Q4 2023 Earnings Summary
- BMY is focused on accelerating its new product portfolio, having launched 10 new products over the last 4 years, and is prioritizing products like Camzyos, Sotyktu, and Breyanzi to drive significant growth in 2024.
- Reblozyl is showing strong sales performance, with its first-line launch progressing very well in the U.S., and expecting continued growth this year; it was also approved in Japan in mid-January and expects European approval in the first half of this year, indicating international expansion.
- BMY is preparing to launch the first new treatment for schizophrenia, a low CAR-T product in September, which brings a multibillion-dollar opportunity to the organization.
- Pressure on gross margins due to declining legacy brands and uncertainties around Eliquis negotiations, with gross margins expected to decrease to approximately 74% in 2024.
- Challenges in accelerating new product launches, as seen with Camzyos showing steady but not increasing patient additions each quarter, potentially indicating slower-than-expected uptake.
- Difficulties in expanding market access for key products in competitive markets, such as Zeposia in ulcerative colitis, where access improvements may take more time.
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New Launches Growth
Q: What's the outlook for new product sales in 2024?
A: The company is not providing individual product-level guidance but expects continued growth from its new launches. They are focused on accelerating their new product portfolio, including Camzyos, Sotyktu, and Breyanzi, and maximizing the ten launches over the last four years. Products like Eliquis and Opdivo will continue to contribute significant growth in 2024. They are also preparing to launch a low CAR-T in September, bringing a multibillion-dollar opportunity. -
Sotyktu Revenue Expectations
Q: When will Sotyktu start generating significant revenues?
A: The company is executing its plan for Sotyktu, focusing on driving demand and securing access. Net sales increased about 40% versus Q3, excluding clinical trial orders. They expect to see around 10,000 paid prescriptions in Q1 and plan to double that to 20,000 prescriptions in Q4. They are making progress in shifting patients from bridge programs to commercial product and improving access with recent ESI and Cigna wins. -
Eliquis Pricing Impact
Q: How will IRA negotiations affect Eliquis?
A: The company cannot provide details on the IRA negotiations for Eliquis, but they expect to manage potential commercial spillover risks and see potential opportunities around patient affordability. They anticipate continued strong performance for Eliquis in the U.S. and expect significant growth through the end of 2025. -
Camzyos Growth and Competition
Q: What's the outlook for Camzyos amid new competitor data?
A: The company is confident in Camzyos, which is showing steady growth with around 1,000 patients added quarterly. Recent competitor data further strengthens their confidence, as Camzyos has transformational data from three Phase III trials. They are investing in direct-to-consumer advertising and expanding internationally, with launches in Germany, Japan, China, and other markets, expecting sales to manifest in late 2024 and into 2025. -
Breyanzi Expansion
Q: What's the potential for Breyanzi's growth this year?
A: The company expects strong demand growth for Breyanzi in 2024, supported by increased vector supply in Q2 and expanded indications. With three FDA priority reviews for follicular lymphoma, mantle cell lymphoma, and CLL, Breyanzi has the potential to treat the broadest array of B-cell malignancies of any CAR-T, doubling its addressable patient population. They are seeing increased outpatient use due to its best-in-class safety profile. -
Capital Allocation and M&A
Q: What are the plans for capital allocation and deals?
A: Business development continues to be a top priority. After executing several deals last year, the company remains interested in bringing innovation into the company through bolt-on opportunities that make strategic and financial sense. They are also looking at partnerships and licensing deals. -
Opdivo Subcutaneous Formulation
Q: What's the strategy for subcutaneous Opdivo?
A: The company anticipates launching subcutaneous Opdivo early next year, offering potential benefits for thousands of patients well into the next decade. The subcutaneous formulation addresses treatment burden due to less than 5-minute infusion time and aims to convert roughly 30% to 40% of the overall U.S. Opdivo business to subcutaneous, helping the franchise endure into the next decade. -
Reblozyl Growth
Q: What's driving Reblozyl's growth and international potential?
A: The first-line MDS launch is progressing well in the U.S., with strong demand supported by a broad label. They are seeing strength in first-line use across RS-positive and steadily building momentum in RS-negative populations. Reblozyl was approved in Japan in mid-January with positive uptake, and they expect European approval in the first half of this year. -
Milvexian Trial Confidence
Q: Are you confident in Milvexian's AFib trials?
A: The trials are progressing continuously, with enrollment going very well. The Data Monitoring Committee has not indicated any issues. They believe in their well-designed studies and remain confident, looking forward to the readout of these trials in 2026 and 2027. -
Sotyktu Payer Access
Q: What are current step edits for Sotyktu?
A: The company has secured additional access at ESI and Cigna in a one-step position, adding another 40 million lives. Patients may need to step through products like Otezla or IL-17 and IL-23 inhibitors. They are continuing to negotiate with payers and will update on additional progress over the coming months.