Bristol-Myers Squibb Company

Good day, everyone, and welcome to the Bristol-Myers Squibb 2021 Fourth Quarter Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the call over to Mr. Tim Power, Vice President, Investor Relations. Please go ahead, sir.

Thank you, Alan, and good morning, everyone. Thanks for joining us this morning for our Fourth Quarter 2021 Earnings Call. Joining me this morning with prepared remarks are Giovanni Coforio, our Board Chair and Chief Executive Officer, and David Elkins, our Chief Financial Officer. Also participating in today's call are Chris Berner, our Chief Commercialization Officer, and Sumon Hirawat, 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 started, 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 exclude certain specified items. Reconciliations of certain non-GAAP financial measures to the most comparable GAAP measures

available on bms.com and with that i'll hand over to giovanni thank you tim and good morning everyone let's start with our fourth quarter performance on slide four i'm pleased to report we delivered another strong quarter building on our very good performance throughout 2021. our commercial results were strong across the portfolio with robust performance in our continuing business driven by eloquence and accelerated growth for Obdivo, as well as continued demand growth for our new products. The launch of Ziposia in ulcerative colitis is progressing well in the U.S., and we obtained European approval during the quarter. We are pleased with continued demand growth for Reblozil in ESA refractory MDS and transfusion-dependent Betafal, and our cell therapies, Prianzina-Becma, continue to see significant demand while we remain focused on broadening supply and expanding indications over time. We are advancing our strategy and delivered key pipeline milestones in the fourth quarter. This enables us to help more patients, accelerate the renewal of our portfolio, and support our growth outlook. Let me highlight some key achievements. We submitted applications for Ducarvacitinib in the US, EU and Japan, which position us well to grow our presence in immunology. We are excited about the potential of Duclavacitinib as the oral standard of care in moderate to severe psoriasis and various other autoimmune diseases. We are expanding our cardiovascular portfolio and presented exciting data at AHA for Milvexian, which we see as a next-generation antithrombotic with a $5 billion-plus non-risk-adjusted revenue opportunity. We presented important updates at ASH on our hematology pipeline. This includes encouraging data for iberdomide and 480, our exciting new multiple meloma cell mod agents. These have the potential to replace red limit and pulmonary stover time. Importantly, the transformed data for Brianzi in second-line B-cell lymphoma showed practice-changing benefit compared to the current standard of care. We continue to see Brianzi as one of the key growth drivers for the company, with over $3 billion in non-risk-adjusted revenue potential. Our strong execution helped drive solid financial performance in the fourth quarter. We reported 8% sales growth and double-digit non-GAAP EPS growth. Our strong cash flow and financial strength provide us with significant financial flexibility. This enables us to continue prioritizing disciplined business development opportunities while paying down debt and expanding shareholder distributions. We also introduced our 2022 guidance last month, And I let David speak to the details in a moment. What's important is that we're guiding to growth this year with low double-digit growth from our continuing business, more than offsetting the revenue impact from generics in the US and internationally. Turning to our 2021 execution scorecard on slide five. At the beginning of last year, I outlined a number of milestones that we believed would be important to our future, including opportunities to renew our portfolio and grow our business during the decade. I am pleased to report we've made great progress. We returned of divorce growth, successfully launched multiple new products and produced key expansion data sets for several assets. This record of execution across the company further strengthens my confidence in our ability to continue to renew our portfolio and grow in the future. We know we must remain focused on advancing our pipeline to accelerate the renewal of our portfolio. And on slide six, you can see there are multiple catalysts ahead during 2022. The 2022 milestones include expected approvals and launches for three exciting first-in-class medicines, Navacantin, Ducrevacitinib, and Relatlanab. We believe that all of these have the potential to further strengthen the commercial opportunity for our new product portfolio and support our growth outlook. We expect that each of these assets has at least $4 billion revenue potential at the end of the decade on a non-risk-adjusted basis. We look forward to keeping you updated on our progress throughout the year. Looking to the future, Slide 7 summarizes our perspective of how all of this comes together to support the growth of the company moving forward. We expect the growth in our continuing business will enable us to more than offset key LOEs through 2025. With continued growth of our inline brands, and 10 to 13 billion of additional sales expected from our new product portfolio. In the second half of the decade, with a broad and expanding product portfolio, we will have multiple paths to achieving our growth objective from 2025 to 2029. As we've said, we expect more than 25 billion in non-risk adjusted revenue potential from the current new product portfolio in 2029. with additional contributions coming from our pipeline, including assets like Milvexion and our exciting Selmon agents. As we continue our journey to renew our business and grow through the impact of LOEs starting this year, I'm increasingly excited about the future of Bristol-Myers Squibb. With that, I'll turn it over to David to walk you through the financials.