Bristol-Myers Squibb (BMY)

John Elicker Senior Vice President, Public Affairs and Investor Relations
Giovanni Caforio Chief Executive Officer
Charles Bancroft Chief Financial Officer
Christopher Boerner EVP & Chief Commercial Officer
Alex Arfaei BMO Capital Markets
Seamus Fernandez Guggenheim
Tim Anderson Wolfe Research
Chris Schott JPMorgan
Jason Gerberry Bank of America
Umer Raffat Evercore ISI
Matt Phipps William Blair
Steve Scala Cowen
Vamil Divan Credit Suisse
Geoff Meacham Barclays
David Risinger Morgan Stanley
Call transcript
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Good day and welcome to the Bristol-Myers Squibb 2018 Fourth Quarter Results Conference Call. Today’s conference is being recorded. At this time I would like to turn the conference over to Mr. John Elicker, Senior Vice President, Public Affairs and Investor Relations. Please go ahead, sir.

John Elicker

and everyone. [ph], Greg you good morning, Thank And joining the call today. thanks for some our do discuss XXXX year as to a outlook perspectives the well We lot full including have Celgene. acquisition announced of quarter, our as additional on results,

a minutes We XX so we you The our website. slides are deck did will slide today, it email be to on using ago. about also available

Chief Chairman with and be and remarks and Caforio, Officer, our CEO, Chris Bankcroft, today are Officer prepared me is our Joining here Lynch CFO Charlie our Boerner, Scientific our Commercial Tom Giovanni for Chief Q&A. also will

You’ll disclosures. and And two I three legal on that presentation slide four, our over see on with it will of slides turn today’s Giovanni. to

Giovanni Caforio

good to everyone. to in morning proud the outlook results excellent beyond. and you about and in am speak the XXXX exciting company for I you Thank and today XXXX John

slide XXXX we planned we let’s of said, Today, for will the four. the John about acquisition thinking are acquisition our cover of Celgene are in and this start the As shareholders. creating we terms financials the results, and on value financial how

Before we on in FDA cancer announcement TMB address start, to Checkmate-XXX lung for patients. I’d non-small cell today’s high application our like

forward during I like TMB continuing this we to to that our of in area. important their data TMB release, need for to emphasize look biomarkers from important order this in relevance further As following two application. is in This will advance to characterise we understand recent to that application. FDA, the To we XA you is PD-LX survival the between would setting. of discussions our to this to will saw period voluntarily we in these believe in scientifically press to it not believe because decided we available be review this, and interaction research have withdraw CheckMate-XXX the that is continue and the with overall patients the do Part

strong the XXXX be slide which company. for year up performance driven wraps on execution I Turning driven priority now and the margin. our by growth Opdivo excellent the our could expense was our good driven five operating in not execution Commercial and portfolio quarter, for to was has management This very results. very improvement two prouder across of our key that strong with our brands disciplined Eliquis. commercial significant a and by franchises,

competitive strong Our demonstrated I-O performed markets, the consistently franchise capabilities. year highly we launch well very throughout have in and

we melanoma the you Opdivo saw in tell U.S. in will and we Opdivo to now business later, And talk in strong Charlie the for working XXXX, received U.S. Europe little in the more are approval During a expect that that very market. XX and First-Line First-Line about growth for from Adjuvant [ph] RCC RCC will coming we based in on through momentum significant the internationally growth see launch and process this I XXXX. in having

Turning one number robust OAC in as globally to NOAC to we trends U.S. Eliquis Eliquis, and the with number the the continue one see established

room the growth considerable Eliquis date. leader to continued continue based expand in company adoption increased see be superior will for we before, the to a to on XXXX. for that said fibrillation I’ve As a it made atrial strong in our market has profile with franchise

our across XX%. we growth per commercial strong performance, to have disciplined share P&L, earnings supporting addition of significant exercised In expense management

with in Celgene. prioritizing of opportunities our as the investment planned company focus will look Our on continue the to important we integration most

the approach them results provide XXXX future for foundation a and that guided solid success. Our

of sales growth You’ll that see line today guidance that XXXX. we have item additional expectation provided in shows

just I over am years. from the past our year, last back with look at several company’s but our I performance, pleased As not results

our been a believe I success strategy. has very well to ability As times, I’ve a said many part execute key consistent against our of

me within and strategy so framework. explain you acquiring why of Celgene of well fits our features that Let remind key the

is at best strategy for bringing Looking innovation Central the to slide very XX the this of a it’s to the six, we’ve over the strategy is best Slide pharma, biopharma you’re years. biotech, together agility resources because and a our familiar namely of create and been with executing company. with, scale leading

to explain mean I said, has that. this I’ve over like by performance. few delivered And to strategy many to years successful take As us strong what enabled I be has and a very minutes

