-- Posts Third Quarter 2007 GAAP EPS Growth to $0.43 from $0.17 and
Non-GAAP EPS Growth to $0.38 from $0.22
-- Revises 2007 Full-Year GAAP Guidance to $1.28 to $1.33, from $1.35 to
$1.45, in Connection with the Adnexus Acquisition During the Fourth Quarter
-- Raises 2007 Full-Year Non-GAAP EPS Guidance of $1.42 to $1.47
-- Reaffirms 2008 Full-Year EPS Estimate of $1.60 to $1.70, Subject to
Certain Assumptions
-- Receives U.S. Approval for New Breast Cancer Treatment IXEMPRA(R)
(ixabepilone)
NEW YORK, Oct. 25 /PRNewswire-FirstCall/ -- Bristol-Myers Squibb
Company (NYSE: BMY) today reported financial results for the third quarter
and nine months ended September 30, 2007 and updated earnings guidance for
the full year.
Bristol-Myers Squibb posted third quarter 2007 net sales of $5.1
billion, an increase of 22% over the same period in 2006. The company
reported third quarter 2007 net earnings of $858 million, or $0.43 per
diluted share, under U.S. Generally Accepted Accounting Principles (GAAP),
compared to $338 million, or $0.17 per diluted share for the same period in
2006. The 2007 results include a one-time pre-tax gain of $247 million
($144 million net of tax, or $0.07 per diluted share) on the sale of the
BUFFERIN(R) and EXCEDRIN(R) brands in Japan. On a non-GAAP basis excluding
specified items, third quarter 2007 net earnings were $764 million, or
$0.38 per diluted share, compared to $438 million, or $0.22 per diluted
share for the same period in 2006. The increase in net earnings in 2007 as
compared to 2006 is due to strong sales growth of key and newer products in
2007 and reflects the adverse impact of generic competition for PLAVIX(R)
in the third quarter of 2006.
"We remain focused on developing breakthrough medicines for patients
worldwide, while also delivering shareholder value," said James M.
Cornelius, chief executive officer, Bristol-Myers Squibb. "We're making
significant progress in identifying ways to operate more efficiently and
reduce costs companywide as we maintain investments in our productive
pipeline, which continues to yield important new therapies, including the
recent addition of IXEMPRA(R) for breast cancer. We're also boosting our
presence in biologics with the announced acquisition of Adnexus
Therapeutics. Our key products continue to demonstrate solid growth as we
move forward with the transformation of our pharmaceutical business to help
even more people prevail in their fight against serious diseases."
For the nine months ended September 30, 2007, net sales increased 5%,
including a 2% favorable foreign exchange impact, to $14.5 billion compared
to the same period in 2006. Net earnings in the first nine months of 2007
on a GAAP basis were $2.3 billion, or $1.14 per diluted share, compared to
$1.7 billion, or $0.88 per diluted share for the same period last year. On
a non- GAAP basis, excluding specified items, Bristol-Myers Squibb reported
net earnings of $2.2 billion, or $1.13 per diluted share for the nine
months ended September 30, 2007, compared to $1.8 billion, or $0.89 per
diluted share for the same period last year.
NEW PRODUCT AND PIPELINE DEVELOPMENTS
In October, the U.S. Food and Drug Administration (FDA) granted
approval of IXEMPRA(TM) (ixabepilone) as monotherapy for the treatment of
patients with metastatic or locally advanced breast cancer in patients
whose tumors are resistant or refractory to anthracyclines, taxanes and
capecitabine. The FDA has also granted approval of IXEMPRA(TM) in
combination with capecitabine for the treatment of patients with metastatic
or locally advanced breast cancer resistant to treatment with an
anthracycline, and a taxane, or whose cancer is taxane resistant and for
whom further anthracycline therapy is contraindicated. In September, the
company submitted a Marketing Application Authorization (MAA) for
ixabepilone to the European Medicines Evaluation Agency (EMEA).
