"With regulatory approvals for Eliquis and Forxiga, and good operating performance in the fourth quarter, Bristol-Myers Squibb had a strong finish to an important year of transition," said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb. "In 2012 we continued to effectively execute our strategy, and continued to build the post-Plavix portfolio and operating structure that provide a solid foundation for our future growth. As we begin 2013, I am looking forward to our many opportunities, including the growth of the existing key brands, the execution of the new launches, and the continued delivery of a diverse and sustainable R&D pipeline."
Fourth quarter financial results
- Bristol-Myers Squibb posted fourth quarter 2012 net sales of $4.2 billion, a decrease of 23% compared to the same period a year ago, following the U.S. patent expiration of Avapro®/Avalide® in March 2012 and Plavix® in May 2012. Excluding Plavix and Avapro/Avalide, net sales grew by 13% compared to the fourth quarter of 2011.
- U.S. net sales decreased 38% to $2.2 billion in the quarter, compared to the same period a year ago. International net sales increased 6% to $2.0 billion.
- Gross margin as a percentage of net sales was 74.3% in the quarter, compared to 74.9% in the same period a year ago.
- Marketing, selling and administrative expenses decreased 6% to $1.1 billion in the quarter.
- Advertising and product promotion spending decreased 26% to $212 million in the quarter.
- Research and development expenses increased 7% to $1.1 billion in the quarter.
- The Company reported an overall tax benefit rate of 80.1% attributed to a capital loss deduction in the quarter. The effective tax rate on earnings before income taxes was 22.8% in the fourth quarter last year.
- The Company reported net earnings attributable to Bristol-Myers Squibb of $925 million, or $0.56 per share, in the quarter compared to $852 million, or $0.50 per share, a year ago.
- The Company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $777 million, or $0.47 per share, in the fourth quarter, compared to $906 million, or $0.53 per share, for the same period in 2011. An overview of specified items is discussed under the "Use of Non-GAAP Financial Information" section.
- Cash, cash equivalents and marketable securities were $6.4
Bristol-Myers Squibb is setting its 2013 GAAP EPS guidance range from $1.54 to $1.64 and its non-GAAP EPS guidance range from $1.78 to $1.88. Both GAAP and non-GAAP guidance assume current exchange rates. Key 2013 non-GAAP guidance assumptions include:
- Worldwide sales between $16.2 billion and $17.0 billion.
- Full-year gross margin as a percentage of sales between 72% and 73%.
- Advertising and promotion expense increasing in the high single digit range.
- Marketing, sales and administrative expenses remaining flat versus last year.
- Research and development expenses growing in the low-single-digit range.
- An effective tax rate of approximately 16%.
It is estimated that 30% to 40% of the research and development expenses in 2013 will be incurred on late-stage development programs. Total research and development expenses include the costs of discovery research, preclinical development, early- and late-clinical development and drug formulation, as well as clinical trials and medical support of marketed products, proportionate allocations of enterprise-wide costs, and other appropriate costs. Late-stage development expenses refer to our investigational compounds that are in Phase III clinical development and our marketed products that are in Phase III development for additional indications or formulations.
About Bristol-Myers Squibb
Bristol-Myers Squibb is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases.