David Elkins
Executive Vice President and Chief Financial Officer at Bristol-Myers Squibb
Thank you, Giovanni, and thanks, again, for all of you joining our second quarter earnings call. Let's turn to slide eight to discuss our solid top line performance. Unless otherwise stated, I will discuss our sales performance growth rates on an underlying basis, which excludes the impact of foreign exchange. Second quarter revenues were approximately $11.9 billion, growing 5% year-over-year. This performance was driven by robust growth of our in-line and new product portfolio of 16%, more than offsetting our recent LOEs. Let's now double-click on our new product portfolio performance on slide nine.
Global revenues were nearly $500 million, more than doubling revenue versus prior year. Growth over prior quarter was also very strong, up 38%, primarily due to strong launches of Abecma and Opdualag, which I will touch on in a moment. I'm very pleased with the performance of our new product portfolio and its future potential, with two additional launches year-to-date and deucravacitinib's anticipated approval in six weeks. Our new product portfolio has significant expansion opportunities and the potential to generate greater $25 billion in revenue on a nonrisk-adjusted basis in 2029. I look forward to updating you on these products as they continue to realize their full potential.
The performance of our solid tumor portfolio, shown on slide 10, was strong. Opdivo sales in the quarter continued to grow globally, driven by demand for our newly launched and core indications. In the U.S., we delivered 12% growth for Opdivo versus prior year, driven by demand in first-line lung, renal and gastric cancer as well as adjuvant esophageal and bladder cancers, partially offset by some -- Opdualag in first-line melanoma. Internationally, revenues were also strong, growing 13% primarily due to growth from new indications, particularly first-line lung and renal cancers as we continue to secure reimbursement in many countries.
Looking forward, we expect continued growth from Opdivo from our new and expanding indications in both early and late-stage cancers. Yervoy sales grew 7% globally, and in the U.S., revenues were consistent with prior year as we experienced some variability in RCC and melanoma as well as higher inventory burn and gross-to-net adjustments this year. Importantly, sequential revenues grew 5%, primarily driven by demand in first-line lung cancer, and we continue to expect growth for the brand. Now to our strong launch of Opdualag, the first fixed-dose combination of a LAG-3 and PD-1 inhibitor. While still early in the launch, we have already generated $58 million of sales in the quarter, driven primarily by robust demand and $10 million of stocking.
The robust demand for Opdualag has mainly been in line with our strategy, taking share from PD-1 monotherapy and, as expected, some use in place of Opdivo-Yervoy combination. Internationally, we are pleased with the recent CHMP positive opinion in Europe and look forward to realizing Opdualag's potential to be a new standard of care in patients with metastatic melanoma around the world. Turning to our growing cardiovascular portfolio on slide 11, starting with Eliquis, our leading OAC globally, with strong revenue growth of 20% year-over-year. In the U.S., sales increased 27% versus prior year, driven primarily by demand growth and favorable gross-to-net adjustments.
As a reminder, looking to the third and fourth quarters, we expect the usual dynamics for Medicare coverage gap, with second half revenues being lower than first half as we've seen in previous years. Internationally, sales grew 9% versus a year ago. This growth was primarily driven by increased share across key markets as the brand continues to be the number one OAC in multiple countries. This was partially offset by pricing actions in many markets as demand grows and, to a smaller extent, at-risk generic launch in the U.K. and the Netherlands. For the second half of the year, we expect the impact of at-risk generic launch to be approximately $250 million. Now turning to our most recent launch, Camzyos. As you know, the vast majority of patients initiating treatment on Camzyos are starting on a free trial offer for at least 30 days.
And then the $3 million recorded in revenue in the quarter was mainly due to stocking. During the second quarter, we have successfully laid the foundation, leveraging our strong CV leadership in REMS to certify over 1,000 health care professionals. We are now focused on broadening our user base and supporting the initiation of patients on Camzyos. We are pleased with the physician feedback thus far and look forward to helping more patients living with symptomatic oHCM. Moving on to a few of our hematology products on slide 12, starting with Revlimid. Sales in the quarter were approximately $2.5 billion.
Sales were primarily impacted by generic entry, particularly in international markets. In the U.S., while we did experience demand softness from the volume-limited generic entry in the quarter, we understand that specialty pharmacies are mainly utilizing the current generic for new patients to ensure continuity of treatment. As mentioned in the past, we know there will be variability quarter-to-quarter based on how generics will deploy their volume. As additional entrants will be coming to the market in the U.S. in the third quarter, we expect Q3 revenues to be approximately $2.1 billion. We maintained our full year global sales guidance of $9 billion to $9.5 billion.
Pomalyst global revenues grew 9% versus prior year, primarily driven by demand for triple-base regimens in earlier lines and extending duration of treatment. Now moving to Reblozyl, which generated $172 million in the quarter, up a strong 36% versus prior year. In the U.S., we are seeing encouraging trends in patient adherence and extended treatment duration. Outside of the U.S., Reblozyl continues to grow, driven by demand in both MDS and beta thalassemia-associated anemia and as we obtained reimbursement in additional countries. Finally, turning to our cell therapy assets, Abecma and Breyanzi. Abecma generated strong revenues in the quarter, equaling $89 million. This represents a 36% sequential increase over last quarter, driven by expanded capacity and vector supply.
