Earnings call transcript: Bristol-Myers Squibb Q2 2025 sees earnings beat but stock dips

Bristol-Myers Squibb reported a notable earnings beat for Q2 2025, with earnings per share (EPS) at $1.46, surpassing the forecast of $1.06 by 37.74%. Despite this, the company’s stock fell 3.13% to $44.5 in pre-market trading. Revenue also exceeded expectations, coming in at $12.27 billion against a forecast of $11.34 billion. According to InvestingPro data, BMY maintains strong financial health with a "GOOD" overall score, supported by robust profitability metrics and consistent dividend payments spanning 55 consecutive years. The market reaction was negative, possibly due to broader market trends or specific investor concerns.

Key Takeaways

• EPS of $1.46 beat expectations by 37.74%.
• Revenue reached $12.27 billion, an 8.2% surprise over forecasts.
• Stock declined 3.13% despite strong earnings and revenue performance.
• Full-year revenue guidance increased by $700 million.
• Strategic partnerships and new product launches highlighted.

Company Performance

Bristol-Myers Squibb demonstrated strong performance in Q2 2025, with total revenues reaching $12.3 billion, marking a significant growth in its portfolio sales by 17% year-over-year. The company continues to lead in the immuno-oncology market with its flagship product, Opdivo, and has expanded its presence in the cardiovascular sector with Eliquis and Kamzios.

Financial Highlights

• Revenue: $12.3 billion, up 17% year-over-year
• EPS: $1.46, including a $0.57 charge for a BioNTech partnership
• Raised full-year revenue guidance to $46.5-$47.5 billion
• Projected Revlimid sales of approximately $3 billion for the year

Earnings vs. Forecast

Bristol-Myers Squibb’s Q2 2025 earnings per share of $1.46 significantly exceeded the forecasted $1.06, resulting in a 37.74% positive surprise. Revenue also surpassed expectations by 8.2%, coming in at $12.27 billion against a forecast of $11.34 billion. This marks a strong quarter compared to historical trends, where earnings surprises have been less pronounced.

Market Reaction

Despite the positive earnings report, Bristol-Myers Squibb’s stock price fell by 3.13% to $44.5 in pre-market trading. This decline occurred even as the company reported better-than-expected earnings and revenue. The stock’s performance is notable given its 52-week high of $63.33 and low of $42.96. InvestingPro analysis indicates the stock is currently undervalued, with a beta of just 0.37 suggesting lower volatility than the broader market. The company offers an attractive dividend yield of 5.39%, significantly above industry averages. For detailed valuation metrics and 12 additional exclusive ProTips, visit InvestingPro.

Outlook & Guidance

The company raised its full-year revenue guidance by $700 million, now expecting between $46.5 billion and $47.5 billion. It anticipates significant contributions from new products like COBENFI and strategic partnerships with BioNTech and PhiloChem. Bristol-Myers Squibb is also preparing for multiple Phase III program readouts in the next 18-24 months, which could further bolster its market position. The company’s financial strength is evident in its impressive 74.69% gross profit margin and robust free cash flow yield. A comprehensive analysis of BMY’s growth potential and financial metrics is available in the exclusive Pro Research Report on InvestingPro, part of their coverage of over 1,400 US stocks.

Executive Commentary

CEO Chris Berner stated, "We continue to make good progress reshaping the company for long-term sustainable growth." He highlighted the company’s strategic focus, saying, "We are investing in and prioritizing areas where we see the strongest potential for high-value assets."

Risks and Challenges

• Market saturation in key therapeutic areas could limit growth.
• Macroeconomic pressures may affect consumer spending and healthcare budgets.
• Potential regulatory hurdles for new product approvals.
• Competition from other pharmaceutical companies in the immuno-oncology space.

Q&A

During the earnings call, analysts inquired about the direct-to-patient program for Eliquis and the potential of COBENFI’s launch. There was also interest in the company’s pipeline strategy and upcoming leadership transition, reflecting confidence in Bristol-Myers Squibb’s future direction.

Full transcript - Bristol-Myers Squibb (BMY) Q2 2025:

Conference Operator: Good day, and welcome to the Bristol Myers Squibb Second Quarter twenty twenty five Earnings Conference Call. All participants will be in a listen only mode. After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr.

Chuck Triano, Senior Vice President and Head of Investor Relations. Please go ahead, sir.

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb: Thank you and good morning everyone. We appreciate you joining our second quarter twenty twenty five earnings call. Joining me this morning with prepared remarks are Chris Berner, our Board Chair and Chief Executive Officer and David Elkins, our Chief Financial Officer. Also participating in today’s call are Adam Lemkowski, our Chief Commercialization Officer and Samit Hirawat, our Chief Medical Officer and Head of Global Drug Development. Earlier this morning, we posted our quarterly slide presentation to bms.com that you can use to follow along with Chris and David’s remarks.

Before we get started, I’ll remind everybody that during this call, we will make statements about the company’s future plans and prospects that constitute forward looking statements. Actual results may differ materially from those indicated by those 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 future date, and we specifically disclaim any obligation to update forward looking statements even if our estimates change. We’ll also focus our comments on our non GAAP financial measures, which are adjusted to exclude certain specified items. Reconciliations of certain non GAAP financial measures to the most comparable GAAP measures are available at bms.com.

Finally, unless otherwise stated, all comparisons are made from the same period in 2024 and sales growth rates will be discussed on an underlying basis, which excludes the impact of foreign exchange. All references to our P and L are on a non GAAP basis. And with that, I’ll hand it

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: over to Chris. Thanks Chuck. Welcome and thank you for joining our second quarter earnings call. In Q2, we continue to make good progress reshaping the company for long term sustainable growth. I’m pleased with our performance and our financial results speak to that.

Building on the momentum from the first quarter, we saw strong demand across our growth portfolio and continue to optimize our cost structure to match the needs of our business. Let’s double click on our quarterly performance on Slide four. Our growth portfolio delivered another strong quarter with sales increasing 17% year over year, primarily driven by demand across all key brands. David will provide more color on our portfolio’s performance in his remarks. In addition to strong performance in our growth portfolio, we continue to make regulatory progress across the globe.

In Europe, we secured approval for both Opdivo and neoadjuvant lung cancer and for Cuvantik across multiple solid tumor indications. Additionally, in The U. S, we appreciate recent actions by the FDA that have resulted in streamlined patient monitoring requirements and the removal of REMS programs for all cell therapies. This is expected to enable more patients to benefit from these transformative therapies over time. With respect to capital deployment, we announced strategic partnerships with BioNTech to expand and extend our immuno oncology leadership as well as with PhiloChem to strengthen our radiopharmaceutical business and expand our focus in prostate cancer.

