Bristol-Myers Squibb Company Reports Financial Results for the Fourth Quarter and Twelve Months of 2006 and Announces EPS Guidance for 2007

Thursday, January 25, 2007 8:00 am EST

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NEW YORK

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NYSE:
BMY

NEW YORK--(BUSINESS WIRE)--Bristol-Myers Squibb Company (NYSE: BMY) today reported financial results for the fourth quarter and twelve months ended December 31, 2006 and announced 2007 earnings guidance.

Bristol-Myers Squibb posted fourth quarter 2006 net sales from continuing operations of $4.2 billion, compared with $5.0 billion for the same period in 2005. The company reported a fourth quarter 2006 net loss from continuing operations of $134 million, or a loss of $0.07 per diluted share, under U.S. Generally Accepted Accounting Principles (GAAP), compared to net earnings of $499 million, or $0.26 per diluted share for the same period in 2005. The net loss was driven by an increase in litigation reserves and early debt retirement costs. On a non-GAAP basis excluding specified items, fourth quarter 2006 net earnings from continuing operations were $380 million, or $0.19 per diluted share, compared to $601 million, or $0.31 per diluted share for the same period in 2005. The decrease in non-GAAP net earnings in 2006 as compared to 2005 is mainly due to the impact of the at-risk launch of generic clopidogrel bisulfate in August 2006, which continued to have a significant adverse effect in the fourth quarter, and the loss of patent exclusivity on PRAVACHOL® in major markets.

"The company remains focused on executing our strategy and building shareholder value, with an expected return to sales and earnings growth beginning this year," said Jim Cornelius, chief executive officer, Bristol-Myers Squibb. "Our ongoing commitment to increasing investment in R&D has yielded a robust late-stage pipeline, demand for our major products continues to increase at a double-digit rate, and PLAVIX® market share is increasing as remaining generic inventory depletes."

For the twelve months ended December 31, 2006, net sales from continuing operations decreased 7% to $17.9 billion compared with net sales of $19.2 billion for the same period in 2005. Net earnings from continuing operations for the full year 2006 on a GAAP basis were $1.6 billion, or $0.81 per diluted share, compared to $3.0 billion, or $1.52 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 for the full year 2006 of $2.1 billion, or $1.09 per diluted share, compared to $2.8 billion, or $1.43 per diluted share for the same period last year.

NEW PRODUCT AND PIPELINE DEVELOPMENTS

On January 11, Bristol-Myers Squibb and AstraZeneca PLC (AstraZeneca) announced a collaboration to develop and commercialize two investigational compounds, saxagliptin and dapagliflozin, being studied for the treatment of Type 2 diabetes. Both compounds were discovered by Bristol-Myers Squibb. The collaboration on these compounds is worldwide, except for Japan. Terms of the agreements include an upfront payment of $100 million by AstraZeneca to Bristol-Myers Squibb, as well as additional payments of up to $650 million based on development and regulatory milestones for the two compounds and potential sales milestones up to $300 million per product. Additionally, the companies have agreed upon initial development plans for the two compounds, with AstraZeneca funding the majority of development costs from 2007 through 2009. Separately, the company also announced a collaboration with Otsuka Pharmaceutical Co., Ltd. to develop saxagliptin in Japan.

On January 10, Bristol-Myers Squibb and ImClone Systems Incorporated announced that data from a pivotal Phase III study of ERBITUX® plus FOLFIRI (an irinotecan-based chemotherapy) met the primary endpoint of increasing median duration of progression-free survival over FOLFIRI alone in patients with previously untreated metastatic colorectal cancer (mCRC).

In November 2006, the U.S. Food and Drug Administration (FDA) granted Fast Track designation for ipilimumab used as combination with chemotherapy (dacarbazine) in previously untreated metastatic melanoma patients. The FDA also granted Fast Track designation for ipilimumab used as a monotherapy in previously treated metastatic melanoma patients. The company is working toward a potential submission date of late 2007.

In November 2006, the company received European Medicine Evaluation Agency (EMEA) approval of SPRYCEL™ (dasatinib) for the treatment of adults with chronic, accelerated, or myeloid or lymphoid blast phase chronic myeloid leukemia (CML) or Philadelphia chromosome-positive acute lymphoblastic leukemia (Ph+ALL) with resistance or intolerance to prior therapy, including GLEEVEC® (imatinib mesylate). SPRYCEL™ was launched in the U.S. and certain European markets during 2006.

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