bristol myerd squibb lehman brothers global healthcare conference
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This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
John CelentanoJohn CelentanoSenior Vice PresidentSenior Vice President
Strategy and Productivity TransformationStrategy and Productivity Transformation
Lehman Brothers Healthcare ConferenceLehman Brothers Healthcare ConferenceMarch 19, 2008March 19, 2008
2This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Next Generation BioPharmaNext Generation BioPharma
Next GenerationBioPharma
Best of PharmaBest of Biotech
Innovative Innovative PortfolioPortfolio
Selectively Selectively Integrated Integrated
Business ModelBusiness ModelContinuous Continuous
ImprovementImprovement
Agile, Entrepreneurial and Accountable Culture
3This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
CultureCultureOn track to embed a high performance culture that On track to embed a high performance culture that supports the Next Generation BioPharma Modelsupports the Next Generation BioPharma Model
Agile and entrepreneurialAgile and entrepreneurialClear accountability and delegation of authorityClear accountability and delegation of authorityInnovation and performance with integrityInnovation and performance with integrityContinuous improvementContinuous improvement
Progress to dateProgress to dateInitiated change management programInitiated change management programEngaging employeesEngaging employeesCreated aligned incentivesCreated aligned incentives
4This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Execution of BMS Biologics StrategyExecution of BMS Biologics Strategy
AdnexusAdnexus
InternalInternalpipelinepipeline
IpilimumabIpilimumab(Cancer)(Cancer)
BelataceptBelatacept(Solid Organ (Solid Organ Transplant)Transplant)
VEGF RVEGF R--22InhibitorInhibitor(Cancer)(Cancer)
AntiAnti--CD137CD137(Cancer)(Cancer)
Devens Bulk Devens Bulk ManufacturingManufacturing
SyracuseSyracuse
Third Party Third Party ManufacturersManufacturers
ErbituxErbitux(Cancer)(Cancer)
OrenciaOrencia(Rheumatoid (Rheumatoid Arthritis)Arthritis)
5This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Our Productivity ApproachOur Productivity Approach
Productivity Transformation Team
Management Council
Supply ChainSupply Chain R&DR&D Commercial Commercial OperationsOperations
G&AG&A
$1.5 BillionCost Savings + Cost Avoidance
$400 MM$400 MM $200 MM$200 MM $550 MM$550 MM $350 MM$350 MM
6This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Top 50 Initiatives Generate Significant Top 50 Initiatives Generate Significant Proportion of SavingsProportion of Savings
Next 250 InitiativesNext 250 Initiatives
SavingsSavings $1.5 B$1.5 B
300 Initiatives Identified300 Initiatives IdentifiedFirst 50 First 50 InitiativesInitiatives
7This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
CostCost--Disciplined Science: Disciplined Science: Clinical StudiesClinical Studies
Limit Over-Recruitment
Examples: Limit overExamples: Limit over--recruitment and reducerecruitment and reduceclinical data collected clinical data collected
Currently overCurrently over--recruit for many recruit for many clinical trialsclinical trials
Proactively Proactively manage manage recruitment in a recruitment in a staged waystaged way
Improved Data Management+Currently collect Currently collect >25MM data >25MM data points at $3/pointpoints at $3/point
Collect and Collect and process only process only necessary data necessary data through upfront through upfront cost/benefit cost/benefit evaluationevaluation
