Get automatic overview of a selected topic!

Apr-25-2008

Generics and Job-Cutting Costs Lower Drug Makers' Profits

(topic overview)
CONTENTS:

HARRISBURG, Pa. (AP) _ Hershey's first quarter wasn't so sweet, with the nation's largest candymaker reporting that sales remained flat, profits fell by a third and results missed analyst expectations. (More...)
Sales of Plavix, co-marketed with Paris-based Sanofi- Aventis SA, climbed 39 percent to $1.31 billion in the first quarter, from $938 million a year earlier, when supplies of the cheaper generic version made by Apotex Inc. were temporarily available. (More...)
In the three months ended March 31, 2008 and 2007, the company recorded specified income and expense items that affected the comparability of the results. (More...)
If the executive Dr. Bodnar is found guilty he could face a penalty of five years in prison and up to $250,000 fine. (More...)
First-quarter net income fell to $661 million, or 33 cents a share, from $690 million, or 35 cents a year earlier, the drugmaker said today in a statement. (More...)
In June 2007 Bristol-Myers pleaded guilty and paid a one million dollar criminal fine for misleading the government about the Plavix patent deal. (More...)
Financial services clients are saying, '''We want you to collect my debt, to analyze it and change the way that we sell''' the loans, said Tiger Tyagarajan, executive vice president at Genpact, the business processing company spun off from General Electric that has roots in India. (More...)
Sales rose to $5.18 billion from $4.32 billion, excluding revenue from a medical imaging unit sold in January. (More...)
The process is at an early stage with initial contact with some of the potential partners and will take some time to complete." (More...)
Our strong first quarter performance and our focus on execution put us on the right track for continued growth in 2008." (More...)
Collectors in the United States, make about $6,500 a month. (More...)
Nexium sales were hurt by lower prices and distributors using up excess inventory. (More...)
While cutting costs, though, the companies have been searching for ways to flesh out their product pipelines, including investing more in research and development, signing licensing deals and buying up smaller players. (More...)

SOURCES

FIND OUT MORE ON THIS SUBJECT

HARRISBURG, Pa. (AP) _ Hershey's first quarter wasn't so sweet, with the nation's largest candymaker reporting that sales remained flat, profits fell by a third and results missed analyst expectations. NEW YORK (AP) _ Drug maker Bristol-Myers Squibb Co. said Thursday its first-quarter profit fell on higher restructuring costs and taxes, but adjusted results topped Wall Street forecasts. CINCINNATI (AP) _ Media company E.W. Scripps said Thursday its first-quarter profit rose 23 percent from the same period a year ago, mostly because of higher ratings and ad sales at its HGTV and Food Network. STAMFORD, Conn. (AP) _ UST Inc., which produces smokeless tobacco products and wine, said Thursday its first quarter profit jumped 17 percent, helped by strong wine sales. CHICAGO (AP) _ Utility holding company Exelon Corp. said Thursday its first-quarter profit fell 16 percent, primarily because of increased refueling outages at its nuclear power division. BURLINGTON, N.C. (AP) _ Laboratory Corp. of America Holdings, which provides clinical lab services, said Thursday its first-quarter profit rose 6 percent on improved sales and higher income from joint venture partnerships. [1] Analysts expect profit of $1.70 per share, on average. Cowen and Co. analyst Steve Scala said in a note to investors that the company's business momentum and upcoming drug development updates should help its stock outperform its peers. Bristol-Myers also said it will file an IPO to sell between 10 percent and 20 percent of its Mead Johnson Nutritional unit, which posted sales of $703 million in the first quarter.[2] Overall, international sales gained 16 percent to reach $2.3 billion (1.44 billion) because of the positive effects of a weaker dollar. Bristol-Myers reaffirmed its 2008 outlook for adjusted profit between $1.60 and $1.70 per share analysts expect profit of $1.70 per share, on average. The company said it will file an IPO to sell between 10 percent and 20 percent of its Mead Johnson Nutritional unit, which posted sales of $703 million (441 million) in the first quarter.[3]

Sales of Reyatax, an HIV/AIDS treatment, increased 13 percent to $297 million, while sales of the schizophrenia drug Abilify jumped increased 24 percent to $454 million. Its top-selling drug, Plavix, surged 39 percent to $1.3 billion. The company reaffirmed its 2008 earnings guidance of between 2008 full year of $1.36 to $1.46 per share.[4] Sales increased 10 percent to $7.68 billion. The U.K. company said core earnings per share will be $4.45 to $4.75 this year, more than previously forecast, because of currency benefits.[5]

