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Speaker 1: Joining us now, Christopher Berner, Bristol Myers Squab CEO. Great

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Speaker 1: see you, Christopher. Thanks for stopping by and giving us

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Speaker 1: some of your time on what I'm sure is a

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Speaker 1: busy schedule for you over these few days. Let's talk

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Speaker 1: about it to be where you see this business. Let's

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Speaker 1: talk about where you see this business. You've changed, you

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Speaker 1: have come in, you've delivered a flurry of deals. You

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Speaker 1: in the process of fixing Bristol Myers.

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Speaker 2: Well, first of all, it's great to be here. Thank

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Speaker 2: you for the time. Look, I'm incredibly excited to be

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Speaker 2: taking over as CEO of this great company.

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Speaker 3: Our business is in a bit of a transition.

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Speaker 2: We have a number of products that have gone off patent,

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Speaker 2: but we're replacing them with a younger, exciting portfolio, a

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Speaker 2: portfolio that we think is going to drive long term

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Speaker 2: sustainable growth for the company. And so you know, look,

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Speaker 2: this business is one that continues to be dynamic. Business

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Speaker 2: development has always been part of our history, and the

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Speaker 2: deals that we've done over the last few months makes sense.

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Speaker 2: The Karuna deal accelerates our entree or re entree into neuroscience.

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Speaker 2: We extend ended our leadership position with additional platforms and oncology.

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Speaker 2: So we're excited about the deals that we've done and

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Speaker 2: we think they're going to contribute to the growth of

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Speaker 2: the company in the back half of the decade.

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Speaker 4: Part of the reason why we love the David Morgant

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Speaker 4: Healthcare Conference is like this is where also deals get done.

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Speaker 3: This is sort of the speed.

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Speaker 4: Dating, as Guy was referring to it, is that happening

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Speaker 4: this year.

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Speaker 2: Well, we're seeing a lot of companies. You know, the

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Speaker 2: innovation in this space has been absolutely spectacular, and again

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Speaker 2: this year we're seeing a lot of really incredible innovation

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Speaker 2: and fortunately for us, we've been active in this space.

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Speaker 2: You know, business development was something that we've done historically.

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Speaker 3: We brought in great products like.

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Speaker 2: Avdivo and Camzios in cardiovascular disease via business development. And

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Speaker 2: this year, of course, we've done a few deals. We

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Speaker 2: did the Karuna deal, which again accelerates us into neuroscience.

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Speaker 2: We have gained access to probably the fastest growing platform

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Speaker 2: in oncology in radio pharmaceuticals with a deal with a

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Speaker 2: company called Raise Bio. Incredibly excited about that opportunity, and

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Speaker 2: we're going to continue to have business development be part

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Speaker 2: of how we think about capital allocation.

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Speaker 1: Because the market has to be concerned about the company

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Speaker 1: and its pipeline. It's business in the latter half of

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Speaker 1: this decade, it's not now, it's further down the road.

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Speaker 1: As you say, you've got a bunch of things coming

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Speaker 1: off patents. Are the deals that you're doing validating that concern?

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Speaker 2: Well, Look, I mean the first priority that we have

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Speaker 2: as a company is to focus on what is a

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Speaker 2: absolutely spectacular.

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Speaker 3: Pipeline that we have Internally.

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Speaker 2: We have probably more catalysts from our internal organic pipeline

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Speaker 2: than I think we've ever had. We have the potential

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Speaker 2: to launch over sixteen new medicines between now in the end.

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Speaker 3: Of the decade.

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Speaker 2: Just since the last JPM Morgan, we've doubled the number

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Speaker 2: of late stage assets we have. So we have a

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Speaker 2: very very good pipeline. You know, Historically, as I've said,

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Speaker 2: business development has been part of how we source innovation.

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Speaker 3: It's going to continue to be.

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Speaker 2: But I wouldn't confuse that with the lying dynamics that

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Speaker 2: we have in our portfolio, which is a very strong

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Speaker 2: portfolio today.

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Speaker 4: Okay, so we're not reading into what you think about

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Speaker 4: the current portfolio because of the flurry of M and

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Speaker 4: A not at all. Okay, So it is the M

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Speaker 4: and A stuff done for you.

