Bristol-Myers Squibb posts drop in quarterly earnings

Pharmaceuticals firm, Bristol-Myers Squibb, has reported a fall in net earnings and sales for the third quarter of 2006.

The company has announced that its net sales for the quarter reached $4.2 billion (2.2 billion pounds), compared to $4.8 billion (2.54 billion pounds) achieved in the same period in the previous year, while net earnings fell from $964 million (510.6 million pounds) in 2005 to $338 million (179 million pounds) in 2006.

According to the firm, the fall in non-generally accepted accounting principles (GAAP) net earning is attributed to the launch of generic clopidogrel bisulfate, loss of patent “exclusivity” on Pravachol in a number of markets and increased levels of investment in its new products.

Jim Cornelius, chief executive officer of Bristol-Myers Squibb, comments: “Clearly, our third quarter overall performance was negatively impacted by generic competition to Plavix and the loss of exclusivity on Pravachol earlier this year.

“However, our other major products continue to demonstrate robust, double-digit sales growth and the launches of our new products, Sprycel, Orencia and Baraclude are on track.”

Plavix, which contains clopidogrel hydrogen sulfate, is used in the treatment of thrombosis, reducing the chances of blood clots forming particularly in people who have had heart attacks or strokes, Netdoctor.co.uk reports.

According to the firm, sales of the drug during the third quarter have been affected significantly by the availability of generic drugs. The company estimates the “adverse effect” of competitors to be in the region of $525 million (278 million pounds) to $600 million (317.8 million pounds).