Overall Performance

BMS had a robust quarter, leading the company to raise its guidance for the year. This positive trend is reflective of a broader pattern seen in the BioPharma industry, with other major players like AbbVie, AstraZeneca, Roche, and Sanofi also raising their guidance following strong Q2 performances.

Growth vs. Legacy Portfolio

Growth Portfolio

The growth portfolio experienced a significant increase in sales, rising by 21% in constant currency terms. This segment now accounts for nearly half of BMS's overall sales. Key drivers of this growth include:

• Opdivo: Increased demand contributed substantially to revenue growth.
• Reblozyl: Another key product with strong sales performance.
• Camzyos and Opdualag: These products also saw higher demand, contributing to the portfolio's overall growth.

Legacy Portfolio

BMS's legacy portfolio, referred to as the 'in-line' portfolio, performed better than expected, with sales increasing by 3%. Notable contributors to this segment include:

• Eliquis: Despite facing potential competition between 2026 and 2028 in the US and being one of the 10 medicines selected for IRA price negotiations in 2026, Eliquis remains a significant revenue driver, making up almost half of the legacy portfolio sales and a quarter of total company revenue.
• Pomalyst: Continued to show strong demand.
• Revlimid: Although facing a decline due to generic erosion, it still contributed to the portfolio.

Key Developments and Milestones

Eliquis and IRA Negotiations

Management provided more details on IRA negotiations during the Q2 call, expressing increased confidence in navigating the impact of IRA on Eliquis. They noted that they had seen the final 'maximum fair price' from the government, which bolstered their confidence.

Radiopharma Trial - RYZ101

Chief Medical Officer Samit Hirawat provided an update on the phase 3 study of RYZ101, the lead asset acquired from the $4.1 billion deal for RayzeBio last year. BMS resumed enrollment after addressing supply issues related to actinium. While the most advanced indication for RYZ101 is for gastroenteropancreatic neuroendocrine tumors (GEP-NET), the phase 1 study for small cell lung cancer holds more commercial promise due to its larger market potential.

Product and Pipeline Updates

BMS achieved several important clinical and regulatory milestones recently:

Oncology

• Opdivo (nivolumab) + Yervoy (ipilimumab): The EMA validated a Type II variation application for use as a first-line treatment for unresectable or advanced hepatocellular carcinoma (HCC).
• Krazati (adagrasib): Received FDA accelerated approval in combination with cetuximab for KRASG12C-mutated colorectal cancer (CRC).
• Subcutaneous nivolumab: The EMA validated the extension application for a new route of administration across multiple indications.
• Augtyro (repotrectinib): Granted FDA accelerated approval for treatment of tumors with NTRK gene fusion.

Hematology

• Breyanzi (lisocabtagene maraleucel): Received FDA approval for relapsed or refractory mantle cell lymphoma (MCL) and accelerated approval for follicular lymphoma (FL).

Immunology

• Cendakimab: Phase 3 trial for eosinophilic esophagitis (EoE) met co-primary endpoints.
• Sotyktu (deucravacitinib): Long-term extension trial results showed sustained clinical response in patients with moderate-to-severe plaque psoriasis over four years.

Clinical & Research Highlights

• Opdivo + Yervoy: CheckMate -9DW trial showed significant improvement in overall survival for HCC patients.
• Krazati: KRYSTAL-12 study demonstrated significant improvement in progression-free survival for KRASG12C-mutated NSCLC.
• Opdivo + Yervoy: CheckMate -73L trial did not meet primary endpoint for NSCLC.

Conclusion

Bristol Myers Squibb's Q2 earnings report underscores the company's strong performance and strategic focus on maximizing the potential of its growth portfolio while deftly managing its legacy medicines.

It comes amid the larger context of a major restructuring announced in April, which is part of several efforts meant to fortify the company as it faces LOEs on key products, while investing in its most promising medicines to enable strong growth in the future.