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the Slide would create, of the out also like we atrial patients, January. resulted time is an has fibrillation, Celgene and we combined and delivered move The announced business RCC, the you’ve led overview us long of provides company allows Celgene. earnings the to us of to I well. breath even melanoma Yervoy to seen helped acquisition the cancer, have of We our the believe has Eliquis, right for a It at thinking same call that the in am highlights. very taken Importantly, areas exciting next that company actions and that in and slide in how for to know to acquisition we’ve lung It our time term I the an remaining now focused a eight company financially. therapeutic when with while the is bringing diseases delivered Opdivo like chapter early that to have growth. innovation transform before, we cycle will and led stronger about innovations become strong to key

launches. near-term We two will create and and top inflammation science product a five Orencia Otezlathe immuno with and franchise,

haematology long term, growing franchise the for a that the with Opdivo and tumor We would with franchise one along number and in sustain have pipeline solid will leadership with Yervoy. that leadership oncology a

possible pipeline gain our We Celgene. medicines. doubling the possible the I None be we without and platforms in people are scientific new And more would for and Phase and BMS will of important many this leadership future. of capabilities for II

leader, scientific creating a forward. moving based for and that science a talent are a company innovation will leading We believe we destination be

Moving I perspective. on to how want a from Slide to explain this financial nine, I view transaction

opportunity many over to As one. past of I’ve you described value shareholders weeks, create from see for we to an day the

of strengthen key for credit the years, the strong pipeline our profile doubling to three complementary near-term would allow flexibility. a and two to assets walk two these opportunities balance new us within of cash me The the synergies. delever sheet value points. Let stronger I sheet through you marketed six a increased flow and and medicines, to the our shareholders balance enabling of robust portfolio. and company The launch our provides through companies combined believe, medicines

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through our me over turn walk financials in to it let detail. more Charlie Now you to

Charles Bancroft

Thank morning everyone. you Giovanni and good

defined Slide will this XX. of sources significant shareholders value. We benefits to financial with transaction of bring both to believe turn three Let’s companies

marketed you know the is products. This First address from in-line of to many which questions try slides. that of includes portfolio value in Revlimid I have upcoming the I’ll

when the operations cost The by of of only the can the approximately transaction These combining sources half the achieved second consider and source a are two value substantial two in in companies. two are you be synergies aggregate. of that total billion great

existing significant to to in number XX Lastly, we and assets, of months, INI opportunity as well next XX that in in pipeline such and that oncology bolster homeostasis. Celgene will I in five pipeline, complementary III which and and see a as phase are which assets the are the II as platforms protein positioned phase cell launch therapy includes significant our

to XX, diversified Celgene growth, enable basis, the in launches of see from a decade. combined balanced when drive line near-term by that and us particularly a pipeline. at opportunities I-O. on assets the pro of by growth, stronger, of of through positioned mainly assets, BMS you opportunities potential will in see driven growth portfolio better on latter company, end Turning short lifecycle much and from portfolio results with combination company next and look more both bottom top, We complementarity medicines, to with from speaks more to set strength XXXX. our combined the together mainly in-line forma for This subsequent driven the we new growth a a businesses, the stronger Slide stage the term The I-O the our late the

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Revlimid had how those. franchise, our Now we on know discussing think of each since let I and spend of you of about many me minute the a outlook questions I-O

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a We are these these have Revlimid, somewhat and scenarios in reflective erosion risk In our had settlements to we impact or bookends, the gradual to believe likely Nacho at litigation starting bookend could two in Revlimid that out is potential comparable for the have also other in With on view another Celgene is representing XXXX. there considered probability. in which several and that of between our settlement the outcomes opportunity various low implications each sell of outcomes. an confidentially that on review one We revenues in launch, side and early very near-term. scenarios mind, the its litigation consensus play both

XXXX. conservative our sell sales and delivering consensus to generating for Our returns and significant side flows will the these between XXXX lower company cash results scenarios that analysis while assumes in more delever shareholders. a combined than Through see any of approach enable us we

combination forward. our I-O and the XX to and Revlimid going Celgene, beyond moving with business page me turn Now let

Adjuvant me let As a see Opdivo ahead the take that But we the and to high a indications. our as we think in Even growing have We’ve set out announcement, launch continue to launches growth about the us. U.S. of key teams Two with Melanoma level exemplify key indications. opportunities new a performance, drive resourced broad and year the growth combined of we demonstrated this business, driven few First-Line U.S. minutes performance of excellent are still as Opdivo across see execution our pillar. today’s this RCC in to through lay well

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for long we adjust risk our stage growth the outlook I-O, revenue to opportunities, mentioned, the clinical term as potential. I for Turning

in potential slide, this see Given for growth on this for the by data trajectory we the you the indications. on breadth depend opportunities, we of year growth Naturally Opdivo new see other with see in cadence outlook the of and the XXXX, determined will growth tumors. significant lung be can

hand to next assets it six on going will his III years. that over we’ll launching Chris share few over I’m Now phase view be to who this the

Christopher Boerner

Charlie. Thanks,

to Turning XX. Slide

business why the one set that combined known companies combination And before. adjusted are are in these key on providing In away Celgene de-risked, leadership and are why and into background and these opportunity product in potential best-in-class either and assets the being see areas establishing of in current slide or haematology, are TYKX drivers sustained key INI BMS to billion an you Otezla the we of of give revenue a walk the late be us or in a and data near-term right the with will with in to It Celgene pivotal near-term adding the filings launches some brings two ozanimod majority to single You’ve substantially from basis therapeutic launches building patients with in near for Three opportunities like more help with launch in products opportunities first create want take capabilities of form forward. future. today delivering for the meaningful leading, will franchise space. moving each to seen number regulatory leadership to We exciting through this first step of potential. a non-risk including of and up launches shows INI moving to that I’d with we potential upcoming as because as this advanced, this to sustained are industry provide more them to view areas. well six Revlimid detail. six I minutes And company. these few stage pipeline, exciting products value Orencia $XX how they these across disease To context, by excited the this of the we a put than

