Bristol-Myers Squibb Company (NYSE: BMY) posted third quarter 2012 net sales of $3.7 billion, a decrease of 30% 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 7% compared to the third quarter of 2011.
U.S. net sales decreased 43% to $2.0 billion in the quarter compared to the same period a year ago. International net sales decreased 6% to $1.8 billion.
Gross margin as a percentage of net sales was 73.6% in the quarter compared to 73.7% in the same period a year ago.
Marketing, selling and administrative expenses increased 5% to $1.1 billion in the quarter.
Advertising and product promotion spending decreased 19% to $167 million in the quarter.
Research and development expenses decreased 2% to $951 million in the quarter.
A non-cash impairment charge of $1.8 billion was included in the quarter resulting from the discontinued development of BMS-986094 (formerly known as INX-189), a nucleotide polymerase (NS5B) inhibitor that was in Phase II development for the treatment of hepatitis C.
The Company reported an overall tax benefit rate of 43.4% attributed to the pretax loss in the quarter. The effective tax rate on earnings before income taxes was 26.0% in the third quarter of last year.
The Company reported net loss attributable to Bristol-Myers Squibb of $711 million, or $0.43 per share, in the quarter compared to net earnings of $969 million, or $0.56 per share, a year ago.
The Company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $685 million, or $0.41 per share, in the third quarter, compared to $1.0 billion, or $0.61 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 $6.6 billion, with a net debt position of $731 million, as of September 30, 2012.
In July, the Company issued $2.0 billion of senior unsecured notes: $750 million of 0.875% notes due 2017, $750 million of 2.000% notes due 2022 and $500 million of 3.250% notes due 2042.
Also in July, the Company entered into an additional $1.5 billion five-year revolving credit facility. There were no borrowings under revolving credit facilities at September 30, 2012.
"Bristol-Myers Squibb faced challenges in the third quarter, including the discontinuation of BMS-986094 for the treatment of hepatitis C. I am proud of how we worked through these challenges and made the right decisions for patients," said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb. "We remain strong and well-positioned for future success as demonstrated by the achievement of regulatory milestones for Eliquis and Orencia, the presentation of long-term survival data for Yervoy, the completion of our acquisition of Amylin, and the performance of our key brands."
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.