This transcript originally appeared on Seeking Alpha.
Title: Bristol-Myers Squibb's CEO Discusses Q1 2014 Results - Earnings Call Transcript
Call Start: 09:00
Call End: 09:58Bristol-Myers Squibb Company (BMY) Q1 2014 Earnings Conference Call April 29, 2014 9:00 AM ET Executives John Elicker - Senior Vice President-Public Affairs and Investor Relations Lamberto Andreotti - Chief Executive Officer Charles Bancroft - Executive Vice President and Chief Financial Officer Giovanni Caforio - Executive Vice President and Chief Commercial Officer Francis Cuss - Executive Vice President and Chief Scientific Officer Analysts Chris T. Schott - JPMorgan Securities LLC Vamil K. Divan - Credit Suisse Securities LLC Jami Rubin - Goldman Sachs & Co. Tim Minton Anderson - Sanford C. Bernstein & Co. LLC Seamus Fernandez - Leerink Swamm, LLC John T. Boris - SunTrust Robinson Humphrey Andrew S. Baum - Citigroup Global Markets Ltd. Mark J. Schoenebaum - ISI Group Inc. David R. Risinger - Morgan Stanley & Co. LLC Marc Goodman - UBS Securities LLC Alex Arfaei - BMO Capital Markets Presentation Operator Good day and welcome to the Bristol-Myers Squibb 2014 First Quarter Earnings Call. Today's conference is being recorded. At this time, I would like to turn the call over to Mr. John Elicker. Please go ahead. John Elicker Thanks, Jamie and good morning everybody. thanks for joining us. With me this morning are Lamberto Andreotti, our Chief Executive Officer; Charlie Bancroft, our Chief Financial Officer; Francis Cuss, our Chief Scientific Officer and Giovanni Caforio, our Chief Commercial Officer. Lamberto, Francis and Charlie will have prepared remarks and then we'll go to your questions. So before I turn it over to Lamberto, let me cover the Safe Harbor Language. During this call, we'll make statements about the company's future plans and prospects that constitute forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the company's SEC filings. These forward-looking statements represent our estimates as of today and should not be relied upon as representing our estimates as of any subsequent date. We specifically disclaim any obligation to update forward-looking statements, even if our estimates change. During the call, we'll also discuss non-GAAP financial measures, adjusted to exclude certain specified items. Reconciliations of these financial measures to most comparable GAAP measures are available at www.bms.com. Lamberto? Lamberto Andreotti Well, thank you, John. Good morning everyone. We have a lot to discuss today. First, I want to mention our nivolumab study in third-line squamous non-small-cell lung cancer, known as Study 063. As you know, this is something you're all interested in. We had productive discussions with the FDA regarding the study and we will be initiating a rolling submission for this indication in the next few days. I feel extremely good about. Having said that, we'll switch to our first quarter results - our good first quarter results. Our non-GAAP earnings per share improved 12% to $0.46, compared to last year. And our top line performance was meaningful. Excluding our diabetic franchise, sales increased 5%, while our new and in-line brands increased 8%. Our core products performed well with double-digit growth in Sprycel, 19%; Yervoy, 18%; Orencia, 13%, and Baraclude, 11%. Sales of Eliquis topped at $100 million threshold with positive momentum in the U.S., as well as in other markets around the world. Last year, we identified and executed against some key opportunities to accelerate the growth of Eliquis, focusing on cardiologists, increasing our investment behind medical education, driving improvement in access and launching direct-to-consumer advertising in the U.S. Our increased investments are driving results as we see improvements in prescription plan in all areas. Together with Pfizer, we are committing even more abilities to Eliquis this year, and we are pleased that the FDA approved Eliquis for the prevention of deep vein being promoted in Q1 and hope to be able to further expand the label in both the U.S. and Europe with the inclusion of VTE treatment later in the year. As far as immuno-oncology is concerned, Charlie and Francis will give you details to how we are performing and what we are doing and planning. Let me just say that I am glad about how the Yervoy continues to grow around the world and that we had best quarter in the U.S. since launch with strengthened demand in our community oncologists and I'm equally or even more excited about nivolumab. During the quarter, we added new trials for nivolumab in mono therapy and combination in several new tumor types. and I've already mentioned our decision on the rolling submission of 063. Also our earlier stage portfolio continuously advanced to our own R&D efforts and through external collaborations such as the recently announced agreements with Five Prime. In summary, we made meaningful progress across our growth IO portfolio and we continue to build in advance our leadership position. Moving to HCV, hepatitis C, we also made good important progress. In fact, we had potential HCV approval for daclatasvir based regimen in all of the major regions before the end of the year, beginning with Japan and continually both Europe and the U.S. With respect to the U.S., our possible approval is based on the recent NDA submission that follows the breakthrough therapy designation for our dual regimen of daclatasvir and asunaprevir. Finally, I will briefly mention our progress in the development of an early-stage portfolio addressing genetically defined disease or GDD. Our process on GDDs is part of the redefined R&D strategies that we announced in November of last year.