In October, ATRIPLA(TM) was approved in Canada as the first once-daily
single-tablet regimen for the treatment of HIV-1 infection in adults. In
addition, the Committee for Medicinal Products for Human Use (CHMP) of the
EMEA issued a positive opinion on the MAA for ATRIPLA(TM).
In October, the company, ImClone and Merck KGaA entered into an
agreement for the co-development and co-commercialization of ERBITUX(R) in
Japan. Under the terms of the agreement, the parties will collaborate on a
joint effort to develop and market ERBITUX(R) in Japan for the treatment of
metastatic colorectal cancer, as well as for the treatment of other cancers
the parties agree to pursue. ERBITUX(R) was submitted to the Japanese
Pharmaceuticals and Medical Devices Agency for approval in February 2007.
In October, the company acquired privately held Adnexus Therapeutics,
Inc. (Adnexus), developer of a new therapeutic class of biologics called
ADNECTINS(TM). ADNECTINS(TM) are a proprietary class of targeted biologics
based on a naturally occurring protein found in human serum. The company
expects to record an in-process research and development charge in
connection with the acquisition in the fourth quarter.
In September, ImClone Systems Incorporated (ImClone) and the company
announced that a Phase III study of ERBITUX(R) in combination with
platinum- based chemotherapy, conducted by Merck KGaA, met its primary
endpoint of increasing overall survival compared with chemotherapy alone in
patients with advanced non-small cell lung cancer. As previously disclosed,
an earlier study conducted by ImClone and the company evaluating the use of
ERBITUX(R) in combination with a different platinum-based therapy did not
meet its primary endpoint of increasing progression free survival in
patients with advanced non-small cell lung cancer. Key secondary endpoints
of this study, however, were statistically significant and favored the
ERBITUX(R)-containing arm.
In August, the European Commission approved an update to the
SPRYCEL(TM) label to include 100 mg once daily, from 70 mg twice daily, as
a starting dose for patients with chronic phase chronic myeloid leukaemia
resistant or intolerant to imatinib. The FDA is reviewing a sNDA on the 100
mg starting dose, with a target action date in mid-November.
In August, the FDA accepted, for filing and review, the supplemental
biologics license application for ORENCIA(R) for the treatment of pediatric
patients with juvenile idiopathic arthritis.
The company remains in discussions with the FDA regarding vinflunine.
Based on FDA feedback, the company does not expect to file a New Drug
Application for the treatment of bladder cancer.
THIRD QUARTER RESULTS
* Third quarter 2007 net sales increased 22% to $5.1 billion, including a
3% favorable foreign exchange impact compared to the same period in
2006. U.S. net sales increased 35% to $3.0 billion for the quarter
compared to 2006, primarily due to increased PLAVIX(R) sales, as well
as the continued growth of key and newer products. International net
sales increased 7% to $2.1 billion, including a 6% favorable foreign
exchange impact.
* Cost of products sold, as a percentage of net sales, decreased to 32.1%
in the third quarter of 2007 compared to 35.3% in the same period in
2006. The margin improvement was due primarily to impairment charges
recorded in 2006 in addition to sales growth of higher margin products
in 2007.
* Marketing, selling and administrative expenses increased by 2% to $1.2
billion in the third quarter of 2007 compared to the same period in
2006, primarily due to foreign exchange impact.
* Advertising and product promotion spending increased by 23% to $351
million in the third quarter of 2007 from $286 million in the same
period in 2006, driven primarily by increased spending for direct-to-
consumer advertising for PLAVIX(R) and ABILIFY(R), as well as
investments to support the launch of IXEMPRA.
* Research and development expenses increased 9% to $827 million in the
third quarter of 2007 from $756 million in the same period in 2006.
This increase primarily reflects higher licensing up-front payments and
continued investments in late-stage compounds, partially offset by
sharing of co-development costs with alliance partners AstraZeneca PLC
and Pfizer Inc.
INCOME TAXES
The effective income tax rate on earnings before minority interest and
income taxes was 24.2% in the third quarter of 2007 compared to 31.3% in
the third quarter of 2006. The 2006 effective tax rate included a $39
million change in estimate on a prior year specified item.
