Generics Take Big Bite Out of Bristol-Myers - TheStreet

Bristol-Myers Squibb

(BMY) - Get Report

saw its sales tumble 7% and earnings cut almost in half as generic competition for some of its major drugs intensified.

The pharmaceutical company posted first-quarter net income of $585 million, or 30 cents a share, reflecting various extraordinary items. Excluding the items, the company earned $875 million, or 45 cents a share, down 30% from $1.243 billion, or 63 cents a share, in the year-ago quarter. The results were slightly ahead of analysts' lowered estimates of 43 cents a share, according to Thomson Financial/First Call.

At the beginning of the month, Bristol-Myers

warned that it would see both a profit and revenue shortfall, lowering its guidance 20% to 44 cents to 47 cents on sales of $4.7 billion, flat with last year. Sales still missed the lowered target, coming in at $4.3 billion.

The company said generic drug competition decimated its results, as its most important drugs, Glucophage, Taxol, and Buspar, saw sales of just $87 million, down from $888 million in 2001.

Going forward, the drug company said it expects to see full-year EPS of $1.69 to $1.81. First Call analysts are currently looking for $1.43 a share.