By Joshua Jamerson
Bristol-Myers Squibb Co. reported declines in second-quarter
earnings and revenue as the drug maker continues to restructure its
operations.
Results, though, surpassed analyst expectations, helped by
strong sales of the company's cancer drugs. Bristol shares slipped
25 cents to $49.07 in morning trading.
Bristol late last year unveiled plans to restructure its
research and development operations, eliminating programs in
certain disease areas. The company instead sought to focus on areas
that lends itself to the discovery of new drugs that can make a big
clinical difference, such as cancer drugs that harness the body's
immune system.
World-wide sales of Yervoy, a skin-cancer treatment that was
Bristol's first so-called immunotherapy to receive approval, rose
38% in the second quarter to $321 million. Meantime, revenue from
leukemia drug Sprycel grew 18% to $368 million, while sales for
head, neck and colon cancer therapy Erbitux were $186 million, up
9%.
Overall for the second quarter, Bristol reported a profit of
$333 million, or 20 cents a share, down $536 million, or 32 cents a
share, a year earlier. Excluding items, per-share earnings rose to
48 cents from 44 cents.
Revenue edged down 4% to $3.89 billion. However, excluding the
impact from the recent divestiture of Diabetes Alliance, revenue
rose 7%.
Analysts polled by Thomson Reuters expected per-share profit of
44 cents and revenue of $3.85 billion.
ISI Group analyst Mark Schoenebaum said that helping Bristol's
bottomline this quarter was $171 million in other income, which are
primarily royalties from Astrazeneca for sales of diabetes drugs
Onglyza and Forxiga.
"Overall, I don't expect much of a stock reaction" to Bristol's
results, Mr. Schoenebaum said. "The focus remains nivolumab
development."
Cancer treatment nivolumab is another immunotherapy that the
company is studying in various late-stage trials, including for
lung cancer.
Bristol's gross margin widened to 74.5% from 72.6% as total
expenses fell 2.2%.
U.S. revenue decreased 7% to $1.9 billion in the quarter, while
international revenues decreased 1% to $2 billion.
The company also affirmed its earnings outlook for the year.
Write to Joshua Jamerson at Joshua.Jamerson@dowjones.com
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