BRISTOL MYERS SQUIBB CO Q2 FY2025 earnings call

Management Statement and Operational Highlights:

• Business Performance: Strong growth portfolio performance with 17% year-over-year sales increase; made regulatory progress globally, including EU approval for Opdivo and Qvantig, and US FDA actions streamlining patient monitoring for cell therapies.
• Partnerships: Announced strategic partnerships with BioNTech to expand immuno-oncology leadership and with Philochem to strengthen radiopharmaceutical business. Also formed a new company with Bain Capital to advance immunology therapies, out-licensing 5 assets.
• Pipeline and Development: Entering a data-rich period with 7 registration assets and 7 life cycle management opportunities; key pipeline candidates include milvexian, admilparant, and iberdomide; ongoing registrational trials for Cobenfy in Alzheimer's and other indications.
• Leadership: Welcomed Cristian Massacesi as Executive Vice President, Chief Medical Officer and Head of Development, thanking Samit Hirawat for his contributions over 6 years.

Segment Performance:

• Growth Portfolio: Global sales increased 17% year-over-year, driven by demand across key brands.
• Oncology: Opdivo global sales were approximately $2.6 billion, up 7%; Qvantig sales were approximately $30 million.
• Hematology: Reblozyl global sales were $568 million in Q2 and over $1 billion year-to-date; Breyanzi revenues were $344 million in Q2, with global revenues up 122% year-over-year.
• Cardiovascular: Camzyos global sales were $260 million, growing 86%; Eliquis global sales were $3.7 billion, growing 6%.
• Immunology: Sotyktu sales grew 29% globally.
• Cobenfy: Sales were $35 million in Q2 and $62 million year-to-date.

Guidance:

• Revenue: Increased full-year reported revenue guidance to a range of $46.5 billion to $47.5 billion, midpoint up $700 million, driven by strong growth portfolio performance and favorable foreign exchange rates.
• Legacy Portfolio: Expected to decline approximately 15% to 17% for the year, moderated by Revlimid's strong year-to-date performance.
• Gross Margin: Maintained at approximately 72%.
• Operating Expenses: Adjusted to approximately $16.5 billion, higher in the second half due to investments in business development and growth portfolio.
• EPS: Non-GAAP EPS expected to be between $6.35 and $6.65, reflecting strong growth portfolio performance and better-than-anticipated legacy sales.

Risks:

• Regulatory and Pipeline: Some studies didn't meet expectations; need to ensure timely delivery of pipeline programs to meet growth objectives.
• Competition: Potential competition for products like Camzyos from aficamten, requiring continued focus on differentiation.
• IP and Policy: Concerns about intellectual property protection and policy impacts on the biopharmaceutical industry, requiring ongoing advocacy for strong IP environments.

Q: Geoff Meacham asks about the data-heavy period and potential line extensions.

A: Chris Boerner and Samit Hirawat discuss studies that didn't meet expectations but emphasize upcoming data readouts and growth potential.

Q: Courtney Breen asks about the direct-to-consumer offering with Pfizer.

A: Chris Boerner and Adam Lenkowsky talk about increasing patient access, transparency, and potential future products for the direct-to-patient platform.

Q: Chris Schott asks about Cobenfy launch hurdles and Alzheimer's results.

A: Adam Lenkowsky and Samit Hirawat discuss physician adoption, switching approaches, and progress in Alzheimer's psychosis studies.

Q: Evan Seigerman asks about the partnership with BioNTech.

A: Chris Boerner, Adam Lenkowsky, and Samit Hirawat discuss the differentiation of BNT327 and plans to accelerate development and commercialization.

Q: Luisa Hector asks about stocking and the immunology collaboration with Bain.

A: David Elkins and Samit Hirawat discuss minimal stocking in the quarter and portfolio prioritization for immunology assets.

Q: David Amsellem asks about Camzyos competition.

A: Adam Lenkowsky talks about Camzyos' strong performance, REMS label change benefits, and confidence in maintaining leadership.

Q: Dave Risinger asks about milvexian's likelihood of success.

A: Samit Hirawat and Adam Lenkowsky discuss dosing strategies, unmet needs, and commercial potential in secondary stroke, ACS, and AF.

Q: Asad Haider asks about costs and ADEPT-2.

A: David Elkins and Samit Hirawat talk about cost optimization, capital allocation, and progress in ADEPT-2 trial readouts.

Q: Seamus Fernandez asks about Cobenfy trajectory and margins.

A: Adam Lenkowsky and David Elkins discuss Cobenfy's growth potential and margin improvement through growth portfolio and strategic resource allocation.

Q: Carter Gould asks about IP policy.

A: Chris Boerner talks about the importance of intellectual property protection and the company's efforts to advocate for strong IP environments.

Q: Akash Tewari asks about Cobenfy study details.

A: Samit Hirawat and Chris Boerner discuss trial design differences from past studies and expectations for ADEPT-2 data.

Q: James Shin asks about pipeline changes.

A: Chris Boerner talks about execution focus, Cristian Massacesi's impact, and continuation of Samit Hirawat's team's work.

Q: Stephen Scala asks about Cobenfy ARISE data and Sotyktu.

A: Samit Hirawat discusses ongoing data review for Cobenfy and progress in Sotyktu's psoriatic arthritis submissions and lupus/Sjogren’s studies.