Bristol Myers Squibb reports decrease in earnings

Bristol-Myers Squibb (BMS) has reported a decrease in earnings, although it has highlighted a number of drugs currently in the pipeline as grounds for optimism over the company’s future.

Net earnings reduced to $680 million, compared to $993 million during the same period last year. BMS blamed this on less favourable tax rates, as well as the resolution of a tax audit.

The company also said net sales remained the same as they were before, although international sales decreased by five per cent, largely due to generic Pravachol and Taxol sales in Europe. Sales in Reyataz, an anti-HIV treatment, were boosted by increased demand in Europe

However, the company pointed to recent regulatory success for it products currently in development. Baraclude, a treatment for chronic hepatitis B infections, was recently approved by the European Commission.

Peter R Dolan, BMS’ chief executive officer, stated: “Since the beginning of the year, Bristol-Myers Squibb has launched four important pharmaceutical products.”

“The strong productivity of our pipeline and continued solid double-digit growth in sales of our key products Plavix, Ablify, Reyataz and Erbitux, as well as the solid prospects for our recently approved products, Orencia, Baraclude and Sprycel are all preparing the company to enter a period of sustained sales and earnings growth over several years, beginning in 2007,” he concluded.

BMS says it has a “strong” foothold in the UK pharmaceutical industry and after the losses of Taxol and Lipostat, it has no major patent losses until 2011. The company manufactures Plavix in conjunction with Sanofi-Aventis, which is the UK’s third best-selling medicine.

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