Impact:>$20MM
8This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Apply Lean Thinking to Streamline Apply Lean Thinking to Streamline ProcessesProcesses
~30% of supplies ~30% of supplies unused at clinical unused at clinical sites and returnedsites and returned
Supplies Spend
~$170MM
Unused Supplies~$50MM
Reduce unused supplies by
>40%
Improve Improve enrollment enrollment forecastsforecastsModify inventory Modify inventory levelslevelsSavings >$20MMSavings >$20MM
Example: Optimize Drug Supply ProcessExample: Optimize Drug Supply Process
9This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Supply Chain Redesigned to Support Supply Chain Redesigned to Support BioPharma ModelBioPharma Model
Network segmented and specializedNetwork segmented and specializedInIn--house Biologics capabilityhouse Biologics capabilityAggressive outsourcing of mature productsAggressive outsourcing of mature products
Current Current 2727 PlantsPlants
Generating $400 Million in Productivity
Strategic FiltersStrategic Filters
FutureFuturePortfolioPortfolio
GeographicGeographicFootprintFootprint
ProductProductRationalizationRationalization
>50%>50% ReductionReduction2011 2011
10This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Customer Model Restructured to Support Customer Model Restructured to Support BioPharmaBioPharma
Specialty Model synergizes Sales Force and FieldSpecialty Model synergizes Sales Force and Field--Based Based Medical expertsMedical expertsPartnering on Primary Care maximizes capacity and Partnering on Primary Care maximizes capacity and capability while minimizing fixed overheadcapability while minimizing fixed overheadIncreasing productivityIncreasing productivity
0
2,000
4,000
6,000
8,000
10,000
12,000
2005 2006 2007 2008
FTEs
Primary CareSpecialtyField-Based MedicalTotal Field Force
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Growth Driven by Expanding Global PortfolioGrowth Driven by Expanding Global Portfolioand Continued Strong Pipelineand Continued Strong Pipeline
Full Year 2007 % Increase Full Year 2007 % Increase –– as reportedas reported
New Product LaunchesNew Product Launches
PipelinePipeline
Key ProductsKey Products
ipilimumab saxagliptin apixabandapagliflozin belatacept
+46+46%% ++29%29% +21+21%% +10+10%% +6+6%%
12This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Plavix: 2008 Action PlanPlavix: 2008 Action Plan
Market Leadership – Build on Brand Equity
To Ensure Continued Improvement in Patient Care
Increase diagnosisIncrease penetrationin diagnosedpatients
Grow Peripheral Arterial Disease
Business
Grow AcuteCoronary Syndrome
Business
Drive early initiation in accordancewith guidelinesIncrease hospitalfocus
MaintainStroke Business
Drive early initiation in accordance with guidelines
13This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Abilify: Drivers of GrowthAbilify: Drivers of Growth
DTC expansionDTC expansion
Patient focused Patient focused messagingmessaging
New indicationsNew indicationsBranded &Branded &
Unbranded DTCUnbranded DTC
Patient Focused Selling PiecesPatient Focused Selling Pieces
14This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Orencia Strategic FocusOrencia Strategic Focus
Reimbursement specialistsReimbursement specialists
Payer engagementPayer engagement
Patient assistancePatient assistance
Orencia durability / efficacy dataOrencia durability / efficacy data
DTC Campaign LaunchedDTC Campaign Launched
15This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Sprycel: Drivers of GrowthSprycel: Drivers of Growth
