Bristol-Myers Squibb Company

Good day and welcome to the Bristol Myers Squibb first quarter 2023 earnings 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 followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. for operator assistance throughout the call, please press star zero. And finally, I would like to advise all participants that this call is being recorded. Thank you. I'd now like to welcome Tim Power to begin the conference. Tim, over to you.

Thanks, Gavin, and good morning, everyone. Thanks for joining us this morning for our first quarter 2023 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 Operating Officer, and Saman Hirawat, our Chief Medical Officer and Head of Global Drug Development. As you'll note, we posted slides to bms.com that you can follow along with for Giovanni and David's remarks. But 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 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. Before we discuss our first quarter results, I'd like to address the leadership transition plan we announced yesterday. After 23 years at Bristol Myers Squibb, including the last eight as CEO, I have decided to retire as CEO, effective November 1st, 2023, so our family can spend more time together in Europe. I will continue to serve as Executive Chairman for a transition period to be determined by the Board. Given the strong foundation achieved to position BMS for growth and success in the future, our strong pipeline and our incredibly deep bench of talent, now is a natural time for this transition. That's why I am pleased to share that the Board has selected Chris Berner, our current Chief Commercialization Officer, as Bristol Myers Squibb's next CEO as of November 1st. Effective yesterday, Chris was named executive vice president and chief operating officer. And the board also intends to appoint him as a member of the board after the annual meeting of shareholders. In connection with Chris's appointment, Adam Lankowski, SVP head of major markets, has been named to succeed Chris as Executive Vice President and Chief Commercialization Officer. The Board and I are confident that Chris is the right person to guide BMS through its next chapter of growth. Since joining BMS in 2015, Chris has been instrumental in shaping our strategy and our culture. His passion for science, his commitment to our workforce, and his tireless focus on our patients make him uniquely suited for the role. Among a long list of accomplishments, Chris has helped guide the evolution of our portfolio over the past several years, notably building our leading presence in immuno-oncology, growing our CV business, and launching multiple new medicines. His deep knowledge of our strategy and pipeline and his proven execution across all geographies give us confidence that he is the right leader to drive BMS's vision to be the world's leading biopharma company that transforms patients' lives through science. Leading BMS has been the highlight of my professional career, and I am incredibly proud of what our team has accomplished together. I remain enthusiastic about the opportunities ahead and know that we will continue to put patients at the center of everything we do as we drive growth and sustained profitability. Our patient-first culture coupled with our incredibly talented and diverse global workforce will continue to be the engine that drives our success. I look forward to working closely with Chris through the transition and know there is a very bright future for Bristol-Myers Squibb with Chris at the helm. Now, let's turn our attention to our Q1 performance. Starting on slide four, As we continue to execute our strategy and accelerate the renewal of our portfolio, I am pleased to share that we had a strong start to the year. I am encouraged by the performance of the products that will drive our future growth. During the quarter, our in-line brands and new product portfolio grew 8% or 10% adjusting for foreign exchange. Notably, revenue from our new product portfolio more than doubled compared to a year ago, reinforcing our confidence that we expect to roughly double revenue from these products this year. Obdivo and Eliquis both performed very well with strong demand growth, particularly in the US. Looking forward, we continue to expect top and bottom line growth driven by our in-line and new product portfolio. more than offsetting the impact of generics. And we are affirming our non-GAAP financial guidance for this year. Along with strong commercial execution in the quarter, we continued to advance our pipeline. Turning to our scorecard on slide five. As you can see, we delivered meaningful pipeline milestones in Q1. We have a number of catalysts in our pipeline and made important progress expanding our new products, particularly with respect to regulatory achievements. Starting with cell therapy, where we further strengthened our growing leadership position. Following the publication of our CARMA-3 results for triple class exposed multiple myeloma patients in the New England Journal of Medicine in February, We have now delivered global regulatory filings across the US, Europe, and Japan for this study. We look forward to the opportunity to offer these transformational products to patients in earlier lines of treatment in multiple markets in the future. We also continue to make progress expanding supply for both of our cell therapy products. We recently entered into an agreement for a vector facility in Libertyville, Illinois. to further strengthen our supply chain and expand manufacturing capacity. This will allow us to dual source vector supply and transition to newer, higher efficiency manufacturing processes. We look forward to supplying more patients with both abecma and brianzi as capacity increases over time. Our research teams remain focused on further improving outcomes for patients using cell therapy treatments, including with our exciting CD19 NextT for severe refractory SLE that is entering the clinic. Turning now to SOTIC2. As David will describe, the launch for plaque psoriasis continues to go very well, and we are successfully establishing this product as the oral choice for moderate to severe patients. And during the quarter, we delivered approval of this medicine for patients in Europe. In addition, we received data from our Phase II trial in Crohn's disease. And while it does not support moving to a Phase III trial at this time, we look forward to seeing data from the high-dose UC trial later this year to evaluate opportunities for this asset in IBD. Meanwhile, we continue to advance SOTICTO into key expansion opportunities in Phase III studies for both psoriatic arthritis, and lupus, which, as you know, has a very high unmet medical need. And turning now to Camsios, we recently announced positive CHMP opinion for this medicine. We look forward to bringing this product to European patients soon. Looking at our next set of registrational assets. we have initiated the Phase III study for Iberdomide in post-transplant maintenance during the quarter. This study will potentially enable us to demonstrate superiority of Iberdomide over Revlimid in an early-line setting of multiple myeloma. And with our partners at Janssen, we are pleased to have now initiated all three Phase III trials in the Milvexium program. We are excited about the benefits to patients from a potential next generation antithrombotic that is equal to or better than current factor 10a drugs in terms of efficacy, but with a better bleeding profile. As you can see, our progress is strong with multiple exciting pipeline opportunities ahead. Moving to slide six and tying together what this progress means for our new product portfolio. This slide demonstrates that the renewal of our portfolio continues to gain momentum through a combination of strong commercial execution and the achievement of important clinical data and regulatory milestones that further de-risk significant revenue opportunities. I am very proud of the accomplishments of our global colleagues as they strive to discover, develop, and deliver transformational medicines to patients 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. Given our growing and rapidly diversifying business and our financial strength and flexibility, I'm excited about the opportunities we have for the rest of 2023 and beyond. I will now turn the call over to David to walk you through our product performance and financial results in more detail.