Original Source: FD (FAIR DISCLOSURE) WIRE
. John Elicker, Bristol-Myers Squibb, VP, IR . Jim Cornelius, Bristol-Myers Squibb, CEO . Andrew Bonfield, Bristol-Myers Squibb, EVP, CFO . Jami Rubin, Morgan Stanley, Analyst . Lamberto Andreotti, Bristol-Myers Squibb, EVP, President, Worldwide Pharmaceuticals . Elliott Sigal, Bristol-Myers Squibb, CSO, President, Research Institute . James Kelly, Goldman Sachs, Analyst . John Boris, Bear Stearns, Analyst
. David Risinger, Merrill Lynch, Analyst . Tony Butler, Lehman Brothers, Analyst . Roopesh Patel, UBS, Analyst . Steve Scala, Cowen, Analyst . Chris Schott, Banc of America, Analyst . Seamus Fernandez, Leerink Swann, Analyst . Tim Anderson, Prudential Securities, Analyst
BMY reported 4Q06 total Co. sales of $4.2b. Co. reported a loss of $0.07 per share in 4Q06. Excluding specified items, 4Q06 fully diluted non-GAAP EPS was $0.19. Full-year 2006 non-GAAP EPS was $1.09. BMY expects full-year 2007 non-GAAP EPS of $1.20-1.30 and GAAP EPS of $1.12-1.22.
A. Key Data From Call 1. 4Q06 total Co. sales = $4.2b. 2. Full-year 2006 non-GAAP EPS = $1.09. 3. 4Q06 fully diluted non-GAAP EPS, excluding specified items = $0.19. 4. 4Q06 loss = $0.07 per share. 5. 4Q06 net debt = $3.4b. 6. Full-year 2007 GAAP guidance = $1.12-1.22.
7. Full-year 2007 non-GAAP guidance = $1.20-1.30.
S1. Opening Comments (J.C.) 1. Key Achievements: 1. Co. had a strong qtr. in terms of growing its key brands and advancing new product pipeline. 2. There was positive news at several medical meetings, including encouraging data on ORENCIA at ACR and on SPRYCEL and Apixaban at ASH. 3. In Nov., BMY received approval to market SPRYCEL in Europe. 1. Optimistic about its prospects in Europe and in US, where it has been on the market approx. six months. 4. Moved Apixaban to Phase III status. 5. Earlier in Jan. Co. saw some favorable Phase III on ERBITUX used in combination with irinotecan- based chemotherapy for patients with previously untreated metastatic colorectal cancer. 1. Co. looks forward to more data for ERBITUX for potentially other tumor types over the next 12-18 months. 6. In its oncology pipeline, Co. has three promising compounds in registrational programs. 1. Hopes to submit applications for them over the next 12 months or so if clinical data continues to support this. 7. Expects Ixabepilone to be its next submission later in 2007. 8. FDA granted Fast Track status for Ipilimumab, metastatic melanoma compound that Co. in-licensed from Medarex. 9. Earlier in Jan., Co. announced a significant collaboration
with AstraZeneca to develop and commercialize Saxagliptin and
BMY's SGLT2 inhibitor, two promising diabetes compounds that
were discovered from in-house research. 1. Key element of its strategy is looking for partnering opportunities, particularly in primary care area, which can help Co. optimally manage risks, costs, and revenue potential. 10. Made good progress executing strategy despite some significant stresses. 1. Launched several important products, including ORENCIA, SPRYCEL, and ATRIPLA, a combination HIV/AIDS treatment with Gilead. 1. ORENCIA and SPRYCEL along with Baraclude continue to gain share. 2. With the growing role of biologics in its portfolio, Co. announced planned establishment of a major new biologics facility in Devens, Massachusetts along with expansion of existing facilities in Syracuse, New York and Puerto Rico. 3. Continues to invest in late-stage pipeline, despite pressures from loss of exclusivity on PRAVACHOL in US and
parts of Europe and more recently, the at-risk launch of generic clopidogrel. 4. PLAVIX patent trial began on Monday. 1. Continues to believe the patent is valid and being infringed. 2. Looks forward to final resolution of this matter. 3. Co. cannot predict how long the trial will go or what the outcome will be, but is moving forward with its plans for the brand which continues to grow as supplies of generic are depleted. 5. Encouraged that prescription growth for the (indiscernible) molecule continues to be robust, up 14% in latest data. 1. This points to solid potential for PLAVIX as a key product for Co. and an important therapy for cardiovascular
patients. 2. 2007 Guidance: 1. Reflects continued commitment to executing its strategy and building value for shareholders.
2. Expects to return to sales and earnings growth in 2007 as it
continues to maximize the potential of key products and focus
even more on costs.
S2. Financial Review (A.B.) 1. Earnings: 1. Recorded a loss of $0.07 per share in 4Q06, negatively impacted by previously announced specified items. 1. These charges relate primarily to: 1. An increase in litigation reserves for the settlement of pricing and sales investigations of about $353m. 2. Early debt retirement costs of $220m in connection with debt restructuring. 2. Will be important to finalize the litigation settlement. 3. Debt restructuring will improve liquidity and significantly reduce annual interest expense.
2. Excluding specified items, fully diluted non-GAAP EPS was
$0.19. 3. Full-year non-GAAP EPS was $1.09, $0.02 ahead of the top end of previously issued guidance range. 2. Sales:
1. 4Q06 total Co. sales were $4.2b, down 16% vs. 4Q05. 2. Overall, Co. saw: 1. No impact from price. 2. Positive 2% impact from FX. 3. Negative 18% impact in volumes. 1. Estimates the impact from launch of generic clopidogrel to have been $700-750m in 4Q06. 3. Worldwide pharmaceutical sales were down 22% to $3.1b,
significantly impacted by Apotex launch and exclusivity loss
of PRAVACHOL in US and France. 4. Sales in US pharmaceutical business were down 32% to $1.5b. 1. Excluding estimated impact of Apotex launch, US pharmaceutical sales would have been broadly flat. 5. For PLAVIX, Co. is pleased that underlying demand for the molecule remained strong with 14% increase in total scripts.
6. With Sanofi, Co. continues to provide full support behind the
brand in order to continue driving growth. 1. Encouraged by recent share trends showing weekly increases in branded PLAVIX share. 7. Script growth trends for other key products were strong as …