Q4 2019 Results February 6, 2020 1
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 F orm 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. 2
Giovanni Caforio Chairman & Chief Executive Officer 3
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 FOUNDATION A 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 Collaborating at Center Leveraging Global Driven by the Innovation of the Biotech Ecosystem Scale and Agility Best People 4
Overview Strong commercial execution across in-line portfolio • Positive clinical and regulatory achievements, including meaningful data at ASH • Strong Operating Performance in 2019 • Integration progressing well • Execution of ASR and recent dividend increase Guidance reflects substantial earnings power and significant opportunity for future • Robust Earnings growth Outlook & Significant Significant cash flow generation expected - supports de-levering and continued • Financial Flexibility investment in innovation Breadth of Near- 8 potential near-term launch opportunities; includes US regulatory actions for 6 • Term Launch opportunities over the next 6 months Opportunities 5
Strong Business Momentum in Key Franchises Net Sales Net Sales Vs. Prior Year Vs. Prior Year $ in Billions $ in Billions QTR 4 FULL YR * * $ 10.8 ▲ 12 % (Pro Forma) $ 2.8 ▲ 10 % (Pro Forma) $ 7.9 ▲ 23 % $ 2.0 ▲ 19 % $ 7.2 ▲ 7% $ 1.8 ▼ (2 % ) $ 3.0 ▲ 10 % $ 0.8 ▲ 8 % * * $ 2.5 ▲ 24 % $ 0.7 ▲ 23 % $ 2.1 ▲ 6 % $ 0.5 ▲ 2 % $ 1.5 ▲ 12 % $ 0.4 - $ 1.3 ▲ 18 % * * $ 0.3 ▲ 25 % *Products acquired in connection with the Celgene acquisition include revenue on a pro forma basis for the period NOT FOR PRODUCT PROMOTIONAL USE prior to November 20, 2019, the date of the Celgene acquisition, and have been recast to exclude foreign currency 6 hedge gains and losses.
ASH 2019: Opportunity to Broaden Hematology Franchise Supported by Meaningful Data PIVOTAL DATA ENCOURAGING liso-cel Potential to expand our FROM 3 ASSETS EARLY DATA BCMA portfolio with T-cell Potential best-in-class CD19 CAR T engager (TCE) ide-cel Important new life cycle Potential first- and best-in-class BCMA CAR T in Multiple Myeloma opportunities for Reblozyl in chronic anemias CC-486 Survival benefit demonstrated in 1L AML maintenance setting 7
Guidance: Substantial Earnings Power and EPS Growth GROWTH DRIVERS : Strong in-line business • New product launches • LCM opportunities • 2020 2021 Synergy capture • $ 6.00- $ 6.20 $ 7.15- $ 7.45 NON-GAAP EPS NON-GAAP EPS* $ 0.75- $ 0.95 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. 8
Well Positioned for the Near-Term and Long-Term TODAY Leader with Strong Set of In-line Brands Growth Driven by One of the Broadest NEAR-TERM Late-stage Pipelines in the Industry Sustainability Enabled by Internal LONG-TERM Innovation and Business Development Fueled by Significant Financial Strength & Flexibility 9
David Elkins Chief Financial Officer 10
OPDIVO Strong Global Execution - Solid Foundation for Growth in 2021 Approx. U.S. Sales Mix U.S. business remains strong Demand down in low single digits - Stabilization of both 1L RCC share, 20% - and 2L lung IO-eligible patient pool 25% Reported net sales further impacted - NSCLC by buying patterns RCC Melanoma All others International growth continues, 26% mitigating pressure in U.S. 29% Future growth fueled by potential new indications, including 1L lung, CM-9ER, and in early stage disease Note: percentages approximate based on tumor ranges NOT FOR PRODUCT PROMOTIONAL USE 11
ELIQUIS Leading Brand in Expanding Market NBRx Share – US * #1 NOAC worldwide with best-in-class profile 28% 36% 19% global net sales increase in Q4 over 16% 33% prior year 56% 31% 27% US demand growth over prior year 2016 2017 2018 2019 Other NOACs 2H growth affected by Medicare coverage gap • Warfarin TRx Share - US * Eliquis 28% 28% Continued room to grow, driven by future expansion of the NOAC class and increased 27% brand share 52% 45% 20% 2016 2017 2018 2019 NOT FOR PRODUCT PROMOTIONAL USE 12 * Source: Symphony Health
REVLIMID & POMALYST Strong Growth in Key MM Franchise Net Sales * US ROW Q4 sales growth of 10% YOY driven by $871 $807 increased triplet sales and increased duration of treatment $1,914 $1,730 Continued uptake in the front line setting across geographies fuels continued growth. Q4'18 Q4'19 $203 $171 Q4 sales growth of 23% YOY driven by increased demand and duration of therapy $489 $393 Continued growth expected from new triplet regimens Q4'18 Q4'19 *Includes product revenue for the period prior to November 20, 2019, which was the date of the Celgene acquisition. NOT FOR PRODUCT PROMOTIONAL USE 13 All revenue prior to November 20, 2019 has been recast to exclude foreign currency revenue hedge gains and losses.
Q4’19: Key Changes Due to Celgene Acquisition Celgene results incorporated since November 20, 2019 Operating Other Income & Weighted average Expense Expense share count includes stock-based includes interest on: mainly impacted by: compensation for • acquired Celgene debt • equity issued for legacy Celgene as well as Celgene transaction • newly issued debt • repurchases under previously specified the ASR 14
2020 Line Item Guidance GAAP Non-GAAP NON-GAAP DRIVERS: Net Sales $40.5B-$42.5B $40.5B-$42.5B Significant sales • growth expected Gross Margin % ~74% ~ 80% on a pro forma basis MS&A Expense $6.8B - $7.0B $6.8B - $7.0B OI&E impacted by • R&D Expense $10.1B - $10.3B $9.6B - $9.8B additional interest expense Other (Inc) & Expense $0.6B - $0.7B ($0.1B) – ($0.2B) OpEx includes • impact of stock- Non-GAAP Tax Rate ~43% ~17% based Non-GAAP Diluted EPS $0.75-$0.95 $6.00-$6.20 compensation offset by expected Weighted Average Diluted Shares ~2,300M ~2,300M synergies Refer to separate reconciliation of GAAP to these non-GAAP measures 15
Share Count Illustration 2,251M 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 YE’20 Diluted Share -count ~2,300M YE’20 Weighted Average Diluted Share -count 16
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