Bristol-Myers Squibb Company

Good morning. My name is Dennis and I will be your conference operator today. At this time, I would like to welcome everyone to the Bristol Myers Squibb fourth quarter 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the conference over to Tim Power, Vice President of Investor Relations. Please go ahead.

Thank you, and good morning, everyone. Thanks for joining us this morning for our fourth quarter 2022 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 Simon Herlot, 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. Before we get going, I'll read our forward-looking statement. During this call, we'll make certain 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 are available at bms.com. With that, I'll hand it over to Giovanni.

Thank you, Tim, and good morning, everyone. Starting on slide four, I am pleased to report another strong quarter for Bristol Myers Squibb, concluding a very successful year. Last year was an important year for our company, the first with Revlimid Generics. Given that, I am very proud to say that in 2022, we grew our business and made tremendous progress advancing our pipeline, including launching three new first-in-class medicines, and progressing six promising programs into registrational development. While David will provide additional details on the financials in a moment, I will point out a few highlights. Last year, we delivered revenue growth of 3%, adjusting for foreign exchange. Importantly, growth was driven by our in-line and new product portfolios. So I am pleased to note that we delivered continued strong growth in the fourth quarter for these assets, up 12% adjusting for foreign exchange. We also grew our earnings, including non-GAAP EPS growth of 8% for the full year. As we start 2023, I am confident we have established a strong foundation for Bristol-Myers Squibb. As you'll note from our guidance, We expect to grow both revenue and non-GAAP EPS this year. Importantly, we remain on track to achieve the commitments we have made for 2025. Given increasing confidence in our new product portfolio and continued progress with our broader pipeline, we see multiple paths to growth through 2030. Let me now provide some perspective on 2022. On slide five, you can see our overall pipeline execution last year. I am very pleased with our progress, which further supports renewal of our portfolio. While we advanced on many fronts, I would like to highlight a few accomplishments. Approval of three first-in-class medicines, including Obdualag, Kansaius, and Sotictu, which address areas of high unmet medical need and have significant commercial potential. Further progress expanding the reach of our new product portfolio, including an important expansion opportunity for Reblosil in first-line MDS with commands, positive top-line results of CARMA-3, based on which abecma is the first BCMA CAR-T to have demonstrated superiority to standard regimens in relapsed and refractory multiple myeloma, and initiation of registrational trials for Soticto in lupus. Remember, in the Phase II study, Soticto demonstrated an encouraging profile in this hard-to-treat disease. We believe lupus can be an important expansion opportunity for the brand. Progress with the next generation of medicines includes important proof-of-concept data for milvexian in secondary stroke prevention. enabling the initiation of the Phase III program this year, and a positive trial for our LPA1 asset in lung fibrosis. This asset has come into focus only recently and is a prime example of the optionality that comes from having a broad pipeline. We are looking forward to presenting data and starting Phase III trials for this asset later this year. On slide six, you can see how we strengthened the outlook for our new product portfolio, which, as you know, is central to our strategy of renewing our portfolio over the coming years. Our pipeline execution and strong commercial momentum position us well to achieve 10 to 13 billion of risk-adjusted revenue in 2025. And as a result of the strong progress with our pipeline, we have significantly de-risked the 25 billion plus of long-term non-risk adjusted revenue potential. As you can also see on this slide, we continue to see exciting catalysts ahead for these assets. So turning to our scorecard for this year on slide seven, it's encouraging to observe the breadth of catalysts we see ahead as a company in the near term. I point out a few highlights. Just last week, we announced our Phase 1-2 trial for Brianzi in relapsed refractory CLL met the primary endpoint. In Europe, we expect to launch CAMZIOS in obstructive HCM and are pleased to have received positive CHMP opinion for our first and only selected TIK2 inhibitor, SOTIK2. Our ROS1 inhibitor, ripotreptinib, is expected to be filed in the U.S. in lung cancer. We have an important expansion opportunity for Revlozil in first-line MDS. Along with our partners at Janssen, we have embarked on registrational trials for Milvexian, and we expect to move Abecma into earlier lines of therapy. Finally, we are further advancing our multiple myeloma Selmore program with a head-to-head study of Iberdomide versus Revlimid in the post-transplant maintenance settings. As we have done in the prior years, we look forward to updating you on our progress as we continue to advance our pipeline and further support our portfolio renewal. Turning to slide eight, I'd like to remind you about what we've accomplished in the past few years and how that prepares us well for the near, mid, and long term. When we began the transformation of our company three years ago, we told you, what we believed we could achieve, and we have delivered across the board. Financially, we have grown our company, over-delivered synergies, reduced our debt, and generated significant cash flows. We have launched all nine new medicines, including three first-in-class products that were approved last year. And we've continued to execute disciplined business development to further support our growth profile in the future. Our record of execution further strengthens my confidence in our ability to renew our portfolio and deliver long-term growth. With all of this in mind, let me move to slide 9 to discuss our outlook for this year and beyond. As you know, we expect to drive growth through 2025 and sustain strong profitability as we transform our portfolio. And that journey continues this year. We delivered growth through Revlimid generics in 2022, and as you can see from our guidance today, we expect to continue to grow this year. With the focus turning to the second half of the decade, we continue to see multiple paths to growth, driven by growth of the new products, contribution from our advancing late-stage pipeline, including Milvexian, LPA1, and the cell modes, and significant optionality from our early pipeline, complemented by flexibility for additional business development. All the while, we are transforming our portfolio to be younger, more diversified, and more resilient in the face of an increasingly complex pricing environment in the US and internationally. Before I turn to David, let me express my gratitude to our teams across the globe. starting with our research and development organization, which had a stellar 2022. As you will have seen, this week we announced Dr. Rupert Vesey's decision to retire, effective July 3rd. I want to thank Rupert for his extraordinary contributions since he joined BMS as a result of the acquisition of Celgene. Rupert led the successful integration of research. and the development of a strong pipeline across all stages of development. We are now combining development across early and late stage under Summit's leadership and preparing to transition the research organization to report to Dr. Robert Trench, who will serve as EVP and Chief Research Officer when Rupert retires this summer. The focus and determination of these leaders and all of our teams will enable us to continue to deliver for the patients depending on us. I'll now turn it over to David to walk you through the financials.