Asad Haider

Asad Haider requested an update on the Opdivo Subcutaneous formulation launch progress, asking if Bristol Myers Squibb is on track for 30%-40% patient conversion by 2028 and for color on the types of patients utilizing it.

Answer

Adam Lenkowsky, Executive Vice President and Chief Commercial Officer, reported satisfaction with Opdivo Subcutaneous's first full year launch, noting use across multiple tumor types (RCC, GI, metastatic melanoma) in both monotherapy and combination settings. He confirmed a nice acceleration of new accounts post-July J-code receipt and confidence in achieving the 30%-40% patient conversion target by 2028, ahead of the LOE.

Asad Haider asked for an update on the Opdivo Subcutaneous formulation launch progress, specifically if Bristol Myers Squibb is on track for 30-40% patient conversion by 2028, and requested color on the types of patients utilizing it.

Answer

Adam Lenkowsky (Executive Vice President and Chief Commercial Officer, Bristol Myers Squibb) expressed satisfaction with the Cuvantic (Opdivo Subcutaneous) launch, noting its use across multiple tumor types in both monotherapy and combination settings. He confirmed that the permanent J-code received in July eased reimbursement, leading to an acceleration of new accounts. Bristol Myers Squibb remains confident in achieving the 30-40% conversion of the IV business by 2028.

Asad Haider questioned the shape of Bristol Myers Squibb's strategic productivity initiatives, particularly the $1 billion in cost savings for 2025 and the $2 billion target by 2027, in the context of potential R&D expenses for BNT327 and other Phase 3 programs, and its impact on margin trajectory. He also asked Christian Masetti for his early thoughts on the pipeline and any particularly encouraging programs.

Answer

Chris Boerner, Board Chair and CEO, emphasized balancing investments for growth (pipeline, R&D, commercial) with financial discipline. David Elkins, Chief Financial Officer, highlighted strong growth portfolio performance, confirmed being on track for $1 billion in efficiency commitments this year and $2 billion by 2027, and noted numerous Phase 3 programs completing. He expressed confidence in managing the cost base and maintaining P&L flexibility. Cristian Massacesi, Chief Medical Officer and Head of Global Drug Development, expressed excitement for milvexian (novel Factor 11a, potential first/only in AFib/ACS/SSP), ArmiParent (IPF/PPF, strong Phase 2 data), and scientific platforms like protein degradation (iberdomide Phase 3 data) and cell therapy for autoimmune diseases (CD19 CAR T, Orbital acquisition).

Asad Haider asked about the shape of the $1 billion in cost savings from strategic productivity initiatives over the next couple of years, considering potential R&D expenses for BNT327 and other phase III programs, and the implications for margin trajectory. He also asked CMO Christian Massacesi for his early thoughts on the pipeline and particularly encouraging programs.

Answer

CEO Chris Boerner emphasized balancing investments for growth with financial discipline. CFO David Elkins confirmed strong growth portfolio performance and being on track for $1 billion in efficiency savings this year, with clear line of sight to $2 billion by 2027. He highlighted P&L flexibility and financial discipline to manage the cost base through the transition. CMO Christian Massacesi expressed excitement for COBENFY, Milvexian (especially its potential as the only Factor 11A in NAF and ACS), and Admilparant in pulmonary fibrosis, as well as the protein degradation and autoimmune cell therapy platforms.

Asad Haider of Goldman Sachs asked how BMY is balancing its cost optimization program with significant capital needs for new deals and development programs, and also requested clarification on the ADAPT-2 trial's read-across to other studies.

Answer

EVP & CFO David Elkins explained that ongoing strategic productivity initiatives provide the financial flexibility to fund new deals and R&D priorities while also reallocating resources from concluding trials. EVP & Chief Medical Officer Samit Hirawat clarified that the three ADAPT trials have distinct designs and that two of the three will need to be positive to support a regulatory filing.

Asad Haider asked for the drivers behind the 'renewed emphasis' on business development and inquired about the company's preferences regarding deal size, therapeutic area, and focus on near-term versus earlier-stage assets.