On a non-GAAP basis excluding specified items, first quarter 2008 net earnings from continuing operations were $842 million, or $0.42 per diluted share, compared to $697 million, or $0.36 per diluted share for the same period in 2007. -- Cost of products sold, as a percentage of net sales, increased to 32.0% in the first quarter of 2008 compared to 31.0% in the same period in 2007.[6] Costs of products sold include manufacturing rationalization charges of $96 million, or 1.9% of net sales, related to implementation of the PTI in 2008, compared to $16 million, or 0.4% of net sales, in 2007. Excluding these charges, gross margin improved due to a favorable pharmaceutical product mix. -- Marketing, selling and administrative expenses increased by 8% to $1.2 billion in the first quarter of 2008 compared to the same period in 2007, primarily due to unfavorable foreign exchange impact and higher selling expenses in support of key products.[6] International net sales from continuing operations increased 16% to $2.3 billion, including a 12% favorable foreign exchange impact. -- The company recorded earnings from continuing operations before minority interest and income taxes of $1,290 million in the first quarter of 2008, an increase of 51% compared to $852 million in the same period in 2007.[6] Total revenue for ABILIFY(R) primarily consists of alliance revenue representing the company's 65% share of net sales in countries where it copromotes with Otsuka Pharmaceutical Co., Ltd. -- Sales of AVAPRO(R)/AVALIDE(R), an angiotensin II receptor blocker for the treatment of hypertension, also part of the sanofi-aventis alliance, increased 13%, including a 6% favorable foreign exchange impact, to $305 million in the first quarter of 2008 from $270 million in the same period in 2007.[6]

FIRST QUARTER RESULTS -- Bristol-Myers Squibb posted first quarter 2008 net sales from continuing operations of $5.2 billion, an increase of 20% compared to the same period in 2007, driven by increased pharmaceutical net sales which totaled $4.2 billion in the first quarter of 2008.[6] U.S. net sales from continuing operations increased 23% to $2.9 billion for the quarter compared to first quarter 2007, primarily due to the continued growth of ABILIFY(R) and increased sales of PLAVIX(R), as well as strong results from the HIV and hepatitis portfolio and increased contribution from recent launches.[6]

The increase was primarily due to strong results from ABILIFY(R) and increased contribution from recent launches including BARACLUDE(R) and SPRYCEL(TM), partially offset by continued generic erosion of PRAVACHOL(R) and TAXOL(R). The company's reported international sales do not include copromotion sales reported by its alliance partner, sanofi-aventis, for PLAVIX(R) and AVAPRO(R)/AVALIDE(R), which continue to show growth in the first quarter of 2008. -- Sales of PLAVIX(R), a platelet aggregation inhibitor that is part of the company's alliance with sanofi-aventis increased 39% to $1,308 million in the first quarter of 2008, from $938 million in the same period in 2007.[6] Total revenue for the SUSTIVA(R) Franchise includes sales of SUSTIVA(R), as well as revenue from bulk efavirenz included in the combination therapy ATRIPLA(TM), which is sold through a joint venture in the U.S., Canada and Europe with Gilead Sciences, Inc. -- Sales of BARACLUDE(R), an oral antiviral agent for the treatment of chronic hepatitis B, increased 140% to $108 million in the first quarter of 2008 from $45 million in the same period in 2007, due to continued growth across all markets. -- Sales of ORENCIA(R), a fusion protein indicated for rheumatoid arthritis, increased 112% to $87 million in the first quarter of 2008 from $41 million in the same period in 2007, primarily due to strong growth in the U.S. -- Sales of ERBITUX(R), which is sold by the company almost exclusively in the U.S., increased 17% to $187 million in the first quarter of 2008 from $160 million in the same period in 2007, due to growth in the use for head and neck and colorectal cancer.[6] ERBITUX(R) is marketed by the company under a distribution and copromotion agreement with ImClone Systems Incorporated. -- Sales for SPRYCEL(TM), an oral inhibitor of multiple tyrosine kinases and indicated for treatment of chronic myeloid leukemia, increased to $66 million in the first quarter of 2008 from $21 million in the same period in 2007. This growth was driven by additional launches in various international markets as well as growth in the U.S. -- Sales of IXEMPRA(TM), a microtubule inhibitor for the treatment of patients with metastatic or locally advanced breast cancer, were $25 million in the first quarter of 2008.[6]

