Bristol-Myers Squibb(US:BMY)2024-10-31 16:05Financial Data and Key Metrics Changes - The growth portfolio revenues increased by 20% in Q3 at constant currency, now accounting for approximately half of total revenues [8][30] - Third quarter earnings per share were reported at $1.80, with a gross margin decline of about 130 basis points due to product mix [46][54] - The effective tax rate increased from 11.6% in the prior year to 18.5% due to a one-time adjustment [46] Business Line Data and Key Metrics Changes - Sales of Reblozyl grew by 81% in Q3, driven by strong demand in both U.S. and international markets [39] - Opdivo's global sales increased, reflecting solid demand growth outside the U.S., with expectations for mid-single-digit growth for the full year [34] - Camzyos sales more than doubled, driven by strong U.S. demand for new patient starts [38] Market Data and Key Metrics Changes - Eliquis, the leading anticoagulant worldwide, delivered double-digit sales growth in Q3, benefiting from higher demand and market share gains [36] - Opdualag achieved a 30% market share in first-line melanoma in the U.S. three years post-launch [35] - Sotyktu sales nearly doubled compared to the previous year, with growth driven by international market launches [41] Company Strategy and Development Direction - The company is focused on transformational medicines and aims to serve patients with first or best-in-class treatments across therapeutic areas [15] - The acquisition of Karuna Therapeutics is seen as a key strategy to strengthen long-term growth, particularly with the approval of Cobenfy [11] - The company is committed to paying down approximately $10 billion of debt by the first half of 2026 while maintaining its dividend [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver long-term value for patients and shareholders, raising full-year revenue and EPS guidance [25][54] - The company is on track to achieve $1.5 billion in savings by the end of 2025, which will be reinvested into high ROI opportunities [19] - Management highlighted the importance of achieving broad access for Cobenfy, with expectations for sales ramp-up in the second half of 2025 [57] Other Important Information - The company is advancing its innovative pipeline, with several promising clinical programs and upcoming milestones [22][27] - The anticipated FDA approval for the subcutaneous formulation of nivolumab is expected to extend the company's leadership in immuno-oncology [23] - The company is exploring opportunities to further improve productivity and efficiency over the coming quarters [20] Q&A Session Summary Question: Access dynamics for Cobenfy post-approval - Management expects a ramp-up in sales in the second half of 2025, with access to be achieved in a step-wise fashion, particularly in Medicaid and Medicare [57][59] Question: 2025 top-line dynamics and operating expenses - Management is confident in achieving operating margin guidance of at least 37% for both this year and next year, with full line guidance to be provided in the fourth quarter earnings call [67] Question: Ramp-up expectations for Cobenfy and bipolar 1 opportunity - Management anticipates a second-half ramp for Cobenfy, with a high probability of success for the bipolar 1 study based on previous data [72][74] Question: Sotyktu pricing and access outlook - Management noted that Sotyktu's performance has been slower than expected, but access has improved significantly, with ongoing efforts to increase market share [79][81] Question: Milvexian trial event rate and risk profile - Management is encouraged by the lower event rate in the Milvexian trial, viewing it as a positive indicator for the program's potential [86][109]