Answer

CEO Christopher Boerner clarified that the focus on business development has not changed and remains a top priority. He stated that the company does not filter by deal size but rather by a consistent set of criteria: strengthening key therapeutic areas, ensuring BMS is the rightful owner, favorable financials, and improving the company's growth profile at the end of the decade.

Asad Haider from Goldman Sachs asked about the contracting environment across Eli Lilly's incretin portfolio and the company's view on price elasticity within the cash channel for obesity medicines.

Answer

Ilya Yuffa, President of Lilly USA and Global Customer Capabilities, stated that commercial access started 2026 stable, with Zepbound covered by two of three large PBMs, and ongoing discussions for Orforglipron. He reiterated transparency on 2026 Part D and direct-to-patient pricing. On price elasticity, he noted that affordability and predictable costs matter, citing the $50 Part D copay and increased utilization of Zepbound vials after the $299 entry price, and expects similar trends for Orforglipron. Mike Czapar, SVP of Investor Relations, directed the question.

Asad Haider asked about the contracting environment across Lilly's incretin portfolio, focusing on pricing dynamics, and the company's view on price elasticity within the cash channel as the year progresses.

Answer

Ilya Yuffa, President of Lilly USA and Global Customer Capabilities, stated that commercial access and contracting started 2026 similar to the end of 2025, with Zepbound covered by two of three large PBMs and ongoing discussions for Orforglipron. He noted transparency on 2026 pricing for Part D and direct-to-patient, with an improved entry price of $299 for Zepbound vials. He emphasized that affordability and predictable costs matter, citing increased utilization of Zepbound vials and encouraging uptake in the oral market, which is expansive.

Asad Haider asked about orforglipron's pricing and volume dynamics ahead of launch, specifically regarding the rapid growth in the cash-pay channel for obesity (Zepbound vials) and learnings from ex-U.S. price elasticity (U.K. Mounjaro price increase) for orforglipron's ramp.

Answer

Ilya Yuffa, President of Lilly USA and Global Customer Capabilities, discussed significant growth in the cash-pay channel, particularly via Lilly Direct, and the importance of expanding offerings like orforglipron for patient accessibility. Patrick Jonsson, President of Lilly International, noted learnings from the U.K. price increase (stopping exports, consumer pricing elasticity) and believes orforglipron will meet a different need for patients with BMI below 35, offering scalability and no refrigeration, complementing other OUS offerings.

Asad Haider questioned orforglipron's pricing and volume dynamics ahead of launch, focusing on cash pay channel growth, Zepbound vial uptake, learnings from Mounjaro's ex-U.S. price elasticity (U.K.), and implications for U.S. vs. OUS volume unlocks.

Answer

Ilya Yuffa, President of Lilly USA and Global Customer Capabilities, highlighted significant growth in the direct-to-consumer channel and Zepbound vial uptake. Patrik Jonsson, President of Lilly International, discussed learnings from the U.K. Mounjaro price adjustment, consumer pricing elasticity, and how orforglipron will meet different OUS needs.

Asad Haider of Goldman Sachs Group, Inc. inquired about the LillyDirect channel, asking where Zepbound growth might stabilize, its impact on pricing, and if the company's view of it as a 'hedge' has evolved.

Answer

Lucas Montarce, CFO, confirmed the company still views LillyDirect as a 'hedge strategy' to bridge the gradual progression of employer coverage. He highlighted its success, noting 1.1 million total prescriptions in Q2, and stated that the channel is progressing very nicely and contributing significantly to overall performance.

Asad Haider asked about the investor concerns following the CVS formulary announcement to exclude Zepbound, questioning the expected impact on market share and Lilly's strategy for navigating PBMs potentially restricting access.

Answer

Chair and CEO David Ricks stated that the announcement was not surprising given Zepbound's market share gains. He emphasized that Lilly is not interested in exclusive 'one-of-one' deals that reduce patient choice and is focused on developing better, more accessible medicines like orforglipron. Ricks noted the CVS decision affects a smaller book of business with historically low employer opt-in rates for obesity coverage.

