Financial Data and Key Metrics Changes - Total company sales for Q3 2025 were approximately $12.2 billion, reflecting strong demand across the business, with a year-over-year increase of 17% [17][6] - Gross margin was approximately 73%, primarily due to product mix, while operating expenses decreased by approximately $100 million to roughly $4.2 billion compared to the same period last year [22][23] - Overall diluted earnings per share was $1.63, including net charges of approximately $530 million, or $0.20 per share, attributed to acquired in-process R&D and licensing income [22][24] Business Line Data and Key Metrics Changes - The oncology portfolio saw OPDIVO global sales of approximately $2.5 billion, up 6%, driven by demand in various indications [17][18] - REBLOZYL global sales were $615 million, reflecting a 38% increase in the U.S. and a 31% increase outside the U.S. [19] - CAMZYOS global sales increased 88% to $296 million, while Eliquis global sales reached $3.7 billion, growing 23% [20][21] Market Data and Key Metrics Changes - Global sales of the growth portfolio increased 17%, driven by multiple brands including the IO portfolio, REBLOZYL, CAMZYOS, and BREYANZI [6][17] - Sales of COBENFY were $43 million in the quarter, with a year-to-date total of $105 million, indicating steady growth [21][22] Company Strategy and Development Direction - The company is focused on long-term sustainable growth, with plans to introduce 10 new medicines to the market by the end of the decade [14] - Recent acquisitions, such as Orbital Therapeutics, aim to strengthen the cell therapy franchise and enhance the company's capabilities in RNA technology [10][11] - The company is integrating digital technology and AI to drive efficiencies and enhance organizational agility [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth portfolio's performance and the ability to navigate through the upcoming challenges, emphasizing financial discipline and strategic investments [66][67] - The company anticipates a data-rich period ahead, with multiple pivotal readouts expected in the next 12-24 months [13][14] Other Important Information - The company is maintaining its full-year revenue guidance, increasing it by $750 million at the midpoint to a range of $47.5 billion-$48 billion [24] - The effective tax rate for the quarter was 22.3%, reflecting the earnings mix [22] Q&A Session Summary Question: Updates on ADEPT program and confidence in studies - Management reiterated confidence in the ADEPT program, with results expected by the end of the year, and emphasized the importance of execution across the company [31][32] Question: Commercialization of COBENFY and prescriber engagement - The company is pleased with COBENFY's progress, noting positive physician feedback and a significant number of new trialists being added weekly [40][41] Question: Competitive landscape for PD-1/VEGF bispecifics - Management expressed confidence in the partnership with BioNTech and the potential of pomitomig to become a new standard of care [49][51] Question: Barriers to adoption for COBENFY - Management acknowledged the entrenched market dynamics and emphasized ongoing efforts to educate prescribers and increase adoption [56][58] Question: Cost management and strategic productivity initiatives - The company is on track for $1 billion in cost savings this year and has clear visibility on achieving $2 billion by 2027 [66][67]

Core Insights - Bristol Myers Squibb is expanding its direct-to-consumer offerings by making its blood thinner Eliquis and psoriasis therapy Sotyktu available at significantly discounted prices for cash-paying customers [2] Company Developments - The announcement of the price reduction comes just days before a September 29 deadline set by President [2]

Bristol Myers Squibb said on Thursday it will sell its psoriasis drug Sotyktu directly to cash-paying patients at a more than 80% discount to the drug's list price. ...

Group 1 - Johnson & Johnson's experimental psoriasis drug demonstrated superior skin clearance compared to Bristol Myers Squibb's Sotyktu in two late-stage head-to-head trials [1]

Core Insights - Bristol Myers Squibb (BMY) reported strong Q2 2025 results, with GAAP revenue of $12.269 billion exceeding analyst estimates of $11.385 billion and non-GAAP EPS of $1.46 surpassing the expected $1.07 per share [1][2] - Despite the revenue beat, year-over-year performance was impacted by declines in legacy drugs, margin compression, and significant R&D expenses, leading to a revision in non-GAAP EPS guidance [1][11] Financial Performance - Q2 2025 non-GAAP EPS was $1.46, down 29.5% from $2.07 in Q2 2024 [2] - GAAP EPS was $0.64, a decrease of 22.9% from $0.83 in Q2 2024 [2] - Revenue for Q2 2025 was $12.3 billion, a slight increase of 0.8% from $12.2 billion in Q2 2024 [2] - Non-GAAP gross margin narrowed to 72.6% from 75.6% year-over-year, while operating margin decreased to 40.4% from 41.1% [2][7] Product Performance - The Growth Portfolio generated $6.6 billion in sales for Q2 2025, an 18% increase, driven by immuno-oncology products and new therapies [5] - Breyanzi revenue surged 125%, Camzyos increased by 86%, and Reblozyl rose by 33% in Q2 2025 [5][6] - The Legacy Portfolio saw a 14% decline, with Revlimid down 38%, Pomalyst/Imnovid down 26%, and Sprycel down 72% year-over-year [6] Strategic Focus - The company is focused on building its "Growth Portfolio" through new product launches and global expansion while managing declines from older drugs [4] - A significant $1.5 billion R&D charge related to a partnership with BioNTech impacted EPS guidance [9][11] - The company raised its fiscal 2025 non-GAAP revenue outlook to $46.5 billion to $47.5 billion but lowered non-GAAP EPS guidance to $6.35–$6.65 due to the BioNTech charge [11] Pipeline and Development - Progress was made in the drug pipeline, with new indications for Sotyktu and label updates for Breyanzi [10] - Opdivo received European approval for a new subcutaneous form, and the company launched initiatives to improve access to Eliquis [10] - The company is actively pursuing strategic partnerships and business development opportunities to enhance its pipeline [10]

