International and Cancer Drug Sales Spur Bristol-Myers Squibb's Q4 Results

Strong international sales and oncology division growth, couple with tight cost controls and a renewed focus on specialized care pushes Bristol-Myers Squibb's fourth-quarter results higher.

Jan 24, 2014 at 1:48PM

Pharmaceutical giant Bristol-Myers Squibb (NYSE:BMY) reported its fourth-quarter earnings results before the opening bell this morning, and based on its results (and the early reaction of investors before the overall market turned south) everything seems to be on track.

For the quarter, Bristol-Myers Squibb delivered a 6% increase in revenue to $4.44 billion as adjusted EPS increased 9% to $0.51, topping Wall Street's estimates by $0.08, despite a 300-basis-point decline in gross margin to 71.3% and with the help of a 7% reduction in marketing, selling, and administrative expenses to $1.1 billion.

If there were three major stories this quarter it would be international sales, cancer sales, and business divestment.

The first growth driver was Bristol-Myers' international sales, which increased 11% compared to the meager 1% revenue gain witnessed domestically. Of particular help were Bristol-Myers' type 2 diabetes medications, Byetta and Onglyza, which saw international sales jump 1,650% and 34%, respectively.

Secondly, Bristol-Myers' focus on specialized care drugs is beginning to pay off, especially with regard to oncology revenue growth. Worldwide sales of leukemia drug Sprycel rose 30% (and 44% in the U.S.), while Yervoy sales improved 23%. Recently approved blood-thinning drug Eliquis also powered higher with $71 million in sales compared to just $1 million in the year-ago period.

Countering this strong growth was a 22% decrease in schizophrenia and bipolar disorder drug Abilify, which also happens to be Bristol's best-selling drug at the moment.

Finally, Bristol-Myers' quarter was defined by renewed operational focus. The company announced during the quarter that it would be selling its portion of its diabetes franchise to AstraZeneca (NYSE:AZN) for $2.7 billion in upfront cash, and could earn an additional $1.4 billion in milestone payments. The approval by the Food and Drug Administration of type 2 diabetes medication Farxiga in the U.S. already earned Bristol $600 million of that $1.4 billion. Bristol-Myers' management notes the sale will be accretive to earnings upfront but may weigh on earnings toward the end of the decade.

Looking ahead, Bristol-Myers reaffirmed its previously issued guidance which calls for adjusted EPS of $1.65 to $1.80 for fiscal 2014.


Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information