Q3 2020 Results
Transcript of Q3 2020 Results
Q3 2020 Results
November 5, 2020
Q3 2020 Results Not for Product Promotional Use
Forward Looking Statement and Non-GAAP Financial Information
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This presentation contains statements about the Company’s future plans and prospects that constitute forward-looking
statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from those indicated as a result of various important factors, including those discussed in the
Company’s most recent annual report on Form 10-K and reports on Form 10-Q and Form 8-K. These documents are
available on the SEC’s website, on the Bristol-Myers Squibb website or from Bristol-Myers Squibb Investor Relations.
In addition, any forward-looking statements represent our estimates only as of the date hereof and should not be relied
upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements
at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
This presentation includes certain non-generally accepted accounting principles (GAAP) financial measures that we use to describe our company’s performance. The non-GAAP information presented provides investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. An explanation of these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measure are available on our website at bms.com/investors.
Also note that a reconciliation of certain forward-looking statements, however, is not provided due to no reasonably accessible or reliable comparable GAAP measures for such statements and the inherent difficulty in forecasting and quantifying such statements that are necessary for such reconciliation.
Not for Product Promotional Use
Q3 2020 Results
Giovanni CaforioBoard Chair and
Chief Executive Officer
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Q3 2020 Results Not for Product Promotional Use
Immuno-Oncology
Metastatic
• CM-9ER in 1L renal
• CM-649 in 1L gastric
Continued strong execution provides foundation for the future
Commercial Advancing the pipeline
• Significant cashflow generation
Key enterprise achievements
Successful integration execution with synergy capture ahead of expectations
Immunology
• Positive Ph3 Zeposia data
in ulcerative colitis
• Cendakimab moving to
registrational Ph3 in EoE
• Deucravacitinib (TYK2i)
− PoC Ph2 in PsA
− First Ph 3 in psoriasis
• Very strong in-line performance
• Multiple new launches
• Disciplined BD, across early and late stage• Strengthened IP for Revlimid & Eliquis
Leading position in adjuvant
• SOC in melanoma
• CM-274 in MIBC
• CM-577 in esophageal
• CM-816 in neo-adj NSCLC (pCR)
8 positive topline read-outs 12 U.S./ EU approvals
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Q3 2020 Results Not for Product Promotional Use
FXIa inhibitor
MyoKardia transaction accelerates expansion of leading CV franchise
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*Assuming District Court ruling upheld upon appeal, no other generics overturn current patents; VTEp: Venous Thromboembolism prevention; TKR: Total Knee Replacement; SSP: Secondary Stroke Prevention
Best-in-class medicine with strengthened IP position
• Potential additional exclusivity in the U.S. post 2026*
Fully-owned growth driver with potential 2021 launch
• BMS commercial capabilities are well positioned to realize the full value of the opportunity
Potential next-generation antithrombotic
• Ph2 data in VTEp TKR study and SSP study expected next year and 2022*
Eliquis
mavacamten
Q3 2020 Results Not for Product Promotional Use
Strength across all four therapeutic areas
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Solid tumors Hematology Immunology
InlineBrands
MultipleAdditional indications*
New Launches*
Next Wave
Multiple myeloma
B-cell malignancies
Myeloid diseases
Otherauto-immune
diseases
Next Medicines*
>20 assets with proof of concept decisions over the next three years
liso-cel ide-celDeucravacitinib
(TYK2i)
Relatlimab
Bempeg (NKTR-214)
iberdomide
T-cell engager
Factor XIa inhib
Metastatic disease
Early stage disease
InflammatoryBowel Disease
UC /Crohn’s
PsA / Lupus
1L NSCLC, 1L RCC, 1L GC,
adj. EC, adj. MIBC, neo-adj NSCLC
Cendakimab
* subject to positive registrational trials and health authority approval
**subject to the close of the MyoKardia acquisition
Cardiovascular
Mavacamten**
Danicamtiv**
Non-obstructiveHCM**
HFpEF**
CC-92480
Q3 2020 Results Not for Product Promotional Use
Q3 2020 Performance
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Strong Operating
PerformanceSales of $10.5B in Q3, driven by strong commercial execution
• Increase of 6% on pro forma basis versus Q3 2019*
Launches & Pipeline
Execution
New launches• Onureg launched in 1L AML maintenance
Significant pipeline milestones
• IO: 4 positive trials (including adjuvant) to support future growth
• Presentation of biologic-like efficacy profile for Zeposia in UC
• Positive topline in first Ph3 for deucravacitinib (TYK2i) in Psoriasis
Financial Strength
Strong financial outlook
• Increased EPS guidance for FY 2020; Reaffirming 2021 Non-GAAP EPS guidance
• Balance sheet strength and financial flexibility enable consistent approach to capital allocation
• Strong execution on synergy capture
* The pro forma revenue assumes that Celgene acquisition and Otezla® divestiture occurred on 1/1/2019, does not purport to
represent results of operations of Company if the MyoKardia acquisition occurred on 1/1/2019, and excludes foreign currency
revenue hedge gains and losses.
