Bristol-Myers Squibb Company (NYSE: BMY) today reported financial results for the fourth quarter and twelve months ended December 31, 2007 and revised 2008 earnings guidance primarily to reflect the sale of the Medical Imaging business. Bristol-Myers Squibb posted fourth quarter 2007 net sales from continuing operations of $5.4 billion, an increase of 33%, including a 5% favorable foreign exchange impact, compared to the same period in 2006. Excluding the estimated adverse impact of generic competition for PLAVIX® in 2006, net sales from continuing operations increased 13%. The company reported a fourth quarter 2007 net loss from continuing operations of $133 million, or a loss of $0.07 per diluted share, under U.S. Generally Accepted Accounting Principles (GAAP), compared to a net loss from continuing operations of $170 million, or a loss of $0.09 per diluted share for the same period in 2006.
The 2007 results include charges of $292 million associated with the implementation of the previously announced Productivity Transformation Initiative, an in-process research and development charge of $230 million in connection with the acquisition of Adnexus Therapeutics (Adnexus) and an impairment charge of $275 million on the company's investments in auction rate securities. On a non- GAAP basis excluding specified items, fourth quarter 2007 net earnings from continuing operations were $654 million, or $0.33 per diluted share, compared to $344 million, or $0.18 per diluted share for the same period in 2006.
On January 8, 2008, the company completed the sale of its Medical Imaging business for approximately $525 million, which is presented as a discontinued operation. Included in discontinued operations were fourth quarter net sales of $142 million and $156 million in 2007 and 2006, respectively, and basic and diluted earnings per share of $0.02 in the fourth quarters of 2007 and 2006.
"We are moving forward with important strategic actions that are helping us advance our pipeline, increase productivity and transform to a Next Generation BioPharma company," said James M. Cornelius, chief executive officer, Bristol-Myers Squibb. "Our underlying operating performance this quarter was strong, demonstrating the power of our medicines to help even more people prevail in their fight against serious diseases. The sale of Medical Imaging has strengthened our ability to consider future acquisitions that add to our capabilities, portfolio and pipeline of biotech and specialty medicines. And our Productivity Transformation Initiative, which helps identify ways to operate more efficiently, has spawned a new culture of continuous improvement."
For the twelve months ended December 31, 2007, net sales from continuing operations increased 12%, including a 3% favorable foreign exchange impact, to $19.3 billion compared to the same period in 2006. Net earnings from continuing operations in the twelve months of 2007 on a GAAP basis were $2.0 billion, or $0.99 per diluted share, compared to $1.4 billion, or $0.73 per diluted share for the same period last year. On a non-GAAP basis, excluding specified items, Bristol-Myers Squibb reported net earnings from continuing operations of $2.7 billion, or $1.38 per diluted share for the twelve months ended December 31, 2007, compared to $2.0 billion, or $1.01 per diluted share for the same period last year. Included in discontinued operations were Medical Imaging full year 2007 and 2006 net sales of $629 million and $658 million, respectively, and basic and diluted earnings per share of $0.10 and $0.08 in 2007 and 2006, respectively.
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About Bristol-Myers Squibb
Bristol-Myers Squibb is a global biopharmaceutical and related health care products company whose mission is to extend and enhance human life. For more information, please visit http://www.bms.com/.