BRISTOL MYERS SQUIBB CO Q3 FY2026 earnings call

• Growth Portfolio Momentum: The company reported double-digit growth in its growth portfolio, driven by eight medicines now annualizing over $1 billion each. Key brands like Reblazil, Breonzi, and Eloqua showed strong performance.
• Pipeline Advancements: Significant progress was made with the FDA accelerated approval of Zimbexis (cell mod for multiple myeloma). Positive Phase III data were announced for Admilpirant (IPF), RAISE-101 (radiopharmaceuticals/GEPNETS), and Arlocel (CAR-T).
• Manufacturing Investments: Announced a $2.3 billion investment for a new manufacturing campus in Houston and a $170 million radiopharmaceutical facility in Indiana to support future pipeline needs.
• Operational Discipline: Emphasis on rewireing operations for efficiency, including productivity initiatives that reduced operating expenses while maintaining flexibility for R&D investments and shareholder returns.
• Strategic Focus: Priorities include sustaining growth portfolio momentum, translating pipeline progress into launches, and continuing organizational restructuring to improve R&D speed and efficiency.

Total revenue increased 7% year-over-year to approximately $13.1 billion. The growth portfolio contributed $7.7 billion (59% of total revenue), rising 12%. The legacy portfolio contributed approximately $5.4 billion (41% of total revenue), increasing 1%, driven by Eloquus which offset declines in other legacy products due to generic entry. Key product highlights include: Reblazil ($750 million, +22%), Breonzi ($526 million, +48%), Opdulag (strong double-digit growth), Cuvantic ($334 million, +28% sequentially, annualizing over $1.3 billion), Chemzios (expanded indication for pediatric obstructive HCM), Zimbexis (new launch, first cell mod approved), Eloqua ($4.7 billion, +26%), Kim Zayas ($420 million, +42%), Sutictu (+25% global revenue), and CoBenfi ($57 million, +33%).

• Full-year 2026 non-GAAP EPS guidance raised to a range of $6.35 to $6.55 per share (an increase of approximately 15 cents from prior midpoint excluding one-time items).
• Full-year revenue guidance increased based on YTD results and outlook.
• Legacy portfolio revenue expected to decrease between 3% and 5%.
• Eloqua full-year revenue growth expected to be between 20% and 25%.
• Gross margin, operating expenses, and tax rate projections maintained, though other income/expense line slightly lowered.

• Generic Competition: Declines in the legacy portfolio are attributed to generic entry impacting products other than Eloqua.
• Clinical Trial Safety: A patient death from sepsis/pneumonia occurred in the Zolacell autoimmune CAR-T trial, leading to a voluntary pause; however, management states it was unrelated to the product mechanism and attributed to a reagent activation change.
• Regulatory Uncertainty: Future outcomes for key trials (e.g., Milvexian in AFib, PPF data for Admilpirant) remain uncertain and will impact commercial potential.
• Launch Execution: Early-stage launches like Zimbexis and CoBenfi face challenges in physician adoption, dosing titration, and managing side effects (e.g., GI toxicity for CoBenfi).

Q: Regarding Admilpirant's IPF results, what is the confidence in the 120 mg dose given mixed data? / A: Management confirmed the drug met primary endpoints at 60 mg with favorable safety. While the 120 mg dose showed improvement, it was not statistically significant in this study. They plan to test both doses in the larger PPF study next year and will discuss results with regulators, maintaining confidence in the platform despite the need for further data analysis.

Q: What feedback is being seen on the early launch of Zimbexis? / A: Commercial teams report positive early adoption from both community and academic settings, driven by efficacy data and simplicity of use. Physicians are using it to replace older regimens. Management expects the majority of usage to come from the community setting where most patients are treated, aiming for both Zimbexis and Mezignamide to become foundational therapies.

Q: How does the market view the recent pipeline readouts, and what is the status of Milvexian in SSP? / A: Management emphasized their disciplined approach to trial design, noting that 2026 has seen a high success rate across therapeutic areas. For Milvexian in secondary stroke prevention (SSP), they believe their randomization window provides optimal efficacy based on prior Phase II data. Top-line results are expected later this year, with atrial fibrillation data anticipated in Q1 2027.

Q: What are the constraints on CoBenfi's growth in schizophrenia and how does the Alzheimer's opportunity differ? / A: Growth was impacted by inventory destocking, but prescription volume is recovering. Challenges include accelerating new patient starts and ensuring physicians rapidly titrate to the effective 125 mg dose to manage GI side effects. In Alzheimer's psychosis, the market is much larger (7 million US patients), but safety concerns regarding elderly dementia patients require careful education and expectation management compared to schizophrenia.

Q: Can you provide details on the path forward for the Zolacell autoimmune CAR-T program after the patient death? / A: The program was paused for review, and investigators identified a root cause related to a reagent selection/activation change, which has been corrected. Out of 190 patients treated, there was only one Grade 5 event. Management remains committed to the program, citing compelling efficacy data and immune reset potential, and is working with authorities to restart clinical studies as soon as possible.