Not for Product Promotional Use
David ElkinsChief Financial Officer
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Q3 2020 Results
Q3 2020 Results Not for Product Promotional Use
Net Sales $ in Billions
Vs. Prior Year*
$3.0 ▲ 10%
$2.1 ▲ 9%
$1.8 2%
$0.8 ▲ 8%
Strong Q3 performance in key franchises
9*Includes revenues for products acquired as part of the Celgene acquisition for the current and prior year periods(excludes foreign currency revenue hedge gains and losses)
Net Sales $ in Billions
Vs. Prior Year*
$0.8 ▲ 17%
$0.5 3%
$0.4 ▲ 26%
$0.3 ▲ 8%
Q3 2020 Total Sales: $10.5B, up 6%
Q3 2020 Results Not for Product Promotional Use
US: Continued significant demand growth
• 18% TRx growth in the US
• COVID related inventory build in Q1 largely unwound during Q2; inventory now normalized
• As expected, Q3’20 impacted by increased coverage gap and Medicare mix; expect impact to
continue into Q4’20
Q3 2020 Eliquis Performance
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54% 60%
18% 13%
28% 27%
Q3'19 Q3'20
NBRx Share – US
44% 51%
28% 23%
28% 27%
Q3'19 Q3'20
TRx Share - US
Other NOACs
Warfarin
Eliquis
Rx Source: Symphony Health
Significant future growth opportunity
• Continues to be the best-in-class drug in an expanding category
International sales increased 22%
• Continues to be #1 NOAC in key markets
Q3 2020 Results Not for Product Promotional Use
U.S.
• 1L lung shares in high-single digits, use across histologies and PD-L1 expression
• Return to sequential demand growth, up 2%
International
• Q3 sales up 5% vs prior year, primarily driven by strong demand in EU and Japan
Q3 2020 Opdivo Performance
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20%
25%
31%
25%
Approx.U.S. Sales Mix
Note: percentages approximate based on tumor ranges
30%
25%
22%
23%
Approx.Ex-U.S. Sales Mix
NSCLC
RCC
Melanoma
All others
Near term growth drivers
• Continued growth opportunity in 1L lung
• Potential near-term launches in 1L RCC, 1L GC, adjuvant EC, adjuvant MIBC, & neo-adjuvant NSCLC*
*subject to conversations around pCR in lung cancer with health authorities
Q3 2020 Results Not for Product Promotional Use
Significant growth in key MM portfolio
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$469$548
$193
$229
Q3'19 Q3'20
Global Q3 sales growth of 10%*
• Increased demand from triplet regimens as well as longer duration of therapy
• Modest impact to NRx vs prior year due to COVID, with recovery driving sequential increase
Global Q3 sales growth of 17%*
• Increased demand and duration of therapy
• Continued growth expected from new tripletregimens
Pro Forma Net Sales*
$1,902 $2,080
$856 $947
Q3'19 Q3'20
US Ex-US
* Calculated on pro forma basis, which assumes that Celgene acquisition and Otezla® divestiture occurred on 1/1/2019, does not
purport to represent results of operations of Company if the MyoKardia acquisition occurred on 1/1/2019, and excludes foreign
currency revenue hedge gains and losses.
Q3 2020 Results Not for Product Promotional Use
Encouraging new product launch performance
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• Global revenues of $96M in Q3’20, $159M YTD
• Early adoption in MDS across breadth of physician accounts
• Majority of initiated patients receiving subsequent dosing
• Zeposia increasingly viewed as best-in-class S1P
• ~80% commercial lives covered
• Promising trial and patient initiation
• Good willingness to use, with physicians identifying the right patients for the medicine
• Encouraging initiation in the initial weeks post launch
Q3 2020 Results Not for Product Promotional Use
Balance sheet strength and financial flexibility enable consistent approach to capital allocation
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Future innovation through business development
Continued commitment to the dividend*
$B Q3 2020
Total Cash** $22B
Total Debt $45B
Net Debt Position $23B
Strategically Aligned Scientifically Sound Financially Attractive
Committed to reducing debt:
<1.5x Debt / EBITDA by end of 2024
*Subject to Board approval**Cash includes cash, cash equivalents and marketable securities
Q3 2020 Results Not for Product Promotional Use
Reaffirming 2021 Non-GAAP EPS of $7.15 - $7.45*
Guidance Details
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Prior Guidance ( Aug 2020) Updated Guidance (Nov 2020)
GAAP Non-GAAP GAAP Non-GAAP
Net Sales $40.5B - $42.0B $40.5B - $42.0B $41.5B - $42.0B $41.5B - $42.0B
Gross Margin % ~74% ~80% ~74% ~80%
MS&A Expense $6.5B - $6.7B $6.5B - $6.7B ~$6.9B ~$6.9B
R&D Expense $9.7B - $9.9B $9.2B - $9.4B ~$10.4B ~$9.2B
Other (Inc) &
Expense$0.9B - $1.1B $0.1B – ($0.1B) ($0.1B) – ($0.3B) $0.1B – ($0.1B)
Tax Rate ~100% ~16 - 17% ~69% ~16%
Diluted EPS ($0.06) - $0.09 $6.10 - $6.25 $0.47 - $0.57 $6.25 - $6.35
Weighted Average
Diluted Shares~2,300M ~2,300M ~2,300M ~2,300M
* There is no reliable or reasonably estimable comparable GAAP measure
2020 l
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item
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Q3 2020 Results Not for Product Promotional Use
Q&A
Giovanni Caforio, M.D.