SPECIFIED ITEMS
In the three months ended September 30, 2007 and 2006, the company
recorded specified income and expense items that affected the comparability
of the results. For 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 increased 24% to $3.9 billion in the
third quarter of 2007, including a 3% favorable foreign exchange impact,
compared to the same period in 2006.
U.S. pharmaceutical sales increased 42% to $2.3 billion in the third
quarter of 2007 compared to the same period in 2006, primarily due to
increased PLAVIX(R) sales, as well as the continued growth of key products
and sales of newer products ORENCIA(R), BARACLUDE(R) and SPRYCEL(TM).
International pharmaceutical sales increased 6% to $1.6 billion in the
third quarter of 2007 compared to the same period in 2006, due to a
favorable 6% foreign exchange impact. Sales growth in ABILIFY(R) and newer
products BARACLUDE(R) and SPRYCEL(TM) was offset by increased generic
competition for PRAVACHOL(R) and TAXOL(R). The company's reported
international sales do not include copromotion sales reported by its
alliance partner, sanofi-aventis, for PLAVIX(R) and AVAPRO(R)/AVALIDE(R),
which continue to show growth in the third quarter of 2007.
Product Sales
* Sales of PLAVIX(R), a platelet aggregation inhibitor that is part of
the company's alliance with sanofi-aventis, increased 99%, including a
2% favorable foreign exchange impact, to $1,254 million in the third
quarter of 2007 from $630 million in the same period in 2006. Sales of
PLAVIX(R) increased 128% in the U.S. in the third quarter of 2007 to
$1,080 million from $474 million in the same period in 2006. The
comparison to the third quarter 2006 sales reflects the adverse impact
of generic competition for PLAVIX(R) in 2006, which the company
estimates to be in the range of $525 million to $600 million.
Estimated total U.S. prescription demand for clopidogrel bisulfate
(branded and generic) increased by 7% in the third quarter of 2007
compared to 2006. Estimated total U.S. prescription demand for branded
PLAVIX(R) increased by 86% in the same period.
* Sales of AVAPRO(R)/AVALIDE(R), an angiotensin II receptor blocker for
the treatment of hypertension, also part of the sanofi-aventis
alliance, increased 12%, including a 3% favorable foreign exchange
impact, to $309 million in the third quarter of 2007 from $277 million
in the same period in 2006. U.S. sales increased 11% to $176 million
in the third quarter of 2007 from $159 million in the same period in
2006, primarily due to higher average net selling prices. Estimated
total U.S. prescription demand decreased approximately 4% compared to
2006. International sales increased 13%, including a 7% favorable
foreign exchange impact, to $133 million compared to $118 million in
the same period in 2006.
* Total revenue for ABILIFY(R), an antipsychotic agent for the treatment
of schizophrenia, acute bipolar mania and bipolar disorder, increased
34%, including a 2% favorable foreign exchange impact, to $420 million
in the third quarter of 2007 from $313 million in the same period in
2006. U.S. sales increased 27% to $329 million in the third quarter
2007 from $260 million in the same period in 2006, primarily due to
higher demand and higher average net selling prices. Estimated total
U.S. prescription demand increased approximately 10% compared to the
same period last year. International sales increased 72%, including a
12% favorable foreign exchange impact, to $91 million in the third
quarter of 2007 from $53 million in the same period in 2006, due to
continued growth across European markets. Total revenue for ABILIFY(R)
primarily consists of alliance revenue representing the company's 65%
share of net sales in countries where it copromotes with Otsuka
Pharmaceutical Co., Ltd.
* Sales of REYATAZ(R), a protease inhibitor for the treatment of human
immunodeficiency virus (HIV), increased 17%, including a 3% favorable
foreign exchange impact, to $273 million in the third quarter of 2007
from $233 million in the same period in 2006. U.S. sales increased 9%
to $141 million in the third quarter of 2007 from $129 million in the
same period in 2006, primarily due to higher demand. Estimated total
U.S. prescription demand increased approximately 10% compared to 2006.
