- Posts Fourth Quarter 2005 GAAP EPS of $0.26 and Non-GAAP EPS of $0.31
- Records Full Year 2005 GAAP EPS of $1.52 and Non-GAAP EPS of $1.43
- Announces Full Year 2006 GAAP and Non-GAAP EPS Guidance at $1.15-$1.25,
including the impact of expensing stock options
NEW YORK, Jan. 25 /PRNewswire-FirstCall/ -- Bristol-Myers Squibb Company
(NYSE: BMY) today reported financial results for the fourth quarter and twelve
months ended December 31, 2005 and announced 2006 earnings guidance.
Bristol-Myers Squibb posted fourth quarter 2005 net sales from continuing
operations of $5.0 billion, a decrease of 1%, excluding a 2% unfavorable
foreign exchange impact, compared to the fourth quarter of 2004. The company
reported fourth quarter 2005 net earnings from continuing operations of $499
million, or $0.26 per diluted share, under U.S. Generally Accepted Accounting
Principles (GAAP), compared to $139 million, or $0.07 per diluted share for
the same period in 2004. On a non-GAAP basis excluding specified items,
fourth quarter 2005 net earnings from continuing operations was $601 million,
or $0.31 per diluted share, compared to $776 million, or $0.39 per diluted
share for the same period in 2004.
"We're continuing to increase investments in our pharmaceutical growth
drivers and in our late-stage pipeline, with R&D spend alone up 14% in the
fourth quarter," said Peter R. Dolan, chief executive officer, Bristol-Myers
Squibb. "These investments are already returning solid results, with
continued double-digit growth in PLAVIX(R), ABILIFY(R), ERBITUX(R) and
REYATAZ(R) and the progress of the nine compounds in our late-stage portfolio.
We also expect to commercialize several drugs in 2006, including the
anticipated launch of ORENCIA(R), our internally discovered biologic therapy
recently approved in the U.S. for rheumatoid arthritis. ENFAMIL(R) infant
formula, Bristol-Myers Squibb's third largest product, also grew 15% for the
year."
For the twelve months ended December 31, 2005, the company posted net
sales from continuing operations of $19.2 billion, a decrease of 1% compared
to net sales of $19.4 billion for the same period in 2004. Under GAAP, net
earnings from continuing operations for the full year 2005 were $3.0 billion,
or $1.52 per diluted share compared to $2.4 billion, or $1.21 per diluted
share for the same period in 2004. On a non-GAAP basis excluding specified
items, net earnings from continuing operations for the full year 2005 was $2.8
billion, or $1.43 per diluted share, compared to $3.4 billion, or $1.70 per
diluted share for the same period in 2004.
The company experienced declines in revenue during the quarter and twelve
months ended December 31, 2005 as exclusivity losses among older
pharmaceutical products were partially offset by sales from newer
pharmaceutical growth drivers and increased sales in the Health Care Group.
ORENCIA(R) APPROVAL AND DASATINIB SUBMISSION
In December 2005, the U.S. Food and Drug Administration (FDA) approved
ORENCIA(R), Bristol-Myers Squibb's fifth new drug approval since late 2002.
ORENCIA(R) is indicated for reducing the signs and symptoms of rheumatoid
arthritis, inducing major clinical response, slowing the progression of
structural damage, and improving physical function in adult patients with
moderately to severely active rheumatoid arthritis who have had an inadequate
response to one or more disease-modifying anti-rheumatic drugs (DMARDs), such
as methotrexate (MTX) or tumor necrosis factor (TNF) antagonists. Of the
approximately 250,000 U.S. patients who receive anti-TNF therapy,
Bristol-Myers Squibb estimates that 15% to 25% are treatment failures or
inadequate responders to treatment.
ORENCIA(R) is expected to be available by late February or early March
2006 in the United States, as previously disclosed. A marketing authorization
application (MAA) has also been submitted for the product with the European
Medicines Evaluation Agency (EMEA). The therapy will be supported by an
Immunoscience sales organization that was established last year and is now
fully staffed with trained representatives.
Earlier this month, Bristol-Myers Squibb completed submission of the
supplemental Biologics License Application (sBLA) to the FDA for the licensure
of a third-party manufacturing facility to support increased production
capacity for ORENCIA(R). The sBLA is part of the company's long-term plan for
increasing manufacturing capabilities for a variety of biologics.
Another recent development from Bristol-Myers Squibb's full development
portfolio was the December completion of the rolling submission of its New
Drug Application (NDA) to the FDA for dasatinib, a SRC/ABL Kinase Inhibitor
for the potential treatment of chronic myelogenous leukemia (CML). Also, in
January the company submitted an MAA for dasatinib to the EMEA.
