Q4 2019 Results · 2020. 2. 6. · Q4'18 Q4'19 $393 $489 $171 $203 Q4'18 Q4'19 US ROW *Includes...
Transcript of Q4 2019 Results · 2020. 2. 6. · Q4'18 Q4'19 $393 $489 $171 $203 Q4'18 Q4'19 US ROW *Includes...
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Q4 2019 Results
February 6, 2020
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Forward Looking Statement and Non-GAAP Financial Information
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.
We have filed a Current Report on Form 8-K dated February 6, 2020 reporting the results for the fourth quarter and full year 2019. The 8-K must
be read in conjunction with this presentation and contains additional important details on the quarterly and year-end results.
This presentation includes certain non-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 in our Current Report on Form 8-K dated February 6, 2020 and on our
website at bms.com/investors.
In connection with presenting our outlook, we are also providing non-GAAP EPS guidance for 2021. There is no reliable or reasonably estimable
comparable GAAP measure for this because we are not able to reliably predict the impact of specified items beyond the next twelve
months. As a result, the reconciliation of this non-GAAP measure to the most directly comparable GAAP measure is not available without
unreasonable effort. In addition, the company believes such a reconciliation would imply a degree of precision and certainty that could be
confusing to investors. The variability of the specified items may have a significant and unpredictable impact on our future GAAP results.
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Giovanni Caforio
Chairman & Chief Executive Officer
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Our MISSION To discover, develop and deliver innovative medicines that help patients prevail over serious diseases
Our VISION To be the world’s leading biopharma company that transforms patients’ lives through science
Our STRATEGIC FOUNDATIONA differentiated company that combines the Best of Biotech and Best of Pharma –focused on innovative medicines for patients with cancer and other serious diseases
Leading Scientific Innovation
Collaborating at Centerof the Biotech Ecosystem
Leveraging Global Scale and Agility
Driven by the Best People
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Overview
Strong Operating Performance in 2019
• Strong commercial execution across in-line portfolio
• Positive clinical and regulatory achievements, including meaningful data at ASH
• Integration progressing well
• Execution of ASR and recent dividend increase
Robust Earnings Outlook & Significant Financial Flexibility
• Guidance reflects substantial earnings power and significant opportunity for future growth
• Significant cash flow generation expected - supports de-levering and continued investment in innovation
Breadth of Near-Term Launch Opportunities
• 8 potential near-term launch opportunities; includes US regulatory actions for 6 opportunities over the next 6 months
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Net Sales $ in Billions
Vs. Prior Year
$2.8 ▲ 10%
$2.0 ▲ 19%
$1.8 ▼ (2%)
$0.8 ▲ 8%
$0.7 ▲ 23%
$0.5 ▲ 2%
$0.4 -
$0.3 ▲ 25%
Net Sales $ in Billions
Vs. Prior Year
$10.8 ▲ 12%
$7.9 ▲ 23%
$7.2 ▲ 7%
$3.0 ▲ 10%
$2.5 ▲ 24%
$2.1 ▲ 6%
$1.5 ▲ 12%
$1.3 ▲ 18%
Strong Business Momentum in Key Franchises
QTR 4(Pro Forma)
FULL YR(Pro Forma)
*Products acquired in connection with the Celgene acquisition include revenue on a pro forma basis for the period prior to November 20, 2019, the date of the Celgene acquisition, and have been recast to exclude foreign currency hedge gains and losses.
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NOT FOR PRODUCT PROMOTIONAL USE
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ASH 2019: Opportunity to Broaden Hematology Franchise Supported by Meaningful Data
liso-celPotential best-in-class CD19 CAR T
ide-celPotential first- and best-in-class BCMA CAR T in Multiple Myeloma
CC-486Survival benefit demonstrated in 1L AML maintenance setting
PIVOTAL DATA FROM 3 ASSETS
ENCOURAGING EARLY DATA
Potential to expand our
BCMA portfolio with T-cell
engager (TCE)
Important new life cycle
opportunities for Reblozyl
in chronic anemias
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Guidance: Substantial Earnings Power and EPS Growth
$6.00-$6.20NON-GAAP EPS
2020 2021
$7.15-$7.45NON-GAAP EPS*
*No reconciliation of financial guidance for 2021 is provided due to no reliable or reasonably estimable comparable GAAP measure and the inherent difficulty in forecasting and quantifying beyond the next twelve months.
$0.75-$0.95GAAP EPS
GROWTH DRIVERS:
• Strong in-line business
• New product launches
• LCM opportunities
• Synergy capture
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Well Positioned for the Near-Term and Long-Term
TODAY
NEAR-TERM
LONG-TERM
Leader with Strong Set of In-line Brands
Sustainability Enabled by InternalInnovation and Business Development
Fueled by Significant FinancialStrength & Flexibility
Growth Driven by One of the Broadest Late-stage Pipelines in the Industry
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David Elkins
Chief Financial Officer
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U.S. business remains strong
- Demand down in low single digits
- Stabilization of both 1L RCC share, and 2L lung IO-eligible patient pool
- Reported net sales further impacted by buying patterns
OPDIVO
Strong Global Execution - Solid Foundation for Growth in 2021
20%
26%
29%
25%
Approx. U.S. Sales Mix
NSCLC
RCC
Melanoma
All othersInternational growth continues, mitigating pressure in U.S.