I will discuss these deals in a moment. With the results achieved in the quarter, we are again raising our top line guidance as well as our bottom line guidance before considering acquired IP R and D charges in the quarter. Our recent launches of COBINFY and QVANTIC are progressing well. COBINFY has delivered strong performance since launch and we have consistently received positive feedback from physicians. They are seeing firsthand the medicines differentiated profile with robust efficacy on both positive and negative symptoms and improved cognition.

Regarding The U. S. Launch of Qvantik, early feedback is encouraging with strong uptake. Delivering treatment in just three minutes saves time for patients, caregivers, and providers while also improving clinic efficiency, increasing patient comfort, and reducing treatment complexity. Additionally, fewer port procedures streamlined care allowing physicians to treat more patients.

Now moving to recent business development initiatives on slide five. First, we entered into a global strategic partnership with BioNTech to co develop and commercialize BNT327, a potentially transformative PD L1 VEGF bispecific that could set a new standard of care across multiple tumor types. We’re excited to bring together BMS’ deep scientific and clinical expertise, development and regulatory capabilities, and commercial infrastructure in the IO space with BioNTech’s innovation on BNT-three twenty seven. With a strong partner, we’re well positioned to accelerate existing clinical trials, expedite time to market and expand the number of indications. The combined capabilities of BMS and BioNTech give us the opportunity to place BNT-three twenty seven within the first wave of launches in this arena, either first or second to market, a critical advantage in terms of maximizing the commercial opportunity.

BNT-three twenty seven has the potential to become another needle moving IO therapy and accelerate our overall growth trajectory. The partnership is off to a great start. We are well underway in advancing a robust joint clinical development program that expands upon the initial indications by further developing BNT-three twenty seven in numerous additional tumor types in combination. We look forward to sharing more information in

: the future. Separately,

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: in terms of our early stage pipeline, we entered into a license agreement with Philochem for exclusive worldwide rights to OncoACP3. This is a potential best in class radiopharmaceutical therapeutic and diagnostic agent with the opportunity to become a breakthrough treatment for prostate cancer. We believe this collaboration will further strengthen our position in the rapidly advancing radiopharmaceutical space. Earlier this week, we announced a transaction with Bain Capital to form a new company focused on advancing innovative immunology therapies. As part of this transaction, we out licensed five assets to a newly formed company, including three clinical stage compounds and two Phase one ready compounds.

This deal represents a compelling opportunity to accelerate the development of these promising immunology assets while also allowing BMS to participate in future value creation through royalties, milestone payments and a roughly 20% equity stake. BMS will continue to have a strong presence in immunology. We are focusing our immunology R and D efforts in areas where the company is best positioned to lead. These strategic BD initiatives demonstrate our ability and flexibility to continually identify opportunities to both source external innovation and also externalize pipeline assets where appropriate. This is all in support of our objectives of driving improved growth in the outer years and attractive returns for shareholders.

Moving to our key data catalyst on Slide six. We’re entering a data rich period. In the next twelve to twenty four months alone, we expect seven registration assets and seven meaningful lifecycle management opportunities. These represent important needle moving events that can de risk the pipeline and help shape our trajectory through the end of the decade, Recognizing we’ve had a few studies readout this year where results were not as expected, we are reviewing all of our near term studies to best ensure the timely delivery of these programs with the highest probability of success. While we are encouraged by the overall breadth of our pipeline, I would highlight three new molecular entities with near term data readouts.

We expect readouts for Milvexian in acute coronary syndrome and secondary stroke prevention next year and for atrial fibrillation in 2027. Data for admoparent and idiopathic pulmonary fibrosis is expected next year. And we’re also expecting to see MRD negativity data in house later this year and PFS data next year from the Phase three EXCALIBRA study of ibernamide. This could provide additional validation of our CELMoG platform as a next generation potential standard of care in multiple myeloma. In terms of lifecycle management, we now have several ongoing registrational trials for CoBINFY in Alzheimer’s disease patients.

These include studies in Alzheimer’s psychosis, agitation, and cognition impairment. In addition, we are also enrolling a phase three study in bipolar one disorder. In addition, we have attractive opportunities to invest in numerous oncology pivotal trials. BNT327 is enrolling in first line non small cell lung cancer and small cell lung cancer. And a study in first line triple negative breast cancer is expected to begin later this year.

We’re also advancing next generation platforms that could redefine their respective categories. We are initiating two registrational studies for our PRMT5 inhibitor,

: one

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: in non small cell lung cancer and another in pancreatic cancer based on encouraging early data with additional longer term non small cell lung cancer results to be presented at World Lung. Additionally, we are now recruiting a pivotal study for our EGFR HER3 targeting ADC, IZAPREN, in first line triple negative breast cancer and expect early data in non small cell lung cancer and other solid tumors later this year. Lastly, in immunology, we are also now enrolling patients in a pivotal Phase II study for our CD19 next T cell therapy in severe refractory lupus. Data readouts are expected to continue next year and throughout the end of the decade, providing an increasing line of sight into the strength of our pipeline. We are investing in and prioritizing areas where we see the strongest potential for high value assets.

We are doing what we said we would do, driving focused execution across the business and delivering solid results as we advance our multi year plan to emerge as a top tier sustainable growth company by the end of the decade. Finally, I want to welcome Doctor. Christian Masacezi to BMS who will be joining us starting tomorrow as Executive Vice President, Chief Medical Officer and Head of Development. It’s a pivotal time to lead our development organization given the number of key pipeline advancements we are making in the months and years ahead and I look forward to the impact that he will be bringing to our pipeline and the team. I also want to thank Samit for all of his contributions and leadership during his six years at BMS and his commitment to groundbreaking science on behalf of our patients worldwide.

With that, I’ll turn it over to David.

David Elkins, Chief Financial Officer, Bristol Myers Squibb: Thank you, Chris, and good morning, everyone. We continue to deliver strong performance in 2025. Our growth portfolio remains a key focus and we are executing on driving top line growth and prioritizing investments to ensure we are positioning company for long term sustainable growth. Now turning to the second quarter sales performance on Slide eight. Total company revenues were approximately $12,300,000,000 reflecting strong demand across our business.

Global sales of the growth portfolio increased approximately 17%, driven primarily by demand for our IO portfolio, BRYANZI, REBLOZYL and KENZYOS. Let’s start a review with the oncology portfolio on Slide nine. Opdivo global sales were approximately $2,600,000,000 up 7%, driven primarily by demand. In The U. S, revenues approximately $1,500,000,000 were largely driven by a strong launch in MSI high colorectal cancer and continued growth in first line non small cell lung cancer.

Outside of The U. S, revenues grew 7%, driven primarily by volume growth and one time favorable adjustments in the quarter. Turning to Kevancik, we are pleased with the performance in the quarter. Sales were approximately $30,000,000 The launch in The U. S.