RE-EXAMINING THE COST BASE
In the fourth quarter of 2005 Bristol-Myers Squibb announced new
initiatives designed to channel additional resources and organizational energy
to high-value activities and take out low-value work to achieve and maintain
an improved cost base. As previously disclosed, the company's initial goal is
to realize a minimum of approximately $500 million in savings in 2007 and an
incremental $100 million in 2008, above and beyond what has already been
achieved to date.
"We are in the midst of fundamentally re-examining our operating model to
make lasting changes that will make Bristol-Myers Squibb more productive,
efficient and effective as we fully transition our pharmaceutical portfolio to
growth products in serious disease areas with significant unmet medical need,"
explained Andrew R.J. Bonfield, chief financial officer. "This is not about
cutting isolated expense items. Rather, we're working to reset and lower our
cost base to prepare the company for a period of sustainable growth, beginning
in 2007."
FOURTH QUARTER RESULTS
- Fourth quarter 2005 net sales from continuing operations decreased 3% to
$5.0 billion compared to the same period in 2004, reflecting a 2%
unfavorable impact of foreign exchange rate fluctuations and a 2%
decrease in volume, partially offset by a 1% increase in average selling
prices. U.S. net sales increased 1% to $2.8 billion for the quarter
compared to 2004, while international net sales decreased 7% to $2.2
billion, including a 4% unfavorable foreign exchange impact.
- Marketing, selling and administrative expenses decreased by 2% to $1.4
billion in the fourth quarter of 2005 compared to the same period in
2004, primarily due to lower sales force expense resulting from a focus
on specialists and high value primary care physicians.
- The company continued to shift advertising and product promotion
investments from mature brands to products expected to drive future
growth. Advertising and promotion spending increased by 5% to $444
million in the fourth quarter of 2005 from $424 million in the same
period in 2004, primarily driven by increased investments in direct-to-
consumer marketing campaigns for ABILIFY(R) and PLAVIX(R), the launch of
BARACLUDE(TM), and increased costs associated with preparing for the
launch of ORENCIA(R).
- Research and development expenses increased by 14% to $775 million in
the fourth quarter of 2005 from $677 million in the same period in 2004.
This increase primarily reflects continued investments in other late-
stage compounds. Investment in pharmaceutical research and development
equaled 17.8% of pharmaceutical sales in the fourth quarter of 2005,
compared to 14.9% in the same period in 2004.
INCOME TAXES
The effective income tax rate on earnings from continuing operations
before minority interest and income taxes was 21.4% and 73.7% for the three
months ended December 31, 2005 and 2004, respectively. The lower effective
tax rate in the fourth quarter of 2005 compared to the same period in 2004 was
primarily driven by a charge of $575 million for estimated deferred taxes
taken in the fourth quarter of 2004 related to the repatriation of
approximately $9 billion in special dividends from the Company's non-U.S.
subsidiaries, pursuant to the American Jobs Creation Act, and a charge taken
in the fourth quarter of 2004 related to the establishment of a valuation
allowance against certain charitable contributions, partially offset by lower
estimated foreign tax credits in 2005.
SPECIFIED ITEMS
In the three months ended December 31, 2005 and 2004, the company recorded
specified income and expense items that affected the comparability of the
results.
The pre-tax specified items in 2005 included:
- $197 million charges for increase in litigation reserves, primarily
related to securities litigation
- $86 million charges related to asset impairment, accelerated
depreciation and downsizing and streamlining of worldwide operations
- $9 million charge primarily related to milestone payments
- $138 million deferred income recognized, net of other costs, resulting
from the company's termination of its collaborative agreement with
Merck for muraglitazar
The pre-tax specified items in 2004 included:
- $61 million charges related to accelerated depreciation and downsizing
and streamlining of worldwide operations
- $16 million charges for litigation matters
- $15 million primarily related to milestone payments
- $4 million adjustment to the gain on the sale of the Adult Nutritional
business
In addition, a $575 million charge was recorded for estimated deferred
taxes on repatriation of foreign earnings.
For additional information on specified items, see Appendix 1. Details
reconciling these non-GAAP amounts with GAAP amounts including specified items
are provided in supplemental materials available on the company's website.
PHARMACEUTICALS
Worldwide pharmaceutical sales decreased 3% to $4.0 billion in the fourth
quarter of 2005 compared to the same period in 2004.