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many or are As you Jakafi. either to can slide, resistant controlled see the patients well on not

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First, the products liso-cell differentiated, the as advantages of I’ll specific bbXXXX. moment and be in explain a see we and to need what

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company that these to the combined see discuss in will the lead of commercialize capabilities we of the products me the together CAR-T how successfully. differentiated positioning With Taken assets. be two let primed mind,

at as YESCARTA DLBCL. the CAR-T KYMRIAH Turning than marketplace potential will CAR-T this We cell asset least B with not if malignancies. to anti-CDXX pre-treated efficacy best-in-class differentiated product is which heavily the believe better a good in and to in Slide the be the Liso-cell be has for XX,

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you side, Celgene a already move mentioned into also very right that move very see an treatment. MS to XX that the are myeloma a initial this see on to We I to patients, the Ozanimod, for INI SXP. earlier market first can As important with very and option in well. potential remitting indication knows play I’ll underway in lines multiple on large of has as Ozanimod’s trials relapsing will slide therapy markets. a be selective important potential role two as the

it the two as either to marketed play the has therapies. than a leading or safer potential Here role option currently world a

later resubmission quarter launch year. the the on that next said, Celgene a this potential expect for track has with as We for is

safety interesting in likely therapy oral turn that include also to Beyond inhibitor. being slide far, the on II Based could bowel the agent inhibitors. trials for to potential biologic-like of are launch, as JAK has seeking doesn’t having potential an demonstrated diseases. a Ozanimod III on the we come to is competitive efficacy important developed with inflammatory with an advantage already TYKX IBD potential MS the upside in mechanism and at commercially Ozanimod market Commercially, offer Phase this treatment that disease option multiple see options now so Psoriasis JAK the biologics, XX, an an even and Phase a data underway. and with given more address have concerns patients a I’ll effective autoimmune will

Here, III underway are trials for in you data England The data Psoriasis on-going Journal September. New Crohn’s The Lupus. with see in Phase published strong, and in and studies are the proof-of-concept

planning launch to we In Psoriasis that we believe has very registrational the existing a that allow have opportunity be in Stepping compelling launch established determine following will II will in successful very this we a we the as Otezla a with III capabilities about company. ensuring I’m enthusiastic breadth future back, the of additional beneficial us TKYX believe, trials. Phase completion of meantime, as Phase market We’re Celgene expect opportunities trials dermatology programs. in of combined

we Our with launch exciting capabilities, brings together and table, it to has for to turn to commercial Giovanni. deliver Celgene organization can the are some very With very opportunities back demonstrated that combined effectively, well-positioned I’ll the the that clearly and assets, talent we that, company.

Giovanni Caforio

Chris. you, Thank

Slide feel I detail the launches also strengthening to of term you we’re our the at as to When long stay provide good value the a looked the very and transaction I for and us and long near-term is know feel transaction term. early I and of and ahead look about stage ahead beyond, This for we for turning the as position to allows future, about pipeline company. platforms. curve are short that makes We really why XX, financial the We’ve Now what good. talked discussed six in XXXX sense. the creating I

mix, over more We market to payor These years. supporting a reimbursement an we environment position a evolve stronger our access believe balanced the and medicines. reimbursement that younger providing a coming for will have medicines continue in will portfolio and of

a the in significant would We providing strong We’ll broad continued pipeline a and with with of assets balance set giving Our pipeline will portfolio building company have sheet a and a and mature flexibility registrational portfolio we in flexibility. have us strong innovation. I’m are invest opportunities. stage financial to ahead. late the in diversified next position be deep opportunities the confidence early of

back the Now, start to John to I'll it Q&A. turn

John Elicker

well. session Thanks, for Tom Q&A Giovanni. ready Giovanni, well Q&A as to Grey, I the go Chris as and think we’re to here Charlie with as

Grey. So,


of Instructions] Thank take BMO ahead. now you. Markets. Alex first [Operator question our Arfaei Capital go Please We’ll from

Your is open. line

Alex Arfaei

you and color. Thank Great. the you for very thank additional much

combined specifically collaboration for as cash beyond color. Opdivo able company as current life general comment guess a First what of question development with be accretion I and would Celgene now? for that lifecycle similar you appreciate your you provide have increase. comments And the Giovanni ratio that ratio Charlie, you should could you what’s used with generate or with to you be the the the the the the mentioned combined is extend I But dividend some you you look the about the XXXX? payout made on Opdivo Would right development flow. payout Opdivo as additional your to latest your at significant follow-up what expect And company payers you subcutaneous earnings or your Halozyme? very much. planning, Thank patent could to given be of on would

Charles Bancroft

needless model is part regard subject mentioned dividend want period planning the have I to Yes. don't to comments to course. In throughout your Charlie. question, of Board Thanks. always I approval we first increases in of my This your the it as We payout model longer on time the particular as but based year. you ratio increases. at at do to did one know because particular any say, we over comment it we term, on look don't this

Christopher Boerner

Thank you, Alex.