International sales increased 27%, including a 7% favorable foreign
exchange impact, to $132 million in the third quarter of 2007 from $104
million in the same period in 2006.
* Sales of ERBITUX(R), which is sold by the company almost exclusively in
the U.S., increased 6% to $185 million in the third quarter of 2007
from $175 million in the same period in 2006, due to the continued
transition to an open distribution model. ERBITUX(R) sales increased
14% in the third quarter of 2007 compared to the second quarter of
2007, due to growth in the use for head and neck cancer as well as the
continued rebound of the use for colorectal cancer. ERBITUX(R) is
marketed by the company under a distribution and copromotion agreement
with ImClone.
* Sales of the SUSTIVA(R) Franchise, a non-nucleoside reverse
transcriptase inhibitor for the treatment of HIV, increased 18%,
including a 3% favorable foreign exchange impact, to $237 million in
the third quarter of 2007 from $201 million in the same period in 2006.
U.S. sales increased 18% to $151 million in the third quarter of 2007
from $128 million in the same period in 2006, primarily due to higher
demand. Estimated total U.S. prescription growth increased
approximately 19% compared to 2006. International sales increased 18%,
including a 8% favorable foreign exchange impact, to $86 million in the
third quarter of 2007 from $73 million in the same period in 2006.
Total revenue for the SUSTIVA(R) Franchise includes sales of
SUSTIVA(R), as well as revenue from bulk efavirenz included in the
combination therapy ATRIPLA(TM), which is sold through a joint venture
in the U.S. and Canada with Gilead Sciences, Inc.
* Sales of BARACLUDE(R), an oral antiviral agent for the treatment of
chronic hepatitis B, increased to $72 million in the third quarter of
2007 from $22 million in the same period in 2006, due to continued
growth across all markets.
* Sales of ORENCIA(R), a fusion protein indicated for adult patients with
moderate to severe rheumatoid arthritis launched in 2006, increased
76%, including a 1% favorable foreign exchange impact, to $60 million,
in the third quarter of 2007 from $34 million in the same period in
2006.
* Sales for SPRYCEL(TM), an oral inhibitor of multiple tyrosine kinases,
increased to $46 million in the third quarter of 2007 from $11 million
in the same period in 2006. This was due to launches in international
markets beginning in the fourth quarter of 2006 and the continued
growth in the U.S.
HEALTH CARE GROUP
The combined third quarter 2007 revenues from the Health Care Group
increased 12%, including a 4% favorable foreign exchange impact, to $1.1
billion compared to the same period in 2006.
Nutritionals
* Worldwide Nutritional sales increased 16%, including a 4% favorable
foreign exchange impact, to $675 million in the third quarter of 2007
from $582 million in the same period in 2006. U.S. Nutritional sales
increased 14% to $304 million in the third quarter of 2007, primarily
due to the timing of contract transitions under the Women, Infants and
Children (WIC) program. International Nutritional sales increased 18%
to $371 million in the third quarter of 2007, including a 7% favorable
foreign exchange impact, primarily due to strong infant formula sales
and broad-based growth in Asia.
Other Health Care
* Worldwide ConvaTec sales increased 10%, including a 5% favorable
foreign exchange impact, to $292 million in the third quarter of 2007
from $265 million in the same period in 2006. Sales of wound
therapeutic products increased 12%, including a 5% favorable foreign
exchange impact, to $126 million in the third quarter of 2007 from $113
million in the same period in 2006, primarily due to continued growth
of AQUACEL(R).
* Worldwide Medical Imaging sales increased 3%, including a 1% favorable
foreign exchange impact, to $157 million in the third quarter of 2007
from $153 million in the same period in 2006. CARDIOLITE(R) sales
increased 2% to $99 million from the same period in 2006.