U.S. pharmaceutical sales decreased 1% to $2.2 billion in the fourth
quarter of 2005 compared to the same period in 2004, primarily due to an
increase in wholesaler inventory levels in the fourth quarter of 2004 and
increased competition for PRAVACHOL(R), partially offset by the continued
growth of PLAVIX(R), ERBITUX(R), REYATAZ(R) and ABILIFY(R). In aggregate,
estimated wholesaler inventory levels of the company's key pharmaceutical
products sold by the U.S. Pharmaceutical business in the fourth quarter
remained flat at approximately two-and-a-half weeks, as compared to an
increase of approximately one week in the fourth quarter of 2004. This
affected the sales performance of certain products in the fourth quarter of
2005.
International pharmaceutical sales decreased 6%, including a 4%
unfavorable foreign exchange impact, to $1.8 billion for the fourth quarter of
2005 compared to the same period in 2004. The sales decrease was primarily
due to a decline in TAXOL(R) and PRAVACHOL(R) sales resulting from increased
generic competition in Europe, partially offset by increased sales of newer
products including REYATAZ(R) and ABILIFY(R), as well as growth of PLAVIX(R).
Pharmaceutical Growth Drivers
Worldwide sales of the products that the company views as current and
future growth drivers increased to 47% of worldwide pharmaceutical sales in
the fourth quarter of 2005, compared to 40% in the same period in 2004. U.S.
sales of these growth drivers accounted for approximately 66% and 59% of total
U.S. pharmaceutical sales in the fourth quarter of 2005 and 2004,
respectively.
- Sales of PLAVIX(R), a platelet aggregation inhibitor that is part of the
company's alliance with Sanofi-Aventis, increased 11%, to $1,061 million
in the fourth quarter of 2005 from $959 million in the same period in
2004, primarily due to increased demand. Estimated total U.S.
prescription demand grew approximately 10% compared to 2004.
- Sales of AVAPRO(R)/AVALIDE(R), an angiotensin II receptor blocker for
the treatment of hypertension, also part of the Sanofi-Aventis alliance,
increased 7%, including a 1% unfavorable foreign exchange impact, to
$277 million in the fourth quarter of 2005 from $259 million in the same
period in 2004, primarily due to increased demand and lower prime vendor
and managed health-care rebates in 2005. Estimated total U.S.
prescription growth increased approximately 7% compared to 2004.
- Total revenue for ABILIFY(R), an antipsychotic agent used for the
treatment of schizophrenia, acute bipolar mania and Bipolar I Disorder,
increased 17%, including a 2% unfavorable foreign exchange impact, to
$224 million in the fourth quarter of 2005 from $191 million in the same
period in 2004. Total revenue for ABILIFY(R) primarily consists of
alliance revenue recorded by the company as net sales based on its 65%
share of net sales in copromotion countries with Otsuka Pharmaceutical
Co. Ltd. In the U.S., estimated prescription demand grew approximately
30% compared to 2004; however, this was partially offset by a reduction
in U.S. wholesaler inventory levels in the fourth quarter of 2005
compared to an increase in 2004. There continues to be strong sales
growth in Europe, which reached $42 million in the fourth quarter of
2005.
- Sales of REYATAZ(R), a protease inhibitor for the treatment of HIV,
increased 27%, including a 3% unfavorable foreign exchange impact, to
$188 million in the fourth quarter of 2005 from $148 million in the same
period in 2004, primarily due to increased demand. REYATAZ(R) has
achieved an estimated monthly new prescription share of the U.S.
protease inhibitors market of approximately 28%. European sales
increased 69% to $54 million in the fourth quarter of 2005 from $32
million in the same period in 2004.
- Sales of ERBITUX(R), used to treat refractory metastatic colorectal
cancer, which is sold almost exclusively in the United States, increased
38% to $121 million in the fourth quarter of 2005 from $88 million in
the same period in 2004. ERBITUX(R) is currently under FDA priority
review for the treatment of squamous cell carcinoma of the head and
neck. ERBITUX(R) is marketed by the company under a distribution and
copromotion agreement with ImClone Systems Incorporated.
Other Pharmaceuticals
Pharmaceutical products other than those the company views as current and
future growth drivers are generally more mature products.
- Sales of PRAVACHOL(R), an HMG Co-A reductase inhibitor, decreased 18%,
including a 2% unfavorable foreign exchange impact, to $584 million in
the fourth quarter of 2005 from $710 million in the same period in 2004.