U.S. Nutritional sales increased 5% to $288 million in the first quarter of 2008 from $274 million in the same period in 2007 primarily due to increased sales of ENFAMIL(R). International Nutritional sales increased 25% to $415 million in the first quarter of 2008, including a 10% favorable foreign exchange impact, due to growth in both infant formulas and children's nutritionals. CONVATEC -- Worldwide ConvaTec sales increased 14%, including a 7% favorable foreign exchange impact, to $290 million in the first quarter of 2008 from $254 million in the same period in 2007 due to growth in both the wound therapeutics and ostomy businesses.[6] Foreign exchange gains from converting overseas sales to weaker U.S. dollars contributed about 5 percent of the growth, Chief Financial Officer Jean-Marc Huet said today on a call with analysts. Rising sales volume accounted for 11 percent, and price increases were about 4 percent of revenue growth, he said. Bristol-Myers also said it plans an initial public offering of a minority stake in its infant-formula division, Mead Johnson Nutritionals, which had sales of $703 million in the first quarter.[7]

The following is a summary of key developments and analyst opinion related to the period. OVERVIEW: The company entered the quarter aiming to cut 10 percent of its work force and shutter more than half its manufacturing plants. Bristol-Myers and many other pharmaceutical companies have been cutting costs as they grapple with a tougher regulatory environment and the loss of blockbuster drug patents, coupled with thin development pipelines. In January, antitrust regulators cleared Bristol-Myers' $525 million sale of its medical imaging unit.[8]

The F.T.C. would have been looking for any deals that restrained competition and led to higher prices. According to the indictment, Bristol-Myers never disclosed that part of the Apotex agreement to the F.T.C. And the indictment contends that after the investigation had begun, Dr. Bodnar certified to the F.T.C. that there had been no such secret deal. In a letter to employees at the time of its guilty plea last year, the company said it had never entered into a secret deal but was taking responsibility for the actions of a former senior executive. Although that was an apparent reference to Dr. Bodnar, the letter did not name him. After the negotiations with Apotex broke down, the Canadian company briefly distributed its generic drug in the summer of 2006, causing Plavix'''s sales to plummet. A United States district judge, Sidney H. Stein, ordered Apotex to stop selling its drugs, but not until it had flooded the market with a six-month supply, depressing Bristol-Myers sales by more than $1 billion.[9] According to the stories, then-CEO Dolan dispatched Bodnar to Toronto to negotiate a settlement agreement with Apotex, which had been challenging the validity of Bristol-Myers' patent on Plavix. Bristol-Myers never disclosed that part of the Apotex agreement to the FTC, even though it was bound by a federal consent order requiring it to get FTC clearance for such agreements. The Bodnar indictment contends that after the investigation had begun, Bodnar certified to the F.T.C. that there had been no such secret deal. (Bristol-Myers pleaded guilty to charges in the case last June, and the company paid a $1 million fine.)[10] A former Bristol-Myers senior VP has been indicted for misleading the government ''about a deal to keep generic Plavix off the market. According to the indictment, Andrew Bodnar told regulators that Bristol hadn't cut a deal with Apotex when he himself had negotiated it. Bodnar's indictment is just the latest bit of fallout from the 2006 deal; BMS already kicked out its CEO and pleaded guilty to federal charges, paying a $1 million fine. In the U.K., Bristol-Myers got the thumbs-down from the National Institute for Clinical Excellence on its rheumatoid arthritis treatment Orencia. NICE says it's not cost-effective and so it shouldn't be paid for by the National Health Service.[11]

The indictment, filed in the U.S. District Court in Washington, D.C., says Bodnar lied to the Federal Trade Commission about a deal between Bristol-Myers Squibb and partner Sanofi-Aventis to keep a rival firm from launching of a generic version of Plavix. If convicted, he faces up to five years in prison and a $250,000 (156,838) fine. Bristol-Myers and Sanofi had agreed in 2006 to pay Canadian drugmaker Apotex at least $40 million (25 million) to keep its version of Plavix off the market until 2011, when the patent expires.[12] Last year, Bristol-Myers agreed to plead guilty and pay a $1 million criminal fine for misleading the government about the Plavix patent deal. Bodnar was accused of lying to the Federal Trade Commission (FTC) about his 2006 statements to drugmaker Apotex Inc, according to the one-count indictment filed in federal court in Washington.[13]

According to the indictment (which you can read by clicking on the icon at right), Andrew Bodnar told regulators that Bristol hadn't promised not to compete against Apotex when the company brought out a generic version of the blood thinner. When Bristol agreed to pay the $1 million fine, the company said Bodnar, a senior vice president at the time, had cut such a deal and lied about it to the Federal Trade Commission, the WSJ reported last year. The indictment repeats those allegations. Bodnar, who has resigned from Bristol, told the WSJ this afternoon that he wasn't aware of the indictment and had no further comment.[14]

