Earnings roundup: BMS to cut $1B more
Big Pharma inundated the market with earnings reports the last two days, for the most part surpassing analyst expectations. But the reports buried some of the biggest news: That Bristol-Myers Squibb is plotting a major add-on to its $1.5 billion restructuring, and that GlaxoSmithKline's embattled diabetes med Avandia saw sales plummet by almost half. Here are the highlights:
- Bristol-Myers Squibb reported better-than-expected revenues of $5.2 billion, up from $4.47 billion a year earlier, with adjusted earnings at 43 cents per share, up from 31 cents. Star performers for the company included its clot-buster Plavix and psych drug Abilify, whose sales rose 17 percent and 28 percent respectively. Results also benefited from the company's $1.5 billion cost-cutting program--which it plans to expand by an additional $1 billion. No details yet on how.
- Eli Lilly profits soared by 45 percent for the quarter to $958 million, or 88 cents a share, on an 11 percent increase in revenues to $5.15 billion. Its antidepressant Cymbalta saw sales grow by 26 percent, with a 19 percent increase domestically and a whopping 80 percent rise on the international market. Tadalafil, the ED treatment, grew sales by 24 percent.
- Pfizer's profits more than doubled to $2.78 billion on strong international sales growth, which offset generic competition in the U.S. Sales grew by 9.5 percent to $12.13 billion, but U.S. revenues dropped by 2 percent as the allergy med Zyrtec and cancer drug Camptosar went generic. Lipitor sales grew by 9 percent, largely internationally.
- GlaxoSmithKline beat market expectations, numbers-wise, on strong vaccine and asthma-drug sales. But analysts are concerned about a 46 percent drop in sales of the diabetes med Avandia and disappointing results in its consumer health business.
- Wyeth sales grew 5 percent to $5.9 billion, with almost all of that increase coming from the weak dollar; its net income fell by 6 percent to $1.12 billion, including charges related to its cost-cutting program. Excluding those charges, its EPS of 91 cents beat analyst estimates. The company's lead product, the antidepressant Effexor, grew sales by 5 percent, and its pneumonia vaccine Prevnar boosted revenues by 9 percent.