U.S. sales decreased 15% to $366 million in the fourth quarter of 2005
from $433 million in the same period in 2004, primarily due to lower
demand resulting from increased competition, partially offset by lower
Medicaid and managed health-care rebates in 2005. Estimated total U.S.
prescriptions declined by 19% compared to 2004. International sales
decreased 21%, including a 5% unfavorable foreign exchange impact, to
$218 million, reflecting generic competition in key European markets.
- Sales of TAXOL(R), an anti-cancer agent sold primarily in non-U.S.
markets, decreased 29%, including a 5% unfavorable foreign exchange
impact, to $181 million in the fourth quarter of 2005 from $256 million
in the same period in 2004, primarily as a result of increased generic
competition in Europe.
- Sales of SUSTIVA(R), a non-nucleoside reverse transcriptase inhibitor
for the treatment of HIV, decreased 1%, including a 2% unfavorable
foreign exchange impact, to $170 million in the fourth quarter of 2005
from $172 million in the same period in 2004, primarily due to a
reduction in wholesaler inventory levels in the fourth quarter of 2005
compared to an increase in the same period in 2004, partially offset by
an estimated total U.S. prescription growth of approximately 5% for the
fourth quarter of 2005.
HEALTH CARE GROUP
Excluding the U.S. and Canadian Consumer Medicines business divested in
the third quarter of 2005, combined fourth quarter 2005 revenues from the
company's Nutritionals and Related Healthcare segments increased 9% to $1.0
billion compared to the same period in 2004. The two segments continue to
generate a significant portion of Bristol-Myers Squibb's revenues,
contributing a combined 20% of fourth quarter 2005 sales.
Nutritionals
- Worldwide Nutritional sales increased 16%, including a 1% favorable
foreign exchange impact, to $584 million in the fourth quarter of 2005
from $505 million in the same period in 2004.
- U.S. Nutritional sales increased 13% to $282 million in the fourth
quarter of 2005, primarily due to increased sales of ENFAMIL(R), the
company's best-selling infant formula. International Nutritional sales
increased 18% to $302 million in the fourth quarter of 2005, including a
1% favorable foreign exchange impact, primarily due to increased sales
of ENFAMIL(R) and toddlers and children's nutritional products.
Related Healthcare
- Worldwide ConvaTec sales remained constant, including a 4% unfavorable
foreign exchange impact, at $267 million in the fourth quarter of 2005
compared to the same period in 2004. Sales of wound therapeutic
products increased 1%, including a 4% unfavorable foreign exchange
impact, to $112 million in the fourth quarter of 2005 from $111 million
in the same period in 2004, as sales growth of AQUACEL(R) AG was
moderated by supply issues.
- Worldwide Medical Imaging sales increased 1% to $156 million in the
fourth quarter of 2005 from $154 million in the same period in 2004.
CARDIOLITE(R) sales decreased by 7% primarily due to slower market
growth and increased competition.
2006 GUIDANCE
Bristol-Myers Squibb estimates its 2006 full year earnings guidance of
fully-diluted earnings per share from continuing operations to be between
$1.15 and $1.25 on an adjusted non-GAAP basis, which excludes specified items
as discussed under "Use of Non-GAAP Financial Information." This estimate
includes the impact from the adoption of Statement of Financial Accounting
Standards (SFAS) No. 123R, Share-Based Payment, which requires the expensing
of stock options.
The company also expects its 2006 fully-diluted earnings per share range
to be between $1.15 and $1.25, when adding back specified items. These
specified items -- such as milestone payments in connection with previously
announced external development, the gain on sale of a product asset and
restructuring activities from continuing operations -- will have no net impact
on the company's estimated earnings guidance for 2006.
Details reconciling adjusted non-GAAP amounts with the amounts reflecting
specified items are provided in supplemental materials available on the
company's website. This information does not include other items, which may
occur during the year, such as any charges relating to new transactions or
arrangements resulting in write-off of in-process research and development,
milestone payments, other restructurings, significant legal proceedings and
gain on asset disposals.
Anticipated sales declines due to continued exclusivity losses during 2006
are expected to be more or less offset by growth in sales of the company's
growth drivers and potential new products during the same period. Gross
margin is expected to stabilize as the relatively high margins realized on the
sale of the growth drivers and certain new products more or less offset lost
margins from older products that have lost or are expected to lose
exclusivity. Earnings will be adversely affected by the company's investments
to support the introduction of new products, sale of a product asset, the
impact from the adoption of stock option expensing under new accounting
guidelines and the development of additional new compounds.