Is going well with the use across all indicated tumor types. Received a permanent J code on July 1, which will support additional conversion as reimbursement improves. Due to the strong performance year to date, we now expect global Opdivo sales together with KEVANTIC to deliver stronger growth in the mid to high single digit range for the full year. Now turning to our hematology performance on Slide 10. REBLOZYL global sales were $568,000,000 in the quarter and over $1,000,000,000 year to date, reflecting continued strength across our MDS associated anemia indications.

In The U. S, revenue growth was up 30% versus the prior year, primarily due to demand growth in first line RS positive and RS negative MDS associated anemia. Outside of The U. S, Reblozo sales grew 46%, driven by continued demand across newly launched markets. Turning to BRYANZI, revenues were $344,000,000 in the quarter.

Global revenues grew 122% reflecting strong demand across all indications and higher than expected infusions that benefited the second quarter. We expect strong second half with sales skewed more towards the fourth quarter as the third quarter normalizes. In The U. S, sales were $255,000,000 more than doubling again this quarter, which reflects growth in large B cell lymphoma, expansion from new indications approved last year and improved manufacturing success rate. Outside of The U.

S, sales were $88,000,000 nearly tripling due to strong demand and launches in new markets. Moving to our cardiovascular performance on Slide 11, starting with Kamsiyos, global sales were $260,000,000 growing 86% due to robust demand. In The U. S, sales were two fourteen million dollars up 65% driven primarily by increasing new patient starts. Sequentially revenues grew 70% driven by demand as well as a typical second quarter inventory build.

And outside The U. S, sales were $46,000,000 reflecting launch momentum in over 20 markets. Eliquis global sales were $3,700,000,000 growing 6% primarily due to strong demand and U. S. Sales grew 4% and ex U.

S. Sales grew 12%. Moving to immunology on Slide 12. So TYK2 sales grew 29% globally. In The U.

S. Sales increased 5% primarily due to higher demand and an inventory build, which was partially offset by higher rebates associated with increased commercial coverage. We remain focused on driving further demand growth with our improved access position to help offset the impact of higher rebates. Now moving to discuss COBENFI on Slide 13. COBENFI sales were $35,000,000 in the quarter and $62,000,000 year to date.

The launch of Coventry is tracking as we expected. Weekly total prescriptions continue to grow and we expect continued steady growth with sales in the second half of the year higher than the first half. Now let’s move to the P and L on Slide 14. Gross margin was approximately 73%, primarily due to product mix. As expected, operating expenses were approximately $260,000,000 lower compared to the same period last year, primarily reflecting the results of our ongoing strategic productivity initiative.

Our effective tax rate in the quarter was 16.1%, including the impact of the upfront charge for the BioNTech partnership. Overall, diluted earnings per share was $1.46 due to the strong performance in the quarter and includes approximately $1,500,000,000 or $0.57 charge related to the BioNTech strategic partnership, which is reflected in acquired in process R and D. Turning to the balance sheet and capital allocation highlights on Slide 15. Our financial position remains strong with roughly 13,900,000,000 in cash, cash equivalents and marketable securities as of June 30. We generate cash flow from operations of about $3,900,000,000 in the second quarter.

Our capital allocation priorities remain unchanged as we continue to take a strategic and balanced approach. Investing in our growth portfolio brands along with business development are our top priorities. We are on track with our plan to further delever our balance sheet and pay down $10,000,000,000 of debt by the 2026 relative to our 03/31/2024 balance. And we remain committed to returning capital to shareholders through our dividend. Now turning to our guidance on Slide 16.

We’re increasing our full year reported revenue guidance by $700,000,000 at the midpoint to a range of $46,500,000,000 to $47,500,000,000 reflecting continued strong performance of our growth portfolio, better than expected legacy sales in the second quarter and a favorable impact of approximately $200,000,000 related to foreign exchange rates. Additionally, we now expect the legacy portfolio to decline approximately 15% to 17% for the year, a more moderate rate than previously anticipated due primarily to Revlimid’s strong year to date performance. We now project full year Revlimid sales of approximately $3,000,000,000 We maintain our gross margin guidance at approximately 72% as some of our high margin legacy brands are expected to continue to decline through the second half of the year and Eliquis revenues to be more evenly phased throughout the year. We are adjusting our operating expense guidance to increase slightly to approximately $16,500,000,000 reflecting investment behind recent business development deals and additional investment opportunities within our growth portfolio. As previously guided, our operating expenses are anticipated to be higher in the second half of the year compared to the first half, reflecting timing of investments, including the recently signed BD deals.

Our operating margin target of approximately 37% for the full year remains unchanged. For OI and E, we now expect annual income of approximately $250,000,000 due to higher than anticipated royalties and favorable interest income and we’re maintaining our full year tax rate guidance of approximately 18%. As a result of the strong performance year to date, when excluding acquired in process R and D charges, the midpoint of our 2025 non GAAP EPS guidance would have increased approximately $0.20 per share. After including these charges of $0.57 per share, primarily related to the BioNTech partnership, our expected EPS for 2025 is now projected to be between $6.35 and $6.65 This increase reflects a strong performance of our growth portfolio as well as better than anticipated sales from our legacy portfolio and accommodates recent business development and other growth oriented investments. All in all, I’m pleased with the performance of the business year to date.

I’d like to thank our colleagues around the world for their continued focus and execution. With that, I’ll turn it back to Chuck to start Q and A.

: Thanks, David. Operator, can we please start the polling for the Q and A session? Thank you.

Conference Operator: Yes, sir. We will now begin the question and answer session. And the first question will come from Geoff Meacham with Citibank. Please go ahead.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Good morning, guys. Thanks for the question. Chris, you mentioned the upcoming period, which is very data heavy. I’m just looking at the Phase III results this year. Are there any that you would call out or maybe you can still achieve the objective of either line extensions or label expansion?

I know you probably have to have an FDA discussion, but I just am curious if there maybe is a faster path to achieving some of the line extensions that you intended to achieve? Thanks. Thanks for the question, Jeff. Let me just say a few things about the studies that I’ve read out so far and then maybe I’ll turn it over to Samit to answer your question directly. First, as we look back at the studies that haven’t gone the way we had anticipated, There are two things I think are important to keep in mind.

The first is that when you look at those studies in totality while they were meant to answer important scientific questions or clinical practice questions, they collectively have relatively limited impact on the long term growth of the company. What is more important is whether or not those studies have any implications going forward. And we don’t see any read forward from those studies to future opportunities. And so we feel good about where we are in the growth potential as well as the importance of those studies that we’ll be reading out over the next twelve to twenty four months in order to shape that growth trajectory. But Samit, maybe you can comment on the studies that read out this year.

