BRISTOL MYERS SQUIBB CO Q4 FY2025 earnings call

Management Statement and Operational Highlights

• 2025 was a year of focused execution, with the growth portfolio demonstrating strength. Clinical and regulatory highlights included Breyanzi's FDA approval for 5 cancer types, pemigatinib phase two data in triple-negative breast cancer, and Novaxin combination data in the pancreatic setting.
• The pipeline features 10 new medicines and over 30 launch opportunities by 2030, with top-line registrational data expected for 6 products in 2026, including Nilvexin, admilparent, iberdomide, etc.
• A $2 billion cost savings initiative delivered ~$1 billion in 2025, on track for the remaining $1 billion over 2026-2027, with continued use of AI to drive efficiency and reinvest in growth.

Segment Performance

• Growth Portfolio: Grew 15% year over year in Q4 and 17% for the full year. Newer products like Opdualag, Breyanzi, Camzyos each contributed over $1 billion in sales for the full year, while Reblozyl delivered over $2 billion. The growth portfolio nearly offset the ~$4 billion revenue decline from the legacy portfolio. CoBinfy saw steady growth with expansion in access, and Qvantik received positive early feedback.
• Oncology: Opdivo had 7% revenue growth in Q4, Opdualag had double-digit growth, and Breyanzi's Q4 revenue grew 47%.
• Cardiovascular: Eliquis had 6% revenue increase in Q4, and Camzyos saw 57% revenue growth in Q4.
• Immunology: Sotyktu had 3% global revenue growth.
• Neuroscience: CoBinfy had $51 million revenue in Q4 with steady uptake.

Guidance

• 2026 revenue is expected in the range of $46 to $47.5 billion, with the growth portfolio driving performance and the legacy portfolio projected to decline 12-16% due to LOE impacts. Eliquis is expected to grow 10-15% in 2026. Adjusted diluted EPS is expected to be between $6.05 and $6.35. Gross margin is anticipated to be between 69-70%, and operating expenses are expected to decline from 2025 levels.

Risks

• Generic competition risks for products like Eliquis, which could impact revenue. Regulatory uncertainties surrounding pipeline candidates. Market competition that may affect product adoption and growth.

Question and Answer Q: Seamus Fernandez asks about phase three pivotal catalysts and relative upside areas.

A: Christopher Boerner, Cristian Massacesi, and Adam Lenkowsky discuss upcoming data readouts, the CELMoD program, and pipeline opportunities, highlighting upcoming registrational data and potential for transformative regimens.

Q: Christopher Schott inquires about Eliquis dynamics and business development priorities.

A: Adam Lenkowsky discusses Eliquis' strong performance in 2026, driven by market share growth and pricing changes, while Christopher Boerner and Adam Lenkowsky talk about business development focusing on strengthening existing therapeutic areas with scientifically compelling and value-adding opportunities.

Q: Michael Yee asks about Milvexian and BD in metabolics.

A: Christopher Boerner and Cristian Massacesi discuss Milvexian's study progress and safety, and Christopher Boerner mentions metabolics as an area of interest but focus on existing therapeutic areas for BD.

Q: Mohit Bansal asks about LPA1 and its potential as a standard of care.

A: Adam Lenkowsky discusses LPA1's potential in IPF, highlighting improved efficacy and tolerability compared to existing therapies, with data readout expected in 2026.

Q: Terence Flynn asks about Milvexian and growth portfolio growth.

A: Cristian Massacesi and Adam Lenkowsky discuss Milvexian's non-inferiority to Eliquis and potential for broader payer coverage, while David Elkins affirms confidence in the growth portfolio's mid-single-digit growth prospects.

Q: Jeff Meacham asks about CoBinfy and PUMITAMIG.

A: Adam Lenkowsky discusses CoBinfy's progress with steady growth and new study plans, while Cristian Massacesi talks about PUMITAMIG's clinical data and pipeline potential in oncology.

Q: Asad Haider asks about Opdivo subQ formulation.

A: Adam Lenkowsky provides an update on Opdivo subQ's launch progress, tracking well against expectations for patient conversion.

Q: David Risinger asks about Edinopuran and generic competition.

A: Cristian Massacesi discusses Edinopuran's safety profile and management, while David Elkins and Adam Lenkowsky talk about Eliquis' generic entry and Orencia's cash flow potential.

Q: David Amsellem asks about Combemfi and BD in psychiatry.

A: Christopher Boerner and Adam Lenkowsky discuss Combemfi's pipeline and BD focus on neuroscience, highlighting CoBinfy's novel mechanism and potential for growth.

Q: Jason Gerberry asks about Novvexime and CELMoDs.

A: Adam Lenkowsky and Cristian Massacesi discuss Novvexime's study design and CELMoDs' positioning in multiple myeloma, emphasizing their potential to improve treatment in the community setting.

Q: Evan Seigerman asks about OptoLeg and Reblozyl.

A: Adam Lenkowsky discusses OptoLeg's growth dynamics and Reblozyl's continued growth potential, including international expansion and opportunities in RS negative patients.

Q: Stephen Scala asks about Eliquis' growth and 2027 outlook.

A: Adam Lenkowsky explains Eliquis' 2026 growth drivers and the expected step down in 2027 due to generic competition and patent expirations in Europe, noting minimal impact from the strategic reserve.