Bristol-Myers Squibb Company

Welcome to the Bristol-Myers Squibb Second Quarter 2026 Earnings Conference Call. All participants will be in a 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. 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 second quarter 2026 earnings call. With me this morning with prepared remarks are Chris Boerner, our board chair and chief executive officer, and David Elkins, our chief financial officer. Also participating in today's call is Adam Lenkowski, our chief commercialization officer, and Cristian Massacesi, 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 2025 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.

Thanks, Chuck. Good morning, everyone, and thank you for joining our Q2 2026 earnings call. We delivered another excellent quarter driven by disciplined execution across the business. Our progress towards transitioning the portfolio to fuel durable long-term growth is reflected in our growth portfolio's strong Q2 performance. At the same time, we're delivering strong performance from our existing business. We're also advancing a broad and differentiated pipeline while maintaining financial flexibility to invest in the highest value opportunities for patients and shareholders. Together, these efforts continue to strengthen the foundation we're building and increase our confidence in our ability to grow the company as we exit the decade. Let me walk you through some of the highlights of our performance, beginning with our Q2 results on slide 4. Our growth portfolio continued its strong performance, with sales up 14%. Key assets including Reblazil, Brianzi, Chemzios, Optulag, and Qvantik continued to perform well, with 10 products in our overall portfolio achieving double-digit growth. This performance demonstrates both the value creation of our portfolio and the continued execution of our commercial organization. Based on the strength of our results, we are increasing our full-year 2026 revenue and adjusted EPS guidance. David will provide additional details shortly. Building on our in-market performance, our pipeline of differentiated assets is an important driver of our long-term growth, and we're making significant progress there as well. We had an exciting ASCO in June, where we shared data that reinforces the breadth of innovation across our leading oncology franchise. To highlight a few examples, In hematology, we presented positive phase 3 data from the mesignamide successor 2 study evaluating mesi-KD for patients with relapse or refractory multiple myeloma. The study showed a statistically significant and clinically meaningful improvement in progression-free survival. This further strengthens our confidence in the CellMod class and its potential to drive the advancement of future myeloma treatment. In solid tumors, we saw encouraging Phase III data from two Isobren studies supporting our strategy of building differentiated ADC capabilities across multiple difficult-to-treat solid tumors. We are also initiating our fourth global phase 3 study in first-line EGFR mutant non-small cell lung cancer. For Pimidamig, we shared encouraging early phase 2 global data in combination with chemotherapy for first-line non-small cell lung cancer. and in terms of our expanding development program, we are initiating a new phase two novel-novel study combining Pometamig with Imzocatug, our CCR8 antibody. These programs reinforce the power of our innovation engine and support our strategy of combining different modalities to deliver transformational medicines and improve patient outcomes. Turning now to our near-term pipeline milestones we anticipate during the remainder of 2026 on slide 5. We've talked about our ambition to translate a data-rich pipeline into durable, long-term growth drivers, and we continue to expect pivotal readouts across our therapeutic areas by the end of this year. These near-term readouts represent compelling opportunities, including admilpirant, a potential first-in-class medicine that could redefine the standard of care in pulmonary fibrosis, Arlocell in relapsed or refractory multiple myeloma, Ibertamide progression-free survival data, Milvexian in secondary stroke prevention, RAISE-101 in GEPNETs, and SOTIC-2 in lupus, a disease affecting millions of patients with very limited treatment options. Each of these pipeline opportunities carries the potential to redefine treatment standards, addressing large, underserved patient populations and helping to accelerate our long-term growth trajectory. Together, they represent multi-billion dollar peak sales potential and reflect the full depth and breadth of what we're building. For Milvexian, we now expect the atrial fibrillation study to read out in the first quarter of 2027. This is an event-driven study, and the updated timing from late 2026 reflects the pace of events. As a reminder, the study is being monitored by an independent data monitoring committee, which continues to endorse the study. And with the passage of time, as the study progresses, we are increasingly encouraged about Milvexian's potential and look forward to seeing the results of this important study. With respect to the CoBINFI development program in Alzheimer's psychosis, based on the pace of enrollment in the ADEPT 2 and 4 studies and relapse events accruing more slowly than projected in ADEPT 1, we now anticipate top-line data readouts from the ADEPT program to begin in early 2027. Thank you for watching. These data reinforce our continued confidence in the potential for this medicine in Alzheimer's psychosis. Finally, our Phase 3 Balsam 1 and 2 studies evaluating Cobenfi and Bipolar 1 disorder continue to enroll well, and we anticipate reading out in the first half of 2027. Thank you for joining us. and we're pleased that the FDA accepted our NDA for mesignamide with a PDUFA date of May 13, 2027. Together, Ibertamide and Mazignamide continue to reinforce our confidence in the long-term potential of our protein degradation platform. The FDA also recently accepted our supplemental NDA for Camxios in adolescents with obstructive hypertrophic cardiomyopathy and assigned a September 30th VEDUFA date. At the same time, we continue to actively plan our previously announced Phase 3 study evaluating camxios in patients with non-obstructive hypertrophic cardiomyopathy and expect to initiate the study by the end of the year. I want to step back for a moment and take stock of where we are and why I'm energized by what's to come. Our growth portfolio is delivering today, and our differentiated pipeline is on the verge of multiple pivotal readouts with the potential to introduce more than 10 new medicines by the end of the decade, including ibertamide and mesignamide, both of which have upcoming PDUFA dates. In addition, we also anticipate over 30 meaningful lifecycle management opportunities during that same period. Our priorities are clear. Continue executing with discipline and translate differentiated science into transformational medicines for patients. Turning to slide six, we continue to evolve how we operate as a company. Over the past few years, we've made significant progress rewiring BMS into a more agile, focused and efficient organization. This includes expanding the use of AI to help our teams move faster, execute better, and operate more effectively. Over the past several years, BMS has embedded AI across its research and enterprise operations, and demand for compute has grown alongside the scale and maturity of our AI capabilities. In support of this expansion, we've recently announced partnership agreements with both Anthropic and NVIDIA. Concretely, this will help our scientists do three things, understand disease biology more deeply, design and test candidate molecules faster, and make earlier, better-informed Thank you for watching. at the same time we remain disciplined in how we manage our resources our focus on productivity continues to generate meaningful savings when combined with our strong free cash flow generation and balance sheet these efforts continue to fortify the company's financial foundation before i turn the call over to david i'll emphasize that the strong financial foundation we've built provides us with the optionality and flexibility to continue investing in growth drivers pursuing business development opportunities and returning cash to shareholders