As previously disclosed, the company has experienced substantial revenue
losses in the last few years due to the expiration of market exclusivity
protection for certain of its products. The company expects substantial
incremental revenue losses in 2006, representing continuing declines in
revenues of those products as well as declines in revenues of certain
additional products that will lose market exclusivity in 2006. For 2006, the
company estimates reductions of net sales in the range of $1.4 billion to $1.5
billion from the 2005 levels for products which have lost or will lose
exclusivity protection in 2004, 2005 or 2006, primarily PRAVACHOL(R), TAXOL(R)
and CEFZIL(R). The timing and amounts of sales reductions from exclusivity
losses, their realization in particular periods and the eventual levels of
remaining sales revenues are uncertain and dependent on the levels of sales at
the time exclusivity protection ends, the timing and degree of development of
generic competition (speed of approvals, market entry and impact) and other
factors.
The company's expectations for future sales growth include increases in
sales of PLAVIX(R), which had net sales of $3.8 billion for 2005, and is
currently the company's largest product ranked by net sales. The composition
of matter patent for PLAVIX(R), which expires in 2011, is currently the
subject of litigation in the United States, with a trial scheduled to begin in
April 2006. Similar proceedings involving PLAVIX(R) are ongoing in Canada.
There are no enforcement proceedings outside of the U.S. and Canada. The
company continues to believe that the patent is valid and that it is
infringed, and with its alliance partner and patent-holder Sanofi-Aventis, is
vigorously pursuing these cases. It is not possible at this time reasonably to
assess the outcome of these litigations, or if there were an adverse
determination in these litigations, the timing of potential generic
competition for PLAVIX(R).
The company and its subsidiaries are the subject of a number of
significant pending lawsuits, claims, proceedings and investigations. It is
not possible at this time reasonably to assess the final outcome of these
investigations or litigations. Management continues to believe, as previously
disclosed, that during the next few years, the aggregate impact, beyond
current reserves, of these and other legal matters affecting the company is
reasonably likely to be material to the company's results of operations and
cash flows, and may be material to its financial condition and liquidity. The
company's expectations for 2006 described above do not reflect the potential
impact of litigation on the company's results of operations.
For additional discussion of legal matters including PLAVIX(R) patent
litigation, see "Item 8. Financial Statements and Supplementary Data-Note 21
Legal Proceedings and Contingencies" in the company's Form 10-K Annual Report
for 2004.
Use of Non-GAAP Financial Information
This press release contains non-GAAP earnings per share information
adjusted to exclude certain costs, expenses, gains and losses and other
specified items. Among the items in GAAP earnings but excluded for purposes
of determining adjusted earnings are: gains or losses from sale of product
lines; from sale or write-down of equity investments and from discontinuations
of operations; restructuring and similar charges; charges and recoveries
relating to significant legal proceedings; copromotion or alliance charges and
payments for in-process research and development which under GAAP are
immediately expensed rather than amortized over the life of the agreement.
This information is intended to enhance an investor's overall understanding of
the company's past financial performance and prospects for the future. For
example, non-GAAP earnings per share information is an indication of the
company's baseline performance before items that are considered by the company
to be not reflective of the company's operational results. In addition, this
information is among the primary indicators the company uses as a basis for
evaluating company performance, allocating resources, setting incentive
compensation targets, and planning and forecasting of future periods. This
information is not intended to be considered in isolation or as a substitute
for diluted earnings per share prepared in accordance with GAAP.
Statement on Cautionary Factors
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 regarding,
among other things, statements relating to goals, plans and projections
regarding the company's financial position, results of operations, market
position, product development and business strategy. These statements may be
identified by the fact that they use words such as "anticipate," "estimates,"
"should," "expect," "guidance," "project," "intend," "plan," "believe" and
other words and terms of similar meaning in connection with any discussion of
future operating or financial performance. Such forward-looking statements
are based on current expectations and involve inherent risks and
uncertainties, including factors that could delay, divert or change any of
them, and could cause actual outcomes and results to differ materially from
current expectations. These factors include, among other things, market
factors, competitive product development, pricing controls and pressures
(including changes in rules and practices of managed care groups and
institutional and governmental purchasers), economic conditions such as
interest rate and currency exchange rate fluctuations, judicial decisions and
governmental laws and regulations related to Medicare, Medicaid and healthcare
reform, pharmaceutical rebates and reimbursement, claims and concerns that may
arise regarding the safety and efficacy of in-line products and product
candidates, changes to wholesaler inventory levels, changes in, and
interpretation of, governmental regulations and legislation affecting domestic
or foreign operations, including tax obligations, difficulties and delays in
product development, manufacturing and sales, patent positions and litigation,
including the outcome of the PLAVIX(R) litigation in the U.S. and the
expiration of patents on certain other products, and the impact and result of
governmental investigations. There can be no guarantees with respect to
pipeline products that future clinical studies will support the data described
in this release, that the products will receive necessary regulatory
approvals, or that they will prove to be commercially successful. For further
details and a discussion of these and other risks and uncertainties, see the
company's periodic reports, including current reports on Form 8-K, quarterly
reports on Form 10-Q and the annual report on Form 10-K, furnished to and
filed with the Securities and Exchange Commission. The company undertakes no
obligation to publicly update any forward-looking statement, whether as a
result of new information, future events or otherwise.