Asad Haider questioned the evolution of AbbVie's oncology portfolio, particularly with novel-novel combinations like the PD-1/VEGF bispecific with ADCs, and the expected commercial impact of Trenibot E post-approval.

Answer

Roopal Thakkar, EVP, R&D, and Chief Scientific Officer, discussed Temab-A's rapid efficacy and tolerability, its combination with PD-1/VEGF for durability, and the use of biomarker approaches. He also mentioned pipeline gaps like T-cell engagers and selective KRAS inhibitors. Jeff Stewart, EVP, Chief Commercial Officer, stated that Trenibot E's sales impact would largely accrue to Botox, with launch effects gated to late 2026/2027, aiming to double patient inflow into the toxin market and increase Botox's share.

Asad Haider asked about the evolution of AbbVie's oncology portfolio, particularly novel-novel combinations with new PD-1/VEGF bispecific and existing ADC assets, and for quantitative framing on the expected impact of Trenibot E's approval and launch on the aesthetics franchise.

Answer

Roopal Thakkar, Executive Vice President, Research and Development, and Chief Scientific Officer, detailed the oncology strategy, focusing on Temab-A (c-Met ADC) for rapid efficacy and better tolerability than chemotherapy, combined with PD-1/VEGF in various solid tumors. He mentioned a biomarker approach for differentiation and ongoing efforts in T-cell engagers and KRAS inhibitors. Jeff Stewart, Executive Vice President, Chief Commercial Officer, explained that Trenibot E's sales impact would largely accrue to Botox, primarily in 2027 and beyond, by stimulating market inflow (potentially doubling new patients) and increasing conversion rates to full-strength Botox due to its short duration.

Asad Haider asked Rob Michael for updated thoughts on M&A strategy following recent acquisitions, confirming if the focus remains on 2030s growth, prioritizing core therapeutic areas, and appetite for larger deals.

Answer

Rob Michael, Chairman and CEO, reiterated that BD focus remains on assets for growth in the next decade and beyond, emphasizing novel mechanisms and platform technologies. He confirmed core therapeutic areas (immunology, neuroscience, oncology, aesthetics) plus obesity as priorities, and while having the financial capacity for larger deals, the current portfolio's clear growth runway allows focus on long-term pipeline opportunities.

Asad Haider asked for an update on AbbVie's M&A strategy following recent acquisitions like Capstan and Gilgamesh, inquiring about business development priorities geared towards the 2030s, preferred therapeutic areas, and appetite for larger deals.

Answer

Chairman and CEO Rob Michael reiterated that BD focus remains on assets driving growth in the next decade and beyond, emphasizing novel mechanisms and platform technologies in immunology, neuroscience, oncology, aesthetics, and obesity. He noted the financial capacity for late-stage opportunities but highlighted the current portfolio's clear growth runway, leading to a focus on robust depth for long-term pipeline opportunities.

Asad Haider of Goldman Sachs asked a broader question about AbbVie's oncology franchise, its view on the PD-1/VEGF inhibitor class, and the criteria for potential business development in that area.

Answer

EVP & CSO Roopal Thakkar responded that AbbVie is monitoring the class and is interested in assets that could partner well with its internal ADC platform. The key strategic consideration would be finding a combination partner that aligns with AbbVie's focus on optimizing the benefit-risk profile and enhancing tolerability.

Asad Haider from The Goldman Sachs Group, Inc. asked about the current stage of Pfizer's portfolio pruning or realignment efforts, referencing the recent divestment of the HIV joint venture with Glaxo and the new reorganization incorporating global hospital and biosimilar businesses.

Answer

Dr. Albert Bourla, Chairman and CEO, Pfizer, stated that most of the pipeline pruning has been completed, with ongoing efforts focused on investing in key assets. Dr. Chris Boshoff, Chief Scientific Officer, Pfizer, added that the company is focusing on four therapeutic areas, with significant prioritization in 2025 leading to $500 million in R&D savings reinvested into Phase 3 programs. Dave Denton, CFO, Pfizer, noted that monetizing non-strategic assets like ViiV allows for capital redeployment at higher returns and highlighted ongoing efforts to drive productivity across the sterile injectable and biosimilar portfolio.

