Bristol-Myers Squibb Co at Wells Fargo Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mohit Bansal - Wells Fargo - Analyst : So why don't we start with opening remarks, what the company is up to right now? And what are you excited about? Adam Lenkowsky - Bristol-Myers Squibb Co - Executive Vice President, Chief Commercialization Officer, Member of the Leadership Team Happy to do that, I think it would be helpful to frame the conversation. So as you know, we're coming off a strong second quarter. We've got good momentum in our growth portfolio, particularly with products such as Breyanzi, Reblozyl, Opdualag, and Camzyos. And so we feel very good about the momentum that we have there. We expect to see growth in the second half of the year that's consistent with what we delivered in the first half of the year. When we look at Q3, and if you remember, in Q2, we talked about $150 million inventory build. And so we talked about that burning in Q3. So Q2, we saw the build. Q3, we see a bit of a burn. So that's largely impacting products like Opdivo and to a lesser extent, products like Camzyos and Zeposia. But overall, the growth of the portfolio, we continue to see really good momentum. We also are making good progress on the pipeline and the regulatory front. As you probably know, we are 20 days away from our PDUFA date with KarXT, September 26 is the PDUFA, the opportunity to bring the first new mechanism to schizophrenia patients in multiple decades. And at the end of the year, we have a PDUFA date, at the end of December, for the nivolumab subcutaneous formulation. We have a number of key data readouts that are coming over the next few months. Next week at ESMO, we'll have our lung data for Opdualag, and we have a host of data readouts as we enter into this catalyst-rich period over the next, call it, 24 months. So again, taken together, we are making very good progress against commercial execution, our pipeline and delivering against our strategy which is really long-term, sustainable growth in the back end of the decade and beyond. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Mohit Bansal - Wells Fargo - Analyst : Great. So, I mean, you have your hands full right now with the launches and all. Cerena has done a lot of work on Karuna side or KarXT side, so I'll let her all those questions there. So Cerena, why don't you go ahead?

Question: Mohit Bansal - Wells Fargo - Analyst : Great. Thank you for that. In terms of -- so let's just move on to SOTYKTU. It seems like you've grown the paid scripts by a lot if I look at IQVIA as well. But it has not reflected in the sales growth there, just yet. So are there any dynamics that we need to be paying attention to? Are there pricing dynamics there? And it seems like you still think it is a big product. So just talk us through the -- walk us through the puts and takes there. Adam Lenkowsky - Bristol-Myers Squibb Co - Executive Vice President, Chief Commercialization Officer, Member of the Leadership Team Yeah. So with SOTYKTU, as I shared on the earnings call, we are not where we had hoped to be, particularly the turn as it speaks to access and reimbursement. So we came into the year at roughly 25% access, unrestricted access. As we move to July, we're now at 65%, and I fully expect come January 1, we will significantly improve the level of access for SOTYKTU. That has been a real significant barrier to prescribing the product. And we also have seen many, many patients drop off because they go directly to the specialty pharmacy. Most physicians prescribe the product. They go to the spec farm. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Mohit Bansal - Wells Fargo - Analyst : Got it. Super helpful. So moving to a product where you are doing well, Breyanzi. So now that supply is not an issue. So how should we think about this year, rest of the year? And long term, and I think your competitor, Gilead, is trying to go into community setting as well. So like how do you think about this market share pick up? Adam Lenkowsky - Bristol-Myers Squibb Co - Executive Vice President, Chief Commercialization Officer, Member of the Leadership Team Yeah. So let me decouple some of that. We're very pleased with what we saw with Breyanzi in the second quarter, and we expect that to continue through the remainder of the year and into next year. There are a number of things that have catalyzed the product. As we said coming into the year that we would become capacity unconstrained in Q2. And that's what has happened. Our global product supply team has done a really nice job in enabling us to have a really good supply position now, and that's first format that helped that. Number two is we've had three new indications this year for Breyanzi. The first was the end of Q1 in third line CLL. And then in Q2, we had two new indications in follicular lymphoma and mantle cell lymphoma. We've seen strong commercial execution. And by and large, the majority

