Drug makers Bristol-Myers Squibb Co. (BMY) and Celgene Corp. (CELG) both reported decline in profit for the fourth quarter on one-time charges, while recording strong revenue growth. In addition, Bristol-Myers recorded a hefty gain in the year-ago period on the split-off of Mead Johnson Nutrition Co. (MJN).
Bristol-Myers forecast earnings per share for fiscal year 2011 below analysts' expectations, joining Celgene which earlier in the month had forecast earnings for the full-year below analysts' estimates.
Bristol-Myers' profit for the fourth quarter plunged 94 percent. However, excluding items, adjusted earnings per share from continuing operations was flat with the year-ago period and matched analysts' consensus estimates.
The company's net income for the fourth quarter was $483 million or $0.28 per share, down from $8.03 billion or $4.06 per share in the prior-year period.
The year-ago quarter's results include a gain of $7.2 billion after tax, or $3.62 per share attributable to split-off of Mead Johnson Nutrition Co., which is recorded as discontinued operations.
In the prior year, net earnings from continuing operations was $818 million or $0.41 per share last year.
Adjusted net earnings from continuing operations for the fourth quarter was $807 million, down from $928 million in the year-ago period. However, earnings per share for the quarter was flat with the prior-year period at $0.47. On average, 18 analysts polled by Thomson Reuters expected the company to report earnings per share of $0.47 for the quarter. Analysts' estimates typically exclude one-time items.
Net sales for the quarter rose 2 percent to $5.11 billion from $5.03 billion in the prior-year period and topped analysts' consensus revenue estimate of $5.05 billion.
The company noted that the U.S. health care reform had a 1.5% negative effect on net sales in the latest quarter International net sales declined 5 percent, or 3 percent, excluding foreign exchange impact, to $1.18 billion.
Gross margin for the quarter was 72.3 percent, up from 71.5 percent in the year-ago period.
Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb said, "The performance in the quarter is reflective of a year in which robust clinical data, targeted execution of our String of Pearls strategy, and key regulatory submissions provided further proof of our ability to build one of the most innovative pipelines in the industry."
Blood thinner Plavix' sales in the fourth quarter rose 6 percent to $1.72 billion. Bristol-Myers and sanofi-aventis (SNY, SNYNF.PK) said Tuesday that the U.S. Food and Drug Administration has granted a further six-month period of exclusivity to market Plavix, extending the exclusivity of the drug until May 17, 2012.
Among the company's HIV drugs, Sustiva's revenue edged up one percent to $360 million, while Reyataz sales declined 4 percent to $374 million. Hepatitis B treatment Baraclude's sales rose 25 percent to $264 million, while sales of depression treatment Abilify was flat with the year-ago period at $707 million.
For fiscal year 2010, Bristol-Myers' net income was $3.10 billion or $1.79 per share, down from $10.61 billion or $5.34 per share last year.
Income from continuing operations for the prior year was $3.24 billion. On a per share basis, earnings rose to $1.79 from $1.63 last year.
However, adjusted net earnings from continuing operations increased to $3.74 billion or $2.16 per share from $3.67 billion or $1.85 per share in the prior year. Analysts expected the company to report earnings of $2.16 per share for the year.
Net sales for the year were $19.48 billion, up 4 percent from $18.81 billion a year ago. Analysts had a consensus revenue estimates for the year of $19.44 billion.
Looking ahead to fiscal year 2011, Bristol-Myers Squibb forecasts earnings in a range of $2.00 to $2.10 per share, and adjusted earnings in a range of $2.10 to $2.20 per share. Analysts expect the company to report earnings of $2.25 per share for the year.
On an incremental year-over-year basis, the company expects U.S. health care reform to have a negative impact of about $0.15 on earnings per share for the year.
In addition, the company projects low-to mid-single-digit revenue growth for the year.
Bristol Myers also reaffirmed its minimum non-adjusted earnings per share outlook for 2013 of $1.95. 2013 will be the first full year after the company's major patent expirations.
Meanwhile, Celgene reported a 16 percent decline in profit for the fourth quarter, hurt by charges related to the acquisition of Abraxis BioScience. Excluding items, adjusted earnings per share for the quarter increased and matched analysts' expectations.
The Summit, New Jersey-based company's net income for the fourth quarter was $213.56 million or $0.45 per share, down from $254.22 million or $0.54 per share in the prior-year period.
The latest quarter's results include acquisition-related and restructuring charges of $28.54 million. Celgene completed the $2.9 billion acquisition of biotechnology company Abraxis in October 2010.
However, the company's adjusted net income for the latest quarter increased to $347.59 million or $0.73 per share from $290.31 million or $0.62 per share in the year-ago quarter. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.73 per share for the quarter. Analysts' estimates typically exclude one-time items.
Total revenue for the quarter surged 41 percent to $1.07 billion from $761.04 million in the same period last year. Adjusted total revenue for the quarter was up 38 percent at $1.05 billion. Analysts had a consensus revenue estimates of $1.04 billion. The increase in revenues for the quarter reflects strong sales growth of the company's cancer drugs Revlimid and Vidaza, in addition to sales of Abraxane since the closing of Abraxis BioScience acquisition.
The company noted that global net product sales for its cancer drug Revlimid surged 42 percent to $707.5 million, while Vidaza global net product sales rose 20 percent to $140.4 million. Net product sales of Abraxane, since the closing of Abraxis BioScience acquisition, was $71.4 million.
For fiscal year 2010, Celgene's net income increased to $884.50 million or $1.88 per share from $776.75 million or $1.66 per share in the previous year.
Adjusted net income for the year rose to $1.32 billion or $2.80 per share from $971.32 million or $2.08 per share last year. Analysts expected the company to earn $2.81 per share for the year.
Total revenue for the year was $3.62 billion, up from $2.69 billion in the previous year. Adjusted revenue for the year surged 34 percent to $3.60 billion. Analysts had a consensus revenue estimate for the year of $3.59 billion.
Celgene, in early January, forecast adjusted earnings for fiscal year 2011, including the impact of the Abraxis BioScience acquisition, to increase around 20 percent year-over-year to a range of $3.30 to $3.35 per share. Analysts expect the company to earn $3.37 per share for the year.
The company forecast adjusted revenue for the year to grow by around 25 percent to a range of $4.4 billion to $4.5 billion, with Revlimid net product sales anticipated to increase about 25 percent to a range of $3 billion to $3.1 billion. Analysts expect revenues of $4.45 billion for the year.
In Thursday's regular trading session, BMY is trading at $26.23, up $0.30 or 1.16 percent on a volume of 1.49 million shares. In the past 52 weeks, the stock has been trading in a range of $22.24 to $28.00.
CELG is trading at $55.26, down $0.93 or 1.66 percent on a volume of 0.24 million shares. The stock has been trading in a range of $48.02 to $65.79 in the past 52 weeks.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.