Bristol-Myers, Wyeth Post Higher 2Q Profits
23 Julho 2009 - 10:53AM
Dow Jones News
Drug makers Bristol-Myers Squibb Co. (BMY) and Wyeth (WYE)
reported higher second-quarter earnings, helped by cost cuts and
rising sales of top products, and continued an industry streak of
exceeding Wall Street expectations.
Both companies faced headwinds from unfavorable
currency-exchange rates, the weak economy and competition from
cheaper generic drugs. But like some other drug makers this week,
Wyeth and Bristol reported higher-than-expected earnings and
boosted their financial forecasts for full-year 2009.
Wyeth and Bristol are taking very different strategic
directions, though. Wyeth, of Madison, N.J., has agreed to be
acquired by Pfizer Inc. (PFE) in a $68-billion deal expected to
close by the end of the year.
New York-based Bristol, however, has stayed independent, and
late Wednesday announced a $2.1-billion purchase of cancer-drug
developer Medarex Inc. (MEDX). The deal is designed to advance
Bristol's strategy of stocking up on biotech drugs and helping to
prepare for the loss of market exclusivity for its top-selling
drug, the blood thinner Plavix, next decade.
For the three months ended June 30, Bristol said net income
attributable to the company rose 29% to $983 million, or 49 cents a
share, from $764 million, or 38 cents a share, a year earlier. The
latest quarter included charges for Bristol's ongoing cost-cutting
program and other items; excluding these, earnings were 56 cents a
share, well above the 47-cents-per-share mean estimate of analysts
surveyed by Thomson Reuters.
Bristol's sales rose 3% to $5.38 billion. Unfavorable currency
rates reduced sales growth by about five percentage points.
Bristol's biggest unit, biopharmaceuticals, had 4% sales growth,
while sales for the Mead Johnson Nutrition Co. (MJN) nutritionals
unit declined 1%.
Bristol posted an 11% increase in sales of Plavix, to $1.54
billion. Bristol co-markets Plavix with Sanofi-Aventis SA (SNY) of
France. Plavix sales could soon take a hit because Eli Lilly &
Co. (LLY) and Daiichi Sankyo Co. (4568.TO) are about to launch a
competing drug, Effient, in the U.S. Bristol and Sanofi are due to
lose U.S. patent protection for Plavix in 2012.
Sales of Bristol's antipsychotic Abilify rose 22% to $643
million, while HIV drug Sustiva had an 11% increase, to $312
million. Sales declined for hypertension drugs Avapro and Avalide,
and for cancer drug Erbitux.
Bristol raised its 2009 earnings forecast range, excluding
one-time items, to $1.95 to $2.05 a share, from $1.85 to $2 per
share. The Medarex deal is expected to reduce earnings by 2 cents
to 3 cents a share this year.
For the three months ended June 30, Wyeth had net income of
$1.27 billion, or 94 cents a share, versus $1.12 billion, or 83
cents a share, a year earlier. The latest quarter included charges
of $52 million, or 4 cents a share, related to a cost-cutting
program and merger costs. Excluding these, earnings were 98 cents a
share, well ahead of the 85-cents-per-share mean estimate of
analysts surveyed by Thomson Reuters.
Wyeth's sales declined 4% to $5.7 billion from $5.9 billion a
year earlier, as a six-percentage point hit from unfavorable
exchange rates more than wiped out a 2% operational increase.
A culprit in the overall sales decline was the blockbuster
antidepressant Effexor, whose sales plunged 25% to $772 million.
Wyeth attributed this to increased generic competition outside the
U.S. Sales of antibiotic Zosyn and hormone therapy Premarin also
declined.
But sales of the Prevnar vaccine, which prevents pneumococcal
disease in children, jumped 13% to $783 million, continuing its
strong growth. Wyeth's sales of arthritis drug Enbrel outside the
U.S. and Canada rose 6% to $736 million, and it booked alliance
revenue from the U.S. and Canada of $304 million, up 7%. Wyeth
exclusively markets Enbrel in many countries outside the U.S. and
Canada, and co-promotes within the U.S. and Canada with Amgen Inc.
(AMGN).
"The diversity of our businesses has limited our exposure to
some of the global market conditions that we see," Joseph Mahady,
head of Wyeth's pharmaceutical unit, told analysts on a conference
call. "And of course prudently managing our spend has yielded
further benefit on the bottom line."
Wyeth's nutritional sales inched up 1% to $436 million. Sales of
Centrum vitamin products and Advil products declined in the single
digits on a percentage basis.
Wyeth's takeover by Pfizer is expected to close by the end of
the year. Wyeth's shareholders voted in favor of the deal Monday
and it's still subject to antitrust clearance in the U.S. The
European Commission cleared the deal last week, conditioned upon
the divestiture of certain animal-health assets in Europe because
Pfizer and Wyeth have overlapping businesses.
Wyeth raised its full-year earnings view to $3.48 to $3.58 a
share, from $3.33 to $3.53 a share, excluding one-time items.
-Peter Loftus; Dow Jones Newswires; 215-656-8289;
peter.loftus@dowjones.com