• Growth Portfolio Revenue: Increased 20% in Q3 at constant currency.

• Legacy Portfolio Performance: Generated cash flow for strategic investments.

• Cost Savings Program: On track to deliver $1.5 billion in savings by the end of 2025.

• Debt Reduction: Reduced debt by $5.9 billion since the end of Q1 2024.

• Operating Cash Flow: Approximately $5.6 billion in Q3.

• Revenue Guidance: Full year 2024 revenue expected to increase approximately 5% as reported.

• Non-GAAP EPS Guidance: Raised to a range of $0.75 to $0.95.

• Gross Margin: Declined by about 130 basis points due to product mix.

• Effective Tax Rate: Increased to 18.5% from 11.6% in the prior year.

• Key Brand Performance: Double-digit growth in Reblozyl, Breyanzi, and Eliquis.

• OpEx Increase: Expected to increase approximately 4% to 5% for the year.

• Warning! GuruFocus has detected 6 Warning Signs with BMY.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bristol-Myers Squibb Co (NYSE:BMY) reported a 20% increase in growth portfolio revenues in Q3, now accounting for approximately half of total revenues.

• The company achieved several clinical and regulatory milestones, including the FDA approval of COBENFY for schizophrenia and an OPDIVO-based treatment for non-small cell lung cancer.

• Bristol-Myers Squibb Co (NYSE:BMY) is on track to deliver $1.5 billion in savings by the end of 2025, which will be reinvested into high ROI opportunities.

• The company is making progress in its late-stage pipeline, with promising developments in milvexian for atrial fibrillation and other indications.

• Bristol-Myers Squibb Co (NYSE:BMY) raised its full-year revenue target and EPS guidance due to strong performance year-to-date.

Negative Points

• The third quarter sales were impacted by the reversal of an approximate $150 million inventory build from the second quarter, affecting several brands.

• Bristol-Myers Squibb Co (NYSE:BMY) faces competition from generics for products like Sprycel, Abraxane, and POMALYST, which could impact future sales.

• The company anticipates a step-up in gross to net discounts for SOTYKTU due to increased rebating, which may affect short-term sales.

• There are concerns about the lower-than-expected event rate in the milvexian trial, which could impact the study's outcome.

• The launch of COBENFY is expected to take about a year to achieve 80% to 85% access, with sales ramping up in the second half of 2025.

Q & A Highlights

Q: Can you walk us through what the next year looks like for COBENFY in terms of access, especially regarding Medicaid and commercial plans? A: Adam Lenkowsky, Executive Vice President & Chief Commercialization Officer, explained that COBENFY is expected to launch in 2025 with sales ramping up in the second half of the year after achieving broad access. The product is available now, and field teams are engaging with customers. Access is crucial as over 80% of patients are on Medicare or Medicaid. It is anticipated that 80% to 85% access will be achieved within a year, with Medicaid potentially moving faster.