Bristol-Myers Squibb Company

and welcome to the Bristol Myers Squibb 2020 fourth 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, Lauren, and good morning, everyone. Thanks for joining us today for our fourth quarter 2020 earnings call. Joining me this morning with prepared remarks, as usual, are Giovanni Coforio, our Board Chair and Chief Executive Officer, and David Elkins, our Chief Financial Officer. And also taking part in today's call are Chris Burner, our Chief Commercialisation Officer, and Sonia Herawat, our Chief Medical Officer and Head of Global Drug Development. You'll note that we've posted slides to bms.com that you can use to follow along with for Giovanni and David's remarks. But before we get started, let me read our forward-looking statements. During today's call, we'll make statements about the company's future plans and prospects to 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 findings. 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 were adjusted to include certain specified items. Reconciliations of those non-GAAP financial measures, the most comparable GAAP measures, are available at bms.com. With that, let me hand over to Giovanni.

Thank you, Tim, and good morning, everyone. I hope you're all staying safe and healthy. I want to open by saying I'm really proud of what we accomplished in 2020. Our teams executed well commercially, advanced our pipeline, kept our integration efforts ahead of schedule and executed important business development activities. We did this while managing through the complexities of the pandemic, keeping our teams safe and our patients at the center of everything we do. Turning to slide four. In Q4, we delivered another strong quarter. commercial performance was strong, with sales increasing 10% compared to pro forma sales for the same period in the prior year. And we made significant progress to advance our pipeline. Of note, we continue to make progress with our launches, including good momentum for Opdivo Plus Hervo in first-line land, which supports our confidence in a return to growth of Opdivo this year. Reblozil, which has seen a strong launch with rapid adoption in MDS. Ciposia, which is well positioned as the S1P modulator of choice in multiple sclerosis. And Onureg, which is the only oral option with an overall survival benefit in first-line AML response maintenance. We closed the acquisition of Myocardium, bringing us Mavacantin and strengthening our existing presence in cardiovascular. During the quarter, we also continued to advance our pipeline, including regulatory filings and approvals in our I.O., immunology, and hematology portfolio, most recently with positive top-line results for Ducrevacitinib in psoriasis. We demonstrated strong financial results, enabling an increased non-GAAP earnings per share outlook for 2021. As you will have just seen, we have entered into a licensing arrangement with Rockefeller University for the development of a dual antibody combination for the treatment of COVID-19. Though early, we believe this treatment could be differentiated with the potential for low-dose subcutaneous administration. We are pleased to partner with Rockefeller University and leverage our expertise in antibody technology and strength in development, manufacturing, and distribution. to bring this potential option to patients. Moving to slide five, let me put the performance from the quarter and full year 2020 into context. Thanks to excellent execution throughout the year, we have continued to deliver on all value drivers of the Celgene acquisition and laid a strong foundation for future growth of our new company. we are well positioned to accelerate the renewal of our portfolio and support the long-term growth of our business. Last month at JP Morgan, I shared why I have confidence in the future of Bristol Myers Squibb. The integration of Celgene has gone very well. Based on progress last year, we now expect total synergies to be close to 3 billion by the end of 2022. We have proven commercial capabilities, which enable us to fully realize the opportunities to grow our inline portfolio and support strong execution of our launches. The breadth and depth of our late-stage pipeline is reflected in the significant number of milestones delivered last year. Finally, our financial strength makes it possible for us to continue to invest in future growth, internally and externally through business development. Now turning to slide six. Overall, we are in a strong position to unlock the potential of the company we planned to build when we acquired Celgene. We're building a company with a younger, more diversified portfolio of medicines, better positioned in the second half of the decade. Let me remind you where we believe we are heading. We are confident we can more than offset the impact of near-term target expiries, including revenue. We expect to grow our revenue and earnings through 2025. We'd love to meet single-digit revenue for 2025, driven by the significant growth potential of our continuing business, which is comprised of our inline growth drivers and our launch brands. We see strong momentum for this portfolio, which excludes Revlimid and Pomalyst, with low double-digit revenue CAGR during the same period. Looking out to 2025, we expect the continuing business will represent approximately 90% of the company, with 30% of that revenue from our newly launched products. Importantly, looking out to the second half of the decade on slide 7, we have multiple sources of portfolio renewal. Our recently launched products will continue to grow. Most have significant expansion opportunities beyond the launch indication. We have a rich mid to late stage pipeline with assets such as our factor 11a inhibitor and our multiple myeloma cell bonds, iberdomide and CC92-480. We will continue to advance our diverse early R&D portfolio and further invest in business development opportunities, just as we have done with Myocardia. We believe we can achieve this while maintaining very strong profitability with operating margins expected in the low to mid-40s. Turning to our execution scorecard on slide 8. At J.P. Morgan, I outlined several important milestones that would support our success. And as mentioned, we've already delivered on a number of those. Obdivo plus Cabo was recently approved by the FDA for patients with first-line RCC. This week, we delivered the second positive phase 3 for Ducravacitinib in plaque psoriasis. supporting the filing of this potential new therapy to help authorities in the near term. Ziposia was filed for the treatment of ulcerative colitis in the US, and we look forward to launching that indication later this year. Moving to slide nine, as we think about this year, based on the strength of our business and the exciting opportunities ahead, we are increasing our long gap earnings per share guidance for 21. David will provide more details on the financials, but let me offer some perspective on key areas of focus in 2021. Commercially, we expect revenue growth across key businesses, driven in large part by the continued execution of our recent launches, of Vivo's return to growth, and Eliquis. We will continue to advance our pipeline and have important milestones ahead this year. such as Phyla in Markhampton, Phase II data for Factor XIa, proof-of-concept data for Ducravacidinib in ulcerative colitis, and initial data for ibergamide in refractory multiple myeloma. We will maintain a balanced approach to capital allocation. Disciplined business development is a top priority and provides an opportunity to further invest in future growth. David will provide more color on our consistent approach to capital allocation in a few minutes. This year, we also anticipate the U.S. policy environment will continue to evolve, and I'm confident the diversification of our portfolio will help us navigate potential changes. We agree that patient affordability needs to be improved, and we are supportive of policies that can address these issues. We look forward to working with the new administration and congressional leaders to foster an environment that supports innovation and enhances patient access to medicines. To close, I am encouraged by the strength and momentum across the company. Across our four key therapeutic areas of hematology, oncology, cardiovascular and immunology, we have leading inline medicines. significant short-term launch opportunities and a rich pipeline. Our diversified portfolio and leading position in each business allows us to be less dependent on any one product or business. I'm also immensely proud of our employees. Their talent is second to none and their commitment is inspiring. I feel very good about the future of Bristol Myers Squibb and the potential that lies before us. I will now hand it over to David to walk you through the financials.