Federal prosecutors indicted a high-ranking pharmaceutical executive today for allegedly lying to regulators about a patent agreement involving the popular blood-thinning drug Plavix, which is used by heart-attack, stroke, and other patients. Prosecutors charged Andrew Bodnar, former senior vice president of , with lying to the Federal Trade Commission about what representations he made during negotiations with a rival company, Apotex. According to the one-count indictment, Bodnar reassured Apotex during a 2006 meeting that Bristol would not launch a generic version of Plavix if Apotex agreed to a settlement that delayed the launch of its Plavix generic until 2011.[15] SAN FRANCISCO (Thomson Financial) - A former Bristol-Myers Squibbs Co. executive has been indicted for lying to the federal government about a patent deal involving the blood-thinning drug Plavix, the Department of Justice said late Wednesday. The DOJ alleges that Andrew Bodnar, formerly senior vice president at the New York-based drug company, in 2006 on behalf of his company told Apotex Inc. that Bristol Myers-Squibbs would not launch a generic version of Plavix if Apotex agreed to a settlement that would prevent Apotex from launching its Plavix generic until 2011.[16]

WASHINGTON, April 23, 2008 /PRNewswire-USNewswire via COMTEX/ -- The Department of Justice announced today that the former senior vice president of Bristol-Myers Squibb Company (BMS), Andrew Bodnar, was indicted for his role in lying to the federal government about a patent deal involving the popular blood-thinning drug, Plavix, used by heart attack, stroke and other patients.[17]

WASHINGTON, April 23 (Reuters) - A former vice president of Bristol-Myers Squibb Co (BMY.N: Quote, Profile, Research ) was indicted for lying to the federal government about a patent deal involving Plavix, a blood-thinning drug, the U.S. Justice Department said on Wednesday.[13] A former vice-president at the Pharmaceutical Bristol-Myers Squibb Co. was indicted as the U.S. Department of Justice said he lied to the federal government about a patent deal related to the blood-thinning drug Plavix. Get stories by e-mail on this topic.[18]

On June 11, 2007, Bristol-Myers Squibb (nyse: BMY - news - people ) agreed to plead guilty and pay a $1 million criminal fine for misleading the government about the Plavix patent deal.[16] A botched 2006 deal to keep generic Plavix off the market already led Bristol-Myers Squibb to oust its CEO, plead guilty to a federal charge and pay a $1 million fine.[14]

Bristol-Myers Squibb Co. agreed to pay a $1 million fine and plead guilty to lying to a government agency last year to settle a criminal antitrust investigation into a deal it struck with Canada's Apotex Inc. over Bristol's best-selling drug.[19] Bristol-Myers, based in New York, pleaded guilty last year and was fined $1 million for misleading the government about the Plavix deal.[20] Last June, Bristol-Myers pleaded guilty and paid a $1 million criminal fine for misleading the government about the Plavix deal that was the subject of yesterday's indictment.[21]

In 2006, the companies reached a tentative settlement under which Bristol-Myers would pay Apotex $40 million not to launch a generic version of Plavix until 2011, when the patent expired. In the indictment, the government alleges that at a meeting in 2006, Bodnar, acting on behalf of Bristol-Myers, reassured Apotex his company would not launch its own generic version of Plavix if Apotex agreed to the settlement.[21] At the time the firm was making a secret deal to solve a dispute related to a drug patent and the FTC had required Myers to submit any arrangement or proposal made to Apotex for examination. The Justice Department accused Mr. Bodnar of making false promises in 2006 to the company Apotex saying that Bristol-Myers would not release its own generic version of the medical product Plavix if Apotex would agree to end litigation and delay issuing its generic version of Plavix until 2011 (when the patent of the product expired), the indictment issued on Wednesday stated.[18] Bristol-Myers agreed to the deal to settle litigation between the two pharmaceutical firms. At the time, Bristol-Myers was subject to a separate consent decree, for an unrelated matter, requiring it to submit any proposed patent settlements for review and advisory approval by the FTC. The agency had warned the company that if it agreed with Apotex not to market its own generic version of Plavix then the FTC would not approve a settlement of the Plavix litigation.[20] At the time, Bristol-Myers was subject to a consent decree, for unrelated conduct, with the FTC that required the company to submit any proposed patent settlements to the FTC for review. Bodnar was accused of telling Apotex that Bristol-Myers would not launch a generic version of Plavix if Apotex agreed to settle litigation and delay launching its Plavix generic until 2011, the Justice Department said.[13] At the time, BMS was subject to a separate consent decree, for unrelated conduct, with the Federal Trade Commission (FTC) that required BMS to submit any proposed patent settlements for review and advisory approval by the FTC. The FTC warned BMS that if BMS agreed with Apotex not to launch BMS's own generic version of Plavix -- meaning that BMS would not compete against Apotex for generic sales -- then the FTC would not approve a settlement of the Plavix litigation. In the indictment, the Department alleges that, at a meeting in 2006, Bodnar, on behalf of BMS, made representations to Apotex to reassure it that BMS would not launch a generic version of Plavix if Apotex agreed to a settlement which would prevent Apotex from launching its Plavix generic until 2011. The Department charges that Bodnar knowingly and willfully made a false statement to the FTC about the existence of his representations to Apotex.[17] Mr. Dolan dispatched Dr. Bodnar to Toronto to negotiate a settlement. During those meetings, in May 2006, the indictment charges, Dr. Bodnar made secret assurances to Apotex that Bristol-Myers would not issue its own generic version of the drug to compete with Apotex. At the time, Bristol was bound by a federal consent order requiring it to submit such agreements to the Federal Trade Commission for clearance.[9]

