Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: On the cost savings, how much would you say was legacy Bristol, either workforce or facilities versus optimizing integration of all your recent deals?
A: David V. Elkins, Executive VP & CFO, explained that the majority of the $1.5 billion savings came from the historical BMS, focusing on portfolio optimization, becoming more agile by removing layers of management, and efficiencies in third-party service providers. Most savings are from in-house existing operations.
Q: How are you thinking about potentially a trough level of earnings?
A: Christopher S. Boerner, CEO & Chairman, mentioned that the company is engaging with investors on this topic and will provide more guidance once the impact of the IRA on Eliquis is clearer around September. They anticipate the impact starting in 2026, with growth expected before the end of the decade.
Q: Is the redeployment of savings going to be mostly focused on the R&D side or on SG&A?
A: Christopher S. Boerner indicated that the redeployment priorities are, in order: investing in the pipeline, ensuring adequate investment for growth products, and making the organization more agile and focused. David V. Elkins added that about two-thirds of the savings are associated with R&D and one-third with MS&A.
Q: Can you give us some updated market share metrics for SOTYKTU?
A: Adam Lenkowsky, Executive VP, Chief Commercialization Officer & Head of U.S. Oncology, stated that SOTYKTU is performing ahead of launch analogs like TREMFYA and COSENTYX at the same stage post-launch. The focus is on growing market share versus Otezla and becoming the oral standard of care in the market over time.
Q: What does the commercial rollout strategy look like for KarXT post-September PDUFA?
A: Adam Lenkowsky described comprehensive prelaunch efforts, including building a large neuroscience field sales organization and engaging with state Medicaid directors. The goal is to secure rapid access, focusing on Medicaid and Medicare, which make up about 70% of the market. The effective launch is seen as a 2025 event due to timelines for obtaining broad Medicaid coverage.
Q: How quickly can we start to see growth from Abecma with KarMMa-3 on the label?
A: Adam Lenkowsky noted that the focus is on educating physicians about KarMMa-3 data and expanding the site footprint. The objective is to return Abecma to growth over time as they move into a larger patient population, acknowledging the competitive nature of the market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
