Edited from “To our stockholders”, annual report and “excellent performance highlights second quarter for Bristol-Myers Squibb”.
On 1 September 2009, Bristol-Myers Squibb completed the acquisition of Medarex for $2.4bn. Medarex will become a wholly-owned subsidiary of Bristol-Myers Squibb. The acquisition is said to position Bristol-Myers Squibb for long-term leadership in biologics; give the company full rights to a promising phase III compound for the treatment of cancer, ipilimumab; significantly expand the company’s oncology and immunology pipeline and provide access to novel antibody discovery technology.
In another strategic move on 6 April 2009, the company announced an agreement with Otsuka Pharmaceutical to extend the US portion of the companies’ long-standing agreement for the development and commercialisation of Abilify (an anti-psychotic drug) from the currently scheduled end date of November 2012 until the expected loss of exclusivity in April 2015.
The collaboration allows Bristol-Myers Squibb to refocus its energies towards longer-term growth goals for 2014 and beyond and improve the company’s overall financial stability while maintaining financial flexibility for the future, and provides an expected bridge to the company’s new neuroscience products.
Bristol-Myers Squibb will continue to invest in R&D as part of its strategy. The company has also previously made savings in areas such as manufacturing, drug development, information technology and its sales force.
Looking ahead, Bristol-Myers Squibb has revised its 2009 generally accepted accounting principles (GAAP) earnings per share (EPS) guidance to $1.58 to $1.68 and raised non-GAAP EPS guidance to $1.95 to $2.05.
Key 2009 guidance assumptions include:
1. low single-digit revenue growth (high single digit growth excluding foreign exchange);
2. a full-year gross margin improvement of approximately 200 basis points;
3. advertising and promotion increase in the low-to-mid single-digit range;
4. marketing, sales and administrative expense decrease in the low-to-mid single digits;
5. research and development expense growth in the mid single-digit range; and
6. an effective tax rate of approximately 25%.
The company reaffirms guidance that it expects non-GAAP EPS from continuing operations attributable to the company to grow at a minimum 15% compounded annual growth rate, excluding the impact of any US healthcare reforms, costs associated with productivity transformation initiatives and other specified items that have not yet been identified and quantified.
The financial guidance for 2009 and the three-year compound annual growth rate include the impact of the company’s acquisition of Medarex but exclude the impact of any potential future strategic acquisitions and divestitures and further assumes that the company and its partner, Sanofi-Aventis, maintain US exclusivity for the Plavix (used as a preventer of future heart attack or strokes) patent through at least to 2010.
The acquisition of Medarex is expected to decrease the company’s EPS by $0.02 to $0.03 in 2009 and $0.07 to $0.09 in 2010.
ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.
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See the article and analysis of the ICIS Top 100 on ICIS news.
Financial highlights: Bristol Myers Squibb, year ended 31 December
|
|
2008 |
2007 |
2006 |
2005 |
2004 |
|
Sales ($ m) |
20,597 |
18,193 |
17,256 |
18,605 |
18,791 |
|
R&D ($ m) |
3,585 |
3,227 |
2,991 |
2,678 |
-- |
|
Net Profit ($ m) |
5,247 |
2,165 |
1,585 |
3,000 |
-- |
|
Total Assets ($ m) |
-- |
26,172 |
25,575 |
28,138 |
30,435 |
|
Diluted earnings per share ($) |
2.63 |
1.09 |
0.81 |
1.52 |
1.21 |
|
Number of Employees |
41,000 |
42,000 |
42,000 |
43,000 |
43,000 |
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Bristol Myers Squibb
Company Structure
Bristol-Myers Squibb (BMS) operates in more than 60 countries around the globe. The company was formed through a merger in 1989, which at that time was considered to be one of the largest in corporate history. In October 2001, BMS further strengthened its medicines business with the acquisition of DuPont Pharmaceuticals. Today, Bristol-Myers Squibb is a diversified worldwide health and personal care company whose core businesses are medicines, nutrition (Mead Johnson) and medical devices (ConvaTec).
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