Question: Mohit Bansal - Wells Fargo - Analyst : Great. So maybe let's just talk -- so again, your potential competitor for Camzyos also showed some data at ESC as well. How do you see that as a challenge in the market place? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Mohit Bansal - Wells Fargo - Analyst : Got it. I mean I want to touch upon Part D redesign as well. I mean you had talked about the impact being largely neutral across the entire portfolio. I think Eliquis is probably the big portion of that. So -- can you walk us through, I mean, why -- because there are some other companies which have come out and said that there has been bigger impact. So why you are not expecting that to be a bit? Adam Lenkowsky - Bristol-Myers Squibb Co - Executive Vice President, Chief Commercialization Officer, Member of the Leadership Team Yes. As it relates to Part D redesign, as we know, that starts in January of 2025. And so what you see today is the majority of Eliquis patients, who are Medicare patients, and that's about 60% of the Eliquis mix. They move into the donut hole where industry is responsible for paying 70% when patients are in that coverage gap. Next year, the coverage gap goes away. And so that is a significant favorability for a product like Eliquis, and we expect to see that next year. Now offsetting that, though, our products like Revlimid and Pomalyst. Revlimid will decline next year just because we'll see increased generics coming in the market. But the reason for the offset is that we would now see about 20% responsibility for manufacturers in the catastrophic phase, so that will increase our contribution there. I think net-net, it will be more favorable than neutral because of the opportunity and the size of Eliquis, but that will be offset by products like Revlimid and Pomalyst next year.

Question: Mohit Bansal - Wells Fargo - Analyst : I mean as we look at I think about '25, obviously, KarXT launch is important. But when you move into '26, you have a few important catalysts out there, right? I mean you have the investment data reading out, your CEL MoD is reading out. So as a commercial organization leader at Bristol, what are you looking forward to? What is most excited about -- which one is more excited -- and yeah --? Adam Lenkowsky - Bristol-Myers Squibb Co - Executive Vice President, Chief Commercialization Officer, Member of the Leadership Team It's sometimes like picking your favorite child, Mohit. But I think, as I said, we're entering into a real data catalyst-rich period starting as I talked about some of the readouts at the end of this year, KarXT being really important for us, and we should see data readouts for KarXT in Alzheimer's psychosis in 2026, which could be a significant contributor of growth. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Mohit Bansal - Wells Fargo - Analyst : Got it. So I mean, the one question I have is that, I mean, I know Chris actually used the analogy last -- earlier this year. The plane is landing at LaGuardia Airport is never taking off kind of thing, right? So he's talked about people are modeling the decline, but they are not modeling the growth after that. So I mean if you have to think about a few products which could actually facilitate that growth after the LOE period, which ones would that be? Adam Lenkowsky - Bristol-Myers Squibb Co - Executive Vice President, Chief Commercialization Officer, Member of the Leadership Team Yeah. Well, our focus as a company is clearly delivering long-term sustainable growth in the back end of the decade and beyond. And so I talked about just in the near term, some of those catalysts are baked into our already approved growth portfolio. So I talked about the Breyanzi life cycle management, Camzyos' non-obstructive HCM, SOTYKTU life cycle management in lupus, for example. Those are areas that we see really strong growth. Myelofibrosis, for example, in (inaudible). So that's kind of in the current portfolio. You just talked about some real opportunity for growth with KarXT, which could be very significant product as we look at areas of the highest unmet need in Alzheimer's psychosis, agitation, bipolar disorder, autism, Alzheimer's cognition. This could be one of the largest products potentially in the Bristol-Myers Squibb portfolio. Milvexine, we're incredibly excited about. We're now the only -- could be the only player in atrial fibrillation. But I remember the days of Plavix very well. So the opportunity in ACS and FSP can also be significant. And then I do think that areas like autoimmune disease, particularly with products like NEX-T CD19 could be considered a moon chart for the company. And I think, those are some of the catalysts that we see that perhaps are underappreciated externally that we believe will drive this long-term growth in the back end of the decade, and feel very good about the portfolio that we have, the pipeline that we have, and in my over two decades with the company, is by far the best pipeline that I've seen in the company.

Question: Mohit Bansal - Wells Fargo - Analyst : Okay. But what would make you look back at the year and say it was a good year for us? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Mohit Bansal - Wells Fargo - Analyst : On that high note, thank you very much for joining us. Adam Lenkowsky - Bristol-Myers Squibb Co - Executive Vice President, Chief Commercialization Officer, Member of the Leadership Team Thank you, Mohit. Thank you so much. DISCLAIMER Refinitiv reserves the right to make changes to documents, content, or other information on this web site without obligation to notify any person of such changes. In the conference calls upon which Event Transcripts are based, companies may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks, which are more specifically identified in the companies' most recent SEC filings. Although the companies may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realized. THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS. IN NO WAY DOES REFINITIV OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.