Bristol-Myers Squibb (BMY)
Q3 2010 Earnings Call
October 26, 2010 10:00 am ET
Beatrice Cazala - Member of Management Council, President of Global Commercialization and President of Europe Operations
Previous Statements by BMY
» Bristol-Myers Squibb Q2 2010 Earnings Call Transcript
» Bristol-Myers Squibb Q1 2010 Earnings Call Transcript
» Bristol-Myers Squibb Company Q4 2009 Earnings Call Transcript
Lamberto Andreotti - Chief Executive Officer, President, Chief Operating Officer, Director, Member of Management Council, Member of Science & Technology Committee and Member of Executive Committee
Charles Bancroft - Chief Financial Officer and Member of Management Council
Tony Hooper - Member of Management Council and President of Americas Operations
John Elicker - Investor Relations Executive
John Boris - Citigroup Inc
Tim Anderson - Bernstein Research
Jami Rubin - Goldman Sachs Group Inc.
Steve Scala - Cowen and Company, LLC
Christopher Schott - JP Morgan Chase & Co
Seamus Fernandez - Leerink Swann LLC
Charles Butler - Barclays Capital
Good day, and welcome to today's Third Quarter Earnings 2010 Earnings Release Conference Call. [Operator Instructions] At this time, I would like to turn the call over to Mr. John Elicker, Vice President, Investor Relations. Please go ahead, sir.
Thanks, Pat, and good morning, everybody. Thanks for joining us to review our third quarter results. With me today are Lamberto Andreotti, our Chief Executive Officer; and Charlie Bancroft, our Chief Financial Officer. They'll have prepared remarks. And then joining us for Q&A are Elliott Sigal, our Chief Scientific Officer; Beatrice Cazala, Senior Vice President, Commercial Operations, with responsibility for Global Commercialization, Europe and Emerging Markets; and also Tony Hooper, Senior Vice President, Commercial Operations, with responsibility for U.S., Japan and other international markets.
Before we get started, I want to take care of the legal matters. During this call, we'll make statements about the company's future plans and prospects that constitute forward-looking statements for purposes of the Safe Harbor Provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the company's recent report on 10-K and reports on 10-Q and 8-K. These documents are available from the SEC, the BMS website or from Bristol-Myers Squibb Investor Relations.
In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if estimates change.
During the call, we'll also discuss certain non-GAAP financial measures, adjusted to include certain costs expenses, gains and losses and other specified items. Reconciliations to these non-GAAP financial measures to the most comparable GAAP measures are available on our website. Lamberto?
Thank you, John. Good morning, everyone. We have completed another quarter in which we continued to successfully deliver against the execution of our strategy. Let me walk you through the highlights.
Our financial performance in the quarter was solid. Double-digit growth in earnings per share demonstrate our ability to operate in a very challenging environment as we continue to see the impact of U.S. healthcare reform and are beginning to see an impact from incremental pricing pressures in Europe. Despite these challenges, operationally, we are completely focused on growing our portfolio of innovative products and preparing for the potential launch of new products during the fourth quarter and into 2011, all while continuing to deliver on productivity initiatives across the entire company.
As you have seen in our release, we are reaffirming our guidance for 2010 GAAP and non-GAAP EPS. Strategic and disciplined capital allocation remains a key part of our BioPharma strategy. We finished the quarter in a very strong financial position, with approximately $10.9 billion in cash and marketable securities. Business development remains a top priority for capital allocation, and we also remain committed to the dividends, and are actively engaged in the share repurchase program begun in the second quarter.
In October, we completed the acquisition of ZymoGenetics, the transaction built on our long-term commitment to virology by giving up full ownership of PEG-Interferon lambda currently in development for Hepatitis C. We are looking forward to present 12-week Phase IIb data on lambda and our small molecule antivirals in development for Hepatitis C, at AASLD [American Association for the Study of Liver Diseases] between October 29 and November 2.
In addition, we are excited by the seven early clinical and preclinical programs from ZymoGenetics that expands our strong biologic capability in oncology and immunoscience and by the FDA-approved specialty surgical biologic, RECOTHROM.
On a less positive note, we received a warning letter from the FDA about certain processes and practices to be improved or remediated at our manufacturing facility in Manati, Puerto Rico. We have provided a response to the FDA warning letter, including details of the actions that we are taking, and we expect that Manati facility will be inspection-rated by the end of the year. Manufacturing continues uninterrupted at Manati, and I want to assure you that resolving the issues in Manati is one of our top priorities.
This was another good, very good quarter for clinical data. We presented key data from our cardiovascular and diabetic franchises at important medical meetings. At the European Society of Cardiology meeting in August, we presented the preliminary results of the Phase III AVERROES trial for apixaban, or ELIQUIS, as we will market it, in patients with atrial fibrillation, who are unsuitable for treatment with warfarin. The preliminary results demonstrated that apixaban significantly reduced the relative risk of a composite of stroke or systemic embolism by 54% compared with aspirin, without a significant increase in major bleeding. We believe this is an area of significant unmet medical need and is up to 40% to 50% of patients are identified as unsuitable for treatment with warfarin.