Company and Conference Call Information
Bristol-Myers Squibb is a global pharmaceutical and related health care
products company whose mission is to extend and enhance human life.
There will be a conference call on January 25, 2006 at 10:30 a.m. (EST)
during which company executives will address inquiries from investors and
analysts. Investors and the general public are invited to listen to a live
webcast of the call at http://www.bms.com/ir or by dialing 703-639-1325.
Materials related to the call will be available at the same Web site prior to
the call.
ABILIFY(R) is the trademark of Otsuka Pharmaceutical Company, Ltd.
AVAPRO(R), AVALIDE(R) and PLAVIX(R) are trademarks of Sanofi-Aventis
Erbitux(R) is a trademark of ImClone Systems Incorporated
GLUCOPHAGE(R), GLUCOPHAGE(R) XR and GLUCOVANCE(R) are registered trademarks of
Merck Sante, S.A.S., an associate of Merck KGaA of Darmstadt, Germany
BRISTOL-MYERS SQUIBB COMPANY
NET SALES BY OPERATING SEGMENTS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(Unaudited, in millions of dollars)
Three Months Twelve Months
Ended December 31, Ended December 31,
2005 2004 2005 2004
Pharmaceuticals $4,012 $4,150 $15,254 $15,564
Nutritionals 584 505 2,205 2,001
Related Healthcare 423 502 1,748 1,815
Net Sales from Continuing
Operations $5,019 $5,157 $19,207 $19,380
BRISTOL-MYERS SQUIBB COMPANY
SELECTED PRODUCTS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(Unaudited, in millions of dollars except prescription data)
The following tables set forth worldwide and U.S. reported net sales for
selected products for the three and twelve months ended December 31, 2005
compared to the three and twelve months ended December 31, 2004. In addition,
the tables include, where applicable, the estimated total (both retail and
mail-order customers) prescription growth, for the comparative periods
presented, for certain of the company's U.S. primary care pharmaceutical
prescription products. The estimated prescription growth amounts are based on
third-party data. A significant portion of the company's domestic
pharmaceutical sales is made to wholesalers. Where changes in reported net
sales differ from prescription growth, this change in net sales may not
reflect underlying prescriber demand.
% Change
Worldwide Net Sales U.S. Net Sales in U.S. Total
% % Prescriptions
2005 2004 Change 2005 2004 Change vs. 2004
Three Months Ended
December 31,
Pharmaceuticals
Cardiovascular
Plavix $1,061 $959 11% $906 $816 11% 10%
Pravachol 584 710 (18)% 366 433 (15)% (19)%
Avapro/Avalide 277 259 7% 168 154 9% 7%
Coumadin 56 76 (26)% 50 69 (28)% (23)%
Monopril 46 68 (32)% 3 9 (67)% (57)%
Virology
Reyataz 188 148 27% 110 99 11% 25%
Sustiva 170 172 (1)% 102 103 (1)% 5%
Zerit 47 67 (30)% 21 31 (32)% (32)%
Videx/Videx EC 41 67 (39)% 7 25 (72)% (75)%
Infectious Diseases
Cefzil 75 89 (16)% 46 60 (23)% (15)%
Baraclude 5 - - 4 - - N/A
Oncology
Taxol 181 256 (29)% 5 7 (29)% N/A
Erbitux 121 88 38% 121 88 38% N/A
Paraplatin 38 27 41% 5 (12) 142% N/A
Affective (Psychiatric)
Disorders
Abilify
(total revenue) 224 191 17% 175 170 3% 30%
Metabolics
Glucophage Franchise 35 53 (34)% 29 48 (40)% (41)%
Other Pharmaceuticals
Efferalgan 74 76 (3)% - - - N/A
Nutritionals
Enfamil 277 224 24% 184 157 17% N/A
Related Healthcare
Ostomy 145 152 (5)% 46 47 (2)% N/A
Wound Therapeutics 112 111 1% 40 39 3% N/A
Cardiolite 100 108 (7)% 88 95 (7)% N/A
% Change
Worldwide Net Sales U.S. Net Sales in U.S. Total
% % Prescriptions
2005 2004 Change 2005 2004 Change vs. 2004
Twelve Months Ended
December 31,
Pharmaceuticals
Cardiovascular
Plavix $3,823 $3,327 15% $3,235 $2,833 14% 13%
Pravachol 2,256 2,635 (14)% 1,274 1,420 (10)% (17)%
Avapro/Avalide 982 930 6% 574 562 2% 11%
Coumadin 212 255 (17)% 183 228 (20)% (19)%