Asad Haider asked about the current stage of Pfizer's portfolio pruning and realignment efforts, referencing the recent divestment of the HIV joint venture with Glaxo and the new reorganization incorporating the global hospital and biosimilar business.

Answer

CEO Albert Bourla indicated that most of the pipeline pruning has been completed, with ongoing efforts focused on investing in promising programs. Chief Scientific Officer Chris Boshoff added that R&D is focused on four therapeutic areas, with significant prioritization in 2025 leading to $500 million in R&D savings reinvested into phase III programs. CFO Dave Denton noted that the ViiV divestment was an example of monetizing non-strategic assets to redeploy capital for higher returns, and the new sterile injectable and biosimilar group aims to drive productivity.

Asad Haider asked about Pfizer's business development (BD) plans if the Metsera acquisition does not proceed, and requested early framing on 2026 guidance, particularly regarding OpEx with and without Metsera, and further color on the dilution from the MFN deal.

Answer

Dave Denton, CFO, Pfizer, confirmed that Pfizer retains significant resources for business development and continues to aggressively pursue acquisitions across its therapeutic areas globally. He deferred detailed 2026 guidance until year-end but noted that current investments in Metsera and 3SBio are expected to have a slightly dilutive effect on operating performance next year. Andrew Baum, Chief Strategy and Innovation Officer and EVP, Pfizer, added that BD efforts are active across all geographies, especially China. Albert Bourla, Chairman and CEO, Pfizer, also contributed.

Asad Haider asked about Pfizer's business development plans if the MedSera acquisition does not materialize. He also sought early insights into the 2026 guidance, particularly regarding OpEx with and without MedSera, and clarification on the dilutive impact of the MFN deal.

Answer

Dave Denton, CFO, explained that Pfizer retains significant resources for successful transactions across its therapeutic areas and continues to actively identify acquisition candidates globally. He noted it was too early for exact 2026 guidance, but current investments (MedSera, 3SBio) would have a slightly dilutive effect. Andrew Baum, Chief Strategy and Innovation Officer and EVP, added that Pfizer is active in all geographies, especially China, and has increased its team there.

Asad Haider of Goldman Sachs sought clarity on what factors could cause significant swings in the company's quantified expectations for MFN's impact and whether the range of potential outcomes is narrowing.

Answer

CEO Albert Bourla reiterated that while the company has modeled numerous scenarios and mitigation plans, he could not disclose details or probabilities as they are in the middle of active discussions and negotiations with the administration. He stated it would be inappropriate to 'open the cards' at this time.

Asad Haider of Goldman Sachs asked what factors could cause large swings to the MFN impact expectations that are now reflected in the company's guidance.

Answer

Chairman & CEO Albert Bourla stated that while the company has modeled numerous scenarios with mitigation plans, it would be inappropriate to disclose details or probabilities of potential outcomes while in the midst of active discussions and negotiations with the administration.

Asad Haider asked about competitive dynamics for Vyndaqel, data timelines for the oral GIPR antagonist, and the biggest disconnects between analyst models and internal expectations for upcoming Phase III readouts.

Answer

Aamir Malik, Chief U.S. Commercial Officer, and Alexandre de Germay, Chief International Commercial Officer, both described strong growth for Vyndaqel driven by diagnosis and access. Chief Scientific Officer Chris Boshoff projected GIPR antagonist data in early 2026. Chief Strategy and Innovation Officer Andrew Baum identified two ADCs (SP, PD-L1V), the C. diff vaccine, a CDK4 inhibitor, and ponsegromab as key assets potentially undervalued by the Street.