The indictment, filed Wednesday in Washington, charged that Andrew G. Bodnar, a doctor, had made a false statement to the Federal Trade Commission in describing a 2006 agreement between Bristol-Myers and Apotex, a Canadian maker of generic drugs. Dr. Bodnar had led negotiations to stop Apotex from selling its own version of Plavix, a blood thinner that is Bristol-Myers'''s top-selling drug. Dr. Bodnar would not comment on Wednesday, but his lawyer, Elkan Abramowitz, said he would plead not guilty. '''All I can say is that we will vigorously contest these charges; we think they are baseless,''' Mr. Abramowitz said.[9]

WASHINGTON -- A former Bristol-Myers Squibb executive was indicted yesterday for allegedly lying to federal officials about a secret deal to delay a competitor from launching a lower-cost generic version of the best-selling blood thinner Plavix. The federal grand jury indictment alleges Andrew Bodnar, 60, a former Bristol-Myers senior vice president, "knowingly and willfully made a false statement" to the Federal Trade Commission about his dealings to maintain his company's monopoly for the blockbuster medication.[21] The New York Times reports that a former senior vice president at Bristol-Myers Squibb has been indicted on federal charges of negotiating a secret pact between the company and a generic drug maker and then hiding the deal from federal regulators.[9] NEW YORK, April 24 (Reuters) - Bristol-Myers Squibb Co (BMY.N: Quote, Profile, Research ) on Thursday said first-quarter profit slipped on charges from a cost-cutting program, but drug sales soared as a generic form of the company's Plavix blood-clot preventer disappeared from the market, lifting its shares more than 4 percent.[22] NEW YORK -- Restructuring charges sunk Bristol-Myers Squibb Co.' s first-quarter profit, but the drug developer reported higher sales for key treatments including the blood-thinner Plavix, and managed to top Wall Street forecasts.[2]

BMS, an international pharmaceutical company headquartered in New York, N.Y, participates in the sale and marketing of Plavix in the U.S. through the Bristol-Myers Squibb Sanofi Pharmaceuticals Holding Partnership, which sold more than $3.5 billion of Plavix in the U.S. in 2005.[17] Materials related to the call will be available at the same website prior to the call. ABILIFY(R) is the trademark of Otsuka Pharmaceutical Co., Ltd. ATRIPLA(TM) is a trademark of both Bristol-Myers Squibb Co. and Gilead Sciences, Inc. AVAPRO(R), AVALIDE(R) and PLAVIX(R) are trademarks of sanofi-aventis Erbitux(R) is a trademark of ImClone Systems Incorporated BRISTOL-MYERS SQUIBB COMPANY NET SALES FROM CONTINUING OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007 (Unaudited, dollars in millions) BY OPERATING SEGMENT: Three Months Ended March 31, 2008 2007 % Change Pharmaceuticals $4,188 $3,457 21% Nutritionals 703 606 16% ConvaTec 290 254 14% Net Sales $5,181 $4,317 20% FOR SELECTED PRODUCTS: The following table sets forth worldwide and U.S. reported net sales for selected products for the three months ended March 31, 2008 compared to the three months ended March 31, 2007.[6]

The increase was driven by strong product performance in the pharmaceutical business. -- On a GAAP basis, the company reported first quarter 2008 net earnings from continuing operations of $701 million, or $0.35 per diluted share, compared to net earnings from continuing operations of $643 million or $0.33 per diluted share for the same period in 2007.[6] The New York-based pharmaceutical company's earnings dropped 4.2% to $661.0 million, or 33 cents per share, in the first quarter, as it took $113 million in charges related to a downsizing program.[23] Excluding special items, including a $113 million charge for the cost-cutting initiative and a $25 million charge for investment losses, the company earned 42 cents per share. On that basis, analysts polled by Reuters Estimates, on average, expected 41 cents per share. The New York-based drugmaker said it plans by year's end to file an initial public offering for about 10 percent, but no more than 20 percent, of its Mead Johnson nutritionals business.[24] Analysts polled by Thomson Financial had expected a profit of 41 cents per share on revenue of $5.12 billion. Bristol-Myers also said it is more than halfway to meeting its goal for job cuts. The New York-based company said in December that it would lay off about 4,300 employees, or 10 percent of its work force, and close more than half of its manufacturing plants as it tries to save $1.5 billion annually by 2010. It has cut about 6 percent of the work force.[2] Excluding charges, profit from continuing operations reached 42 cents per share. Revenue rose 20 percent to $5.18 billion from $4.32 billion, as generic competition for the company's blockbuster blood-thinner Plavix disappeared after a court blocked rival Apotex from distributing its own version.[2]