Samit Hirawat, Chief Medical Officer and Head of Global Drug Development, Bristol Myers Squibb: Yes. Thank you, Chris, and thank you, Jeff. I think one of the examples of how we think about deeper review of the data would be, let’s say, independence trial for Reblozyl, for example. As we’ve communicated, we look deep into the data and there is clinically meaningful impact that we do see not only on the primary endpoint of transfusion independence, but also as we think about the other endpoints. And so based on that, we are right now planning to interact with the health agencies around the world to ensure that we give the biggest best chance for the drug to be able to show its activity and provide a much needed therapy for unmet medical need in anemia associated myelofibrosis.

And we’ll continue to watch out if there are other opportunities for other molecules as we go through the rest of the year.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Thanks, Jeff. Great. Thanks, guys.

: Yes, sure. Next question please, operator.

Conference Operator: Your next question will come from Courtney Breen with Bernstein. Please go ahead.

Courtney Breen, Analyst, Bernstein: Hi, guys. Thanks so much for taking the call this morning. We really wanted to focus a little bit on kind of the macro pressures or the industry pressures that you guys are facing and you announced recently the direct to consumer offering in conjunction with Pfizer. Can you give us a bit more context on kind of why this felt like it was the right time to announce this deal? Was this a direct kind of mandate or agreement

And is this potentially a platform that you may look to utilize with any of your other products over time? And what kind of products might be the right ones to fit into a platform like this?

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Thanks for the question, Courtney. Maybe I’ll start and then I’ll turn it over to Adam. Look, we’re pleased that we were able to implement this program with Pfizer. I think this administration has actually done a nice job highlighting the need to cut out the middleman from The U. S.

Healthcare system. Remember, roughly about half of every dollar spent on a branded medicine goes to someone who took absolutely no R and D risk in the creation of that product. And the Eliquis direct to patient offering is a way for us to offer meaningful decreases in out of pocket costs for patients, increase transparency, and take a step as the President has suggested in cutting out traditional middlemen. But maybe I’ll have Adam speak to the program more specifically.

Adam Lemkowski, Chief Commercialization Officer, Bristol Myers Squibb: Yes. Thanks, Chris. And thanks, Courtney for the question. So as part of our commitment to increasing patient access to our medicines, following some of the conversations we’ve had with the administration, we announced with our Pfizer counterparts a few weeks ago that beginning September 8, uninsured, underinsured cash paying U. S.

Patients could purchase Eliquis directly through Eliquis three sixty support. So patients will be able to pay a discounted rate of over 50% less than the list price. And as Chris was alluding to, we’ve heard from patients, policymakers, prescribers have all called for a simpler, more affordable, more transparent access and now patients will have full transparency into their costs and it cuts out the middleman there. So we’re launching this new direct to patient option as part of our commitment

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: to increasing patient access and affordability. The only other thing Courtney just to your question about whether there may be other opportunities, we’re obviously going to continue to look within our own portfolio see if there are opportunities where that makes sense. And I think we’ll also continue to be looking across the industry for other potential opportunities. So, more to come on that.

: Thanks, Chris. Let’s move to our next question please.

Conference Operator: The next question will come from Chris Schott with JPMorgan. Please go ahead.

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb0: Great. Thanks so much. Just a two parter on COBENFI. Maybe just first on the launch dynamics. I would love just to hear what you see as the primary hurdles to adoption for physicians at this point given reimbursement etcetera in place?

And the second part was as we look forward to the Alzheimer’s psychosis results coming later this year, maybe just help frame out expectations in terms of the type magnitude of benefit you feel you need to show to see adoption here? And would the study alone be enough to support a filing? Thanks so much.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Thanks for the question, Chris. Maybe I’ll ask Adam to start on the first part and maybe hit on what the commercial threshold is for ADP and then Samit you can give an update on where we are.

Adam Lemkowski, Chief Commercialization Officer, Bristol Myers Squibb: Thanks Chris. COBENTIFI is performing in line with expectations and we’re now tracking over 2,000 TRxs on a weekly basis. We expect to see steady TRx growth as we continue to execute our plan and we’re still in the early stages of launch. And as we previously communicated, we knew it was going to take time to change what’s been decades of entrenched prescribing behavior. And indeed, I think that’s been the case.

Physician feedback continues to be very positive regarding COBENFI’s differentiated profile. And what’s encouraging is that the vast majority of physicians have indicated an intent to prescribe COBENFI. So we’re making steady progress with adding number of new trialists as we’re growing trialists each week, but we’ve been we definitely have an opportunity to continue to accelerate breadth and depth of prescribing. So let me talk a little bit about what we’re doing and also some of what we’re hearing. First, we’re increasing the size of our community field force to increase the reach and frequency as we know it takes multiple calls to change physician behavior.

For your question, the most common question that we receive from physicians is how to switch. And we’re focused on clarifying switching approaches from D2s to COBENFI through peer to peer initiatives, introducing real world data and we also have a Phase four switch study that reads out at the end of the year. I think all of which will help build confidence. And then finally, we’re expanding into the hospital setting. So this is a planned sequence launch first into the community then into the hospital and that opportunity to drive new patient starts.

Patients are typically maintained on treatment from the hospital and then moved into the community. So in the hospitals around twenty percent to twenty five percent of NRxs initiated there. So based on all the leading indicators we’re seeing, we’re confident that COBENPY is going to be a big drug in schizophrenia and longer term will be fueled by additional indicators such as our Alzheimer’s program. So I’ll turn it over to Samit to talk about the Alzheimer’s program.

Samit Hirawat, Chief Medical Officer and Head of Global Drug Development, Bristol Myers Squibb: Yes. Thanks, Adam. And thank you, Chris for the question as well. CoBNP from Alzheimer’s disease perspective, we remain confident in the product and certainly are conducting all our clinical trials with that mindset, not only in the psychosis program, but also for agitation as well as cognition. For ADAPT-two, we’re certainly looking forward to the database lock and we remain blinded to that data at this time.

As Chris mentioned earlier during his prepared remarks, we are also reviewing our pre studies to make sure that internally we give the highest probability of success to all of our programs. And specifically as it relates to ADAPT2, in preparation of that database lock, we are conducting the clinical trial site reviews that could impact the timelines a bit. But with that said, we are still targeting the top line data by the end of the year for ADAPT-two. As far as the filing is concerned, as I think as we mentioned already, we are conducting three studies in Alzheimer’s disease psychosis, ADAPT-two, ADAPT-four, ADAPT-one. ADAPT-four and ADAPT-one will read out in 2026.

And so two of the three studies need to be positive for us to be engaging the authorities for a filing and registration purposes. We are glad where we are in terms of our enrollments and looking forward to the data readouts.

: Great. Thanks, Amit. Next question please.

Conference Operator: The next question will come from Evan Seigerman with BMO. Please go ahead.