Monopril 208 274 (24)% 9 34 (74)% (61)%
Virology
Reyataz 696 414 68% 405 305 33% 39%
Sustiva 680 621 10% 403 364 11% 5%
Zerit 216 272 (21)% 97 119 (18)% (31)%
Videx/Videx EC 174 274 (36)% 29 106 (73)% (65)%
Infectious Diseases
Cefzil 259 270 (4)% 153 161 (5)% (10)%
Baraclude 12 - - 11 - - N/A
Oncology
Taxol 747 991 (25)% 17 31 (45)% N/A
Erbitux 413 261 58% 411 260 58% N/A
Paraplatin 157 673 (77)% 28 537 (95)% N/A
Affective
(Psychiatric)
Disorders
Abilify (total
revenue) 912 593 54% 750 554 35% 42%
Metabolics
Glucophage
Franchise 172 336 (49)% 150 315 (52)% (63)%
Other Pharmaceuticals
Efferalgan 283 274 3% - - - N/A
Nutritionals
Enfamil 992 859 15% 685 596 15% N/A
Related Healthcare
Ostomy 550 551 - 161 167 (4)% N/A
Wound Therapeutics 416 391 6% 133 130 2% N/A
Cardiolite 416 406 2% 370 361 2% N/A
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENT OF EARNINGS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(Unaudited, in millions of dollars except per share amounts)
Three Months Twelve Months
Ended December 31, Ended December 31,
2005 2004 2005 2004
Net Sales $5,019 $5,157 $19,207 $19,380
Cost of products sold 1,595 1,665 5,928 5,989
Marketing, selling and administrative 1,369 1,390 5,106 5,016
Advertising and product promotion 444 424 1,476 1,411
Research and development 775 677 2,746 2,500
Acquired in-process research and
development - - - 63
Provision for restructuring and other
items, net 32 29 32 104
Litigation (income)/charges, net 197 16 269 420
Gain on sale of business - (4) (569) (320)
Equity in net income of affiliates (94) (69) (334) (273)
Other expense/(income), net (a) (131) (10) 37 52
4,187 4,118 14,691 14,962
Earnings from Continuing Operations
Before Minority Interest and Income
Taxes 832 1,039 4,516 4,418
Provision for income taxes 178 766 932 1,519
Minority interest, net of taxes 155 134 592 521
Earnings from Continuing Operations 499 139 2,992 2,378
Discontinued Operations
Net Earnings - - (5) 10
Net Gain on Disposal - - 13 -
- - 8 10
Net Earnings $499 $139 $3,000 $2,388
Earnings per Common Share:
Basic:
Earnings from Continuing
Operations $0.26 $0.07 $1.53 $1.23
Discontinued Operations
Net Earnings - - - -
Net Gain on Disposal - - - -
Net Earnings per Common Share $0.26 $0.07 $1.53 $1.23
Diluted:
Earnings from Continuing
Operations $0.26 $0.07 $1.52 $1.21
Discontinued Operations
Net Earnings - - - -
Net Gain on Disposal - - - -
Net Earnings per Common Share $0.26 $0.07 $1.52 $1.21
Average Common Shares Outstanding:
Basic 1,953 1,943 1,952 1,942
Diluted 1,983 1,976 1,983 1,976
(a) Other expense/(income), net
Interest expense $100 $91 $349 $310
Interest income (52) (39) (148) (105)
Foreign exchange transaction
losses/(gains) 11 (30) 58 5
Other, net (190) (32) (222) (158)
$(131) $(10) $37 $52
APPENDIX 1
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(Unaudited, in millions of dollars)
Three months ended December 31, 2005
Provision for
Cost of Research restructuring Litigation
products and and other settlement Other
sold development items, net expense income Total
Litigation Matters:
Private litigation
and governmental
investigations $- $- $- $185 $- $185
Pharmaceutical
pricing and
sales litigation - - - 12 - 12
- - - 197 - 197
Other:
Accelerated
depreciation
and asset
impairment 27 12 - - - 39
Downsizing and
streamlining of
worldwide
operations 1 14 32 - - 47
Upfront and
milestone payments - 9 - - - 9
Termination of
muraglitazar
agreement 5 - - - (143) (138)
$33 $35 $32 $197 $(143) 154
Income taxes on items above (52)
Reduction to Net Earnings from
Continuing Operations $102
Three months ended December 31, 2004
Provision for
Cost of Research Gain on restructuring Litigation
products and sale of and other settlement