The company reaffirms guidance that it expects non-GAAP earnings per share from continuing operations to grow at a minimum of 15 percent compounded annual growth rate, from the 2007 base through 2010, excluding costs associated with the Productivity Transformation Initiative and other specified items that have not yet been identified and quantified. The 2008 guidance and the three-year compound annual growth rate exclude other specified items such as gains or losses from sale of businesses and product lines; from sale of equity investments and from discontinuations of operations; restructuring and other exit costs; accelerated depreciation charges ; asset impairments; charges and recoveries relating to significant legal proceedings; upfront and milestone payments for licensing arrangements; payments for in-process research and development; debt retirement costs; impairments to investments; and significant tax events.[25] The financial guidance for 2008 and the three-year compound annual growth rate exclude the impact of any potential strategic acquisitions and divestitures and further assume that the company and its product partner, sanofi-aventis, maintain exclusivity for the PLAVIX(R) patent through at least 2010. This press release contains non-GAAP financial measures, including non- GAAP earnings and earnings per share information, adjusted to exclude certain costs, expenses, gains and losses and other specified items.[25]

Bristol-Myers Squibb (nyse: BMY - news - people ) shares rose 3.6%, or 78 cents, to close at $22.21. The company reaffirmed its guidance for 2008 of $1.60 to $1.70 in earnings per share.[23] Data also showed differences in gastrointestinal and lipid effects between REYATAZ/ritonavir and lopinavir/ritonavir among the study population. Bristol-Myers Squibb reaffirms its 2008 earnings guidance for fully diluted earnings per share from continuing operations on a GAAP basis to be between $1.36 and $1.46. The company also reaffirms its 2008 fully diluted earnings per share from continuing operations guidance on a non-GAAP basis to be between $1.60 and $1.70.[25]

NEW YORK, April 24 /PRNewswire-FirstCall/ -- Bristol-Myers Squibb Company (NYSE: BMY) today reported strong double-digit net sales growth and solid earnings growth for the first quarter 2008 and reaffirmed 2008 earnings guidance. "Our medicines are performing well, as was evident this quarter, and our pipeline is steadily advancing. This is good news for patients and healthcare professionals who count on us, as well as shareholders who invest in us," said James M. Cornelius, chairman and chief executive officer, Bristol-Myers Squibb. "As we have pledged to patients and investors, we remain focused on discovering and developing medicines that will help people prevail in their fight against serious disease.[25] Bristol-Myers Squibb today reported its first quarter profit fell 4.2 percent despite surging sales of its flagship drug, the blood-thinner Plavix, and the schizophrenia drug Abilify.[4] April 24 (Bloomberg) -- Bristol-Myers Squibb Co.' s first- quarter profit fell 4.2 percent as restructuring expenses offset soaring sales of its blood thinner Plavix. The company said it will sell part of its infant-formula unit to raise cash.[7]

Sales of Plavix, co-marketed with Paris-based Sanofi- Aventis SA, climbed 39 percent to $1.31 billion in the first quarter, from $938 million a year earlier, when supplies of the cheaper generic version made by Apotex Inc. were temporarily available. [7] Revenue during the first quarter was driven mainly by a 39 percent rise in sales to $1.3 billion (820 million) of the blood-thinner Plavix, which loses patent protection in 2011.[3]

The results included $113 million in charges as the company cut jobs, shut plants and shed products, aiming to save $1.5 billion a year before 2012. That's when Plavix, with annual sales of $4.8 billion, loses patent protection.[7] Let's get the earnings out of the way: The company reported a decline in earnings on restructuring charges, but adjusted results beat Wall Street forecasts; Bristol-Myers also managed to boost sales by 20 percent--yes, 20 percent--to $5.18 billion. Whither those restructuring charges? You'll recall that BMS announced 4,300 job cuts and a plethora of plant closures, measures designed to save $1.5 billion annually by 2010.[11]

