Bristol-Myers Squibb Company

Welcome to the Bristol-Myers Squibb Fourth Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Chuck Triano, Senior Vice President and Head of Investor Relations. Please go ahead.

Thank you and good morning, everyone. We appreciate you joining our fourth quarter 2024 earnings call. Joining me this morning with prepared remarks are Chris Berner, our board chair and chief executive officer, and David Elkins, our chief financial officer. Also participating in today's call are Adam Lankowski, our chief commercialization officer, and Sumit Hirawat, our chief medical officer and head of global drug development. Earlier this morning, we posted our quarterly slide presentation to BMS.com that you can use to follow along with Chris and David's remarks. Before we get started, I'll remind everybody that during this call, we will make statements about the company's future plans and prospects that constitute forward-looking statements. Actual results may differ materially from those indicated by those 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, and 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. Finally, unless otherwise stated, all comparisons are made from the same period in 2023 and sales growth rates will be discussed on an underlying basis, which excludes the impact of foreign exchange. All references to our P&L are on a non-GAAP basis. And with that, I'll hand it over to Chris.

Thank you, Chuck, and thank you all for joining us this morning. As we'll discuss today, 2024 was a year of good execution across multiple fronts. Importantly, our performance last year established as a solid foundation to continue our multi-year journey to achieve top-tier sustainable growth by the end of the decade. I will begin with some comments on our fourth quarter and full-year accomplishments. Then I will speak to the promise we see with COBINFI and the steady cadence of clinical data catalysts that will begin this year, further defining our future growth potential. I will end with an overview of our 2025 guidance. Starting on slide four, we closed 2024 with strong fourth quarter performance, reflecting another quarter of double digit percentage increase for our growth portfolio. In addition, we saw strong performance across key parts of the company and achieved notable commercial and R&D milestones. Looking at the full year, let's turn to slide five. I'm pleased with the progress we have made executing on our multi-year plan. For the year, the growth portfolio delivered double-digit revenue growth led by Brionzi, Chemzios, Reblazil, and Optulag. In the latter part of the year, we re-established our presence in neuroscience with the U.S. approval and launch of CoBinvi, which is the first novel mechanism for the treatment of schizophrenia in decades. We also received U.S. approval of Obdivo-Cuvantic in late December. This new subcutaneous formulation of Novolumab will help extend the reach and impact of our immuno-oncology franchise to patients into the next decade. Throughout 2024, operational excellence and financial discipline were top priorities for us. As part of this effort, we reallocated significant spend towards high potential growth opportunities. achieving most of our targeted $1.5 billion in savings. We expect to capture the remainder this year. Additionally, we put considerable focus in 2024 on improving R&D productivity. As a result, we have been able to accelerate several programs in our late-stage pipeline. Notable examples include ChemZios, where we completed enrollment in the Odyssey non-obstructive HCM study six months earlier than expected and now anticipate top-line results next quarter. With CoBENFI, the ADEPT2 study in Alzheimer's disease psychosis is expected to have a top-line readout in the second half of this year versus our original expectation of 2026. This is due to our focus on accelerating patient recruitment following the acquisition of Karuna. And with our ibertamide Excalibur trial in relapse refractory multiple myeloma, enrollment is complete, and we have an opportunity for a data readout this year, also ahead of schedule, due to the recent addition of MRD as a co-primary endpoint. Looking ahead, we will continue to sharpen our focus on operational excellence. You saw the early steps of this strategy last year. As a continuation of that, we are taking deliberate steps to become a leaner, more focused company and have identified an additional $2 billion in savings. We expect approximately $1 billion of these savings to be realized this year and the remainder by the end of 2027. David will provide more details shortly. These actions are consistent with our strategy of investing in our growth portfolio and promising areas of science while maintaining financial discipline. As I've said, this is a journey, but we're already seeing progress. I'm confident the actions we are taking are the right ones that will further advance our long-term sustainable growth strategy. Turning to slide six, the U.S. approval of Cobenvian schizophrenia was an important achievement in 2024, and the launch is off to a great start. While we're focused on delivering on the schizophrenia indication today, we see the potential for additional benefit to patients and have made strategic investments in a broad clinical development program. We expect to have important data readouts starting this year and every year thereafter for the remainder of the decade. This year, we're initiating seven Phase III studies across three indications, Alzheimer's disease agitation, Alzheimer's disease cognition, and bipolar I disorder. And next year, we plan to begin Phase III studies in autism spectrum disorder irritability. The significant ramp-up in spending on CoBENV illustrates our focus on continuing to invest behind key growth drivers while simultaneously maintaining financial discipline. Moving to slide 7, we are entering a data-rich period with multiple catalysts over the next 24 months across a significant number of assets. In 2025, we have multiple important registrational catalysts, as you can see on this slide, including several that I already mentioned, as well as the COBENFI ARISE study in adjunctive schizophrenia. Then in 2026, we expect to have registrational data for numerous potential first and or best-in-class medicines, including milvexian in acute coronary syndrome and secondary stroke prevention, admalparant in idiopathic pulmonary fibrosis, and mezignomide in multiple myeloma. We also expect to have registrational data for ArloCell, our GPRC5D, CAR-T, and multiple myeloma, and for RAISE101 in GEPNETS. We believe these data readouts will further de-risk the pipeline and provide meaningful insight into the future growth profile of the company. Now, let me give you an overview of our 2025 guidance and how we see this year playing out on slide eight. In terms of the top line, we estimate revenue to be approximately $45.5 billion, reflecting, as expected, the near-term impact of generics across multiple products and the continued strength of our growth portfolio. As it relates to the bottom line, we expect our 2025 non-GAAP earnings per share to be in the range of $6.55 to $6.85. This reflects the expanded savings program I mentioned earlier. David will provide more details on our guidance. Finally, turning to slide nine, BMS is evolving into a fundamentally different company with a clear multi-year plan, strong execution, and an accelerating pipeline. We now have a younger and more diversified growth portfolio. This includes Coventry, which has the potential to be a significant contributor to growth over the coming years. We have a multitude of important data readouts over the next 24 months with the potential to launch 10 or more new medicines and pursue over 30 indication expansion opportunities over the next five years. And we remain focused on the therapeutic areas where we have a long track record of success and delivering transformational medicines to patients. We are confident in the steps we are taking to reshape BMS, and by the end of the decade, we expect to have a transformed portfolio of marketed products driving top-tier sustainable growth. Now, I'll turn it over to David.