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## Message from the Chairman of the Board 

For years, we had been talking about a “patent cliff” – an enormous drop in sales and earnings that would occur when two of our biggest products, Plavix  and Avapro/Avalide , lost their exclusivity in the United States. We discussed its likely impact on our organization. We debated its effect on our portfolio. Some even wondered whether we could recover. 

Over time, however, that conversation took a different turn. 

In fact, when both products lost their exclusivity in 2012, we did not fall off a cliff. We remained strong and just continued doing what we do best: driving sales, launching products, building our future. In the end, the “cliff” turned into more of a “slope,” and the conversation refocused on our bright future. 

This is an important story, because it speaks to the strength, the resiliency and the capacity of Bristol-Myers Squibb. 

Over the past several years, our company has changed in significant ways. We have evolved our mission and strategy. We have diversified our portfolio and geographical focus. We have repurposed and redirected our organization. All in all, we have done a great deal to transform Bristol-Myers Squibb into a bench- mark BioPharma company. 

And last year, the results were impres- sive. Strong double-digit growth in sales of our new and in-line products. The augmentation of our diabetes 

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## “Going forward, the foundation established in recent years – coupled with our proven ability to deliver under difficult circumstances – should help guarantee our continued success.” 

franchise through a major acquisi- tion, a new product approval and the strengthening of our alliance with AstraZeneca. The further develop- ment of our exciting work in immuno- oncology. The much-anticipated approval in several countries of Eliquis for atrial fibrillation. 

All of this has made it possible to mitigate the impact of the patent losses and find our way through an increasingly complex, increasingly challenging global economic environ- ment. Granted, we will continue to feel the effect of those losses, but there is no mistaking it: Through 

careful planning and smart execution, we ended 2012 in a solid position. 

Going forward, the foundation estab- lished in recent years – coupled with our proven ability to deliver under difficult circumstances – should help guarantee our continued success. 

Since joining our company in 2006, I have had the opportunity to work with some extraordinary people during some extraordinary times. As CEO, I was able to launch our BioPharma Transformation and help guide the organization through the early years of this important process. As Chair- man, I have been able to work closely with CEO Lamberto Andreotti and his team as they take the company to the next level. In addition, I want to thank Louis Freeh, who recently retired from the Board, and R. Sanders Williams, who will retire on May 7, for their dedicated and outstanding service to the company. 

We have literally transformed Bristol- Myers Squibb into a BioPharma leader and are making an important difference in the lives of our patients and in the communities in which we live and work. And as we transition to the portfolio of the future with an organization well positioned to own that future, I feel extremely confident and genuinely proud. 

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