an in formulation, the advantage. you at be in be markets very Opdivo, or point from important combination for a a to with be to product eight treatment Yervoy that our even out as a able to that relationship it's and think an IO opportunity very standpoint to in very many And ability States be looked to additional United used the agent given variety subcutaneous formulations the in up important think the and with could a think Halozyme R&D offers to IO subcutaneously. create products give six can distinct We world around offers Regarding we we places settings. Opdivo, of many IO targets

that on we the see think implications of to that lot to a there's that defer think evolves with have IP, promise of topic there. time. we how that, I The So

John Elicker

next the please. to go we can question Grey,


We’ll now of next Seamus take question our Fernandez Guggenheim. from

Seamus Fernandez

for Great. ones. Thank two just much so quick so questions, the

to The first information given whether one have particular trials. in us not looks regard or interim in the with been past passed Tom, you’ve

I think Part in that we have Xa. passed

midyear whether bit interim we or can little is on-going facing that passed liso-cell, expected sense think the to So about and the as has when at Part products the guys better hospitalization Chemo is just delivering this And associated feedback know of the challenges bbXX around Can X second look key the a not year. is of for give in you and a one or like you therapy been us are OpdivoPlus this we tell get point? and then question, with areas finish us that the issue CAR-T costs we it. not hospitals

it's do not be this. to to for able So, hospitals today profitable

In bit fact a they’re money. quite losing of

closes? guys Just Thanks launch much. as Celgene dynamic wondering see so acquisition assuming of products you the couple seek how to that you years next these evolving the both of in

Giovanni Caforio

our is on you. program. then CAR-T start news Giovanni. you respect and Chris line with the is had. Seamus, comment no lung of This rest question ask thank the to cancer I’ll first I’ll to There

analysis. We’re not commenting on interim

Christopher Boerner


thanks So, the Seamus. question, for

Let the for evolving the two that and how the me talked bit opportunity about see play potentially generally. will CAR-Ts of in CAR-T talk expanding little we important role we about agents a terms

access to these existing that bit therapies as in of to profile large in correct absolutely of You’re both have part drugs. because logistics well with with the struggled respect respect the a CAR-T as hospital

in and Today toxicities an must existing the of with and monitored administered remain than that that outpatient about above exciting the be setting managed therapy CAR-T Grade well significant setting. particularly very to in the been that of like these the are hospital And bridges KYMRIAH has hospital lower substantial to we liso-cell things could ICU in X know the the potentially for patients with no patients list patients the significantly really about that beyond setting, both YESCARTA you X, your rate CRS the find with Because is the X%, had have the CAR-Ts in one asset treatment and around as access. associated inpatient monitoring. often cost as question price in As drugs. actually be

particularly a academic assets. I mentioned be agents in expand importantly to opportunity And outside using these are remarks it prepared who these bring and base down, the potentially an cover do the would in reimbursement of have community considered a to anything would centers two-thirds into profile liso-cell. that's the now About the potentially improvements and access Would therapies. therapies with are payers for in as these patients to these physician some of seen of and the that of then commercial place overall it for policies You’ve over setting see ultimately that cost therapies, eligible these these put agents differentiated move That the potentially said, of of could you would these large expand patient opportunity increase pool a value agents outpatient do number things. important an centers time. we

John Elicke

can questions. for Thanks go please. Seamus next the we one the Grey, to


Research. of We Thank Tim now Wolfe our you. question from Anderson can next take

Tim Anderson

will have prevent an is this buying potentially Thank but many by answer, another acquiring you. Couple Bristol. attempt to if Celgene difficult to you realize of be from questions. question wondered company Bristol's I a

any that would rank or be confidence acquire is order tell those those. being in? beneath least and X X non-small So my played Opdivo, you here with is your this and probably is the guess role X to most cell Part ones sit us one of Part in lung Part whatsoever probably in at have Celgene? likely you of have would question the greatest results sets Part bottom. simple of and My you Can which in is which you decision probably three X whether front the Second confidence XLA. hit, you to question, XLA in

in Part hit only will X, you grow willing XXXX? say be you that If would to Opdivo

Giovanni Caforio

thank Tim, you.

for I to the to try rationale since and shareholders question, clearly your address combination today strategic communicate strong of the generates just To a of we’ve and hope discussions been that first through many the value me able Let questions. and we both it patients. had the announcement

great the So we marketed I months are doubling products launch franchises six areas products, with and new complementary therapeutic we to a answer in our of in early my creating opportunity an of is XX pipeline size the -- company know well. next

role really respect We’re and question, to lung my that as multiple second to play the about we’ve your financial excited opportunities said have transaction. is the cancer. value of perspective many a times strategic we With in

all I program. to And as need no as is data Charlie to see franchise. of understand there think we few the mentioned registrational XLA our opportunities respect And this in But there. about change Part slides year. we think X the programs readout is growing expectations lung one lung are the communicated opportunities with clearly the today, before you've cancer are that years and importantly trials ongoing. breadth next mentioned Xa, we to the business of cancer There important seen the on really and over have we We’ve XX you Opdivo the data. more our components number timing those of of a when this Study presented with a of over

we we've growth months opportunities few is is a true thought the And short-term the drive us But about I company. next this for coming this medium growing depend what have growth broad the with the growth the confidence my the exciting term. that and in for adjuvant with would franchise as in data and in very modeled long that are that the readouts say that's and any on an is and franchise total We program multiple well. as to expectations

