Summary
Bristol-Myers Squibb Company (BMY) reported stable net sales for the third quarter of 2010 compared to the prior year, with a 4% increase for the first nine months of 2010. The company experienced growth in key products like PLAVIX® and BARACLUDE®, but this was offset by decreases in mature brands and the impact of U.S. healthcare reform. Net earnings from continuing operations attributable to BMS saw a 6% increase for the quarter and an 8% increase for the nine-month period, driven partly by a lower effective tax rate and a reduction in outstanding shares following the Mead Johnson split-off. The company continues to focus on building a foundation for future growth amidst the upcoming loss of exclusivity for its largest product, PLAVIX®, in November 2011.
Financial Highlights
58 data points| Revenue | $4.80B |
| Cost of Revenue | $1.28B |
| Gross Profit | $3.52B |
| R&D Expenses | $824.00M |
| SG&A Expenses | $892.00M |
| Operating Expenses | $3.18B |
| Operating Income | $949.00M |
| Interest Expense | $38.00M |
| Net Income | $949.00M |
| EPS (Basic) | $0.55 |
| EPS (Diluted) | $0.55 |
| Shares Outstanding (Basic) | 1.71B |
| Shares Outstanding (Diluted) | 1.73B |
Key Highlights
- 1Net sales remained largely flat for Q3 2010 ($4.8 billion vs. $4.79 billion in Q3 2009) but increased by 4% year-to-date ($14.37 billion vs. $13.78 billion in YTD 2009).
- 2Net earnings from continuing operations attributable to BMS increased by 6% to $949 million for Q3 2010 and by 8% to $2.62 billion for the nine months ended September 30, 2010.
- 3Diluted EPS from continuing operations increased significantly, by 22% to $0.55 for Q3 2010 and by 25% to $1.51 for the nine-month period, partly due to a lower effective tax rate and a reduction in shares outstanding.
- 4The company is strategically managing its late-stage pipeline and has acquired ZymoGenetics, Inc. for approximately $885 million to bolster its biopharmaceutical portfolio.
- 5Significant legal proceedings continue, notably related to PLAVIX® patent infringement litigation and a $442 million damages award against Apotex (subject to appeal).
- 6The company received a warning letter from the FDA regarding its Manati, Puerto Rico manufacturing facility, which could impact the approval timeline for its NULOJIX® BLA.
- 7Cash, cash equivalents, and marketable securities totaled $10.9 billion at September 30, 2010, providing ample liquidity for operations, investments, and shareholder returns.