A Letter from Giovanni Caforio

2021 was a year that truly illustrated who we are – a company focused on transforming patients’ lives through science. We sustained that focus under challenging circumstances as the world continued to grapple with a public health crisis that has changed how we live and work.

Through it all, our global workforce remained focused on our mission and the patients who depend on us. We are particularly grateful to our essential workers who continued to ensure that our laboratories and manufacturing sites remained open so there would be no interruption in the delivery of our medicines to the patients who depend on them. Simply put, we never stopped working for our patients. That commitment and passion is a hallmark of the people of Bristol Myers Squibb and why I am confident that we can deliver on our growth strategy through the decade ahead.

Like many of you, I too thought by now COVID-19 would be behind us. The reality is that we have had to manage through a pandemic that is unpredictable. Despite these challenges, our employees showed resiliency and grit and powered through to deliver strong results for 2021.

Launching new medicines and growing our business

In 2021, we had strong financial results with total revenues growing 9 percent year-over-year to $46.4 billion, generating GAAP EPS of $3.12 and increasing non-GAAP EPS^* by 17 percent to $7.51. We had strong performance across our in-line brands and our New Product Portfolio, which delivered $1.1 billion in revenues. We see significant growth potential from our New Product Portfolio with a potential for risk-adjusted sales of $10 billion to $13 billion in 2025.

We continued to launch new medicines, including Breyanzi^® for large B-cell lymphoma and Abecma^® for multiple myeloma, making Bristol Myers Squibb the first company with two approved cell therapy treatments for two distinct targets. We also expanded the potential of Zeposia^®, launching it as the first oral medication for ulcerative colitis, and we achieved significant clinical and regulatory milestones across our portfolio during the course of the year. Together, with our robust cash flow generation, financial flexibility and strong innovation engine, we have built a solid foundation for sustainable growth.

Building depth in our pipeline

Bristol Myers Squibb is known as a company that is heavily steeped in science and research. We strengthened our innovation engine, doubled our pipeline over the past two years and deepened our use of digital technology to accelerate drug discovery and development.

We remain focused on transforming patients’ lives by identifying, developing and commercializing clinically meaningful and differentiated products. More opportunities are emerging from our exciting mid- and late-stage pipeline, including milvexian as a potential next-generation blood thinner and CELMoDs as a potential new class of therapy in blood cancers, like multiple myeloma. We are also excited about MORAb-202, a potential best-in-class anti-folate receptor alpha antibody drug conjugate for the treatment of solid tumors, and cendakimab, a potential new class of therapy for eosinophilic esophagitis, a disease with serious unmet need.

We continue to amplify our strong internal research and development capabilities with an extensive network of external collaborations. These include numerous new strategic partnerships with industry leaders like Eisai, Agenus, Immatics and Century Therapeutics. We have also made significant investments in our cell therapy franchise and are expanding our development programs for existing therapies. Our teams are working in innovative new scientific platforms including protein homeostasis and next-generation cell therapies and biologics.

Commitment to ESG

As a leader in our industry, we recognize our responsibility to provide long-term benefit to society as we fulfill our corporate purpose. This means that we consider our environmental, social and governance (ESG) risks and opportunities as integral to our strategy for doing business around the world. In 2021, we published our first ESG report in alignment with recognized reporting standards, detailing our progress toward achieving our goals and laying the foundation for increased transparency.

We have made notable progress toward our environmental sustainability goals. Our company was recognized on the Forbes Green Growth 50 list of US-based companies that have reduced greenhouse gas emissions while growing earnings, and our scientists received the US Environmental Protection Agency’s Green Chemistry Award for innovating new ways to conduct science in a more sustainable way.

Our ongoing success is rooted in the diversity of our people and our commitment to ensuring an inclusive culture. We know that diverse teams drive better business results and are proud that we have increased our representation in the US of Black/African American and Hispanic/Latino executives, exceeding our goals for the year. We also made significant progress in achieving gender parity in our executive levels.

We continued our Tomorrow’s Innovators program with historically black colleges and universities to award scholarships to students planning to pursue careers in the biopharma industry. And by year-end, more than half of our clinical trial sites are now located in highly diverse US communities. Since announcing our Supplier Diversity $1 billion commitment, our spend with diverse businesses has increased more than 25 percent, creating a strong foundation for us to achieve our goals ahead of the 2025 target date.

Looking ahead

Bristol Myers Squibb is well positioned to build on our success in 2021 and continue to grow our company through the end of the decade. I am confident in our ability to execute against key milestones in 2022, including three planned first-in-class launches with the fixed dose combination of relatlimab plus nivolumab, mavacamten and deucravacitinib.

Our financial strength, dedicated workforce, and proven ability to execute will enable us to continue to advance our pipeline, invest in future sources of innovation, and position the company for sustained growth. We are stronger than ever, and as we head into 2022, I am even more optimistic about the future of our business.

I want to recognize the extraordinary work our teams do in service of our mission to help patients prevail over serious diseases. Our employees are the reason we have continued to thrive during these challenging times and will always be the foundation of our success.

Thank you.