Bristol-Myers Squibb Company

Please stand by. Good day and welcome to the Bristol Myers Squibb second 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, Sarah, and good morning, everyone. Thanks for joining us this morning for our second quarter 2022 earnings call. I'm joined this morning with prepared remarks by Giovanni Cafforio, our Board Chair and Chief Executive Officer, and by David Elkins, our Chief Financial Officer. And also taking part in today's call are Chris Berner, our Chief Commercialization Officer, and Sumit Hirawat, our Chief Medical Officer and Head of Global Drug Development. You'll note that we posted slides to bms.com that you can use to follow along with for Giovanni and David's remarks. But 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 be not 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 are available at bms.com. And I'll hand it over now to Giovanni.

Thank you, Tim, and good morning, everyone. Let's start with our second quarter performance on slide four. We are midway through 2022, and we've made great progress during an important year for the company. We continued to grow our in-line franchises, expand our new product portfolio, advance our pipeline, and execute important business development activities. Our foundation is strong and positions us well for growth. With respect to our commercial performance, we delivered continued sales growth, with revenue up 5%, adjusting for foreign exchange and non-GAAP EPS increasing by 18%. The strong revenue growth was driven by excellent commercial execution with solid year-over-year growth for our in-line brands, particularly for Eliquis and our I.O. franchise, and significant momentum from our new product portfolio. Within our new product portfolio, Obdualag, our third I.O. agent, is off to a great start, and we are pleased with the team's early execution. Obdualag strengthens our position in I.O. and accelerates the sustainability and growth of our IO franchise. We are also establishing a strong foundation for CAMS IOS. As the first agent that effectively treats the underlying condition of symptomatic obstructive HCM, we see a lot of potential to drive significant penetration in this large underserved and underdiagnosed population. We also made great progress advancing our broad set of pipeline opportunities through regulatory approvals and clinical trial readouts during the quarter. In hematology, we received US FDA approval for Brianzi with a best-in-class label in second line large B-cell lymphoma, as well as EMA validation. With this approval, Brianzi now has the broadest patient eligibility of any CAR-T cell therapy in relapse or refractory LBCL. This reinforces our opportunity for leadership in cell therapy. and further strengthens our view of Brianzi as a key growth driver for the company, with over 3 billion in risk-adjusted revenue potential in 2029. In cardiovascular, we delivered positive Phase II data for milvexin in secondary stroke prevention, and we're looking forward to this data being presented at the European Society of Cardiology meeting next month. With this data in hand, we plan to initiate our Phase III program by the end of the year, which provides an important opportunity to improve outcomes for patients and extend our world-leading antithrombotic business into the next decade. And in oncology, we continue to strengthen the growth outlook for Opdivo with another indication in GI cancers, where it now has a leading position. During the quarter, our financial results were strong, with growth in our in-line and new product businesses. Our financial strength continues to provide us with significant flexibility to deploy capital in a balanced way, including for business development. And during the quarter, we announced an agreement to acquire Turning Point Therapeutics, a leading precision oncology company. On slide five, let's discuss Turning Point's lead asset, Ribotrectinib. which is a next-generation potential best-in-class TKI targeting the ROS and NFREC driver mutations of non-small cell lung cancer and advanced solid tumors. Importantly, as you can see on the slide, the key first-line lung cancer data that has been announced for Reprotectinib is differentiated from potential competitors on duration of response and safety profile. This acquisition will broaden our portfolio in precision oncology. and in solid tumors, and it is a strategic fit for the company. We expect the transaction to close in the third quarter of this year and believe it will support our medium to long-term growth strategy with accretion to non-GAAP EPS beginning in 2025. We plan to continue to leverage our financial strength to pursue transformational science through business development. Turning to our execution scorecard on slide six, we know the importance of continued delivery of key pipeline milestones, and we have made tremendous progress across therapeutic areas this year. In addition to the key milestones I already mentioned for Brianzi and Milvexion, we have a rich mid- to late-stage pipeline, and we are accelerating the next generation of potential medicines. Over time, we believe Iberdomide and CC480, or Medzigdomide, have the potential to play an important role in multiple myeloma. In that regard, we made good progress during the quarter, having moved Iberdomide into its first registrational trial in the second-line setting of multiple myeloma. Looking ahead, I am encouraged by the breadth of opportunities for the rest of this year and beyond. We look forward to the PDUFA date for Ducravacidinib and psoriasis in September. We're excited for the opportunity to bring this oral choice medicine to moderate to severe psoriasis patients soon. With multiple indications on the horizon beyond psoriasis, we believe that this asset has greater than $4 billion in non-risk-adjusted revenue potential in 2029. In addition, we also expect to see data to support important expansion opportunities for other key medicines over time. These include key data for abecma, obdivo, obdualag, and reblozil. We hope that this data will enable these medicines to benefit more patients and further expand their commercial potential. I remain excited about the multiple opportunities we have across our pipeline, and I look forward to continuing to update you on our progress. As I review our performance during the first half of 2022, I'm very proud of the employees of Bristol-Myers Squibb around the world. Together, we have built the foundation for an even stronger company with a more diversified portfolio of growth products and increased durability across each of our four key therapeutic areas. Our performance in the quarter continues to demonstrate the resiliency of our business and our continued financial strength. We believe these positions as well to continue to grow our business in an increasingly complex external environment. This includes macroeconomic factors such as the strengthening U.S. dollar and accelerating inflation, as well as legislative headwinds in the U.S. Given our growing and rapidly diversifying business and our continued financial flexibility, we remain very well positioned for the future. With that, I'll turn it over to David to walk you through the financials in detail. David?