Enhanced profile and label in key marketsEnhanced profile and label in key markets–– Lower 100 mg QD starting dose in chronic Lower 100 mg QD starting dose in chronic
phase with similar efficacy and lower frequency phase with similar efficacy and lower frequency of certain side effectsof certain side effects
–– First and only TKI with randomized data First and only TKI with randomized data regarding Gleevec in labelregarding Gleevec in label
Phase II prostate data expected at ASCOPhase II prostate data expected at ASCO
1st Line CML registration trial initiated1st Line CML registration trial initiated–– Sprycel 100 mg QD vs. Gleevec 400 mgSprycel 100 mg QD vs. Gleevec 400 mg
16This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
IxempraIxempra--Breast Cancer Business Opportunity Breast Cancer Business Opportunity Evolution Evolution (2008 Patients U.S. Market)(2008 Patients U.S. Market)
AnthracyclineAnthracycline / Taxane // Taxane /Capecitabine Pretreated*Capecitabine Pretreated*
AnthracyclineAnthracycline / Taxane / Taxane Pretreated*Pretreated*
Taxane NaTaxane Naïïveve
AdjuvantAdjuvantNeoNeo--adjuvantadjuvant
AnthracyclineAnthracycline / Taxane / Taxane Refractory*Refractory*
--081081
--048048
--046046
2014 +2014 +
2012 +2012 +
20092009
20072007LaunchLaunch
--115115
--100100
TrialsTrials
--087087117,000117,000
60,00060,000
9,0009,000
38,00038,000
23,00023,000
# Patients# Patients
*Includes patients who may be contraindicated for anthracylines*Includes patients who may be contraindicated for anthracylinesSource: IntrinsiQ Breast Cancer Treatment TreeSource: IntrinsiQ Breast Cancer Treatment TreeDistribution of AT Pretreated vs. AT refractory patientsDistribution of AT Pretreated vs. AT refractory patientsestimated based on primary data sourceestimated based on primary data source
17This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Development PortfolioDevelopment PortfolioFull Development(Registrational, Filed)
•• IxempraIxempra ((IxabepiloneIxabepilone) ) (Cancer)(Cancer)
•• IpilimumabIpilimumab(Cancer)(Cancer)
•• BelataceptBelatacept(Solid Organ Transplant)(Solid Organ Transplant)
•• SaxagliptinSaxagliptin(Diabetes)(Diabetes)
•• DapagliflozinDapagliflozin(Diabetes)(Diabetes)
•• ApixabanApixaban(Thrombosis)(Thrombosis)
Life Cycle Management
•• Sprycel Sprycel (Cancer) (Cancer)
•• Erbitux Erbitux (Cancer)(Cancer)
•• OrenciaOrencia(Rheumatoid Arthritis)(Rheumatoid Arthritis)
•• PlavixPlavix((AtherothrombosisAtherothrombosis))
•• AvaproAvapro / / AvalideAvalide(Hypertension)(Hypertension)
•• Abilify Abilify (Psychiatric Disorders)(Psychiatric Disorders)
•• Baraclude Baraclude (Hepatitis B)(Hepatitis B)
•• Reyataz Reyataz (HIV/AIDS)(HIV/AIDS)
•• SustivaSustiva / ATRIPLA / ATRIPLA (HIV/AIDS)(HIV/AIDS)
Exploratory Development•• Androgen Receptor AntagonistsAndrogen Receptor Antagonists (Cancer)(Cancer)•• IGFIGF--1R Antagonist 1R Antagonist (Cancer)(Cancer)•• VEGF RVEGF R--2 Inhibitor 2 Inhibitor (Cancer)(Cancer)•• BrivanibBrivanib--VEGFR/FGFR Inhibitor VEGFR/FGFR Inhibitor (Cancer)(Cancer)•• ErbBErbB/VEGF Receptor Inhibitor /VEGF Receptor Inhibitor (Cancer)(Cancer)•• AntiAnti--CD137 Antibody CD137 Antibody (Cancer)(Cancer)•• EpothiloneEpothilone--FolateFolate (Cancer)(Cancer)•• Met Met KinaseKinase InhibitorInhibitor (Cancer) (Cancer) •• SMO InhibitorSMO Inhibitor (Cancer)(Cancer)•• Hsp90 InhibitorHsp90 Inhibitor (Cancer)(Cancer)•• p38 Kinase Inhibitorsp38 Kinase Inhibitors (Rheumatoid Arthritis)(Rheumatoid Arthritis)•• CCR2/CCR5 Dual AntagonistCCR2/CCR5 Dual Antagonist (Immunology)(Immunology)•• CCR2 Antagonist