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Bristol-Myers Squibb Company (BMY)
Q2 2009 Earnings Call Transcript
July 23, 2009 10:30 am ET
John Elicker – VP, IR
Jim Cornelius – Chairman and CEO
Lamberto Andreotti – President and COO
Elliott Sigal – EVP and Chief Scientific Officer
Jean-Marc Huet – EVP and CFO
Jami Rubin – Goldman Sachs
John Boris – Citigroup
David Reisinger – Morgan Stanley
Catherine Arnold – Credit Suisse
Tony Butler – Barclays Capital
Steve Scala – Cowen
Steve Patrick – UBS
Chris Schott – J.P. Morgan
Tim Anderson – Sanford Bernstein
Previous Statements by BMY
» Bristol-Myers Squibb Co. Q3 2009 Earnings Call Transcript
» Bristol-Myers Squibb Company Q1 2009 Earnings Call Transcript
» Bristol-Myers Squibb Company F4Q08 and Full Year Earnings Call Transcript
Thanks Lisa, and good morning everybody and thanks for joining us. We are here this morning to discuss both our Q2 release and the announced planned acquisition of Medarex that you saw last night and this morning. I will make just a quick comment before we get started on logistics. For this call, we do have a slide that is available on our website www.bms.com and you can also access it through the web cast if you would like to follow along.
With me this morning are Jim Cornelius, our Chairman and Chief Executive Officer; Lamberto Andreotti, our President; Elliott Sigal, our Chief Scientific Officer; and Jean-Marc Huet, our Chief Financial Officer. Jim, Lamberto, Elliott, and Jean-Marc will all have prepared remarks, and then we will go to your Q&A.
So let me take care of the legal requirements first. During the call, we will make statements about the company’s future plans and prospects including statements about our financial position, business strategy, research pipeline concerning product development and product potential 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 most recent annual report on Form 10-K, periodic reports on Form 10-Q, and the current reports on Form 8-K. These documents are available from the SEC, Bristol-Myers Squibb website, or from BMS 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 our estimates change. Jim.
Thanks John. Thanks everyone for joining us this morning. Yesterday was a very busy and important day for Bristol-Myers Squibb, and so to characterize as chairman and CEO was one of executional excellence. I want to extend my congratulations to all of the BMS colleagues that have worked both on the results of the second quarter, and the Medarex acquisition, particularly those sitting around the table with me this morning.
At BMS to add one other thing that Institutional Investor magazine has picked our own John Elicker as the very best investor relations guy in the industry. So John congratulations. Keep up the good work.
I'm going to be directing my comments to slide three in that deck. It is a very small number at the bottom of the page, but depicts the way we think of BMS over the next 10 years. We just completed in June a ten-year strategic review with our board of directors, essentially in this format. There are three distinct stages. Stage one, the growth that we are currently experiencing that we characterize as 15% earnings per share growth from the 2007 base. That is the post-Plavix patent expiration stage, 2012 to 2014, where we have mitigated that as best we can with the Abilify extension, and thus now provide us a plateau in earnings, but really a platform for growth.
And then finally stage three where acquisitions such as the Medarex acquisition will have a significant impact. So for stage one, we had another excellent quarter both operationally and strategically. We continue to deliver on our commitments, and we're executing against our strategy in a co-ordinated way to becoming a stronger, leaner and more effective company in both near-term, medium-term, and long-term.
As you saw in the quarter and Lamberto will expound on, we continue to deliver strong sales in our BioPharma business. It is driving broad-based top line growth across almost all products and geographies. Our ability to manage costs continued to deliver operating leverage as non-GAAP earnings per share grew 30%. We remain in an overall strong financial position with $9.1 billion of total cash and marketable securities, but subtracting our debt $2.7 billion and what we call our net cash.
This certainly gives us the flexibility to continue executing on our strategy. This is a very welcome contrast from our debt position of 18 months ago. And as a result of our continued strong performance, we were able to raise, as you know, our non-GAAP EPS guidance to a new range of $1.95 to $2.05 dollars up from the old $1.85 to $2.00.
The quarter also brought important strategic developments that show how we are strengthening the platform for growth in the 2012 to 2014 timeframe as I outlined earlier. We have extended a very successful collaboration with Otsuka on Abilify, and as a result our outlook for 2013 is much improved.
As you are seeing in the P&L statement, we are continuing to make progress with our productivity initiatives. We are fully prepared for a decision on Onglyza, and hopeful that we will launch this important diabetes medicine soon. We expect that Onglyza will be an important contributor in stage II and beyond.