Bristol-Myers Squibb (BMY)

Q2 2011 Earnings Call

July 28, 2011 10:30 am ET


Beatrice Cazala - Member of Management Council, President of Global Commercialization and President of Europe Operations

Tony Hooper - Member of Management Council, Senior Vice President of Commercial Operations and President of US Japan and Intercontinental

Unknown Executive -

Charles Bancroft - Chief Financial Officer and Member of The Management Council

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Lamberto Andreotti - Chief Executive Officer, Member of Management Council, Director, Member of Science & Technology Committee and Member of Executive Committee

John Elicker - Investor Relations Executive


David Risinger - Morgan Stanley

David Maris - Credit Agricole Securities (USA) Inc.

Catherine Arnold - Crédit Suisse AG

John Boris - Citigroup Inc

Steve Scala - Cowen and Company, LLC

Christopher Schott - JP Morgan Chase & Co

Seamus Fernandez - Leerink Swann LLC

Mark Schoenebaum - ISI Group Inc.

Marc Goodman - UBS Investment Bank

Unknown Analyst -



Good day, and welcome, to today's Second Quarter 2011 Earnings Conference Call. This call is being recorded. At this time, I would like to turn the call over to Mr. John Elicker, Senior Vice President Investor Relations. Please go sir.

John Elicker

Thanks, Brandi, and good morning, everybody. Thanks for joining us to review our second quarter results. With me today are Lamberto Andreotti, our Chief Executive Officer, he'll have prepared remarks; as will Charlie Bancroft, our CFO. As you know, Elliott Sigal, our Chief Scientific Officer, usually participates in the call but sitting in for him today for Q&A is our head of development, many of you know, Brian Daniels. Elliott enjoys these calls and would like to be here but he recently had some knee surgery and he is recovering well. He enjoys participating, as I said, and he's looking forward to the October call. So with Brian for Q&A, also we have Beatrice Cazala, Senior Vice President of Commercial Operations with responsibility for commercialization, Europe and emerging markets; as well as Tony Hooper, Senior Vice President Commercial Operations with responsibility for the U.S., Japan and rest of world.

Before we get started, I'll take care of the legal requirements. During this 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 of 1995. 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 most recent annual report on Form 10-K, reports on 10-Q and 8-K. These documents are available from the SEC, the BMS website or from Bristol-Myers Investor Relations.

In addition, any forward-looking statements represent our estimates only as of today 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.

During the call, we'll also discuss certain non-GAAP financial measures adjusted to include certain cost expenses, gains and losses and other specified items. Reconciliation to these non-GAAP financial measures to the most comparable GAAP measures are available on our website. Lamberto?

Lamberto Andreotti

Well, thank you, John. Good morning, everyone. While we have just completed a very good quarter and as you have seen, we have raised our guidance for 2011 and confirmed minimum non-GAAP guidance for 2013. Our financial results were strong, with double-digit growth in sales.

Operationally, the execution of the YERVOY launch has already started delivering positive results and from an R&D perspective, we had several global regulatory approvals, including ELIQUIS and NULOJIX. For ELIQUIS, we also announced exciting top line data for our 4-stroke prevention in atrial fibrillation. Across all our operations globally, we continue to demonstrate that our bio-pharma strategy is on track, moving forward, and delivering results. Charlie will speak to the financials, working through the specifics. I will instead focus on some of the other key developments.

Clearly, a highlights of this quarter was the launch of YERVOY, approved in the U.S. in March, our breakthrough medicine for metastatic melanoma was officially launched early in the second quarter. And already, in its first 3 months on the U.S. market YERVOY sales were strong at $95 million. While some patient demand had been building up, pending YERVOY's approval, most of these initial sales were due to one simple and compelling fact. The product is good. And there is a very high demand for the first new treatment [indiscernible] and the first one ever to demonstrate a significant overall survival benefit in this patient population. A key driver of YERVOY's strong initial sales was our ability to execute commercially, utilizing the new customer model we talked about during last quarter's call. We have received very positive feedback, both about the level of support we are providing, and the materials we are making available to the entire unit of care. Based on the initial success of YERVOY, supported by our new customer model, we'll adopt a similarly thoughtful, holistic and focused approach to commercializing all new products in all countries. The approach we take to thoroughly understanding the patient journey, and the needs of all the customers involved, will always remain core.

A few additional notes about YERVOY. Outside of the U.S., YERVOY was approved in Australia in June and it was just approved on July 14 in the European Union. And at the annual meeting of the American Society of Clinical Oncology, we presented the results of the second Phase III study of YERVOY, results that again demonstrated improved overall survival in patients with the most aggressive form of cancer. So taken together, the approval, the launches, the clinical advances, this was an excellent quarter for YERVOY.

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