Excluding charges, earnings per share were 42 cents, beating Wall Street consensus of 41 cents per share. Its sales rose 20.9% to $5.2 billion, a touch above analysts' consensus forecast of $5.1 billion.[23] Excluding special items, including a $113 million charge for the cost-cutting initiative and a $25 million charge for investment losses, the company earned 42 cents per share. On that basis, analysts polled by Reuters Estimates, on average, expected 41 cents per share.[22] The New York-based company earned $661 million (414.68 million), or 33 cents per share, compared with $690 million, or 35 cents per share, during the same period a year ago.[3] Bristol-Myers said Thursday that it earned $661 million, or 33 cents per share in the quarter, compared with $690 million, or 35 cents per share, during the same period a year ago.[2]

The New York-based drugmaker said it earned $661 million, or 33 cents per share, compared with $690 million, or 35 cents per share, in the year-earlier period.[24] The New York-based drugmaker posted first-quarter net income of.33 cents a per share, or $661 million, which compares to 35 cents a share, or $690 million, from a year earlier.[4] Net income fell to $661 million, or 33 cents a share, from $690 million, or 35 cents a year earlier, the New York-based company said today in a statement.[7]

The drug maker, which is knee-deep in cost-cutting and focused on wringing sales out of anticlotting drug Plavix as the threat of increased competition looms, reported net income of $661 million, or 33 cents a share, compared with $690 million, or 35 cents a share, a year earlier.[26] Sales of Plavix - which is Bristols top selling drug - sold in partnership with Sanofi-Aventis, increased 39 percent to $1.31 billion compared to the same period in the previous year, when sales diminished as the generic rival was available in the market. Sales of its drugs for schizophrenia, Abilify; AIDS, Sustiva; Rheumatoid arthritis, Orencia; Hepatitis B, Baraclude; and cancer, Erbitux increased in double digit percentages. The drug maker said it is planning to offer shares worth near 10 percent but not more than 20 percent of its Mead Johnson business by the end of 2008.[27]

International pharmaceutical sales increased 14%, including a 12% favorable foreign exchange impact, to $1.7 billion in the first quarter of 2008 compared to the same period in 2007.[25] International sales increased 22%, including a 14% favorable foreign exchange impact, to $131 million compared to $107 million in the same period in 2007. -- Sales of REYATAZ(R), a protease inhibitor for the treatment of HIV, increased 13% to $297 million in the first quarter of 2008 from $263 million in the same period in 2007.[6]

U.S. sales increased 7% to $174 million in the first quarter of 2008 from $163 million in the same period in 2007 primarily due to higher average net selling prices, partially offset by lower demand.[6]

General and administrative expenses decreased from 2007 levels resulting from the company's ongoing productivity initiatives, offset by implementation costs of the initiatives. -- Advertising and product promotion spending increased by 23% to $330 million in the first quarter of 2008 from $268 million in the same period in 2007, primarily due to increased promotion of new indications for ABILIFY(R) in the United States and Europe and increased investment to support PLAVIX(R) and ORENCIA(R). -- Research and development expenses increased 1% to $795 million in the first quarter of 2008 from $791 million in the same period in 2007.[6]

The comparison to the first quarter 2007 sales reflects the adverse impact of generic competition for PLAVIX(R) in 2007, which the company estimates to be in the range of $200 million to $250 million.[6] The increase was primarily due to strong results from ABILIFY(R) and increased contribution from recent launches including BARACLUDE(R) and SPRYCEL(TM), partially offset by continued generic erosion of PRAVACHOL(R) and TAXOL(R). The company's reported international sales do not include copromotion sales reported by its alliance partner, sanofi-aventis, for PLAVIX(R) and AVAPRO(R)/AVALIDE(R), which continue to show growth in the first quarter of 2008.[25]

The company's first quarter results come the day after a former Bristol-Myer's executive was indicted for allegedly lying to federal officials about a secret deal to delay a competitor from launching a lower-cost generic version of the best-selling blood thinner Plavix. "Our medicines are performing well, as was evident this quarter, and our pipeline is steadily advancing. This is good news for patients and healthcare professionals who count on us, as well as shareholders who invest in us," James M. Cornelius, Bristol-Myers' chairman and CEO, said in a news release.[4] Bristol-Myers' deal with Apotex fell apart, leading the Canadian company to launch a generic version of Plavix that temporarily cut into Bristol-Myers' sales.[21] Former Senior Vice President Andrew Bodnar was indicted by antitrust prosecutors for allegedly hiding from federal authorities a secret deal with the Canadian company Apotex to keep it from launching a generic version of Plavix.[23]

Bodnar is accused of lying to Federal Trade Commission officials about the nature of Bristol-Myers' agreement with another drug company, Apotex, in 2006 not to pursue a generic blood-thinning drug similar to Plavix.[20]