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb1: Hi, guys. Thank you so much for taking my question. I wanted to touch on some of the rationale for partnering with BioNTech and specifically what you saw in their PD L1 VEGF bispecific. There’s a lot of assets out there. What attracted you to the partnership with them?

Maybe walk me through some of the differentiation and how you can work with them to accelerate this to potentially be early kind of in the class of assets? Thank you.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Sure. Maybe I’ll just say one word and then I’ll turn it over to both Adam and Samit first. As I mentioned in the prepared remarks, we’re excited about the opportunity that we have with BioNTech. We think this is going to be a really value added partnership for us going forward. One of the things that was particularly attractive was this is an asset that is in a position to be either first or second as this technology evolves.

I mean, we know from our experience in immuno oncology with Opdivo, that that positioning in the marketplace is really important. And so that was one of the factors among many that attracted us to the BioNTech partnership. But maybe, Adam, you and Samit can pick it up from there.

Adam Lemkowski, Chief Commercialization Officer, Bristol Myers Squibb: Yes. Thanks for the question, Evan. So our partnership with BioNTech, I think has the potential to enhance our growth profile in the back end of the decade into the 2030s while strengthening and diversifying our oncology portfolio. As you know, we’ve been a leader in IO now for well over a decade and we do believe that BNT-three twenty seven has the potential to become a new standard of care for many patients and could transform the current landscape as a backbone of cancer treatment. So Chris talked about the importance and certainly learning from Opdivo.

Coming to the market being as a leapfrog to go into a first or second position across tumors is critical. So our focus and some of it will touch on this is around speed to market. We also have the infrastructure in place. We can leverage our capabilities that we’ve built over years commercializing our three IO agents. And so by leveraging our leading commercial and operational capabilities with BioNTech’s scientific expertise, we can help accelerate and broaden the development of the program and explore new indications to maximize the potential.

Samit Hirawat, Chief Medical Officer and Head of Global Drug Development, Bristol Myers Squibb: Yes. And just to build on what Adam just said, look, with two validated targets on a bispecific PD L1 and VEGF, the specificity of delivering the drug to the tumor because of expression of PD L1, that brings a differentiation compared to the PD-one VEGF inhibitors. Of course, we’ll need to continue to watch out the evolution of the data across the tumor types that these drugs are being explored in, but certainly very excited to provide our help as well as support and the collaboration because of our footprint in 50 plus countries to conduct clinical trials. Initiation of the clinical trial certainly as Chris mentioned earlier is in small cell lung cancer, non small cell lung cancer and triple negative breast cancer. But there’s a large CDP that is being built right now and we’ll be able to share that later in the

: Thanks for the background. Next question please.

Conference Operator: Your next question will come from Louisa Hector with Berenberg. Please go ahead.

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb2: Hello. Thank you for taking my questions and maybe a quick thank you to Samit for all the insightful dialogue over the years and good luck. So I wonder if you could quantify the stocking and any gross to net impact. Quite a few mentions, but I don’t know if you have the numbers of year on year as well as the Q2 sequential. And then perhaps on the immunology collaboration with Bain, the spin off, just a little bit more color on the rationale for those particular assets going out.

Will you have opt in rights? And are there any other therapy areas where this externalization approach might be useful? Thank you.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Thanks for the question, Luisa. I’ll ask David to take the stocking in the first part of the immunology question then maybe Samit you can chime in as well.

: Yes. On the raising our guidance by $700,000,000 most of that’s driven by demand. And as we take a look at it about a little less than $200,000,000 was related to FX and the majority of that is in our legacy portfolio and in our IO portfolio, which is where more of that business is relative to our growth portfolio is outside The U. S. And the remaining $500,000,000 is pretty much evenly split between the growth portfolio, the pervasive strength that we saw across many of the brands that I talked about in the prepared remarks.

And then as I talked about also, we raised the Revlimid guidance by $500,000,000 but that will be offset good portion be offset by more erosion we’re seeing at the frac sand price sale in Pomalyst. But overall, it’s a strong raise. We’re really pleased with the performance of the growth portfolio and seeing that going into the remainder of the year. So your last question, there was very little stocking that we saw within the quarter. So this is good underlying demand growth.

Samit Hirawat, Chief Medical Officer and Head of Global Drug Development, Bristol Myers Squibb: And just to add to what you asked and what David just said, from an immunology perspective, we’ve always talked about three elements of targeting the immunology immunological diseases inflammation, resetting the immune system and then creating a homeostasis. And within the inflammation part, we do have SOTIQ2, which is already approved in psoriasis. We recently submitted around the world applications for psoriatic arthritis and we are pursuing additional indications in SLE and Sjogren’s syndrome. We have LPA1 in IPF and DPF as we heard before, IPF will read out next year. But what we are truly really excited about is the resetting of the immune system through the use of cell therapies and that’s where the emerging data is quite exciting as we think about SLE and more data that will be emerging in systemic sclerosis, myositis, MS as well as myasthenia gravis.

And with the initiation of the pivotal trial, now we have to enroll that as quickly as possible and in a couple of years start to see how we can impact that disease in a positive way.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: And just to sort of dovetail back on the rationale for this particular agreement with Bain and how we would think about this going forward. The creation of the new company centers around five assets, three of those assets are clinical stage two or Phase one ready. We have been discussing as you know for the better part of the last eighteen months being diligent to some of its point around portfolio prioritization focusing on those areas where we have a right to win. And as you do that, there are naturally projects that may not make the pay line for us, but still have compelling science or commercial opportunity and this agreement is a nice way for us to continue to progress those assets while retaining the ability to benefit from any upside. And of course, we’ll continue to look at innovative ways to do precisely that as we go forward, whether or not we’ll be able to leverage a mechanism like this remains to be seen, but we really like this particular structure for these assets and we’re happy to kick this off with Bain.

: Great. Thank you. Operator, next question please.

Conference Operator: Your next question will come from David Asalam with Piper Sandler. Please go ahead.

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb3: Thanks. I wanted to ask about KAMZIOS and particularly competitive dynamics with the second myosin inhibitor potentially entering the market by the end of the year early next year. I guess my question here is how are you thinking about your ability to drive a steady cadence of new starts with the additional competition particularly to the extent that aficamtan’s REMS potentially is less onerous in terms of echo monitoring. Just how are you thinking about that and your ability to grow the asset not really this year, but longer term, as competitive dynamics intensify? Thank you.

Adam Lemkowski, Chief Commercialization Officer, Bristol Myers Squibb: Thanks for the question, David. We’ll ask Adam to handle that one. Yes, David. So we’ve continued to deliver strong growth with Camdios. We’re very pleased with performance as we’ve continued to increase new patient starts and we’ve established a strong revenue base and we expect that to continue from the expansion of our prescriber base coupled with high persistency.