Board Chair,
Chief Executive Officer
David Elkins
Executive VP,
Chief Financial Officer
Nadim Ahmed
Executive VP,
President, Hematology
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Chris Boerner, Ph.D.Executive VP,Chief Commercialization Officer
Samit Hirawat, M.D.Executive VP,Chief Medical Officer,Global Drug Development
Q3 2020 Results Not for Product Promotional Use
2H 2020 News Flow
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Asset Timing
Ide-cel4L+ Multiple Myeloma
Submitted √
Onureg (CC-486)1L AML Maintenance
PDUFA Sept 3rd √
Liso-cel3L+ LBCL
PDUFA Nov 16th
Opdivo+Cabovs Sutent1L RCCCM-9ER
Positive Topline √Presentation at ESMO
2020 √
ZeposiaModerate-to-server Ulcerative Colitis TRUENORTH
Positive Topline √Presentation target
year end √
ReblozylNTD beta-thalBEYOND (randomized Ph2)
YE 2020 / 1H 2021
Asset Timing
Opdivo+Chemo, Opdivo+Yervoy1L GastricCM-649
2020 (PFS) √2022 OS
Relatlimab + Opdivo vs Opdivo mono1L MelanomaCA224-047
Early 2021
Opdivo + Yervoy vs OpdivoAdjuvant MelanomaCM-915
2020 ×
Opdivo + Chemo vs ChemoNSCLC (Neo-Adj)CM-816
2020 pCR √
2022+ EFS
Opdivo vs PlaceboMIBCCM-274
Late 2020 / Early 2021√
Deucravicinib (TYK2i) vs PlaceboPsoriasisPh3 POETYK PSO-1 (IM011-046)
2020 √
Q3 2020 Results Not for Product Promotional Use
Hematology
FibrosisLPA1 Antagonist
(BMS-986278)
HSP47 pegbelfermin
JNK Inhibitor
Immunology
OncologyAnti-TIGIT
Anti-TIM3
CD3xPSCA(GEMoaB )**
NLRP3 Agonist
STING Agonist
Anti-CTLA-4 NF
Anti-CTLA-4 NF-Probody
Anti-CTLA-4 Probody
Anti-IL8
CCR2/5 Dual Antagonist
BET Inhibitor*(CC-95775)
Anti-FucosylGM1
Anti-SIRPα*motolimod Anti-NKG2A bempegal-desleukin
linrodostat
marizomib relatlimab*
orva-cel
BCMA TCE BCMA ADC
BCMA CAR T(bb21217)
BET Inhibitor(BMS-986158)
BET Inhibitor*(CC-90010)
LSD1 Inhibitor*
iberdomide liso-celide-cel
*In development for solid tumors and hematology; **BMS has an exclusive option to license and/or option to acquire
branebrutinibTLR 7/8
AntagonistIL2 Mutein
MK2 InhibitorS1PR1
Modulator
TYK2 Inhibitor
iberdomide
cendakimab deucravacitinib(TYK2 Inhibitor)
Cardiovascular FA-Relaxin Factor XIa Inh. (BMS-986209)
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Phase 1 Phase 2 Phase 3 Marketed
A/I CELMoD(CC-92480)
A/I CELMoD(CC-99282)
GSPT1 CELMoD(CC-90009)
*
AR-LDD
BCMA NEX T
CD19 NEX T
NeuroscienceFAAH/MGLL
Dual Inhibitor
AHR Antagonist(I kena)**
TYK2 Inhibitor(Nimbus)**
Imm. Tolerance(Anokion)**
CD3x33 (GEMoaB )**
CD22 ADC (TriPhase)**
NME
Anti-OX40
FPR-2 Agonist
LPA1 Antagonist(BMS-986337)
Active Clinical Development Portfolio
IL-12 Fc TGFβ Inhibitor
Factor XIa Inh. (BMS-986177)
GPRC5D CAR T
Anti-CD73