Q2 2025 Performance - Global net sales reached approximately $12.3 billion, showing a 1% year-over-year increase, but 0% excluding foreign exchange impacts[11] - The Growth Portfolio net sales increased by 18%, or 17% excluding foreign exchange impacts[11] - GAAP earnings per share (EPS) were $0.64, while non-GAAP EPS reached $1.46, including a negative impact of $0.57 per share from acquired IPR&D charges[13] Financial Guidance - The company is adjusting its non-GAAP EPS guidance to $6.35 - $6.65[14] - Total revenues are expected to be approximately $46.5 billion - $47.5 billion[14] - The company is on track to pay down approximately $10 billion of debt by the end of Q2 2026, with approximately $6.5 billion already achieved as of Q2 2025[56] Strategic Business Development - The company executed strategic business development initiatives, including the formation of Immunology NewCo with Bain Capital[14,17] - A global alliance was formed to co-develop and co-commercialize BNT327 (PD-L1/VEGF bispecific)[18] - A license agreement was secured for exclusive worldwide rights to OncoACP3, strengthening the company's position in radiopharmaceuticals[18] Product Performance - Eliquis global net sales reached $3.68 billion, showing an 8% increase year-over-year, or 6% excluding foreign exchange impacts[46] - Reblozyl sales increased 34% to $568 million[41] - Opdivo sales increased 7% to $2.56 billion[36]

Core Viewpoint - Bristol-Myers Squibb Company (BMY) is set to report its second-quarter 2025 results on July 31, with sales and earnings estimates at $11.38 billion and $1.18 per share, respectively. However, earnings estimates for 2025 and 2026 have seen a decline over the past month [1][5]. Financial Estimates - The current earnings estimate for Q2 2025 is $1.18, down from $1.55 30 days ago, reflecting a decrease of 29.34%. The earnings estimates for 2025 and 2026 have also decreased to $6.37 and $6.03, respectively [2][5]. - BMY has a strong earnings surprise history, beating estimates in the last four quarters with an average surprise of 20.16% [2]. Factors Influencing Q2 Results - Total quarterly revenues are expected to be negatively impacted by declining sales from the legacy portfolio, which includes drugs like Eliquis, Revlimid, and Pomalyst, primarily due to generic competition [4][5]. - Sales for Pomalyst are estimated at $727 million, while Eliquis is projected to generate $3.5 billion in sales [6][7]. Growth Portfolio Performance - The growth portfolio, which includes drugs like Opdivo, Reblozyl, and Camzyos, is expected to partially offset the decline in legacy drug sales. Opdivo sales are estimated at $2.4 billion, while Reblozyl is projected at $546 million [8][10][11]. - New drug Cobenfy for schizophrenia has shown promising sales growth, indicating a positive start for the newly launched product [12][18]. Strategic Initiatives - BMY has announced cost-cutting plans aiming to save $1.5 billion by 2025 and an additional $2 billion annually by 2027, which are expected to improve profitability [5][14]. - The company has entered a strategic collaboration with BioNTech for the co-development of a bispecific antibody, BNT327, which targets solid tumors [19][22]. Stock Performance and Valuation - BMY shares have declined by 14.4% year-to-date, underperforming the industry and the S&P 500 [16]. - The stock currently trades at a price/earnings ratio of 7.84x forward earnings, lower than its historical mean and the large-cap pharma industry average [20].

Core Insights - Bristol Myers (BMY) has shown a strong performance recently, gaining 6.3% in a month, outperforming the industry (3.9% gain) and the S&P 500 [1][7] - The company is focusing on newer drugs to stabilize revenue as legacy drugs face generic competition [4][10] - Recent pipeline setbacks have raised investor concerns, but there is optimism around new drug approvals and label expansions [7][20] Financial Performance - BMY's stock performance has improved after being under pressure, with a raised annual guidance following first-quarter results [3] - The company is trading at a price/earnings ratio of 7.93x forward earnings, lower than the large-cap pharma industry's average of 15.26x [16] - The Zacks Consensus Estimate for 2025 EPS has decreased from $6.89 to $6.37 over the past 60 days [18] Drug Pipeline and Growth Drivers - New drugs like Opdualag, Reblozyl, and Breyanzi are crucial for offsetting the impact of legacy drug patent expirations [4][7] - Opdivo has shown solid revenue growth driven by volume, with recent label expansions expected to boost sales further [5] - The FDA has accepted a supplemental new drug application for Sotyktu, with a decision expected in March 2026 [6] Challenges and Setbacks - Generic competition is impacting sales of key drugs like Revlimid and Eliquis, with Eliquis sales down 4% in Q1 due to Medicare Part D redesign [10][11] - Recent phase III study results for Reblozyl and Camzyos did not meet primary endpoints, raising concerns among investors [12][15] - The company plans to engage with regulatory bodies regarding marketing applications despite these setbacks [14] Strategic Collaborations - A recent collaboration with BioNTech for the co-development of bispecific antibody BNT327 is expected to enhance BMY's pipeline in cancer treatment [9]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Biopharma in North America - **Market Analysis**: Comprehensive analysis of the US drug market conducted by IQVIA Rx Key Market Metrics - **Total Prescription Year-over-Year (YoY) Growth**: - Latest weekly growth (week ending July 11, 2025) was +4.0%, up from +3.4% the previous week and +2.5% over the past 12 weeks [1][6] - For the week ended July 11, the total market weekly TRx YoY change was +4.0%, compared to +1.8% a year ago [2] Prescription Trends - **Rolling 4-week TRx YoY**: +3.0% - **Rolling 12-week TRx YoY**: +2.5% - **Extended Unit (EUTRx) Weekly YoY Growth**: +3.3%, which is below the TRx YoY [2] - **Sequential Weekly TRx Growth**: +12.0%, a significant increase compared to -7.3% the week before [2] Company-Specific Insights - **Bristol Myers Squibb (BMY)**: - Cobenfy approved for schizophrenia on September 26, 2024, with scripts at ~2,040 for the week, up from ~1,820 the previous week [3] - To meet 2025 consensus expectations, Cobenfy TRx needs to track at ~2-3x the volumes from recent schizophrenia launches [3] - **Vertex Pharmaceuticals (VRTX)**: - Journavx approved for acute pain on January 30, 2025, with scripts at ~5,880 for the week, up from ~5,180 the previous week [4] - Hospital scripts, which are not captured by IQVIA, account for ~28% of total scripts [4] - **Gilead Sciences (GILD)**: - Yeztugo approved on June 18, 2025, with latest week TRx at ~70, up from ~20 the previous week [5] - Yeztugo's injectable formulation accounted for 54% of total TRx [5] Competitive Landscape - **Launch Comparisons**: - GILD's Yeztugo compared to Descovy and Apretude [5] - BMY's Sotyktu launch tracked against AMGN's Otezla [9] - LLY's Kisunla launched in July 2024 for Alzheimer's [9] Pricing and Sales Analysis - **Immunology Pricing**: Updated charts for 2Q25 for Stelara and Tremfya, analyzing how additional indications impact price per script [10] - **Biosimilar Adoption**: Comprehensive analysis of biosimilars across various branded drugs [12] Notable Trends - **Seasonal Respiratory Vaccine Tracking**: Exhibits tracking RSV and COVID vaccine weekly and monthly TRx launch trends [11] - **Key Products Performance**: Detailed tracking of TRx market share and performance for major pharmaceutical companies [48] Conclusion - The biopharma industry in North America is experiencing positive growth in total prescriptions, with significant contributions from new product launches and competitive dynamics among major players. The analysis indicates a robust market environment with potential investment opportunities in emerging therapies and established products.

Core Insights - Bristol Myers (BMY) announced that the late-stage study on Sotyktu (deucravacitinib) in adults with active psoriatic arthritis (PsA) met its primary endpoint, indicating significant efficacy [1][4] - Sotyktu is an oral, selective tyrosine kinase 2 (TYK2) inhibitor, representing a new class of small molecules and is the first selective TYK2 inhibitor in clinical studies across multiple immune-mediated diseases [1][4] - The drug is already approved in numerous countries for the treatment of adults with moderate-to-severe plaque psoriasis [2] Study Results - The phase III POETYK PsA-1 study involved 670 patients and showed a significantly greater proportion of patients treated with Sotyktu achieving ACR20 response compared to placebo at week 16 [4] - Key secondary endpoints met include Psoriasis Area and Severity Index (PASI) 75 response, Health Assessment Questionnaire-Disability Index (HAQ-DI) score, 36-Item Short Form Survey (SF-36) Physical Component Summary (PCS) score, and Minimal Disease Activity (MDA) response [5] - The late-stage PsA program includes two phase III trials, POETYK PsA-1 and POETYK PsA-2, with the latter enrolling approximately 730 patients [6] Licensing and Strategic Moves - BMY's subsidiary RayzeBio entered into a $1.35 billion licensing deal with Philochem for the prostate cancer therapy OncoACP3, which includes a $350 million upfront payment and potential milestones of $1 billion [9][10] - BMY is looking to expand its portfolio and pipeline due to generic competition faced by legacy drugs, with a potential label expansion of Sotyktu to broaden its target patient population [11] - A strategic collaboration agreement was announced with BioNTech for the co-development and co-commercialization of the investigational bispecific antibody BNT327 [12] Market Performance - Shares of Bristol Myers have declined by 15.9% over the past three months, while the industry has seen a decline of 5.3% [2] - BMY has experienced pipeline setbacks recently, negatively impacting its share price [13]