Analyst Conference Summary

biotechnology

conference date: July 31, 2025 @ 5:00 AM Pacific Time
for quarter ending: June 30, 2025 (second quarter 2025, Q2)

Forward-looking statements

Overview:

Basic data (GAAP):

Revenue was $ billion, down % sequentially from $11.2 billion and down % from $ billion year-earlier.

Net income was $ billion, up % sequentially from $2.46 billion and up % from $ billion year-earlier.

EPS (earnings per share), diluted, were $, up % sequentially from $1.20, and up % from $ year-earlier.

Guidance:

Conference Highlights:

Chris Boerner, CEO, said ""

Camzyos coverage was increased by reduction of contraindications in April 2025. But the Phase 3 trial for non-obstructive hypertrophic cardiomyopathy did not meet its endpoints.

In March 2025 the EU approved Breyanzi for third-line follicular lymphoma.

In March 2025 the Sotyktu (deucravacitinib) Phase 3 trial data was positive for psoriatic arthritis.

Non-GAAP numbers: diluted EPS $, up % sequentially from $1.80 and up % from $ year-earlier. Net income $ billion, up % sequentially from $3.67 billion, and up % from $ billion year-earlier.

Cash and equivalents ended at $ billion up sequentially from $12.1 billion. Cash flow from operations $ billion. Long-term debt was $ billion, short term $ billion. $0 billion used for stock repurchases, but $5 billion remains authorized. Plans to pay down $4 billion of debt in 2025/2026.

US revenue decreased % to $ billion; international down 2% to $ billion.

The mid to late stage pipeline includes repotrectinib, farletuzumab exteribulin, AR-LDD, iberomide, mezigdomide, alnuctamab BCMA TCE, CC-99282, cendakimab, LPA1, and milvexian.

Cost of products sold was $3.03 billion. SG&A $1.58 billion. R&D $2.26 billion. Amortization of acquired intangible assets $830 million. Acquired IRPD $188 million. Other expense $339 million. Total expenses $8,23 billion. Operating profit $2,97 million. Tax $509 million.

Q&A selective summary:

U.S. manufacturing v. tariffs? We appreciate the efforts to enhance U.S. manufacturing, but it must be done in a thoughtful way. We hope outcome will enhance our competitiveness. We have been investing in our U.S. infrastructure for years. Tariffs, mainly on China, are reflected in the current guidance.

Cobenfy outlook? We don't expect the recent results to significantly affect sales. Our focus is to get Cobenfy in earlier lines of treatment, as a monotherapy. Multiple therapies are typically tried on patients with a history of failures on various monotherapies.

R&D? We continue to drive the internal pipeline. Recent failures will not have a significant impact on growth. Our financial position allows us to also source innovation externally. We have had 43 major approvals in the past 5 years. We plan for 10 new molecules for 30 new indications by the end of the decade, with some readouts this year and a bunch in 2026.

Cobenfy for Alzheimer's, etc.? The late data should have no impact on the Alzheimer's program, where we have earlier data. There is also a longer duration of treatment. We will initiate 7 new Phase 3 trials this year for various indications.

We have a broad manufacturing network, outside the U.S. we are not dependent on any particular nation.

Camzyos new data effect on sales? Camzyos growth remains strong. Data allows us to ease burden on clients and physician. So echo monitoring now just every 6 months.

Cobenfy prescriber base color? Launch going well, got Medicaid and Medicare coverage, making progress with private payers. Feedback on results for patients is possible. Reaching 30,000 psychiatrists is the aim of the launch. We also expect to see better gross to net in 2025.

While we are continuing to find ways to cut costs, we also plan to continue to invest in future growth.

The remaining Cobenfy trials are for indications that will be compared to placebo, in cases where there are no currently approved drugs. We have not announced the exact criteria for success.

We no longer give long term guidance. But we plan to deliver sustained long-term growth by the end of the decade. As to the expected revenue trough, we aim to bring it forward and minimize it as best we can.

Camzyos competitive position? Seeing strong Camzyos growth. We are seeing long durations of treatment and new prescriptions weekly. The new competitor (Cytokinetics' Aficamten) seems undifferentiated, we will be ready when it comes to market [PDUFA is 9/26/2025].

Multiple Myeloma is still mainly treated at community centers. CAR-T therapies are limited to academic centers of excellence. It is a fragmented market, still has room for new entrants.

We would like to see a more competitive corporate tax rate, it would have a positive effect on investment in R&D.

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