CCR2 Antagonist (CV / Met)(CV / Met)•• 1111ββHSD InhibitorHSD Inhibitor (Diabetes)(Diabetes)•• DPP4 Inhibitor BackupDPP4 Inhibitor Backup (Diabetes)(Diabetes)•• CB1 Antagonist CB1 Antagonist (Obesity)(Obesity)•• DGAT Inhibitors DGAT Inhibitors (CV / Met)(CV / Met)•• LXR Agonist LXR Agonist (Atherosclerosis)(Atherosclerosis)•• CRF Antagonists CRF Antagonists (Affective Disorders)(Affective Disorders)•• Triple Reuptake InhibitorTriple Reuptake Inhibitor (Depression)(Depression)•• Gamma Gamma SecretaseSecretase InhibitorInhibitor (Alzheimer(Alzheimer’’s) s) •• HCV Inhibitor Target 1 HCV Inhibitor Target 1 (Hepatitis C)(Hepatitis C)•• HCV InhibitorHCV Inhibitor Target 2 Target 2 (Hepatitis C)(Hepatitis C)•• HCV InhibitorHCV Inhibitor Target 3Target 3 (Hepatitis C)(Hepatitis C)•• HIV Attachment Inhibitor HIV Attachment Inhibitor (HIV/AIDS)(HIV/AIDS)•• HIV HIV IntegraseIntegrase Inhibitor Inhibitor (HIV/AIDS)(HIV/AIDS)
As of December 2007
18This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
BMS LateBMS Late--Stage Portfolio Targets Stage Portfolio Targets Unmet Medical Need Unmet Medical Need
apixabanapixaban
dapagliflozindapagliflozin
ipilimumabipilimumab
belataceptbelatacept
ixabepiloneixabepilone
saxagliptinsaxagliptin
Medical NeedMedical Need
Clin
ical
Adv
ance
Clin
ical
Adv
ance
* Circle size is relative peak year sales * Circle size is relative peak year sales by BMS estimates.by BMS estimates.
19This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
2008 Key Data Flow2008 Key Data Flow
OrenciaOrenciaLupus: ACR, Oct 2008Lupus: ACR, Oct 2008Early RA: ACR, Oct 2008Early RA: ACR, Oct 2008RA Prevention: EULAR, June 2008RA Prevention: EULAR, June 2008
SprycelSprycel Prostate cancer: ASCO, June 2008Prostate cancer: ASCO, June 2008ErbituxErbitux Lung cancer: ASCO, June 2008Lung cancer: ASCO, June 2008
IxempraIxempra MBC MBC --046 survival data: ASCO Breast, Sept 2008046 survival data: ASCO Breast, Sept 2008MBC MBC --048 survival data: SABCS, Dec 2008048 survival data: SABCS, Dec 2008
BelataceptBelatacept Ph III data available: 4Q 2008Ph III data available: 4Q 2008IpilimumabIpilimumab Metastatic melanoma: ASCO, June 2008Metastatic melanoma: ASCO, June 2008
SaxagliptinSaxagliptin Ph III data: ADA, June 2008Ph III data: ADA, June 2008Ph III data: EASD, Sept 2008Ph III data: EASD, Sept 2008
DapagliflozinDapagliflozin Ph IIb data: ADA, June 2008Ph IIb data: ADA, June 2008
PlavixPlavix ACTIVEACTIVE--A data available: 2H 2008A data available: 2H 2008CURRENT data available: 2H 2008CURRENT data available: 2H 2008
ApixabanApixaban Ph II ACS data: ESC, Aug/Sept 2008Ph II ACS data: ESC, Aug/Sept 2008Ph III VTE prevention data: ASH, Dec 2008Ph III VTE prevention data: ASH, Dec 2008
20This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
Next Generation BioPharmaNext Generation BioPharma
Next GenerationBioPharma
Best of PharmaBest of Biotech
Innovative Innovative PortfolioPortfolio
Selectively Selectively Integrated Integrated
Business ModelBusiness ModelContinuous Continuous
ImprovementImprovement
Agile, Entrepreneurial and Accountable Culture
This presentation is intended solely for an investment communityThis presentation is intended solely for an investment community/industry audience/industry audience--not for promotional use not for promotional use
John CelentanoJohn CelentanoSenior Vice PresidentSenior Vice President
Strategy and Productivity TransformationStrategy and Productivity Transformation
Lehman Brothers Healthcare ConferenceLehman Brothers Healthcare ConferenceMarch 19, 2008March 19, 2008