John Elicke

the we please. for Grey, next to the questions Tim. Thanks question go can


from Thank can you. JPMorgan. our now question We Chris of next take Schott

Chris Schott

just question trying for then the call. that from second I net My the there to as first and to any the guess that on kind going what company. is at company, and coming XX Revlimid? get growth pro color back company you much forma about back my from of to business very investor Is Thanks of just was separated out portion the I sales their hands forma of questions of that slide guess XXXX, for percent look income additional Revlimid of forma think business, the color on non-Revlimid pro and non-Revlimid look pro can provide the of piece we the question the was Great. coming the assumption. to are growth so

guess the modeled so think are is you of other in street give you to relative on you the any pronounced planning period? years Thanks assumptions, is color relative I over more Is Revlimid to And thinking much. that how those particularly planning that consensus. about? delta years specifically conservatively the versus that can in period I a much more delta mentioned there certain

Charles Bancroft

for right, All thanks Chris your questions.

more too get that we think color more probably much I on. can

as Revlimid go [Indiscernible]. XXXX think regarding between relates we and on I far to particular question your non-Revlimid. as in about talk it split out that We don't

split you can you the in of sort what think see there. and the two a will get see you will a baseline sales proxy, I company the between

have our The have then we have not And diseases business the level, if for the franchises. level premature. in incremental between. a As it the derive the launch will to at the XXXX, about advance of you way so number we XXXX. think declare and relates also will that is consensus. but into company to years of Chris office look six rapidly two only about at a will think that that, to get when other to we company continue you scenarios I District by is patent generate versus now between opportunities at did launch we pipeline XXXX how a grown, a we this us I company, decade. products between to out to businesses about much multiple and me, will at about I inline to significantly will we still is that did -- now the specifically important think and of more multiple growing this Revlimid think of half and second scenarios opportunity play and There’s slide if things I There’s and in opportunities of the have Court of both diversified point this next higher growth as book-ins. a number in think mentioned driven have number What’s more many Again, across the we a the and think that

exciting different of the company. the I on parts period the contribution growth across So, beyond and new is this individual components opportunities of about the think breath complementary really growth what's

John Elicke

we question can Thanks next the Chris. Grey, take please.


Bank now next of Gerberry take you. Thank from We’ll Jason our question of America.

Jason Gerberry

thanks I my guess morning question Good first taking questions. for and is Tom. for just

who Just the data data. have the survival versus of like the Yervoy readouts at OS immature competitors it upcoming thinking about Opdivo, longer-term front-line and follow-up the is seems really GU, ASCO, likely advantage I’m renal curious,

about of a XX-month it XXXX. ESMO of have about longer-term you of study. So follow-up at just follow-up, kind curious follow-up It’s was months XX but guys

follow-up challengers. my guys what would So curious why terms is Opdivo Have benefit months? the follow-up on acceptable just second some the And of this kind pre-agreed be of what upcoming just already the the parties then Yervoy in that beyond question Revlimid. settlement you durability of regarding with longer-term suggests isn't regarding XX of Celgene outstanding generic and

you sort guys Just update? navigate curious legal how of some upcoming the Thanks. of

Charles Bancroft

for renal you cell. thank question about Jason, your

renal cell. So, couple about things of

First, that of we are Standard that many And Care approval Yervoy happy recently as also in in settings very in full well. United States. our received extremely become the happy we just the Europe Opdivo, has

value we provides. we this at is the endorsement lock So do great as look database we that of most update a data. that updating to the to We and always forward look continue recent combination with survival

very one mind a all about in yet, could as something I could think combination, competitors I Now, most response. which the distinguished this keep And from response role. can play distinguished I when to important thing think think seen we that that’s of but again data point durability important our haven't of out, and be durability you be on about

seeing also renal XER IO looking and be emerge Cabo we a data remember that that to a forward later play we across that’s emerge the that, year. believe Opdivo be with so as forward at the And reading of will study able spectrum may timeframe, with sets carcinoma. But the cell things and we over look But look for also key to there in TKIs well role and of this our role to which a time. out patients both and comparative we with little is have other the data in one being bit later that

Christopher Boerner

on Revlimid just the generic with Yes. settlement I filers. would

inappropriate have it or process we about overview would perspective about than how filers and Celgene the think other generic with be the for we thinking do would sort I say consultant that are Celgene in with that particular. I of

John Elicker

we can please. Greg, the next question Jason. take Thanks


our of now from question We’ll take Raffat you. ISI. Thank Evercore Umer next

Umer Raffat

much my so for Thank taking questions. Hi.

as in that FDA same the overall saw to lung highs, a by regulatory I the way is fair XXX so seems I me on that focus PDL-X late And a out on in lows data more specifically? is no and sort and So, minute. and wanted positives longer think was a And the ratio what's survival expectation cohorts little focus maybe data there’s maybe well. out I on the cancer it's ratio TMB XXXX for It on for Is status why to just once that the the recall it? begin bit pushed overall TMB exactly XXXX survival perhaps PDL-X positive of TMB that And that XLAs understand to to obviously with comfortable and as about the about hazard hazard that now was early with? happening. is pushed of now I more note,

also looking their perspective? the broader or not TMB how whether and dynamic And trying to just I’m understand at ever understand from So TMB FDA is happening here?

