Pharmaceutical earnings were a mixed bag Tuesdaymorning, with
posting lower results on falling sales,while
resultswere well above Wall Street's consensus.
Bristol-Myers Squibb said its worse-than-expectedsecond-quarter results were due to competition fromgeneric drugs and U.S. inventory overstock.
The company's sales were down 14% to $4.1 billionfrom $4.7 billion a year ago, resulting from a 13%volume decrease. Pharmaceutical sales were down 33% to$1.8 billion, hurt by competition from genericversions of Glucophage, Taxol and Buspar. Sales onthose three fell to $51 million from $753 million ayear ago.
Bristol-Myers said it earned $440 million, or 23cents a share, in the quarter, down from $1.02billion, or 57 cents a share, a year ago. Analystspolled by First Call had been looking for 26 cents inthe quarter.
Going forward, the company warned Tuesday that financial damage from its previously disclosed plan to reduce wholesaler inventory levels would be greater than expected. Earnings will be reduced by 61 cents per share in 2002 and 2003, compared to previous guidance of a reduction of 46-47 cents per share.
The inventory problem, which is being investigated by the Securities and Exchange Commission, will cut second half 2002 earnings by 24 cents, and 8 cents in the first quarter 2003, the company said.
The company reiterated previous guidance for earnings in a range of $1.69-$1.81 per share in 2002, excluding the aforementioned inventory writedowns. Analysts expect Bristol-Myers to earn $1.35 per share in 2002, which includes inventory writedown charges.
Pharmacia, on the other hand, reportedbetter-than-expected second-quarter results on a 4%jump in sales.
The drugmaker, which agreed last week to beacquired by rival
, earned$907 million, or 69 cents a share, for the quarter, upfrom 55 cents a year ago. Analysts polled by ThomsonFinancial/First Call were expecting 58 cents a share.
Sales increased to $3.6 billion, up from $3.4billion a year ago. Prescription sales were up 5%,while sales of Celebrex, the company's arthritismedicine, were up 14%.
Shares of Bristol-Myers were falling about 2.5% to$21.25 in premarket trading on the news after closingat $21.80, while shares of Pharmacia closed at $36.40before the news Monday.