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Speaker 2: Well, as I said, business development is going to be

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Speaker 2: part of the way we think about capital allocation. We've

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Speaker 2: been able to do business to development historically while also

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Speaker 2: committing to return capital to shareholders. We've returned over thirty

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Speaker 2: billion dollars to shareholders over the last three years. We've

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Speaker 2: maintained a commitment to the dividend. We've raised the dividend

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Speaker 2: consecutively fifteen years in a row. But we're going to

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Speaker 2: continue to source innovation externally, add it to what is

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Speaker 2: a very robust pipeline that we have internally.

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Speaker 1: GLP ones. Are you interested? What do you think? A

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Speaker 1: lot of noise in that space? Last year, obesity has

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Speaker 1: been the big story for the healthcaret sect. Is it

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Speaker 1: okay not to be in that space.

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Speaker 2: Well, we're not in the GLP one or metal space,

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Speaker 2: but let me tell you where we are.

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Speaker 3: We are in four very.

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Speaker 2: Commercially attractive and growing therapeutic areas today. We have a

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Speaker 2: large presence, for example, in cardiovascular disease, in oncology, we're

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Speaker 2: growing our business in immunology, and as I said, we're

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Speaker 2: reaccelerating in a very active area of neuroscience. So these

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Speaker 2: are important areas, but above and beyond the individual assets

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Speaker 2: that we have in those therapeutic areas, we're investing in

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Speaker 2: platforms that are incredibly exciting. We're particularly excited about our

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Speaker 2: cell therapy platform, for example, which has the potential to

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Speaker 2: move from oncology into immunology and be a very large

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Speaker 2: contributor to growth in the back half of the decade.

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Speaker 1: Because how do you think though the obesity story is

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Speaker 1: going to develop, It's not going to happen in isolation.

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Speaker 1: What happens with people's waistlines, their metabolic rates has an

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Speaker 1: impact on so much else within the healthcare sector. What

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Speaker 1: do you think the ripple effects of this are going

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Speaker 1: to be and what are those going to look like?

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Speaker 1: And is it that kind of second derivative effects into

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Speaker 1: cardiovascular into other areas of the healthcare sector that I

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Speaker 1: think could prove to be just as interesting.

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Speaker 3: Well, I think you're right.

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Speaker 2: I think all aspects of healthcare in some way related,

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Speaker 2: and so I think as you start to see changes,

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Speaker 2: for example, in metabolic disease, it certainly has broader implications.

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Speaker 2: From our standpoint, we're watching it because of the focus

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Speaker 2: in cardiovascular disease that we have. You know, we're a

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Speaker 2: leader today in cardiovascular disease. We have a very big

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Speaker 2: business in cardiomyopathies with a drug that we acquired through

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Speaker 2: business development called Camzios that's doing very well with long

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Speaker 2: term potential. And we're a leader in thrombosis with eloquist today,

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Speaker 2: and we've got an exciting portfolio in thrombosis to maintain

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Speaker 2: that leadership position.

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Speaker 3: So we're watching it very closely.

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Speaker 4: Is there any point where you think you may want

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Speaker 4: to get into that space, like is there efficacy or

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Speaker 4: take up or even Medicare or Medicaid covering it that

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Speaker 4: would sort of maybe trigger you guys to think of

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Speaker 4: it differently.

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Speaker 2: Well, we look at our therapeutic areas in a very

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Speaker 2: dynamic way. We're not sort of dogmatic in the areas

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Speaker 2: that we're in today. For example, we were in neuroscience

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Speaker 2: many years ago with.

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Speaker 3: A drug called a bilify.

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Speaker 2: It was one of the largest drugs in the world,

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Speaker 2: is still being used heavily in that space. We've decided

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Speaker 2: to get back into that space now because we're excited

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Speaker 2: about our early portfolio in Alzheimer's disease, and of course

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Speaker 2: now with Karuna we've made the move into neurosyche, which

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Speaker 2: has a nice adjacency to neurodegeneration. So we're always looking

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Speaker 2: for where there are opportunities. The key thing we focus on, though,

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Speaker 2: is where do we find really exciting science and where

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Speaker 2: is it likely that Bristol myersquipt can be a leader.

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Speaker 3: That's what we focus on.