OUTLOOK FOR 2007 AND 2008
Bristol-Myers Squibb revises its 2007 earnings guidance for fully
diluted earnings per share on a GAAP basis to be between $1.28 and $1.33
from $1.35 to $1.45. The revised GAAP guidance reflects a fourth quarter
charge for in-process research and development related to the company's
recent acquisition of Adnexus. The guidance does not include restructuring
and other charges that cannot be reasonably estimated at this time in
connection with the company's comprehensive cost reduction programs,
including charges related to workforce reductions and the rationalization
of some facilities. While the amount and timing of these charges cannot be
reasonably estimated at this time, the company expects that the charges are
likely to be incurred over the next three years and are reasonably likely
to be material.
The company raises its 2007 fully diluted earnings per share guidance
on a non-GAAP basis to be between $1.42 and $1.47 from $1.35 to $1.45. The
non- GAAP guidance excludes specified items as discussed under "Use of
Non-GAAP Financial Information." Details reconciling adjusted non-GAAP
amounts with the amounts reflecting specified items are provided in
supplemental materials available on the company's website.
The company continues to estimate its 2008 earnings per share guidance
on a fully diluted basis to be between $1.60 and $1.70, subject to certain
assumptions, and excluding the impact of restructuring and other charges
related to the company's comprehensive cost reduction programs discussed
above and specified items discussed below. This guidance assumes, compared
to 2007:
* mid to high single-digit revenue growth primarily from new and in-line
products, partially offset by the decline of mature brands;
* slight improvement in gross margin;
* mid single-digit growth in research and development costs;
* all other operating expenses flat; and
* effective tax rate will increase to the range of 22% to 24% in part due
to a one-time benefit in 2007.
The financial guidance for 2008 further assumes no significant
acquisitions or divestitures and that the company and its product partner,
sanofi-aventis, maintain exclusivity for the PLAVIX(R) patent through at
least 2008.
Further, the 2008 guidance excludes other specified items such as gains
or losses from sale of businesses and product lines; from sale of equity
investments and from discontinuations of operations; restructuring items
that meet the requirements of SFAS 112 for severance and SFAS 146 for other
exit costs; accelerated depreciation charges under SFAS 144 related to
restructuring items described above; asset impairments; charges and
recoveries relating to significant legal proceedings; upfront and milestone
payments for in-licensing of products that have not achieved regulatory
approval that are immediately expensed; 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;
income from upfront and milestone payments that is immediately recognized
for out-licensing of products, including deferred income recognized upon
termination; and significant tax events.
As previously disclosed, the composition of matter patent for
PLAVIX(R), which expires in 2011, is subject to litigation in the U.S. with
Apotex Inc. and Apotex Corp. (Apotex). Apotex's appeal of the U.S. District
Court decision upholding the validity and enforceability of the main patent
protection for PLAVIX(R) is still pending before the U.S. Court of Appeals
for the Federal Circuit. Activities relating to the damages phase of the
litigation in the U.S. District Court continue to proceed.
Even though the company and its alliance partner, sanofi-aventis,
prevailed in the U.S. District Court, if Apotex were to prevail on appeal,
the company could expect to face renewed generic competition for PLAVIX(R)
promptly thereafter. There are other pending PLAVIX(R) patent litigations
in the United States and in other less significant markets for the product.
The company continues to believe that the PLAVIX(R) patents are valid and
infringed, and with its alliance partner, sanofi-aventis, is vigorously
pursuing these cases.
It is not possible at this time reasonably to assess the ultimate
outcome of the appeal by Apotex of the patent litigation or of the other
PLAVIX(R) patent litigations, or the timing of any renewed generic
competition for PLAVIX(R) from Apotex or additional generic competition for
PLAVIX(R) from other generic pharmaceutical companies. Loss of market
exclusivity of PLAVIX(R) and/or the development of sustained generic
competition would be material to the company's sales of PLAVIX(R), results
of operations and cash flows, and could be material to the company's
financial condition and liquidity. PLAVIX(R) is the company's largest
product by net sales, and U.S. net sales for PLAVIX(R) were $2.7 billion
and $3.2 billion in 2006 and 2005, respectively.
