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a leader in the field of oncology and a pioneer in the new, increasingly promising field of immuno-oncology. 

## Hepatitis C 

With respect to hepatitis C, we were disappointed about the need to discontinue the BMS-986094 clinical program, but in the interest of patient safety, we acted swiftly to end it. 

Despite this situation, our hepatitis C portfolio remains significant. We made important progress on an oral dual-regimen in development in Japan, where we plan to file a regula- tory submission in 2013, and we intensified our focus on the Phase II development of an all-oral triple regi- men, preparing the way for Phase III trials in 2014. 

## Our Improved Organization 

Central to our transformation and a key to our ongoing success has been an active focus on continuous improvement, particularly through enhanced productivity and forward- looking changes to our organization. 

In 2012, we began implementing a new global structure – one better suited for our increasingly diversified portfolio and geographical emphasis. This included a restructuring of our U.S. and European operations as well as our approach to global markets. We also launched the Enterprise Services organization, an effort to streamline internal operations, and we unveiled a new, cutting-edge Plant Network Strategy in our manufactur- ing organization. 

To my Senior Management Team I welcomed three new executives in 2012 and one more early in 2013. Promoted from within our company were John Elicker (Public Affairs and 

Investor Relations) and Samuel Moed (Strategic Planning and Analysis). Recruited to our company were Frances Heller (Business Develop- ment) and Ann Powell Judge (Human Resources). 

Individually and collectively, these organizational changes are all designed to help us to do our work faster, smarter and better – to deliver the promise of our portfolio more effectively and efficiently – and to impact positively the lives of people around the world. 

## Our Steadfast Commitment 

After all, people are at the center of everything we do. People who depend on our innovative medicines. People who live in our communities. People who work for our company. Our commitment is to them and their families, and in 2012, this was dem- onstrated in compelling ways. 

For patients, our commitment includes our work in the laboratory to discover and develop innovative new medicines as well as our work in the field to promote access to them. We there- fore focus a great deal of time and resources also making access a reality for people living in the most challeng- ing circumstances. In 2012, that meant expanding our U.S.-based Together on Diabetes  program – which began in 2010 with a $100 million grant – to China and India, two countries with the largest populations of diabetic patients. It also meant completing the first successful phase of our five-country collaboration with the WHO concerning the HIV/tuberculo- sis epidemic in sub-Saharan Africa, an initiative that represents an exten- sion of our landmark SECurE THE FuTurE  program. 

For communities, our commitment expressed itself through our contin- 

ued work with the United Nations Global Compact and with our own Go Green and Earth Day initiatives. These efforts – combined with the progress made on our Sustainability 2015 Goals – contributed to our top designation on the 2012 Corporate Responsibility magazine’s 100 Best Corporate Citizens list. 

For employees, our commitment was clear in the work we did to develop, enrich and recognize our people. We reaffirmed our longstanding adherence to equal opportunity prin- ciples and rededicated ourselves to maintaining a work environment that values diversity and that embodies fairness, equity and respect. Once again, we placed an emphasis on maintaining an atmosphere designed to promote a good work product and a good work experience. 

Clearly, we are in a strong position. Our BioPharma Transformation has been a journey during which we have worked through many challenges and seized many opportunities. We have been finding our way through the losses of exclusivity. We have been adapting to the “new normal” of global economic uncertainty. And we have just completed an important year of transition – one that underscored the potential of our increasingly diversified portfolio and pipeline of innovative medicines. 

All of this enables us to bring new possibilities to patients. 

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March 11, 2013 