Giovanni Caforio

Umer me answer question I’ll in then start Tom obviously let ask your more Yes. to detail. and

interaction is biomarkers. First of the describe various all, as issue that really Tom will the is between important

clear we’ve since this that October complex think very a I was been file.

TMB been Tom with with obviously patients that. data FDA that discussions October on we this disclosed about his in the applications. the you You've in will mentioned overall give and these we perspective survival respect to low

program If of you impacted has lung this cancer. on a continue of lung driven and see we is of importance the and a timing that real results program forward a are I Opdivo. by play XLA. opportunities the to much to go said events, X these nothing broader Tom? cancer evolution really our of program, and to that's part as earlier in study. that of changed based set Part role respect the It We've have we there broad look the seeing Xa, the believe We said but And to trials event for with we data. at is opportunity would Study always a

Thomas Lynch

about will know just to feel you little think continue can TMB. Thank emphasis don’t I be mean, you I’m what FDA there. more you, TMB tell And I important. thinking. to I give the I thinking that Giovanni. I what Umer, obviously

way I think important the its with patients we be in broad genomic to the profiling in cancer. just that. continue days I early trying will think to approach understand

often and published at looking up tumor, Merck. the for consistently you of important from we comment whether us, think and Data part move is a for data, of at way I from how forward. data that looking what you’re I been remains is last around designed, you're data think and if have marker don't yet studies of data want would is I one as these week important have you evidence make a much look response or blood, it to Memorial I from data XXX. argue data survival, just collection TMB from the around see PFS Roche, totality confirmatory about AstraZeneca, that whether that’s we from very

I see recently to to on shortly Xa physicians, totality low, really One hopefully different you to that timing PFX chemotherapy, trends the we evidence also TMB further Yervoy were who compared just high, how it's Opdivo, release. mentioned with understand high As benefit found TMB survival various for predicts of to they are as know when to give work you comes the and TMB to comment guidance really We the interplay of we that patients that you think whether were available of important very but believe TMB with be survival what TMB to will to data of of finish understand the data very together. similar may treating in need the able biomarkers do PDL-X be means out. and know and which you

able the we for to they prolonged, both we data. to driven with event and as soon readout. exact inherently occur trigger to that it’s wait are will analyze the are the phenomena to again but have very these ability again, know you And predict to the As will events these and slightly events occur difficult when precision be studies occur will as

John Elicker

Thanks can for next take Umer. the the we Grey, question, question please?


Thank next you. now of Matt our We Phipps take question William from can Blair.

Matt Phipps

Xa question, therefore that you PD-X think Thanks the maybe that usage for those well chemo in from high up really in patients second do tumor Follow-up were patients my kind Umer’s taking of confounded of pursuing results TMB patients OS subsequently and similar do second-line Part where for PDL-X the or of the to positive line really ended call. influence you’re PD-Xs subsequent looking doing might survival to confident And in if if MSI TMB of TMB the high positive a the at high pan type you you is would particular. really this indication consider consider biomarker?

Charles Bancroft

– questions questions, two answers. Matt, – couple couple Williams So, you, of thank of

lung think treatment cancer. have a benefit of area do that is, in second-line makes and and that First in PD-X great shown provides We've I led that for patients. difference big second-line

obscure ability to look differences. do can at believe that survival that potential I the So

I to TMB. patients also the remember are to the who who of are think patients group develop likely that most high impressive most responses you those are

that think true as in show XXX. as I and we study the second-line -- well So

important. So I really that's think

made have Xa of we you part when he us. data really question that see really a regulatory Giovanni regarding that standpoint? positive the how from your approach earlier would to second where is takes The if clear said,

to data data, shows the have us. see at we what look So the

have not we X study. data the from of know you survival As Part seen

the group be can most way largest to patients be determine the the who need in get at So, well able to we determine benefit best the we of importantly what’s able this benefit patients to to that, that and look setting. as

until regulatory what would see data these we again, sets. the be So path hard to on really comment

think got decisions to be look sets group Giovanni to need going to regulatory important standpoint. I at make three them to able important of months we’ve most next the the strategic as from the we’re data a maturing in and to said, three XX

John Elicker

please, next the take we Can question Matt. Greg. Thanks


Thank you.

Our next question comes from Steve Scala of Cowen.

Steve Scala

has And that are digit guidance Bristol X growth related you much. led Celgene QX What suggest the essentially lowered growth mid-single flat the over by sales beat. further the to to quarter dynamics Opdivo EPS good momentum, that the was Thank so XXXX business but quarter? and

you could out that So any and Checkmate the talk like might arm dynamic? to about maybe And XXX then differences you between the influence design Keynote-XXX that call chemo, of would secondly, Opdivo, results.

you. notes Roche instance, relative to in power Thank keynote-XXX For among greater XXX dose other intensity differences? chemo

John Elicker

don’t why Chris, you Yes. start performance with of Opdivo.