The feedback on our REMS label change has been very positive that eases the burden of echo requirements for both patients and physicians. And although it’s still early days post the label change, we’ve seen physicians treat more patients at the COEs and we’re also making very good progress expanding in the community. As far as Avacamten, we don’t see any meaningful clinical differentiation there. Camden also set a very high bar for efficacy and safety. We have compelling real world data across now thousands of patients and we’re continuing to grow that every week.

And it’s going to be important to see what their label looks like. But we remain focused on driving growth by broadening our prescriber base from the COEs into the community and we will be prepared for Avakamtiv when it comes to market and we will maintain a consistent view that we will remain leaders in this space.

: Great. Thanks, Adam. Let’s move to the next question.

Conference Operator: The next question will come from Dave Risinger with Leerink Partners. Please go ahead.

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb4: Thanks very much and congrats on the strong financial performance. So Chris you had highlighted MILVEXI in first when you discussed major pipeline candidates to watch in coming years. And since the Street consensus only models 2032 sales of $2,300,000,000 that reflects a lot of skepticism. So, if you and maybe Sanit could just help us better understand what you think investors under appreciate about MILVEXION’s likelihood of success in secondary stroke, ACS and AF? Thanks so much.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Yes. Thanks for the question, Dave. Why don’t we have Samit, you start and then Adam, maybe you can speak to commercial opportunity.

Samit Hirawat, Chief Medical Officer and Head of Global Drug Development, Bristol Myers Squibb: Yes. Thank you for the question, David. At MILVEXIAN, we’ve spoken before about the way we have thought about the development plan. There were two, well conducted studies to define the doses and the doses we differentiated as a single agent versus combination with a background of dual antiplatelet therapy. For atrial fibrillation, we chose the dose of one hundred milligrams BID and you saw the results from the competitor program where the doses did not hit, the overall event rate was much higher.

We have the DMC that continues to observe our data sets. We’ve enrolled the 20,000 patients in the AF trial. We look forward to the outcomes, but certainly the overall event rate remains low in that program at this time. For secondary stroke prevention and ACS, again, those trials are enrolling really well and we have chosen the dose of twenty five milligrams BID to be able to give a safe region of dosing these patients because of the background of dual anti platelet therapy. Again, DMC continues to look at the data and the studies continue and next year we will be reading out.

So I think there is an under appreciation of that differential dosing patterns that we’ve chosen for the two and what we observed in the Phase two programs in TKI as well as SSP that supported these studies.

Adam Lemkowski, Chief Commercialization Officer, Bristol Myers Squibb: Yes. From a commercial perspective, Dave, this is a significant commercial opportunity across all three indications. We think this has multi blockbuster potential. So in atrial fibrillation, the fear of bleeding continues to be the main reason why clinicians hold back from using Factor X in more patients, approximately forty percent of patients still remain untreated or undertreated, leaving them at risk for a stroke. And we know that’s due to safety.

We believe that a differentiated bleeding profile can drive demand in this untreated, undertreated patient population. In ACS also a high unmet need remains. One in three ACS patients are going to experience a second cardiac event within a year and we know there’s been very limited success in combining Factor X with antiplatelet therapies due to bleeding profile. So we expect to show meaningful improvements on top of antiplatelet therapy. And finally in secondary stroke prevention, similarly around twenty five percent of stroke survivors experience additional preventable strokes.

And so you saw the data, the Phase two data that reinforced Movexian’s differentiated profile that showed a clinically meaningful reduction in recurrent stroke. We believe there is a significant opportunity to combine antiplatelets with, these new agents like Mobexian and are not indicated to the risk of bleeding. So taken together, we’re very excited about this program.

: Great. Thanks

: very Thanks very much.

: Question please.

Conference Operator: The next question will come from Asad Haydar with Goldman Sachs. Please go ahead.

Samit Hirawat, Chief Medical Officer and Head of Global Drug Development, Bristol Myers Squibb: Great. Thanks for taking the question and congratulations on the results. Two quick ones. First, just with respect to the cost optimization program, can you just elaborate on how you’re thinking about the pushes and pulls related to capital needs, given that you also have to support expenditures like the $40,000,000,000 announced CapEx as well as large and potentially costly development programs related to expediting the PDL-one VEGF Phase III clinical trials in the wake of the BioNTech deal and then you also have the debt pay down in PD. So any updated thoughts on costs and margins as it relates to your goals of shortening the depth of earnings, the earnings trough relative to these new investments and the ultimate return to growth would be helpful.

And then two, just perhaps just very quickly on the debt to just given that’s imminent, just remind us on how we should be thinking about the read across from that trial to ADEPT-one and ADEPT-four in 2026? Thank you.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Thanks for the question, Saad. Maybe I’ll ask David to start and then Sami, you can quickly hit on ADEPT-two.

: Yes. So thanks for the question. A couple of things. I think you hit on multiple points there, cash allocation, capital allocation, but as well as margins as it relates to our productivity initiatives. And just as a reminder, we initiated a $1,500,000,000 initiative back at the 2023, knowing that we had several business development deals that we had at the fund.

And that was $1,500,000,000 And we completed finding those funds last year and reallocated that to the programs that we talked about particularly around Cobenefit with the multiple clinical programs that we have in place there, but as well as Raise Bio and funding those types of investments. And also don’t forget Systimmune, very important program that we have there that we’re funding that clinical program. Then this year, we announced the $2,000,000,000 strategic productivity initiative, which a lot of confidence in being able to deliver that.

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb4: We’re going to deliver $1,000,000,000

: of that this which we said that $2,000,000,000 by 2027 will drop to the bottom line. But what that also does is that helps our cash flow position. It gives us more capital to allocate towards business development, as well as enables us to do up invest. And I think this quarter is a great example of that where we saw some opportunities, the number one BioNTech deal funding those clinical studies as you heard, from Summit around particularly around lung and breast. But also what that enabled us to do is, Adam had some up investment opportunities in the growth portfolio and we were able to invest behind those.

So we feel really good about the capability that we’re building here and the ability to reallocate resources, that are going to drive growth and strengthen the long term growth profile of the company at the end of the decade. And the last thing I’d say is like we have a significant number of Phase three programs that are ongoing right now. And as Chris talked about, over the next eighteen to twenty four months, we have iveratomide, mezigdemide Phase three programs coming down. We also talked about mevlexion Phase three programs that are reading out at the end of next year and AFib reading out. So we have a lot of Phase three programs that are coming down, which enables us to reallocate those to like the multiple Phase three programs we’ll be doing with COBENFI and with the biotech partnership.

So, I’m just really proud of the entire team and the amount of effort and these productivity initiatives in order to fund growth.

