Bio-pharmaceutical company Bristol Myers Squibb Co. (BMY) reported Thursday a significant rise in profit for the fourth quarter, helped by a gain from the split-off of Mead Johnson. Further, the company revised its full year 2010 guidance.
New York-based Bristol's fourth-quarter net earnings attributable to the company surged to $8.03 billion or $4.06 per share from $1.24 billion or $0.63 per share in the same period a year earlier. The recent fourth quarter net earnings included a $7.21 billion after tax gain or $3.62 per share, attributed to the split-off of Mead Johnson Nutrition Company, which is recorded as discontinued operations.
Income from continuing operations came down to $818 million from $1.12 billion in the year-ago period and income from discontinued operations rose to $7.21 billion from $126 million last year. However, on an adjusted basis, non-GAAP net earnings from continuing operations attributable to Bristol-Myers were $928 million or $0.47 per share, up from $804 million or $0.40 per share for the same period in 2008.
Net sales for the quarter was $5.03 billion, up 11% from $4.54 billion in the prior year quarter.
James Cornelius, chairman and chief executive officer commenting on the results said, "Our top-line sales growth and improved operating margins reflect excellent execution across our company."
"As a result, we have strengthened our financial position and are well prepared to continue delivering on our BioPharma strategy in 2010. In 2009, we completed strategic initiatives such as splitting off Mead Johnson, acquiring Medarex and extending our Abilify commercialization agreement with Otsuka; all of which significantly address present and future challenges," Cornelius added.
In the sequentially preceding third quarter, the company had reported a decline in profit to $966 million or $0.48 per share from $2.58 billion or $1.28 per share in the third quarter last year. Bristol's third quarter 2008 results included a $2 billion gain from the sale of its ConvaTec wound-care business.
Net sales for the third quarter was $5.49 billion, up 4% from the prior year.
The company's fourth quarter total expenses rose to $3.71 billion from $2.79 billion a year earlier, reflecting higher cost of products sold and, marketing, selling and administrative expenses.
Bristol's major revenue contributors - Plavix and Abilify recorded worldwide revenue increase year-over-year for the fourth quarter. Worldwide revenues of Plavix rose by 10% to $1.62 billion from $1.47 billion a year earlier, revenues of Abilify rose by 17% to $707 million from $606 million last year.
On a segmental basis, the company's Virology segment reported a strong percentage growth both in U.S. and Worldwide. The segment's Baraclude worldwide revenues for the fourth quarter increased by 39%, highest percentage growth among the company's worldwide drug sales. Baraclude is prescription medicine used for chronic infection with hepatitis B virus (HBV) in adults.
Commenting on the company's strategy, Cornelius said, "While fundamentally transforming our company over the past year, we were able to grow our key franchises, launch new medicines and indications, advance a diverse, differentiated, robust pipeline and embed productivity into our corporate DNA. Bristol-Myers Squibb is now truly a focused bio-pharmaceutical company which continues to deliver shareholder value and helps patients prevail over serious diseases."
Amongst others in the industry, Pfizer Inc. (PFE) is scheduled to report its fourth quarter earnings on February 2. Analysts expect the company to report earnings of $0.50 per share on revenues of $15.97 billion for the quarter. For the year-ago period, earnings were $0.65 per share on revenues of $12.31 billion.
For the full year, net earnings attributable to the company more than doubled to $10.61 billion or $5.34 per share from $5.25 billion or $2.62 per share in the year earlier period.
Income from continuing operations for the full year rose to $3.24 billion from $2.70 billion in the year-ago period and income from discontinued operations rose to $7.37 billion from $2.55 billion last year. On an adjusted basis, non-GAAP net earnings from continuing operations attributable to Bristol-Myers was $3.65 billion or $1.85 per share, up from $2.98 billion or $1.49 per share for the same period in 2008.
Net sales for the full year rose by 6% to $18.81 billion from $17.71 billion last year.
Cash and cash equivalents at the end of the quarter was $7.68 billion, up from $6.37 billion at September 30. The company noted that it has a net cash position of $3.5 billion as of December 31.
The company now expects full year 2010 GAAP earnings per share from continuing operations to be in the range of $1.94 to $2.04 and non-GAAP earnings from continuing operations to be between $2.15 per share and $2.25 per share. On average, 17 analysts polled by Thomson Reuters expect the company to report earnings of $2.19 per share on revenues of $19.83 billion for fiscal 2010. Analysts' estimates typically exclude special items.
The company's earlier non GAAP earnings expectation was a growth at a minimum of 15% compound annual growth rate from the 2007 base through 2010 without rebasing for the sale of the ConvaTec business. If the company meets its 2010 non-GAAP earnings per share from continuing operations guidance, it will exceed the prior 15% minimum three-year compound annual growth rate guidance, Bristol added.
The recent 2010 guidance assumptions include mid single-digit revenue growth, the company said.
BMY is currently trading at $24.34, up $0.04 or 0.16% on a volume of 9.62 million shares on the NYSE.
In the past 52 weeks, the stock trended in a broad range of $17.23 - $26.62, with a three-month average volume of 28.88 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.