Use of Non-GAAP Financial Information
This press release contains non-GAAP earnings and 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 businesses and product lines; from sale or write-down of equity
investments and from discontinuations of operations; restructuring items
that meet the requirements of SFAS 112 for severance and SFAS 146 for other
exit costs; accelerated depreciation charges under SFAS 144 related to
restructuring items described above; asset impairments; charges and
recoveries relating to significant legal proceedings; upfront and milestone
payments for in-licensing of products that have not achieved regulatory
approval that are immediately expensed; co promotion 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;
income from upfront and milestone payments that is immediately recognized
for out-licensing of products, including deferred income recognized upon
termination; costs of early debt retirement; and significant tax events.
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 ongoing 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, variability in data
provided by third parties, changes in, and interpretation of, governmental
regulations and legislation affecting domestic or foreign operations,
including tax obligations, difficulties and delays in product development,
manufacturing or sales, patent positions and the ultimate outcome of any
litigation matter, including whether Apotex will prevail in its appeal of
the District court's decision in the PLAVIX(R) patent litigation. These
factors also include the company's ability to execute successfully its
strategic plans, including its comprehensive cost reduction programs, 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; nor are there guarantees that regulatory approvals will be
sought, or sought within currently expected timeframes, or that contractual
milestones will be achieved. 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 October 25, 2007 at 10:30 a.m. (EDT)
during which company executives will address inquiries from investors and
analysts. Investors and the general public are invited to listen to a live
web cast of the call at http://www.bms.com/ir or by dialing 913-981-4911.
Materials related to the call will be available at the same website prior
to the call.
For more information, contact: Tony Plohoros, 212-546-4379,
Communications, Jeff Macdonald, 212-546-4824, Communications, John Elicker,
212-546-3775, Investor Relations, or Suketu Desai, 609-252-5796, Investor
Relations.
ABILIFY(R) is the trademark of Otsuka Pharmaceutical Co., Ltd.
ATRIPLA(TM) is a trademark of both Bristol-Myers Squibb Co. and Gilead
Sciences, Inc.
AVAPRO(R), AVALIDE(R) and PLAVIX(R) are trademarks of sanofi-aventis
Erbitux(R) is a trademark of ImClone Systems Incorporated
BRISTOL-MYERS SQUIBB COMPANY
NET SALES BY OPERATING SEGMENTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(Unaudited, dollars in millions)
Three Months Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Pharmaceuticals $3,926 $3,154 $11,234 $10,713
Nutritionals 675 582 1,901 1,729
Other Health Care 449 418 1,319 1,259
Health Care Group 1,124 1,000 3,220 2,988
Net Sales $5,050 $4,154 $14,454 $13,701
BRISTOL-MYERS SQUIBB COMPANY
SELECTED PRODUCTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(Unaudited, dollars in millions)
The following table sets forth worldwide and U.S. reported net sales
for selected products for the three and nine months ended September 30,
2007 compared to the three and nine months ended September 30, 2006. In
addition, the table includes, where applicable, the estimated total U.S.
prescription change for the retail and mail-order channels for the
comparative periods presented for certain of the company's U.S.
pharmaceutical products based on third-party data. A significant portion of
the company's U.S. 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.