Samit Hirawat, Chief Medical Officer and Head of Global Drug Development, Bristol Myers Squibb: Yes. And just to take on the second question on ADAPT-two, ADAPT-one, ADAPT-four, remember ADAPT-one is a study for relapse prevention, which is now a thirty six week study because twelve weeks of open label period and then patients the responders are randomized to then look for placebo versus the continuation of cobenefi to see when the relapse occurs. And then ADAPT-four is similar to ADAPT-two, except in ADAPT-four we are paying more attention to enrollment of biomarker positive patients as well. So overall, as I said earlier, two of the three trials are required in terms of positivity to be able to engage the authorities and discuss the approvals. So we are truly excited about that.

Looking forward to the top line at the end of the year for ADAPT-two and then next year will be ADAPT-one and ADAPT-four.

: Great. Thanks, Amit. Let’s move to the next question please.

Conference Operator: The next question will come from Seamus Fernandez with Guggenheim Securities. Please go ahead.

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb5: Thanks so much for

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb4: the question. So just wanted to get a better sense. It sounds like the trajectory for COBENFI continues to be quite robust from your perspective. Historically, you’ve talked about other relative launches like the launch of cariprazine as a good relative marker. Just wanted to get a sense of if that relative comp continues to be sort of a focus point for Bristol right now and where you see the incremental meaningful opportunities to accelerate those scripts?

Is it more in gaining access to the Medicare population or is it in additional indications as kind of the next meaningful leg of growth to really drive towards that relative comp of cariprazine? And then just a quick second question, really just kind of hoping to better understand how sustainable the spend is here relative to sales. It seems more like you’re kind of modeling the spend relative to future sales, to then be consistent with where the sales are likely to kind of trough. Is that the right way to think about it? Or do you actually think that this is a sustainable sort of margin threshold within the context of Bristol Myers Squibb?

Thanks so much.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Thanks for the question, Seamus. Maybe I’ll have Adam start and then David from there.

Adam Lemkowski, Chief Commercialization Officer, Bristol Myers Squibb: Yes. Seamus, thanks for the question. And as I said previously, we expect to see continued steady TRx growth, as we execute the plan that I outlined. Coventry is tracking far ahead of all branded schizophrenia launch benchmarks. So we’ve now achieved over 45,000 TRxs since launch.

And I think the big opportunity is to continue to change the treatment paradigm and unlock this entrenched prescribing behavior that has existed now for decades. And so that’s why we are in fact focusing on driving number of increasing number of trial is depth and breadth of prescribing. What I look at on a weekly basis is how we’re doing in adding number of writers, what’s our depth and breadth of prescribing, what’s the intent to prescribe. All those leading indicators we see are very, very positive. There’s not a great analog to be frank since there’s been nothing in this space for so long, but we’re very pleased with what we’re seeing thus far.

And based on everything that we continue to see and hear from physicians, we’re confident that COBAPTY is going to be a big drug in schizophrenia. Last thing that I’ll mention is just every week we get feedback from physicians and patients and just last week we received a feedback from a physician that said, he stopped the medicine for the patient and started on Cobenefit. And now the patient’s thinking about his future is including signing up for a class with improvements in attention, judgment and insight. And that’s just a small sample of what we hear every single week from physicians and patients. So again, increasing our confidence that this is going to be a big drug in schizophrenia.

As you heard from Chris, Samit, David and myself, longer term, this product is going to be multibillion dollars fueled by additional indications.

: And Seamus, thanks for the question on margins. Just a couple of things just to keep in mind. One, when we think about operating margins, we have a tremendous amount of financial flexibility. A big part of that’s driven by our strategic productivity initiatives that we demonstrated, not only the $1,500,000,000 that we reallocated to our growth drivers last year, but the additional 2,000,000,000 of savings were driving by $27,000,000,000 But also let’s not forget gross margins. We’re going through a period right now of gross margin declines as some of our higher legacy margin products like Revlimid and Pomalyst come down have provided gross margin pressures.

But then on the other side as time progresses over the next few years, you’re going see gross margins will begin to improve driven by two things. One is our growth portfolio now is over 54% of our total business. That portfolio, the average gross margin of that is higher than our company average today. So that’s going be accretive. And obviously with the significant growth we’re seeing in that portfolio that’s going to be accretive to our gross margins.

But also recall, we’ve guided Eliquis and as that comes down and goes generic at 28, that’s another factor that will really help our gross margins improve as we go towards the back half of the decade. So we feel really good about being able to manage the productivity of this company. The other thing I would say though is what Chris and I have consistently said is we’re going to continue to invest in the long term growth drivers of the company. And I think you saw that this quarter and we’ll continue to do that as we see opportunities. And also as I just said earlier, if you just look at the natural progression of our development spend, we have many programs that are coming off as we’re up investing in Covenxi and BioTek.

So what Summit and Adam have been able to do is reallocate resources from older brands to new brands. And look, Eliquis is a great example on the commercial side of that. We’re able to move resources from Eliquis to Kamsiyas and eventually to Movexian. I think Opdivo is another example of that where as BioNTech’s, as we bring three twenty seven to the marketplace, we’ll be able to reallocate resources from Opdivo to that. So strategically, we’re being really smart about where we’re driving growth and being able to reallocate resources to those growth opportunities.

: Great. Thanks, David. Let’s move to our next question please.

Conference Operator: Our next question will come from Carter Gould with Barclays. Please go ahead.

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb5: Hi, good morning. Thanks for taking the question. A little bit of a change of pace here, but if you’ll indulge me, I always appreciate your view on the policy side, Chris. IP is under attack across the industry from multiple sources, but most notably compounding. While Bristol is not directly impacted today, it’s not unreasonable if left unchecked, that Bristol could be impacted in the future.

Does Bristol share this view? And are there efforts you’ve taken either independently with peers, pharma or in consultation with the administration to more staunchly advocate defensive IP in the space?

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Thanks Carter and I appreciate the change of base. Always happy to talk policy. So I think one of the things that we’ve consistently said about the policy environment we operate in is that it’s an ecosystem. It’s an ecosystem that has multiple parts and components. And obviously, we spend a lot of time talking about changes at FDA and NIH and potentially the impact of policy proposals like MFN.

But I think the point you’re raising is one that’s critically important is underpinning all of this ecosystem is intellectual property and the protection of intellectual property. What I would say is, generally speaking, we’ve continued to see a lot of pressure on multiple fronts. Internationally, that’s been the case. We’ve seen it in the example that you cited. There are obviously differences with perspective on IP coming from different sectors of the economy.

The nice thing that we have done as a company is we’ve got a very strong IP team. The leadership of that IP team at the company has in turn become leaders of IP for the industry. And so we feel that as a company we’ve been front and center in helping to shape a positive environment around IP. There are a lot of efforts across both bio and pharma to continue to maintain a strong IP environment. But IP is one of those things that you never take your eye off of the ball on, just given it is so central to the ecosystem that we have and underpins really the success that we’ve had as a country and leading in the biopharmaceutical biopharmaceutical space.

