Bristol-Myers Squibb Co. 2026 Q3 Earnings Call

Please go ahead. Thank you, and good morning, everyone.

We appreciate you joining our third quarter 2026 earnings call. With me this morning with prepared remarks are Chris Boerner, our Board Chair and Chief Executive Officer, and David Elkins, our Chief Financial Officer. Also participating in today's call is Adam Lenkowsky, our Chief Commercialization Officer, and Cristian Massacesi, 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 will 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. We specifically disclaim any obligation to update forward-looking statements, even if our estimates change. We will 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 2025, and sales growth rates will be discussed on an underlying basis, which excludes the impact of foreign exchange. All references to our P&L are on a non-GAAP basis. With that, I will hand it over to Chris.

Thanks, Chuck. Good morning, everyone, and thank you for joining our Q3 2026 earnings call. We reported another quarter of double-digit growth in our growth portfolio and progressed our plans to de-risk the pipeline to position the company for long-term success. We have seen several positive registrational readouts and regulatory approvals over the past few months, and we expect more to come, bringing the next wave of launches into sharper focus. We are executing well commercially. Our differentiated pipeline is advancing nicely, and we continue to operate with discipline, which gives us strategic flexibility to invest for sustainable growth. Based on the strength of our results, we are raising our full year guidance. David will provide additional details on this shortly. Let me start with our Q3 performance on slide 4.

Our growth portfolio continues to deliver solid results with sales increasing 12%, driven by a broad set of differentiated products. We generated strong performance in key brands including REBLOZYL, BREYANZI, OPDUALAG, QVANTIG, and CAMZYOS. We also continue to expand the reach of our medicines. In September, CAMZYOS received approval for an expanded indication and became the only FDA-approved therapy for pediatric patients with obstructive HCM. We also achieved an important milestone in the quarter with the FDA's accelerated approval of Zenbexus, the first approved CELMoD and the newest addition to our portfolio. Zenbexus is approved for the treatment of multiple myeloma, where the combination of a highly efficacious and convenient oral option is an important treatment advancement for patients in both community and academic settings.

We are encouraged by positive early launch feedback and by the compelling phase III data we announced earlier this month, where Zenbexus demonstrated a meaningful improvement in progression-free survival. We will present these data at ASH in December. These results further strengthen our conviction in CELMoDs and our broader targeted protein degradation platform, where BMS is a clear leader. Behind Zenbexus, our second CELMoD, mezigdomide, has a PDUFA date of May 13, 2027. Mezigdomide offers the potential to introduce another highly efficacious and convenient oral option for a different segment of multiple myeloma patients. We also continue to advance golcadomide in lymphoma and will present the first phase II data in frontline follicular lymphoma at ASH. The momentum in our late-stage pipeline has accelerated. In the past two months alone, we announced positive data for four registrational studies.

These include Zenbexus PFS, as I mentioned earlier, admilparant in idiopathic pulmonary fibrosis, interim results for RYZ101 in GEP-NETs, and arlo-cel in relapsed and refractory multiple myeloma. Let me comment on the last three. Admilparant met its primary endpoint at the 60 milligram dose with a favorable safety and tolerability profile that supports its potential as a first-in-class IPF treatment. IPF is a progressive and often fatal disease where there remains a need for effective, well-tolerated treatment options like admilparant. We will discuss the IPF results with regulators and expect phase III results in progressive pulmonary fibrosis in the first quarter of next year. PPF is a larger opportunity and another area where admilparant has significant commercial potential. With respect to RYZ101, our actinium-based radiopharmaceutical therapy, we are encouraged by the interim readouts in GEP-NETs.

These results demonstrated a clinically meaningful improvement in PFS in patients whose disease has progressed following existing lutetium-based therapy. These were the first phase III results for an alpha-emitting targeted RPT, representing an important milestone for RYZ101 and further strengthening our conviction in radiopharmaceuticals as a platform. We are engaging with the FDA on next steps towards regulatory submission. Finally, arlo-cel, our GPRC5D-directed CAR T, delivered positive results in the registrational phase II QUINTESSENTIAL study this September. A milestone that underscores its potential to set a new standard of care in the post-BCMA multiple myeloma market. This study represents the only prospective trial exclusively conducted in the post-BCMA quadruple class exposed setting, a growing patient population with poor outcomes and no therapies approved specifically for this segment.

As these programs advance, we are building the manufacturing foundation for the next generation of our medicines with two U.S. investments recently announced. In Houston, we shared plans for a new state-of-the-art manufacturing campus at Generation Park, an approximately $2.3 billion investment that will create nearly 500 skilled jobs. This facility will give us manufacturing flexibility across small molecules, biologics, and antibody drug conjugates. It is also designed to evolve and scale to meet patient needs for decades to come. In Indiana, RayzeBio is investing more than $170 million to establish a new radiopharmaceutical manufacturing facility, complementing its existing footprint in the state and creating up to 100 new jobs by the end of 2029. Together, these investments support the next wave of medicines coming through our pipeline and advance our U.S. manufacturing commitments. Turning to slide five. As we look ahead, we have several meaningful readouts over the remainder of 2026 and into 2027.

Before year-end, we expect phase III data for milvexian in secondary stroke prevention and SOTYKTU in lupus. With Cobenfy, we will share open-label Alzheimer's disease psychosis data from the ADEPT 1 and from the long-term extension ADEPT 3 studies at CTAD next month. In 2027, we continue to expect results for milvexian in atrial fibrillation in the first quarter. We also anticipate additional data from the broader ADEPT program, bipolar one data from the Cobenfy BALSAM studies, and the first registrational data for golcadomide in high-risk first-line LBCL. While we have made good progress in our pipeline, there is more to come. As we close out the year and move into 2027, we are focused on a few key priorities, as noted on slide six. First, sustaining the momentum across our growth portfolio.

We now have eight growth portfolio medicines, each annualizing over $1 billion based on Q3 sales, giving us a broad base of growth drivers. Second, translating pipeline progress into filings, approvals, and successful launches. Zenbexus is an early example of that progression, and as additional studies read out, our focus will be on launch preparedness and moving with urgency to bring these medicines to patients. Third, continuing to rewire how we operate. We are focused on becoming faster and more efficient in R&D, and over the past year, we have made changes across the organization to strengthen how we design and conduct clinical trials. At the same time, we continue to drive productivity and efficiency, including through our organizational structure, capital allocation decision-making process, and the use of technology.

That discipline gives us flexibility to invest behind the growth portfolio and pipeline, pursue business development where it makes sense, and return cash to shareholders. Taken together, we are entering the final quarter of the year with real momentum. Our growth portfolio is performing well. We are advancing our pipeline with meaningful wins and remain highly disciplined in ensuring our cost structure is aligned with our revenue base. The team is energized and focused on delivering value for patients and our shareholders. With that, I will turn it over to David.

Thank you, Chris, and good morning, everyone. Our third quarter results reflect continued strong execution across our growth portfolio and continued strength from ELIQUIS. We remain focused on financial discipline, balancing investments in our growth drivers with continued productivity improvements. Based on our performance year to date and our outlook for the remainder of the year, we are further raising our full year guidance. Let me begin with a review of our third quarter results. Starting with slide 8, total revenue in the third quarter increased 7% year over year to approximately $13.1 billion. Growth portfolio revenue rose 12% to $7.7 billion, driven by double-digit growth across several products. Our legacy portfolio revenue increased 1%, with growth in ELIQUIS more than offsetting the declines from generic entry across the remainder of the legacy portfolio. Turning to product performance on slide 9, starting with oncology.