Christopher Boerner

Thanks question. Yes. the Steve. Thanks for

sales year, couple flat of and So sales QX. to out outside were ending quite sales relatively the strong unique in grew U.S. we were the overall as that QX of while affected for the Opdivo you There quarter. factors were U.S., point the that

In QX. and that to sales actually quarter two these we be second which channel slightly in PHS back notwithstanding, things lung very we share expectations. in to we around gross impact modest U.S. in a see X% was an worked inventory XXXX the had higher did you build just by about if net. quarter in the QX government from the growth Medicaid for XX%. in other is step Those demand on First, much down that had had had ended the second-line holding factors. of with we offset line actually But And

line expected where in with end the see decrease, to at patients continue much expected we and the We that's but year. the IO percentage be we to of eligible of very what

see first-line melanoma metastatic holding as as in first-line growth in we cell. we renal as look from well still in melanoma well modest the coming albeit opportunities as more adjuvant leading renal as U.S. cell. second-line shares forward And We’re

stages those You’ll terms patients. we’re that benefit the course much in of the intermediate these in to the strength we’re both We mentioned very in first-line of of the indications still full-year melanoma in story U.S. also renal launch great Tom that a opportunities in the of XXXX. in see of We've And rapid poorest there. as still recall the we U.S. early seeing from and the our U.S. in adjuvant the in data tell OS grow in particularly drove of and to to indications. of uptake continue got however call and sales on durability previous we’re of outside the there

momentum So out good see and growth for added good XXXX. coming in globally of up if a opportunity you XXXX we

Charles Bancroft

couple Steve, related of I Yes. would a one-off just one, XXXX remind maybe and to to things maybe you our guidance. it item call

to to we April the that close that that’s of XXXX in in about and we indicated announced business us of we of basis. has full-year already book of December XXX diluted XXXX in sales on So sale $X.XX million our XXXX expect

our And income $X.XX that in in year derisking us in we’ve before in shows ended last then to back also We alliance but up also November announced XXXX. pension other and diluted of XXXX. that Sanofi income, about talked that's

Thomas Lynch

that XXX that quickly our it’s for XXX arms fact both than particularly And Steve seeing performed that XXX would some the and we've make the except the about XXX, think for been well to you from those versus trials, studies a is different competitors of answer And which comparisons. was control arm note difference the less control your to just obvious I difficult really other [Indiscernible] and about question histology being XXX was non-squamous. except

Part and trials see X how to X – Part really to until have look our both I see data we emerge. what think and of see we like they XXX from those

John Elicker

please. can Grey, Steve. question next Thanks the take we


from comes Vamil question of Divan Our next Suisse. Credit

Vamil Divan

questions. Great. Thanks taking the for

one then one. and one Celgene maybe So, on other

quite at you just the discount was deal before So on was stock see Celgene obviously announced. the trading

I not assets are. bullish the been you late stage think has as the as on market

weeks would What been we about? but under any be changing So call, insight think a then more assets? further you to do be discussion that are And on And detail getting maybe gears these the investors about having excited pipeline should Eliguis. you’ve three the investors. what Appreciate helpful. just missing with most

So we growth little the there’s relative lot volume in just saw about And the late wondering but from this equation. Johnson relatively that sales of of obviously quarter. & Johnson pricing class, side

about had covering the how given impact maybe quarter? you there? the year enough hole the sales think can you’re on So impact that will views just -- percentage discount next about you Thanks And of this your products the donut much. the more so comment hole donut sales seeing and

Giovanni Caforio

Yes. This is Giovanni.

Let me start just answering your questions.

So with that of acquisition respect of some Celgene reviewed you just to drivers value the key all and let the in some we’ve of specifically me with first detail the pipeline value of the assets. say of

the about six having sales at discussions we strengthening as past divers, we assets of at for key think then good investors with and combined assets that the and the about the are least of today you strength that provide opportunity If sales the we rest non-risk-adjusted in in company, $XX billion the the see of the pipeline. for discussed said and the we value these growth least obviously

Charles Bancroft

add the melanoma. and their What disease value an standpoint, just just share, for want model the pipeline They’ve particular and I think has at Vamil, so lot of overall, a company particular to of companies. anyone technology the but exploit had, therapies fundamental between very differences, biologic the the a depth protein around I done group look we transformed can of biology or at two difference. that – pipeline which hard tell from understanding treatments, of renal a these enthusiasm for incredible and absolutely you if in I to you that’s it’s in you we to early, we’ll when company, see been very at earlier there I the a the by mentioned that’s strength cell And that cell developing by and see R&D our the obviously make similarities assets can we concept have for that’s homeostasis. what I for this Celgene BMS developed look done Chris myeloma.

Christopher Boerner

me on Eliquis. touch let let me Chris,

the So question. points a [indiscernible]. few Thanks for

bullish saw a the XX%. up still fourth was sales U.S. the on with notably the France, We OAC U.S. we OAC our volume all and we the extended as of the and in in quarter. business the we’re of very have in fourth first, number the In So the we’ve leadership Eliquis, in the seen number U.K. to still in France. U.S. strength both and grew one one across position quarter became in And indications, We in ex-U.S. XX%. markets, Outside key fact of the room we number grow U.S. specialties TRx

were million, higher U.S. base They in look business XXX the in quarter, impact We good the the in million QX and the fundamentals across in rebates to the an and around the So see on really board. Part There XXX a but two through rebates did million. are fourth fourth increased D up that. true discounted There were channels quarter. point have of driving we a of highly XX was and patients out, channels. volume things as higher do those onetime really you running

