BRISTOL MYERS SQUIBB CO Q1 FY2025 earnings call

• Strong Q1 driven by solid execution across business and focus on strategic priorities: maximizing growth portfolio, accelerating R&D pipeline, driving operational excellence, and strategic capital allocation. • Recent launches: Cobenfi (schizophrenia treatment) with positive early prescription trends, OpdivoCuvanti (subcutaneous nivolumab) with promising feedback. • Pipeline advancements: Opdivo plus Yervoy approved for first-line liver cancer and MSI high colorectal cancer, Breyanzi approved in EU for follicular lymphoma, Camzyos approved in Japan and got favorable label update in US. • Operational excellence: Strategic productivity initiative aiming for $2B annual cost savings by 2027, with $1B expected by end of 2025.

The growth portfolio delivered double-digit sales growth, driven by key marketed products like IO portfolio (Breyanzi, Reblozyl, Camzyos). Global sales of the growth portfolio increased ~18%. Opdivo had global revenue up 12% due to volume growth. Reblozyl's global sales were strong in first and second-line MDS-associated anemia, with higher US sales in first-line and strong sales in new markets like Europe and Japan. Breyanzi's US sales more than doubled and international sales tripled. Camzyos sales nearly doubled in Q1. Cobenfi had ~$27M in sales in its first full quarter. Legacy portfolio was affected by generic entries, but Revlimid's strong Q1 performance moderated the decline.

• Increased full-year revenue guidance to $45.8B-$46.8B, reflecting strong growth portfolio performance, better-than-expected legacy sales, and favorable foreign exchange impact. • Legacy portfolio decline now expected to be ~16%-18%, more moderate than prior, with Revlimid sales at top end of $2B-$2.5B range. • Gross margin guidance maintained at ~72%. • Underlying operating expenses expected at ~$16B with additional ~$200M foreign exchange impact. • Raised midpoint 2025 non-GAAP EPS guidance by 15¢ to $6.70-$7.

• Uncertainty related to tariffs, potential economic downturn, and restructuring at FDA/HHS which could impact the business. • Impact of these factors on competitiveness, supply chain, and overall operating climate.

Q: Big picture on tariffs and US manufacturing footprint ability to shift manufacturing to US over time?

A: Christopher Boerner mentioned they are a US-based company with investments in US infrastructure, and are evaluating mitigation efforts and engaging with administration. Adam Lenkowsky talked about Cobenfi's monotherapy focus not being meaningfully impacted by adjunctive trial results.

Q: Thoughts on R&D in light of cost rationalization and setbacks?

A: Christopher Boerner stated confidence in R&D pipeline, with focus on delivering on mid-late stage pipeline opportunities. Samit Hirawat mentioned 43 major approvals in past five years and focus on new molecular entities and indications by end of decade.

Q: Impact of ARISE readout on Alzheimer's psychosis readout?

A: Samit Hirawat said ARISE data has no impact on Alzheimer's disease psychosis trials, as diseases are different and design is different with longer treatment duration.

Q: Tariffs and transfer pricing?

A: David Elkins said they have a broad manufacturing network with flexibility, and Christopher Boerner talked about business development as top capital allocation priority, focusing on strengthening core therapeutic areas.

Q: Cobenfi launch prescriber base and gross-to-net?

A: Adam Lenkowsky said Cobenfi launch is strong with over 1,600 TRxs per week, tracking ahead of benchmarks, and gross-to-net expected to increase with 100% access in Medicaid and Medicare.

Q: Camzyos Alzheimer's psychosis trial expectations and gross-to-net?

A: Samit Hirawat talked about Camzyos Alzheimer's psychosis trial expecting statistical significance in primary endpoint, and Adam Lenkowsky said gross-to-net for full year expected to increase due to 100% access.

Q: Long-term guidance and transfer pricing?

A: Christopher Boerner said they don't give long-term guidance, focusing on sustained growth, and David Elkins said transfer pricing is determined by tax laws in jurisdictions.

Q: Industry threats and Cobenfi adjunctive trial?

A: Samit Hirawat talked about evaluating Arise data and potential next steps, and Christopher Boerner discussed engaging with government on industry support.

Q: BD focus and Milvexian trial?

A: Christopher Boerner said BD is top priority, focusing on strengthening core areas, and Samit Hirawat talked about Milvexian trial on track with enrollment completed.

Q: Camzyos defensibility and HFpEF prospects?

A: Adam Lenkowsky talked about Camzyos defensibility and Samit Hirawat discussed NHCM results impact on HFpEF and myelofibrosis opportunities.

Q: Capital allocation and BD focus?

A: Christopher Boerner said BD is top priority, focusing on strengthening key areas with financial flexibility.

Q: Keviantic adoption and Reblozyl opportunity?

A: Adam Lenkowsky talked about Keviantic launch progress, and Samit Hirawat discussed Reblozyl's myelofibrosis opportunity.

Q: EXALIBER study and FDA impact?

A: Samit Hirawat talked about EXALIBER study readout and FDA collaboration on timelines.

Q: Macro and PD-one VEGF data?

A: Christopher Boerner talked about tax policy importance, and Samit Hirawat discussed PD-one VEGF data impact on non-small cell lung cancer portfolio.