Bristol-Myers Squibb Co.'s (BMY) first-quarter profit jumped 16%
on higher sales, which helped results top Wall Street's
expectations.
The drug maker also trimmed its full-year adjusted earnings
forecast by 5 cents to $2.10 to $2.20 a share, citing the impact of
the government's health care reform, which is expected to offset
strength in the company's underlying business. Several peers in
recent weeks have already made similar outlook cuts.
Bristol-Myers has become smaller and more focused on drug
development at a time when some of its rivals, including Pfizer
Inc. (PFE), have taken a different track: getting bigger and
diversifying beyond brand-name prescription drugs. Still, the
company needs to expand its product lineup because it faces the
loss of patent protection in 2012 for its top-selling anti-clotting
drug, Plavix.
For the latest quarter, Bristol-Myers posted a profit of $743
million, or 43 cents a share, up from $638 million, or 32 cents a
share, a year earlier. Excluding restructuring charges, litigation
expenses and other items, earnings rose to 56 cents from 42 cents.
The latest results also included a 3-cent charge related to the
government's recently enacted health care reform.
Net sales jumped 11% to $4.81 billion, or 8% excluding changes
in currency values.
Analysts surveyed by Thomson Reuters projected a profit of 51
cents on revenue of $4.74 billion.
Gross margin fell to 72.8% from 73%.
Sales of Plavix climbed 16%. Abilify, an antipsychotic
treatment, saw a 4.8% increase. The product has quickly become
Bristol's No. 2 seller and is crucial to its plan to reduce its
dependence on Plavix.
Sales of Plavix remained strong despite a move by the U.S. Food
and Drug Administration to add a boxed warning alerting doctors the
drug doesn't work as well in some patients. Some options doctors
are considering for affected patients include doubling the dose of
Plavix, or seeking an alternative medication.
Shares closed Wednesday at $24.34.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com