As we Eliquis. take are those a I and there into account think forward, dynamics take look need with you few that to dynamics

First, the rebate price. increasing XX% on going hole that’s donut to is that price XX% put to pressure from

to significantly We as to our business. increased D, we over Eliquis. higher going result of based position did that we have gross going lead have XXXX the on in differentiated Second, strengthened volume and that a a then profile time. importantly, to is in we’ve access strength to nets Part of the the that, And

that that volume that I continue What net on increasing product, in We net. execution have is business to discounted of underlying commercial the through the is drags that strength in say, sales. to expectation differentiated that’s of And in thus grow segments, believe this the the continue and seen more good of drive brand. price, and net in highly result XXXX. quality and business a to we’ve every having we’ll we’ll this ex-U.S. to spite grow a will U.S. on And will these expectation our frankly gross

John Elicker

more for we questions. have time Thanks, two Arnold. think I [ph] Greg


question Thank Geoff Meacham our you. take of now from We can next Barclays

Geoff Meacham

guys. for the morning Thanks Good question.

XXXX, Just and and the pro pricing beginning erosion think model, longer have Revlimid, then forma few. environment the On investors struggling I curve term. are the in a with

just, to even sense you longer first given guess much with pretty is to PD line second IO TMB on or of broader make it of balance data for lung struggling then XXXX of And XXX in say how meaningful to a has does I lines wait ensure LA Thanks. in market line the first for part X, myeloma or guess science therapies, speed earlier value versus differentiation I and how better? question application, the share. So versus say or sort I’m I’m is behind label, X Revlimid X even

Giovanni Caforio


me. let Let,

Geoff, question. let answer me first Sorry, your

lines further potential into therapy. So forecast of earlier see as expansion obviously that we’ve discussed case indication, significant our lead the bbXXXX and other in assets, for current we includes

Christopher Boerner

line we important. on first And the Geoff, just speed-to-market application to obviously want come in the lung is

right, you’re that standpoint. just and them, the think how what A, And that a want bring will want we a very determine see a know, and up point And shows I data us, to we proceed studies. or good I regulatory may it X we from that allows strong to filing. regulatory that you emphasize X that one part be and distinct proceed very are us signal with to get three LA part X a of separate from really

out. we’ll you have data think that I the as and follow take point So to

John Elicker

got [ph]. question last We’ve Thanks please Greg our Geoff.


you. Thank

Morgan Stanley. from David comes question last Risinger of Our

David Risinger

question much. the just is thank and Eliquis, Yes. Thanks on first My for up very follow a color. you

comment I going growth you the expects was going growth think forward, expect forward. believe the substantial Street but that I

there could level to just on growth pipeline in Eliquis. candidates, growth to for call. are relative earlier for then the in fourth was of novel you provide that discuss And color to if Could key I-O in XXXX? So you outlook some just reported readout the the that the quarter mentioned second, any watch you pivoting

Giovanni Caforio

is Thanks very you. This Thank David. much, Giovanni.

So just start. let me

world bullish particularly earlier, the Performance momentum brand. company. of is key for on in and drivers we in around the the It’s said the are strong strong U.S. the there Chris growth one As Eliquis. very is

bullish data readouts. very we’re and on just Tom me let the reiterate prospects the So asset, on for

Thomas Lynch

of a things readouts. Dave, couple on And data

about in the we’ve later think have that products the talked data about in looking in up First, you year out we and reading year. lung established mesothelioma this and know possibly Hepatoma neck when head David, data detail got we’ve do some in cancer. what and We

about think great our asked -- standpoint. specifically ours excitement an and area of that’s novel from I compounds, You so from

role some later year this in to get with be play molecule how our might lag unique a data compound lymphocytes to better that First, able to of cancer. we X that sense hope a concept have of this exhaustion approaches

see Nektar evolution the you’ll of and The second year is more combination between data with our progresses. as OPDIVO

about to a to unique the is combination outcome We’re potential a important for really be for important patients. excited able this compound very and CTLA-X improve opportunity provide therapeutic its and again, And target. then really

that I the as moving compounds with the excited that so the which we’re are body are pro we’re And well doing about phase CytomX of through as this year. both two

pro In the to of body which compound hope be a fact the this formulation. close we non-fee cost year, product advance related would

those combining two again, So technologies exciting. particularly looks

the of from XX forward earlier novel I So in the saw to I-O signals, in months. then our talked some slide, early look of agents, of you established we a and number the of next some say XX timing looks which of XX deck slide at which and course we would to the the important readouts

John Elicker

it some for Giovanni Thanks closing to comments. Dave. over Turn

Giovanni Caforio

John you everyone. and thanks Thank

let just really good quarter very So was reiterate year. which a close as in this a capped great me we

an for leading important progress integration was And as and we into these of company in enter performance in value about participating I’m next the foundation shareholders. the XXXX. confident plan XXXX. have I have by I’m excited and a be driven Thank disciplined for you. P&L. as will are chapter prospects thank for This the Celgene we and BMS in as business with want scientific call. create will strong good our strong of we management we everyone execution Our our to creating a on as had, we company, the exciting commercial pipeline We’ve we into demonstrated going our made momentum

John Elicker


call. I concludes our think that


for concludes your Thank call. conference you participation. This today’s

may disconnect. You now