Though we're encouraged to treat more multiple myeloma patients, demand continues to outpace supply, and we are focused on further expanding capacity, including additional manufacturing sites in the future. As it relates to Breyanzi, sales in the quarter were $39 million. Demand remained strong for the brand, although sales were impacted by lower-than-expected manufacturing success rates, which now have been addressed. Importantly, as Giovanni mentioned, we are very pleased to have received a differentiated broad second-line label in large B-cell lymphoma patients. We are working hard and investing to expand capacity early next year to enable uptake for this indication.
As we work through building additional capacity to treat more patients in earlier lines, we expect revenues in the third and fourth quarters to be largely similar to the first quarter of this year. Moving on to our immunology product summary on slide 13. Orencia global sales grew 11% versus prior year due to expanded U.S. sales driven by increased market share as well as demand in international markets. Turning to Zeposia, global sales for the quarter were $66 million, more than doubling sales versus last year, primarily due to expansion of Zeposia into ulcerative colitis. Sequentially, in the U.S., sales were primarily driven by a combination of favorable gross to net and wholesale buying patterns of approximately $20 million.
Importantly, we're encouraged by the 24% demand growth over the previous quarter, and we remain focused on working to for expand volume, so we can continue to improve access in 2023. Internationally, Zeposia continues to secure reimbursement in other markets for MS and UC. Closing out on immunology. We very much look forward to broadening our portfolio with another first-in-class asset, our selective TYK2 inhibitor, deucravacitinib. Our commercial and medical teams are in place, and we're ready for launch. Now let's turn to slide 14 to discuss the second quarter P&L. I've already discussed our revenue, so I'll now focus on the other key line item -- non-GAAP line items. Gross margins decreased primarily due to product mix, partially offset by foreign exchange and related hedging settlements.
Our operating expenses, excluding acquired in-process R&D, were broadly in line with prior year, driven by higher investments around our new product portfolio and pipeline, offset primarily by foreign exchange. Acquired in-process R&D charges in the quarter were $400 million, primarily driven by the buyout of a royalty obligation for Camzyos of $295 million as well as a $90 million upfront for BridgeBio. This accounted for a 17% impact to diluted EPS. Acquired in-process R&D charges in the prior year were approximately $793 million, which accounted for a $0.30 impact to diluted EPS. The second quarter tax rate was impacted by earnings mix. And lastly, we delivered strong non-GAAP EPS growth in the quarter, up 18% year-over-year. This includes the $0.14 impact of acquired in-process R&D.
Excluding acquired in-process R&D, non-GAAP EPS would have grown 7%. Now moving to the balance sheet and capital allocation on slide 15. The company's balance sheet remains strong, with $13.2 billion in cash and market securities on hand as of June 30. Cash flow from operations in the first half of the year was $6.1 billion. In the quarter, it was approximately $2.3 billion, which is impacted by a cash tax payment, and we expect cash flow from operations to rebound in Q3 and Q4. Our capital allocation priorities remain unchanged. Business development continues to be a top priority, and we continue to execute on this priority with the announcement of the planned acquisition of Turning Point Therapeutics.
We remain committed to continued debt reduction. In the quarter, we repaid $2.9 billion of debt. And we remain committed to returning capital to shareholders. We executed a $5 billion ASR earlier this year and remain opportunistic about repurchases in the future. Now turning to our 2022 non-GAAP guidance on slide 16. We are updating our revenue guidance to be approximately $46 billion this year, reflecting the significant appreciation of the U.S. dollar to other global currencies. Excluding the effects of currency, the underlying sales growth for the business is expected to be 2% versus 2021. We estimate the FX impact to full year sales at today's spot rate to be about $1.5 billion. We continue to expect our in-line and new product portfolio to grow in the low double-digit range and reaffirm our LOE guidance, including Revlimid's guidance of $9 billion to $9.5 billion for the year.
Gross margin is expected to be approximately 79%, up 100 basis points from previous guidance due to favorable impact of currency and related hedging settlements. Our operating expense guidance, excluding acquired in-process R&D remained unchanged, declining in the low single digits versus prior year. This is primarily driven by favorability in FX as well as cost discipline. In terms of phasing for the second half of the year, we expect a more even phasing of expenses than in prior years. All said, we are reaffirming our non-GAAP adjusted EPS guidance based on the underlying strength of our portfolio, mitigating currency translation from our natural hedges and hedging program. Before we move to Q&A, I just wanted to express my gratitude to all our colleagues around the world for continuing to deliver strong commercial, clinical and financial results. The resiliency of our company and exciting catalysts ahead make me energized by the growth opportunity ahead of us.
I'll now turn the call back over to Tim and Giovanni for Q&A.