Worldwide Net Sales U.S. Net Sales
% % % Change in
2007 2006 Change 2007 2006 Change U.S. Total
Prescriptions
vs. 2006
Three Months Ended
September 30,
Pharmaceuticals
Cardiovascular
Plavix $1,254 $630 99 % $1,080 $474 128 % 86 %
Pravachol 86 192 (55)% 17 73 (77)% (77)%
Avapro/Avalide 309 277 12 % 176 159 11 % (4)%
Coumadin 50 53 (6)% 40 45 (11)% (15)%
Virology
Reyataz 273 233 17 % 141 129 9 % 10 %
Sustiva Franchise
(total revenue) 237 201 18 % 151 128 18 % 19 %
Baraclude 72 22 ** 22 14 57 % 71 %
Oncology
Erbitux 185 175 6 % 183 173 6 % N/A
Taxol 102 137 (26)% 1 2 (50)% N/A
Sprycel 46 11 ** 17 11 55 % N/A
Affective
(Psychiatric)
Disorders
Abilify (total
revenue) 420 313 34 % 329 260 27 % 10 %
Immunoscience
Orencia 60 34 76 % 57 34 68 % N/A
Other Pharmaceuticals
Efferalgan 71 62 15 % - - - N/A
Nutritionals
Enfamil 281 246 14 % 195 169 15 % N/A
Enfagrow 74 69 7 % - - - N/A
Other Health Care
Ostomy 147 139 6 % 42 39 8 % N/A
Wound Therapeutics 126 113 12 % 38 36 6 % N/A
Cardiolite 99 97 2 % 88 86 2 % N/A
** Change is in excess of 200%.
Worldwide Net Sales U.S. Net Sales
% % % Change in
2007 2006 Change 2007 2006 Change U.S. Total
Prescriptions
vs. 2006
Nine Months Ended
September 30,
Pharmaceuticals
Cardiovascular
Plavix $3,381 $2,761 22 % $2,882 $2,312 25 % 6 %
Pravachol 353 1,051 (66)% 121 503 (76)% (82)%
Avapro/Avalide 876 790 11 % 509 465 9 % (3)%
Coumadin 148 163 (9)% 121 138 (12)% (16)%
Virology
Reyataz 790 676 17 % 422 370 14 % 13 %
Sustiva Franchise
(total revenue) 696 569 22 % 442 351 26 % 23 %
Baraclude 176 47 ** 59 32 84 % 86 %
Oncology
Erbitux 507 485 5 % 501 481 4 % N/A
Taxol 308 433 (29)% 9 10 (10)% N/A
Sprycel 102 11 ** 41 11 ** N/A
Affective
(Psychiatric)
Disorders
Abilify (total
revenue) 1,198 920 30 % 944 758 25 % 12 %
Immunoscience
Orencia 156 57 174 % 150 57 163 % N/A
Other Pharmaceuticals
Efferalgan 221 192 15 % - - - N/A
Nutritionals
Enfamil 802 736 9 % 543 498 9 % N/A
Enfagrow 216 195 11 % - - - N/A
Other Health Care
Ostomy 427 403 6 % 117 114 3 % N/A
Wound Therapeutics 352 318 11 % 106 100 6 % N/A
Cardiolite 304 305 - 267 268 - N/A
** Change is in excess of 200%.
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(Unaudited, amounts in millions except per share data)
Three Months Nine Months
Ended September Ended September
30, 30,
2007 2006 2007 2006
Net Sales $5,050 $4,154 $14,454 $13,701
Cost of products sold 1,622 1,465 4,563 4,509
Marketing, selling and administrative 1,214 1,189 3,581 3,608
Advertising and product promotion 351 286 988 933
Research and development 827 756 2,412 2,246
Provision for restructuring, net - 2 44 6
Litigation (income)/expense, net - (9) 14 (44)
Gain on sale of product assets (247) - (273) (200)
Equity in net income of affiliates (139) (118) (393) (336)
Other expense/(income), net (a) 11 (34) 33 59
3,639 3,537 10,969 10,781
Earnings Before Minority Interest and
Income Taxes 1,411 617 3,485 2,920
Provision for income taxes 342 193 685 777
Minority interest, net of taxes 211 86 546 424
Net Earnings $858 $338 $2,254 $1,719
Earnings per Common Share
Basic $.43 $.17 $1.15 $.88
Diluted $.43 $.17 $1.14 $.88
Average Common Shares Outstanding:
Basic 1,974 1,961 1,968 1,959
Diluted 2,012 1,992 2,005 1,991
(a) Other expense/(income), net
Interest expense $109 $130 $325 $370
Interest income (69) (74) (184) (201)
Foreign exchange transaction
(gains)/losses 24 (11) 27 -
Other, net (53) (79) (135) (110)
$11 $(34) $33 $59
APPENDIX 1
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(Unaudited, dollars in millions)