Asad Haider from Goldman Sachs inquired about Johnson & Johnson's strategy to achieve double-digit revenue growth by the end of the decade, particularly given its approaching $100 billion revenue base. He sought clarification on the key drivers, including organic pipeline, M&A, and portfolio pruning, and the current stage of strategic repositioning towards higher-growth segments.

Answer

CEO Joaquin Duato outlined the confidence in achieving double-digit growth, citing the strength of the portfolio and pipeline across six key areas: oncology (targeting $50 billion by 2030 with Darzalex, Carvykti, Tecvayli, Rybrevant, Inlexo), immunology (Tremfya exceeding $10 billion, Icotide as a new oral IL-23 blocker, and a co-antibody therapeutic), and neuroscience (Spravato and Caplyta). In MedTech, he highlighted cardiovascular (Abiomed, Shockwave, PFA expansion), surgery (Ottava robotics, Monarch in urology), and vision (Acuvue Oasys MAX, Tecnis Odyssey, PureSee). Duato emphasized a dozen de-risked new product launches and the company's focus on innovation.

Asad Haider asked about Johnson & Johnson's strategy to bridge from current growth rates to double-digit revenue growth by the end of the decade, particularly for a company approaching $100 billion in annual sales. He inquired about the key levers, including organic pipeline, acquisitions, and portfolio pruning, and the current stage of strategic repositioning.

Answer

Joaquin Duato (CEO, Johnson & Johnson) outlined the strength of the company's portfolio and pipeline across its six key focus areas: oncology, immunology, neuroscience, cardiovascular, surgery, and vision. He highlighted specific growth drivers like Darzalex, Carvykti, Tremfya, Icotide, Spravato, Caplyta, VARIPULSE, Ottava, and Tecnis Odyssey/PureSee, emphasizing de-risked launches and confidence in accelerated growth.

Asad Haider asked how Johnson & Johnson plans to balance capital allocation priorities to sustain acceleration in Innovative Medicine and push MedTech towards its 5-7% growth targets, especially given the orthopedic spin-off. He also inquired about the biggest disconnects between J&J's bullish 2026 Innovative Medicine sales growth projections and current consensus models.

Answer

Chairman and CEO Joaquin Duato highlighted significant internal investment opportunities in both Innovative Medicine (e.g., TREMFYA, RYBREVANT, INLEXZO, icotrokinra) and MedTech (electrophysiology, heart pumps, Shockwave, OTTAVA robotic system). He emphasized that J&J does not need large M&A to meet high-end growth targets. CFO Joe Wolk added that smaller, strategic deals like INLEXZO and icotrokinra are key. EVP, Worldwide Chairman, Innovative Medicine, Jennifer Taubert identified TREMFYA, SPRAVATO, RYBREVANT, INLEXZO, and icotrokinra as key drivers where J&J is more bullish than consensus for 2026. EVP, Worldwide Chairman, MedTech, Tim Schmid pointed to strong performance in electrophysiology, vision, and surgery, with OTTAVA expected to bolster future growth.

Asad Haider inquired about Johnson & Johnson's capital allocation priorities to sustain acceleration in Innovative Medicine and drive MedTech towards its 5-7% growth targets, and the biggest disconnects between J&J's bullish 2026 sales growth acceleration and current consensus models for Innovative Medicine.

Answer

Chairman and CEO Joaquin Duato highlighted internal investment opportunities across the pipeline and portfolio, emphasizing that J&J does not need large M&A to achieve high-end growth targets. CFO Joe Wolk pointed to the success of smaller, strategic deals like Inlexa and icatrekibart. EVP, Worldwide Chairman, Innovative Medicine Jennifer Taubert detailed specific areas of disconnect for Innovative Medicine, including Tremfya's IBD uptake, Spravato's expansion, Riviprant's subcutaneous form and new data, Inlexa's launch, and icatrekibart's potential. EVP, Worldwide Chairman, MedTech Tim Schmid noted strong MedTech performance in electrophysiology, vision, and surgery, with OTAVA expected to bolster future results.

Asad Haider of Goldman Sachs Group Inc. asked for commentary on potential pharma tariffs, J&J's current US manufacturing capacity, and its supply chain flexibility to adapt for 2026.

