Bristol-Myers Squibb (BMY)
Q2 2012 Earnings Call
July 25, 2012 10:30 am ET
John Elicker - Investor Relations Executive
Lamberto Andreotti - Chief Executive Officer, Director, Member of Executive Committee and Member of Science & Technology Committee
Charles A. Bancroft - Chief Financial Officer and Executive Vice President
Previous Statements by BMY
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Elliott Sigal - Chief Scientific Officer, President of Research & Development, Executive Vice President, Director, Member of Executive Committee and Member of Science & Technology Committee
Giovanni Caforio - President of U.S. Pharmaceuticals
Beatrice Cazala - Executive Vice President of Commercial Operations
Jami Rubin - Goldman Sachs Group Inc., Research Division
David Risinger - Morgan Stanley, Research Division
Charles Anthony Butler - Barclays Capital, Research Division
Tim Anderson - Sanford C. Bernstein & Co., LLC., Research Division
Seamus Fernandez - Leerink Swann LLC, Research Division
Marc Goodman - UBS Investment Bank, Research Division
Gregory B. Gilbert - BofA Merrill Lynch, Research Division
Catherine J. Arnold - Crédit Suisse AG, Research Division
Mark J. Schoenebaum - ISI Group Inc., Research Division
Steve Scala - Cowen and Company, LLC, Research Division
Christopher Schott - JP Morgan Chase & Co, Research Division
Good day, ladies and gentlemen, and welcome to today's Bristol-Myers Squibb Second Quarter 2012 Earnings Release Conference Call. Just a reminder, today's call is being recorded. Now for opening remarks and introductions, I will turn the call over to Mr. John Elicker, Senior Vice President, Public Affairs and Investor Relations. Mr. Elicker, please go ahead.
Thanks, Debbie, and good morning, everybody, and thank you for joining us this morning to discuss our second quarter results. With me this morning for prepared remarks are Lamberto Andreotti, our Chief Executive Officer; and Charlie Bancroft, our CFO. And then joining for Q&A are Elliott Sigal, our Chief Scientific Officer; Giovanni Caforio, President of the U.S. Pharmaceuticals Business; and Beatrice Cazala, Executive Vice President of Commercial Operations.
Before I turn it over to Lamberto, let me cover the Safe Harbor language. During the call, we'll make 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. 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. We'll also discuss non-GAAP financial measures adjusted to exclude certain specified items. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures are available at our website.
Thank you, John, and first of all, congratulations for your promotion and expanded responsibilities. Good morning, everyone. In the second quarter, we lost the exclusivity of PLAVIX in the U.S., after having lost the exclusivity of AVAPRO and AVALIDE towards the end of the first quarter.
These 2 events did not come unexpected. And in fact, we have worked for years to get ready for them and to transform our company. I feel good about our progress in the full transition to our portfolio of the future.
When I look at sales, exclusive of PLAVIX and AVAPRO/AVALIDE, I'm pleased to see 8% year-over-year growth for the rest of our portfolio. And this is despite the significant weakening of many currencies versus the dollar.
Importantly, the sales growth came from a portfolio of products that is innovative, is diversified, covers a range of therapeutic areas and spans across multiple geographies. All these factors provide the foundation for the future success of our company.
With respect to our long-term growth, as we've been saying for some time, business development is a top priority and a key part of our company's balanced approach to capital allocation. Having completed the acquisition of Inhibitex in the previous quarter, I'm very excited about our recently announced planned acquisition of Amylin and the resulting expansion of our partnership with AstraZeneca.
The strategic rationale for this acquisition is clear. There a significant unmet medical need in diabetes, and there is a real demand for different, but complementary treatment options.
We see particular value from Amylin to market its GLP-1 products, BYETTA and BYDUREON. They are already approved in the U.S. and in Europe. They complement our current portfolio and will enable us to offer a more comprehensive disease management solution to patients, health care providers and payors.
In addition, for reasons we have explained before, we believe this transaction is a logical expansion of our successful alliance with AstraZeneca, with which we have collaborated in 2007. We expect that by leveraging the existing Bristol-Myers Squibb-AstraZeneca salesforce, our capabilities in access and our marketing experience will significantly broaden the prescriber base and drive increased adoption of Amylin's GLP-1 franchise.
We also recognize the great value of Amylin's U.S. endocrinology capability as having the potential to enhance the promotion of our existing ONGLYZA franchise. Finally, we look forward to integrating Amylin's state-of-the-art plant in Chester, Ohio into our global manufacturing network.
Again, I'm very excited about these opportunities. We will be ready to move forward as quickly as possible after the transaction process.
Also related to diabetes, and as you know, we are waiting for the European Commission's decision on the marketing authorization of FORXIGA in the second half of the year.
Switching from diabetes to oncology, at ASCO in June, we built on our leadership position in immuno-oncology with a presentation of compelling data on our investigational anti-PD-1 immunotherapy, which was simultaneously published in the New England Journal of Medicine. The data showed potentially meaningful responses in 3 advanced cancer types: lung cancer, kidney cancer and melanoma. Based on these encouraging results, we plan to begin our Phase III program in lung cancer and renal cancer in the coming months, with Phase III in melanoma expected to start later this year or early next year.