Bristol-Myers Squibb Company

Good day and welcome to the Bristol-Myers Squibb 2020 third quarter results conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Tim Power, Vice President, Investor Relations. Please go ahead, sir.

Thanks, Kevin, and good morning, everyone. Thanks for joining us this morning for our third quarter 2020 earnings call. Joining me this morning with prepared remarks are Giovanni Cafforia, our Board Chair and Chief Executive Officer, and David Elkins, our Chief Financial Officer. And also participating in today's call are Chris Berner, our Chief Commercialization Officer, Nadine Ahmed, President Hematology, and Sumit Hiralot, our Chief Medical Officer and Head of Global Drug Development. As you'll note, we've posted slides to BMS.com that you can follow along with for Giovanni and David's remarks. And before we get going, I'll read our forward-looking statement. During this call, we'll make statements about the company's future plans and prospects that constitute forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the company's SEC filings. These forward-looking statements represent our estimates as of today and should not be relied upon as representing our estimates as of any future date. We specifically disclaim any obligation to update forward-looking statements even if our estimates change. We'll also focus our comments on our non-GAAP financial measures, which are adjusted to include certain specified items. Reconciliations of those non-GAAP financial measures, the most comparable GAAP measures, are available at bns.com. With that, I'll hand over to Giovanni.

Thank you, Tim, and good morning, everyone. I hope that you and your families are safe and healthy. Q3 was a very strong quarter across the company, adding to great performance over the past year. I will go into more details about the quarter in a few moments, but recognizing that it has been almost a year since we established our new company, I would first like to give you my perspective on the company overall. Turning to slide four, a year ago, we transformed our company with the goal of positioning us for growth in the near, medium, and long term. I am very pleased with our ability to consistently deliver on that promise across multiple dimensions. Starting with integration, where we continue to make great progress. The strength of our execution as a combined company is a testament to our successful integration so far. The culture of our company is being shaped by our values, including a focus on innovation, collaboration, and a great sense of urgency. Our synergy capture is ahead of our original expectations. From a commercial perspective, we have driven strong performance from our inline brands. We have launched four new medicines, including InRevit, Reblosil, Ziposia, and Onoreg. We have entered the first-line lung cancer market with Obdivo and Yergoin. In the past year, we've also delivered strongly on the potential of our pipelines. starting with immuno-oncology, where we have seen successful trials across both the metastatic and the adjuvant settings, which further supports the growth opportunity for Obdivo. Specifically in adjuvant, Obdivo is well positioned as a leading medicine with results in four different tumor types. Beyond immune oncology, we are continuing to strengthen our presence in immunology with very encouraging data from a number of assets and programs. These include Phase III data for Ziposia and ulcerative colitis, the decision to move to registrational trials for Syndacumab in eosinophilic esophagitis, and Phase II data for our TIK2 inhibitor, Ducravacitinib in psoriatic arthritis. Most importantly, we now have top-line data from our first Phase III trial for Ducravacetinib in psoriasis. Let me take a moment to talk about Ducravacetinib. Based on the top-line data that we have seen so far, we are very encouraged by the potential for this asset to be the best oral option for patients with psoriasis. with potential broad applicability across multiple diseases, including psoriatic arthritis and Crohn's disease. And finally, we strengthened our IP position for Reglimid and Eliquis, delivered strong financial results, and continue to invest in the future with a number of important business development transactions, including two early-stage assets, Cruforbius and Dragonfly, as well as the announced acquisition of Myocardium. Now, turning to slide five, through the planned acquisition of myocardia, we're gaining Mavacantin, a potential first-in-class medicine for the treatment of obstructive hypertrophic cardiomyopathy, which is a chronic heart disease with high morbidity and patient impact. We believe Mavacantin has multibillion-dollar potential, with further potential value drivers from additional indications and the myocardial pipeline. We look forward to closing the transaction during Q4 and welcoming our new colleagues from Myocardia to the Bristol Myosquib team. Turning to slide six, I am optimistic about the strategic position of our company and how we are well positioned for growth and to navigate through the pattern cycle. Today, Bristol Myosquib has significant strength and breadth in all four of our current therapeutic areas. Across oncology, hematology, immunology, and CV, we have robust in-line businesses, exciting near-term launches, as well as long-term pipeline opportunities. Across all four areas, we are successfully building our portfolio of new medicines through a combination of short-term launches, the advancement of significant late-stage pipeline opportunities, and disciplined business development. To be more specific, Eliquis and Opdivo are assets with significant growth potential. We have eight new medicines that are launching now or have the potential to launch over the next year. And most of these have important expansion opportunities beyond just their initial indication. We have gained clear line of sight to our next set of registrational assets with seven in or close to registrational development, including Roilatilamab, our two multiple myeloma cell mods, Ibergamide and CC92-480, as well as Sandacumab and our Factor XIa inhibitor. And our early pipeline will continue to advance, with more than 20 assets with the potential to transition to full development over the next three years. Given the strength of our portfolio and pipeline, together with the talent of our people, we are focused on delivering on our full potential. Within that context, let me turn briefly to the strength of the quarter on slide seven. David will provide more details. First, we continue to execute very well in highly competitive markets. compared to the same period last year on a pro forma basis. In addition, we are making good progress across our launches. And during the quarter, we have seen significant clinical progress, including multiple positive trials in IO, as well as the first Phase III trial for Duclavis adenovirus. Based on the strength of the business, we are increasing our EPS guidance for this year and continue to be very encouraged about the earnings growth opportunity ahead, as captured by our non-GAAP EPS guidance for next year, which we are reaffirming. Before I hand it over to David, I want to reiterate that I am more encouraged today than ever before about our future prospects. I can say with confidence that our company has never been stronger. Bristol-Myers Squibb is well-positioned to launch multiple new medicines, new indications, and benefit more patients in the very short term. And as we look to the future, our pipeline and financial flexibility, combined with the strength and critical mass we have built across all key areas, provide us with tremendous opportunity. I'm extremely grateful to David.