Important Information - The company is on track to pay down $10 billion of debt relative to its March 31, 2024 balance and has maintained its strategic and balanced approach to capital allocation [38][39] - The company has a strong cash position with approximately $12.1 billion in cash equivalents and marketable securities as of March 31 [38] Q&A Session Summary Question: Can you provide any color on the company's US manufacturing footprint ability to shift manufacturing to the US over time? - Management appreciates the administration's efforts to enhance US manufacturing and has been investing in core infrastructure in the US for many years [52][53] Question: How do you think about the future pipeline and riskiness of it? - Management remains confident in delivering growth ambitions driven by the internal R&D pipeline, despite recent setbacks [66][68] Question: How does the readout from ARISE impact your confidence in Alzheimer's psychosis readout? - Management stated that ARISE data has no impact on confidence regarding Alzheimer's disease psychosis trials [80] Question: What are your expectations for the bar for the Alzheimer's psychosis study? - Management indicated that statistical significance in the primary endpoint for hallucinations and delusions is required, but no specific number is predefined [130] Question: Can you provide comments on Bristol's perspective regarding committed capital expenditure going forward? - Management confirmed plans to continue investing in core infrastructure related to R&D and technology in the US [138] Question: How do you approach making M&A decisions in the context of internal success rates? - Management does not tie M&A decisions to specific data readouts but focuses on sourcing new science and innovation that can enhance the growth profile [140][142]