Bristol-Myers Squibb (BMS) has reported a decrease in net income for the fourth quarter and 2010 fiscal year, despite increases in net sales.
For the 2010 fiscal year, the net income dropped to $3.1 billion, compared with $10.61 billion in the 2009 fiscal year, according to BMS. Similarly negative, the 2010 fourth quarter’s net income was $483 million, compared with $8.03 billion in the 2009 fourth quarter.
For the fourth quarter, the company’s net sales experienced 2 percent increase to $5.11 billion over the fourth quarter of 2009. However, BMS said that “U.S. healthcare reform had a 1.5 percent negative effect on net sales in the fourth quarter.” U.S. net sales increased 5 percent to $3.3 billion in the fourth quarter of 2010 compared to the same period in 2009. International net sales decreased 5 percent to $1.8 billion.
BMS also reduced spending in the fourth quarter of 2010. Marketing, selling and administrative expenses decreased 15 percent to $1 billion; advertising and product promotion spending decreased 19 percent to $271 million; and research and development expenses decreased 9 percent to $1 billion.
For the fiscal year 2010, the company reported a 4 percent jump in net sales to $19.48 billion, compared with the fiscal year of 2009 results.
Its blockbuster antiplatelet agent clopidogrel (Plavix) saw an increase in net sales for the fourth quarter and 2010. In the 2010 fourth quarter, the company posted net sales of $6.67 billion—an 8 percent increase over the 2009 fourth quarter. Likewise, BMS posted a 9 percent increase in the fiscal year 2010 over the fiscal year 2009. Interestingly, Plavix experienced a 4 percent drop in U.S. total prescriptions compared with the fiscal year of 2009.
Conversely, the high blood pressure drug, irbesartan (Avapro/Avalide), did not see increases in net sales. Instead, the agent saw a 26 percent drop for the fourth quarter of 2010 over the fourth quarter of 2009; and the year-long net sales for the fiscal year of 2010 saw a larger decrease of 36 percent, compared with the fiscal year of 2009, BMS reported.