Tags: Bristol-Myers | earnings | profit | Drug

Bristol-Myers Misses Revenue Estimate as Generics Hit Drug Sales

Wednesday, 24 Oct 2012 08:02 AM

Bristol-Myers Squibb Co., the only drugmaker among the top 12 to decline in trading this year, reported sales and earnings trailed analyst estimates after revenue from its top drug vanished to generic competition.

Bristol-Myers had a third-quarter net loss of $711 million, or 43 cents a share, compared with net income of $969 million, or 56 cents, a year earlier, the New York-based company said Wednesday in a statement. The loss included a $1.83 billion charge for the failure of a hepatitis C drug gained in the purchase of Inhibitex Inc. Excluding the charge, profit was 41 cents a share, 1 cent below the average of 16 analyst estimates compiled by Bloomberg.

The drugmaker has been trying to manage the loss of Plavix, its anti-stroke medicine that sold $7.09 billion last year, by acquiring and developing therapies to diversify its portfolio. That effort was set back with the failure of the hepatitis C drug and when regulators delayed approval of Eliquis, a blood thinner being developed with Pfizer Inc.

“Bristol-Myers Squibb faced challenges in the third quarter,” said Chief Executive Officer Lamberto Andreotti. “We remain strong and well-positioned for future success.”

Sales fell 30 percent to $3.74 billion, 6.3 percent less than analyst projections. Revenue for Plavix dropped 96 percent to $64 million in the first full quarter of generic competition after losing its patent protection in May.

Forecast Renewed

Bristol-Myers confirmed the forecast for its 2012 earnings, excluding certain items, of $1.90 to $2 a share, and expects to hit “the upper end of the range.” The company also projected full-year sales of $17.4 billion to $17.8 billion, below the $18 billion average of 16 analyst estimates compiled by Bloomberg.

Next year is less certain. Andreotti, in 2010, promised 2013 earnings excluding items of at least $1.95 per share “at a minimum.” Last month, his chief financial officer told investors there have “been a lot of pulls and pushes” on the drugmaker’s business since then.

Bristol-Myers declined 2.4 percent to $33.24 at the close yesterday in New York. Shares had dropped 5.7 percent this year through yesterday.

Revenue from Avapro and Avalide, a blood pressure medication, fell 56 percent to $95 million. The treatment lost patent protection in March.

Pfizer’s Effort

Bristol-Myers was unable to hang on to revenue from the drugs in the way that Pfizer did with Lipitor, its top-selling cholesterol pill. Pfizer, which faced limited competition for six months after the patent expired, used coupons and promotions to keep sales as long as possible. It also reached an agreement with Watson Pharmaceuticals Inc. to sell an “authorized generic” to compete with other copies. Pfizer is scheduled to report third-quarter earnings on Oct. 30.

Sales of its Bristol-Myers’s next top two drugs fell as well. Abilify, used for depression and schizophrenia, saw revenue fall 2 percent to $676 million. Reyataz, an HIV drug, declined 7 percent to $363 million.

Those declines were offset by drugs that Bristol-Myers is counting on for its future, though. Sales of Orencia, a rheumatoid arthritis treatment, grew 32 percent to $307 million. And sales of Yervoy, a cancer drug to treat melanoma, rose 48 percent to $179 million.

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Bristol-Myers Squibb Co., the only drugmaker among the top 12 to decline in trading this year, reported sales and earnings trailed analyst estimates after revenue from its top drug vanished to generic competition.Bristol-Myers had a third-quarter net loss of $711 million,...
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2012-02-24
Wednesday, 24 Oct 2012 08:02 AM
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