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Speaker 1: So Christopher paying me a picture. You're at the JP

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Speaker 1: Morgan conference. You're talking to a whole bunch of people,

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Speaker 1: You're bumping into a whole lot of people. What are

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Speaker 1: people talking about? Is what is happening with JLP ones,

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Speaker 1: is it the story of last year? What's happening with

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Speaker 1: the election coming up in the United States and elsewhere

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Speaker 1: around the world. What are people talking about at that conference,

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Speaker 1: because that's going to give us a good idea of

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Speaker 1: what twenty four is going to be looking like rather

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Speaker 1: than twenty three.

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Speaker 2: Well, I think there are a couple of things people

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Speaker 2: are talking about. I think generally in the industry, there's

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Speaker 2: a lot of discussion, of course about the therapeutic areas

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Speaker 2: that you just reference. There's also a lot of excitement

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Speaker 2: about innovation in this space. You're seeing a pickup in

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Speaker 2: some of the discussions around business development. Of course, we

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Speaker 2: were active in that at the end of last year.

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Speaker 2: There's a lot of exciting innovation being discussed at this conference.

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Speaker 2: Of course, we're focused on how do we tell our

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Speaker 2: story about how this company is going to evolve to

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Speaker 2: be one of the fastest growing companies in the industry

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Speaker 2: by the end of the decade. There's a lot of

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Speaker 2: interest in what does that business look like over the

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Speaker 2: course of the decade.

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Speaker 3: So those are the conversations that we're having.

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Speaker 2: But there is a lot of excitement about the possibilities

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Speaker 2: for truly innovative medicines in this space, and of course

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Speaker 2: Bristol Myers Squib is at the center of that innovation ecosystem.

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Speaker 4: Christopher, this might be more of a question that you

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Speaker 4: and your CFO have, but on a macro level, for

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Speaker 4: the markets, we talk a lot about what central banks

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Speaker 4: are going to do in cutting rates. If the Better

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Speaker 4: Reserve cuts rates, does that do anything for you guys,

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Speaker 4: Does that help in any way? Is it jumpstart M

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Speaker 4: and A in any way whatsoever? Because this is a

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Speaker 4: markedly different environment today than if you guys had this

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Speaker 4: conference six months ago.

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Speaker 2: Well, listen, the way we think about m and as

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Speaker 2: first and foremost doesn't make strategic sense for us to

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Speaker 2: be involved in it. And then are there deals that

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Speaker 2: do a few things, build depth and therapeutic areas we're in,

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Speaker 2: or expand in areas that we want to go into

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Speaker 2: where we find the science super attractive and exciting. And

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Speaker 2: then of course the deals have to make financial sense.

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Speaker 2: And all of that is in some ways independent of

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Speaker 2: what's happening in the broader macro environment. We're very fortunate

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Speaker 2: at BMS to have a very strong business. It's a

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Speaker 2: very strong cash generating business. We certainly have the financial

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Speaker 2: flexibility and horsepower to do the deals we want to do,

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Speaker 2: really to some extent, irrespective of these broader macroeconomic factors.

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Speaker 4: Say, with macroeconomics, for just one more moment, Christopher, what's

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Speaker 4: your hiring situation, Like, how has your labor force evolved

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Speaker 4: and kind of what's your outlook on that end for

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Speaker 4: this year.

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Speaker 2: Well, our labor force continues to evolve with the evolution

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Speaker 2: of our business. So for example, we've just done a

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Speaker 2: deal to re enter neuroscience. That's a space we've not

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Speaker 2: been in for some amount of time. We're going to

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Speaker 2: be building that infrastructure.

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Speaker 3: We've got a.

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Speaker 2: PADUFA date for car Xt, which is the lead asset

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Speaker 2: we got from Karuna in September, so we got to

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Speaker 2: build that team. I would say across the remainder of

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Speaker 2: the business that labor force.

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Speaker 3: Is relatively stable right now, but we're going.

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Speaker 2: To always evolve the organization to align to where we're

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Speaker 2: focused as a company.

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Speaker 3: All right, Christopher, thanks a lot.

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Speaker 4: We appreciate you coming over and giving us so much

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Speaker 4: of your time. Christopher Berner or Bristol Maya Squipt