Note: percentages approximate based on tumor ranges
Future growth fueled by potential new indications, including 1L lung, CM-9ER, and in early stage disease
NOT FOR PRODUCT PROMOTIONAL USE
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ELIQUIS
Leading Brand in Expanding Market
#1 NOAC worldwide with best-in-class profile
19% global net sales increase in Q4 over prior year
27% US demand growth over prior year
• 2H growth affected by Medicare coverage gap
Continued room to grow, driven by future expansion of the NOAC class and increased brand share
31%
56%
33%
16%
36% 28%
2016 2017 2018 2019
NBRx Share – US*
20%
45%
52%
27%
28% 28%
2016 2017 2018 2019
TRx Share - US*
Other NOACs
Warfarin
Eliquis
NOT FOR PRODUCT PROMOTIONAL USE
* Source: Symphony Health
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REVLIMID & POMALYST
Strong Growth in Key MM Franchise
$1,730 $1,914
$807 $871
Q4'18 Q4'19
$393$489
$171
$203
Q4'18 Q4'19
US ROW
*Includes product revenue for the period prior to November 20, 2019, which was the date of the Celgene acquisition. All revenue prior to November 20, 2019 has been recast to exclude foreign currency revenue hedge gains and losses.
Q4 sales growth of 10% YOY driven by increased triplet sales and increased duration of treatment
Continued uptake in the front line setting across geographies fuels continued growth.
Q4 sales growth of 23% YOY driven by increased demand and duration of therapy
Continued growth expected from new triplet regimens
Net Sales*
NOT FOR PRODUCT PROMOTIONAL USE
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Q4’19: Key Changes Due to Celgene AcquisitionCelgene results incorporated since November 20, 2019
Weighted average share count
mainly impacted by:
• equity issued for Celgene transaction
• repurchases under the ASR
Operating Expense
includes stock-based compensation for legacy Celgene
Other Income & Expense
includes interest on:
• acquired Celgene debt as well as
• newly issued debt previously specified
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2020 Line Item Guidance
GAAP Non-GAAP
Net Sales $40.5B-$42.5B $40.5B-$42.5B
Gross Margin % ~74% ~ 80%
MS&A Expense $6.8B - $7.0B $6.8B - $7.0B
R&D Expense $10.1B - $10.3B $9.6B - $9.8B
Other (Inc) & Expense $0.6B - $0.7B ($0.1B) – ($0.2B)
Non-GAAP Tax Rate ~43% ~17%
Non-GAAP Diluted EPS $0.75-$0.95 $6.00-$6.20
Weighted Average Diluted Shares ~2,300M ~2,300M
• Significant sales growth expected on a pro forma basis
• OI&E impacted by additional interest expense
• OpEx includes impact of stock-based compensation offset by expected synergies
Refer to separate reconciliation of GAAP to these non-GAAP measures
NON-GAAP DRIVERS:
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Share Count Illustration
YE’19 Basic Share-count
Exercises for in-the-money options
Share repurchases
YE’20 Basic Share-count
Additional dilutive impact of in-the-money options
~2,300M
2,251M
YE’20 Diluted Share-count
YE’20 Weighted Average Diluted Share-count
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Substantial Earnings Power and EPS Growth
$6.00-$6.20NON-GAAP EPS
2020 2021
$7.15-$7.45NON-GAAP EPS*
$0.75-$0.95GAAP EPS
GROWTH DRIVERS:
• Strong in-line business
• New product launches
• LCM opportunities
• Synergy capture
*No reconciliation of financial guidance for 2021 is provided due to no reliable or reasonably estimable comparable GAAP measure and the inherent difficulty in forecasting and quantifying beyond the next twelve months.
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• Investing in future innovation through business development
• Committed to reducing debt and achieving <1.5x Debt / EBITDA by 2023
• Disciplined share repurchase:
• $7B ASR executed in November 2019
• $5B increased authorization provides flexibility for further repurchases
• Continued dividend growth expected, subject to Board approval: 10% increase announced in December 2019
Balanced Approach to Capital Allocation
Significant free cash flow potential underpins increasing financial flexibility
Strategically Aligned
ScientificallySound
FinanciallyAttractive
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Giovanni CaforioChairman, Chief Executive Officer
David ElkinsExecutive VP, Chief Financial Officer
Nadim AhmedExecutive Vice President and President, Hematology
Q&A
Chris Boerner, Ph.D.Executive VP, Chief Commercialization Officer
Samit Hirawat, M.D.Executive VP, Chief Medical Officer, Global Drug Development