Answer

CEO and Chairman Joaquin Duato stated that while the ultimate outcome of tariffs is uncertain, recently passed tax policies have enabled J&J's $55 billion investment in the U.S. over the next four years. He affirmed the company's goal is to manufacture all medicines consumed in the U.S. domestically upon completion of this investment plan.

Asad Haider from Goldman Sachs requested quantitative framing on the STELARA biosimilar erosion curve and the potential mitigating effects from other products like TREMFYA.

Answer

EVP, Innovative Medicine, Jennifer Taubert reiterated that the HUMIRA 2-year erosion curve remains the best proxy, plus the impact of Part D redesign. She highlighted that the core business, excluding STELARA, grew over 12%. EVP, R&D, John Reed added that TREMFYA is well-positioned to succeed STELARA, citing strong head-to-head data and convenient subcutaneous delivery.

Asad Haider asked about the impact of the changing external environment, including an uptick in biotech M&A and a lower interest rate environment, on royalty-driven deal activity, opportunity set, and target returns. He also inquired about updated thoughts on Royalty Pharma's China strategy and how the external environment affects it.

Answer

Pablo Legorreta, CEO and Chairman, directed Chris Hite, EVP and Vice Chairman, to respond. Chris Hite explained that increased M&A has little impact, viewing it as beneficial due to the capital needs in the sector. Regarding China, he expressed excitement about the growth in out-licensing from China to multinationals, seeing it as another growth leg for the royalty marketplace, and noted their teams are building relationships for future opportunities.

Asad Haider asked about the impact of the changing external environment, specifically an uptick in biotech M&A and a lower interest rate environment, on royalty-driven deal activity and target returns. He also inquired about updated thoughts on Royalty Pharma's China opportunity and strategy, including how the external environment might affect it.

Answer

Chris Hite, EVP Vice Chairman, stated that increased M&A has little impact, viewing it as beneficial as companies need capital, and Royalty Pharma provides a key source. Regarding China, he expressed excitement about it being another leg of growth for the royalty marketplace, particularly for out-licensed molecules from China to multinationals, and highlighted ongoing relationship building efforts. Pablo Legorreta, CEO and Chairman, directed the question to Chris Hite.

Asad Haider asked a multi-part question covering the drivers of the COVID-19 revenue guidance, the BNT327 acceleration strategy post-BMS deal, and the specifics of the upcoming FixVac melanoma data presentation at ESMO.

Answer

CFO Ramón Zapata addressed the guidance, noting revenue is back-half weighted with an assumption of lower vaccination rates but stable pricing and market share. He confirmed the 50/50 cost-sharing with BMS. CMO Özlem Türeci detailed that the ESMO presentation for BNT111 will include primary efficacy endpoints, secondary survival data, and translational results.

Asad Haider from Goldman Sachs posed a three-part question on Gardasil regarding U.S. demand dynamics, the potential impact of an ACIP recommendation for fewer doses, and the outlook for the China market in 2026.

Answer

Dr. Dean Li, President of Merck Research Labs, addressed the ACIP, highlighting the high FDA evidentiary standard for a single dose. EVP & CFO Caroline Litchfield handled the commercial questions, noting strong U.S. demand was offset by CDC purchasing patterns and confirming no further shipments to China are planned for 2025, with 2026 to be assessed later.

Asad Haider of Goldman Sachs posed a three-part question on Gardasil regarding U.S. demand dynamics versus CDC purchasing, the potential impact of an ACIP recommendation for lower doses, and the outlook for resuming shipments to China in 2026.

Answer

Dr. Dean Li, President of Merck Research Laboratories, emphasized the high evidentiary standard required by the FDA for a single-dose regimen. EVP & CFO Caroline Litchfield stated that U.S. growth was driven by price and demand but offset by CDC purchasing patterns. She confirmed no shipments to China are planned for the rest of 2025 and that the company is not counting on China for growth, which now represents less than 1% of company sales.