BMS profits surge ahead
pharmafile | July 30, 2009 | News story | Sales and Marketing | BMS
Bristol Myers-Squibb's earnings growth massively outstripped its income in the second quarter of the year.
The company saw its net sales rise 3% year on year to $5.4 billion.
But earnings were up 36% to $983 million in the same period, thanks to cost controls, and favourable currency factors that lowered the cost of goods sold.
"We are well on track to continue delivering on our growth commitments," commented chief executive James Cornelius.
The positive figures coincided with a very significant acquisition, the $2.4 billion purchase of biologics specialists Medarex.
Much of the company's strong performance was down to sales of cardiovascular drug Plavix, which were up 11% to $1.5 billion.
This is despite growing generic competition in Germany, where marketing partners Sanofi-Aventis oversee its marketing.
And in the neuroscience segment, Abilify, the drug on which BMS collaborates with Otsuka Pharmaceutical, had sales up 22% to $529 million in the three-month period.
In April, BMS extended its agreement with Otsuka to allow the company to market Abilify in the US until April 2015.
BMS said this would allow it "to refocus its energies toward longer-term growth goals for 2014 and beyond".
Biopharma division sales overall were up 4% to $4.7 billion.
The virology portfolio also performed well, led by hepatitis B drug Baraclude, whose sales in April, May and June rose 32% to $179 million, compared with the previous year.
The company's Sustiva franchise also pulled its weight, with sales up 11% to $312 million, while HIV treatment Reyataz rose 2% to $331 million.
Orencia, BMS's rheumatoid arthritis brand, grew 40% worldwide to $148 million.
Leukemia drug Sprycel, which phase II studies indicate may also be helpful in treating castrate-resistant prostate cancer, rose 41% to $107 million.
However, it was not all good news for BMS: sales of cancer treatment Erbitux fell 12% to $173 million.
The company's research and development expenses increased 3%, excluding the impact of foreign exchange movements, to $829 million.
Medarex's important role
Looking ahead, Cornelius said that the Medarex acquisition would give BMS a competitive advantage in immunology and oncology, "two areas of significant unmet medical need".
"We are expanding our biologics capabilities and gaining access to exciting new technology which may open new frontiers in cancer research," he added.
Medarex was behind the development of rheumatoid arthritis treatment Simponi, the Johnson & Johnson brand that has US approval.
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