sold development business items, net expense Total
Litigation Matters:
Private litigation
and governmental
investigations $- $- $- $- $16 $16
Other:
Gain on sale of
Adult Nutritional
business - - (4) - - (4)
Accelerated
depreciation 30 2 - - - 32
Downsizing and
streamlining of
worldwide
operations - - - 29 - 29
Milestone payment - 15 - - - 15
$30 $17 $(4) $29 $16 88
Income taxes on items above (26)
Deferred taxes in anticipation of
repatriation of foreign earnings 575
Reduction to Net Earnings from
Continuing Operations $637
APPENDIX 1
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(Unaudited, in millions of dollars)
Twelve months ended December 31, 2005
Cost of Provision Litigation Other
of Research for Gain on settlement (income)/
products and restructuring sale of expense expense,
sold development business /(income) net Total
Litigation
Matters:
Private
litigations
and
governmental
investi-
gations $- $- $- $- $558 $- $558
Pharmaceutical
pricing and
sales
litigation - - - - 12 - 12
ERISA
liability
and other
matters - - - - 20 - 20
Insurance
recoveries - - - - (321) - (321)
- - - - 269 - 269
Other:
Gain on sale
of equity
investment - - - - - (27) (27)
Loss on sale
of fixed
assets - - - - - 18 18
Accelerated
depreciation
and asset
impairment 96 14 - - - - 110
Gain on sale
of Consumer
Medicines
businesses - - - (569) - - (569)
Upfront and
milestone
payments - 44 - - - - 44
Debt
retirement
costs - - - - - 69 69
Downsizing
and
streamlining
of worldwide
operations 1 14 32 - - - 47
Termination
of
muraglitazar
agreement 5 - - - - (143) (138)
$102 $72 $32 $(569) $269 $(83) (177)
Income taxes on
items above 126
Adjustment to taxes
on repatriation of
foreign earnings (135)
Increase to Net Earnings from
Continuing Operations $(186)
Twelve months ended December 31, 2004
Acquired
Cost of Research in-process Gain on
products and research and sale of
sold development development business
Litigation Matters:
Private litigation and
governmental $- $- $- $-
investigations
Product liability 75 - - -
Pharmaceutical pricing and
sales
litigation - - - -
Commercial litigation 26 - - -
Anti-trust litigation - - - -
Product liability
insurance recovery (25) - - -
76 - - -
Other:
Gain on sale of Adult
Nutritional
business - - - (320)
Accelerated depreciation 100 3 - -
Downsizing and
streamlining of
worldwide operations 1 - - -
Upfront and milestone
payments - 55 - -
Acordis IPR&D write-off - - 63 -
$177 $58 $6 $(320)
Provision for Litigation Other
restructuring settlement expense,
and other expense net Total
items, net
Litigation Matters:
Private litigation and
governmental investigations $- $336 $- $336
Product liability - - 11 86
Pharmaceutical pricing and
sales
litigation - 34 - 34
Commercial litigation - - - 26
Anti-trust litigation - 50 - 50
Product liability
insurance recovery - - - (25)
- 420 11 507
Other:
Gain on sale of Adult
Nutritional business - - - (320)
Accelerated depreciation - - 4 107
Downsizing and streamlining of
worldwide operations 104 - - 105
Upfront and milestone
payments - - - 55
Acordis IPR&D write-off - - - 63
$104 $420 $15 517
Income taxes on items
above (130)
Deferred taxes in
anticipation of
repatriation of
foreign earnings 575
Other tax adjustments 10
Reduction to Net Earnings
from Continuing
Operations $972
SOURCE Bristol-Myers Squibb Company
 back to top
Related links:
http://www.bms.com
CONTACT:
Media: Tony Plohoros, Communications,
+1-212-546-4379, tony.plohoros@bms.com, or Jeffrey Schoenborn,
Communications, +1-212-546-2846, jeffrey.schoenborn@bms.com, or
Investors: John Elicker, Investor Relations, +1-212-546-3775,
john.elicker@bms.com, or Blaine Davis, Investor Relations,
+1-212-546-4631, blaine.davis@bms.com, all of Bristol-Myers
Squibb Company
|