Three months ended September 30, 2007
Research Gain on Other Total
Cost of and sale of (income)/
products sold development product expense,
assets net
Litigation Matters:
Insurance recovery $ - $ - $ - $(11) $(11)
Product liability - - - 5 5
- - - (6) (6)
Other:
Upfront and milestone
payments - 60 - - 60
Accelerated depreciation
and asset impairment 17 - - - 17
Gain on sale of product
assets - - (247) - (247)
$17 $60 $(247) $(6) (176)
Income taxes on items above 82
(Increase)/Decrease to Net
Earnings $(94)
Three months ended September 30, 2006
Research Provision Other
Cost of and for (income)/
products develop- restruc- Litigation expense,
sold ment turing, net income net Total
Litigation Matters:
Insurance recovery $ - $ - $ - $(9) $ - $(9)
Product liability - - - 11 11
Commercial litigation - - - - (40) (40)
- - - (9) (29) (38)
Other:
Accelerated
depreciation and asset
impairment 72 - - - - 72
Downsizing and
streamlining of
worldwide operations - - 2 - 2
Upfront and milestone
payments - 17 - - - 17
$72 $17 $2 $(9) $(29) 53
Income taxes on
items above (5)
Minority interest,
net of taxes 13
Change in estimate for taxes
on prior year items 39
(Increase)/Decrease to Net
Earnings $100
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE NINE MONTHS ENDED SEPTEMBER, 2007 AND 2006
(Unaudited, dollars in millions)
Nine months ended September 30, 2007
Research Provision Other Gain Total
Cost of and for Litigation (income)/ on sale
products develop- restruc- expense, expense, of
sold ment turing, net net product
net assets
Litigation
Matters:
Litigation
settlement $ - $ - $ - $14 - - $14
Insurance
recovery - - - - (11) - (11)
Product
liability - - - - 5 - 5
- - - 14 (6) - 8
Other:
Upfront and
milestone
payments - 157 - - - - 157
Accelerated
depreciation
and asset
impairment 46 - - - - - 46
Downsizing and
streamlining
of worldwide
operations - - 44 - - - 44
Gain on sale
of product
assets - - - - - (273) (273)
$46 $157 $44 $14 (6) $(273) (18)
Income taxes
on items above 37
Change in estimate for taxes on a
prior year specified item (39)
(Increase)/Decrease to Net
Earnings $(20)
Nine months ended September 30, 2006
Marketing Provision Gain on
Cost Research selling for Litig- Other sale
of prod- and and restruc- ation (income)/ of
ucts develop- admin turing, income expense, product
sold ment net net asset Total
Litigation
Matters:
Insurance
recovery $ - $ - $ - $ - $(30) $ - $ - $ (30)
Product
liability - - - - - 11 - 11
Commercial
litigations - - - - (14) - - (14)
- - - - (44) 11 - (33)
Other:
Accelerated
depreciation,
asset
impairment
and contract
termination 138 1 4 - - - - 143
Downsizing
and streamlining
of worldwide
operations - - - 6 - - - 6
Upfront and
milestone
payments - 35 - - - - - 35
Gain on sale
of product
asset - - - - - - (200) (200)
$138 $36 $4 $6 $(44) $11 $(200) (49)
Income taxes
on items
above 47
Change in estimate
for taxes on
prior year items 39
(Increase)/Decrease
to Net Earnings $37
SOURCE Bristol-Myers Squibb Company
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Related links:
http://www.bms.com
CONTACT:
Media, Tony Plohoros, Communications,
+1-212-546-4379, tony.plohoros@bms.com, or Jeff Macdonald,
Communications, +1-212-546-4824, jeffrey.macdonald@bms.com, or
Investors, John Elicker, Investor Relations, +1-212-546-3775, or
john.elicker@bms.com, or Suketu Desai, Investor Relations,
+1-609-252-5796, suketu.desai@bms.com, all of Bristol-Myers
Squibb Company
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