By Tess Stynes
Bristol-Myers Squibb Co. reported stronger-than-expected
fourth-quarter revenue, boosted by strong sales of its key drugs
and despite a hit from the divestiture of its diabetes business
last year and impacts from a stronger dollar.
The drug maker is poised for a management shift as the leaders
who transformed the drug maker into a leader in immunotherapies
exit. Most recently, Bristol Chief Operating Officer Giovanni
Caforio was been tapped as its new chief executive, effective in
May. The successor to current CEO Lamberto Andreotti faces the task
of maintaining Bristol's early lead in immunotherapy drugs. Mr.
Andreotti, who plans to retire as CEO later this year, was among
the Bristol executives that conceived and executed its
makeover.
Bristol pioneered the move into immunotherapies--drugs that work
by unleashing the body's immune system to fight cancer--starting
with its $2.4 billion purchase of Medarex and then its winning
approval, in 2011, of skin-cancer immunotherapy Yervoy. Late last
year, Bristol received approval for a second immunotherapy, Opdivo,
also for skin cancer. Opdivo recently has shown positive results in
studies in treating other cancers.
In the latest quarter, Yervoy sales surged 41% to $366 million,
while Opdivo contributed sales of $5 million.
Overall, Bristol reported a profit of $13 million, or a penny a
share, down from $726 million, or 44 cents a share, a year earlier.
Excluding a pension-related charge and other items, per-share
earnings fell to 46 cents from 51 cents.
Revenue decreased 4.1% to $4.26 billion. However, excluding
impacts of the divested diabetes business, global revenue rose 6%,
or 9% excluding currency fluctuations.
Analysts polled by Thomson Reuters expected per-share profit of
41 cents and revenue of $4.03 billion.
In its hepatitis C segment, Daklinza and Sunvepra posted
combined sales of $207 million.
Sales of leukemia drug Sprycel increased 9% to $398 million.
Sales of blood-thinner Eliquis--sold by Bristol and collaboration
partner Pfizer Inc.--soared to $281 million from $71 million. The
drug, previously approved for uses such as stroke prevention in
atrial fibrillation, received regulatory approvals in August to
treat recurring deep vein thrombosis and pulmonary embolism.
Last week, Johnson & Johnson reported fourth-quarter sales
slipped 0.6% despite surging prescription-drug sales, in a sign of
what the stronger dollar may mean for U.S. companies counting on
overseas markets.
For the year, Bristol forecast per-share earnings of $1.55 to
$1.70 and revenue between $14.4 billion and $15 billion, assuming
current currency rates. Analysts polled by Thomson Reuters expected
per-share profit of $1.71 and revenue of $15.61 billion.
Write to Tess Stynes at tess.stynes@wsj.com
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