So it’s a great question and something that we continue to stay focused on.

: Great. Thanks, Chris. Next question please.

Conference Operator: The next question will come from Akash Tewari with Jefferies. Please go ahead.

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb6: Hey, thanks so much. So for COVENCY in the emergence schizophrenia trial, you had about eighty percent of patients get to the high dose. Given there’s a clear issue with dropouts in the original ZENOMINI study and there’s a clear dose response, What percentage of patients do you think for your upcoming AD psychosis study get to that one hundred fifty mg or two hundred mg dose? What dropout rate have you powered for this upcoming study? And then maybe stepping back, is Bristol still as bullish on the probability of success in the study as when the original Corona deal was announced?

And was there something about site conduct in the adjunct trial that made you concerned about it for the upcoming AD psychosis study? Thank you.

Samit Hirawat, Chief Medical Officer and Head of Global Drug Development, Bristol Myers Squibb: Got it. I’ll start off and there’s a lot of questions in there. I’ll try and address as much as I can. Keeping in mind, we are at a place where we are totally blinded to the data, so cannot comment on the specificities. As you know, the trial is designed with four dose escalations on week one, two, three and four.

Of course. The fourth one, the two hundred milligram of Covenpure CAR XT with twenty of trospium is an optionality, but of course dependent on the tolerability. Remember, there’s a huge difference between AD psychosis trial that we are conducting versus the thirty year ago is the normally only studies that was conducted because of the tolerability issue where patients did go off treatment much more and the number of completers was limited because of the toxicity. So I would not necessarily draw true conclusions directly from that trial. Also over there when we talk about the impact on some of the endpoints, much attention was paid to the cognition endpoint ADAS Cog, where the analysis was conducted and that significance was seen only in the ADAS Cog highest dose level.

For the psychosis related symptomatology, we did see dose dependent improvements, but of course the pairwise analysis was not conducted. We did see hallucinations, delusions, aggression, suspiciousness, all of those endpoints quite meaningfully impacted. So overall, we are really looking forward to the data from ADAPT-two and that will help us guide in terms of the future discussions around this once the data are available.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: And what I would say just in general is just to close out that is that the company remains very excited about the potential for CoBINFI in Alzheimer’s disease psychosis as well as the underlying science behind that indication.

: Great. Thanks Chris and Samit. Next question please.

Conference Operator: The next question will come from James Shin with Deutsche Bank. Please go ahead.

Chuck Triano, Senior Vice President and Head of Investor Relations, Bristol Myers Squibb7: Good morning. Thank you for the question. One for Chris. Chris, you followed through with picking winners and calling losers from Bristol’s pipeline. So once Christian settled to his seat, what sort of changes can we expect from the early stage pipeline or the business development strategy?

And maybe should investors expect a shift in Bristol’s trough? Thank you.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Thanks for the question. Look, I think that we’re doing everything we can as a management team today to do two things. One is shorten the time period that we’re in a drop and make sure that we’re driving sales as quickly as possible, so that we can exit the decade with the strongest growth profile that we can. And you see that across the board both with respect to the strength of the business and our existing growth portfolio. The fact that we’ve got a robust pipeline of mid to late stage assets that can continue to progress nicely.

And the fact that we’re continuing to be very disciplined so that we have the financial flexibility to where it makes sense for the company continue to source innovation externally. With respect to the impact that Christian will bring, look, I think in many respects, not just with respect to the early pipeline, but really across drug development, there’s going to be a focus that we have on execution. As we’ve talked about our pipeline and delivering on that pipeline is very important. And so we have to be acutely focused on strong execution. Christian has a very strong background in that respect across his career, particularly with respect to his last company.

Also when you think about executing at scale ensuring that you have the strongest highest performing teams with the best people that you can find is going to be important. And again, he has a very strong track record there. The last two things I would say that we expect him to bring to the table are first a continuation of some of the work that Samit and his team have already started. Samit’s really led an effort to rethink how we’re thinking about drug development, everything from where and how we have our teams working to the employment of AI and technology. And we need to see that work continue and in some places accelerate.

And then the last thing I would say is anytime you bring somebody in from outside the company, you would expect that they would bring a different approach, different level of energy, a different way of thinking. And so I think there’s an opportunity for a refresh there as well. But overall, Samit’s team has put together a very nice foundation that Christian will benefit from and we look forward to seeing him join the company starting tomorrow.

: Thanks, Chris. And we know you all have a busy day with other companies reporting and other calls. So operator, if we could take our last question please.

Conference Operator: Our last question today will come from Steven Scala with TD Cowen. Please go ahead. Thank you so much. On the Q1 call Bristol said that they were exploring a path forward for cobenefi arise data, but that they needed to review all the data and talk with regulators. I’m wondering has this additional analysis occurred and have the discussions already taken place?

And if so, is there a path forward? And then secondly on SUTIC-two, can you clarify whether it’s been filed in psoriatic arthritis? And what is your level of confidence and success for lupus and Sjogren’s? Thank you.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: Thanks for the question, Steve. I’ll ask Samit to take both of those.

Samit Hirawat, Chief Medical Officer and Head of Global Drug Development, Bristol Myers Squibb: Yes. So thank you, Steve. Always great questions from you for Arise. No conversations have occurred from perspective. We are continuing to look deeper into the data, also understand the distribution of patients to the various cohorts within the study.

So certainly when and as new data become available from an analysis perspective, we’ll be able to share it in the future conferences and future conversations as well. For SOTIC-two, certainly very happy that the submissions have occurred for psoriatic arthritis, looking forward to those engagements and see that to fruition. For SLE, remember what the data the Phase three trials were based on the outcomes of the Phase two study that was very well conducted. And we have learned from those studies that this heterogeneous population hands on data cleaning as well as data activities are very important. So we are very carefully continuing to clean the data as we in real time as we continue to enroll the patients.

And then of course, Sjogren’s is the other one. The good news is these studies are enrolling really well and we look forward to the readouts towards the back end next year onwards.

Chris Berner, Board Chair and Chief Executive Officer, Bristol Myers Squibb: So thanks everyone. As Chuck mentioned, we know it’s a very busy morning. So I want to thank you all for joining. As always the team will be available. Let me just say in closing that we continue to make very good progress reshaping the company for long term growth.

Importantly, hopefully you’re seeing that we’re driving execution really across the business and that’s yielding the results that we saw in the quarter. Second half is going to be a very busy time at the company, but we feel very good about the momentum coming into the second half of the year. And then again before I sign off, I just want to again say a big thank you to Samit for all of the contributions and the leadership that he’s had at the company over the last six years. And with that, I wish you all a good rest of the day and rest of the week. And as always reach out if you have questions.

Thanks.

Conference Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.

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