Bristol has already pleaded guilty to related charges and paid a $1 million fine for misleading the Federal Trade Commission. Bodnar is being charged with making false statements to the FTC. The company was required to submit any information concerning its patent settlement to the regulatory body.[23] At the time, BMS "was subject to a separate consent decree, for unrelated conduct, with the Federal Trade Commission (FTC)" that required the company "to submit any proposed patent settlements for review and advisory approval by the FTC," the Department of Justice said. The indictment charges that Bodnar "knowingly and willfully made a false statement to the FTC about the existence of his representations to Apotex," the statement read.[28]

The one-count indictment issued by a grand jury in Washington charges Andrew Bodnar, a former senior vice president at Bristol-Myers, with violating the Federal False Statements Act, which carries a maximum sentence of five years in prison and a fine of $250,000 upon conviction.[20] Bodnar is charged with one violation of the Federal False Statements Act, which carries a maximum sentence of five years of imprisonment and a fine of $250,000. The indictment is the latest chapter in a series of legal woes that have plagued Bristol-Myers, hurt its finances and led to the departure of top executives, including former chief executive Peter Dolan in late 2006.[21]

However nearly a year ago, Bristol-Myers agreed to plead guilty and pay $1 million fine for lying to the Federal Trade Commission.[18] AstraZeneca also reported costs of $117 million for a restructuring program announced last year that is aimed at trimming 11 percent of the workforce by 2010, Lowth said. Bristol-Myers said it will sell as much as 20 percent of its infant-formula unit.[5] AstraZeneca's net income unexpectedly fell 3.7 percent to $1.50 billion, the London-based drugmaker said. Bristol-Myers' earnings dropped 4.2 percent as costs offset soaring sales of its blood thinner Plavix.[5] Overall, international sales gained 16 percent to $2.3 billion because of the positive effects of a weaker dollar. Bristol-Myers reaffirmed its 2008 outlook for adjusted profit between $1.60 and $1.70 per share.[2] Analysts expect profit of $1.70 per share, on average. Cowen and Co. analyst Steve Scala said in a note to investors that the company's business momentum and upcoming drug development updates should help its stock outperform its peers.[29]

Excluding costs the company earned 42 cents per share matching analysts expectations, according to Reuters Estimates. "Our medicines are performing well, as was evident this quarter, and our pipeline is steadily advancing. This is good news for patients and healthcare professionals who count on us, as well as shareholders who invest in us," said Bristol-Myers Chairman and Chief Executive Officer James M. Cornelius, in a statement.[27]

About 10 percent "and no more than 20 percent'' of the company will be offered for sale, Bristol-Myers said, adding it will retain at least 80 percent of the unit "for the foreseeable future.'' "With its own publicly traded equity, Mead Johnson will be better able to pursue expansion and acquisition strategies to accelerate its growth,'' Chief Executive Officer James Cornelius said today on a conference call with analysts and investors. The company expects to file documents by the end of the year, with the IPO timing "dependent on regulators, business and market conditions,'' he said. The company said in December it was considering selling the unit, as well as ConvaTec, its wound-care subsidiary. The company sold its medical imaging business in January to raise cash to invest in developing new medicines.[7] Americans are used to receiving calls from India for insurance claims and credit card sales. Debt collection represents a growing business for outsourcing companies, especially as the American economy slows and its consumers struggle to pay for their purchases. Armed with a sophisticated automated system that dials tens of thousands of Americans every hour, and puts confidential information like Social Security numbers, addresses and credit history at operators''' fingertips, this new breed of collectors is chasing down late car payments, overdue credit card debt and lapsed installment loans. Debt collectors in India often cost about one-quarter the price of their American counterparts, and are often better at the job, debt collection company executives say. '''India will be the only place we grow this year,''' said J. Brandon Black, the chief executive of the Encore Capital Group, a debt collection company based in San Diego.[9] "The impact of generics is very significant and negative, and that's not going to change,'' said Barbara Ryan, an analyst with Deutsche Bank in a telephone interview today. "To offset it, companies are cutting their costs. You lay off people and that's a one-time charge, but not having those people on the payroll is a long-term benefit.'' Drugmakers are cutting jobs and buying rivals as they adjust to price reductions from governments and insurers, tougher regulatory scrutiny and generic competition to their best-selling medicines. New York-based biotechnology company Imclone Systems Inc. reported its third-straight quarterly loss, while Irish competitor Elan Corp. said its first-quarter loss narrowed as sales of the multiple sclerosis treatment Tysabri tripled.[5] AstraZeneca said sales of the ulcer treatment Nexium fell in the U.S. and western Europe, while New York-based Bristol-Myers won market share with the Plavix blood thinner after beating back generic competition.[5] Telephone debt collection represents new, more aggressive territory for India. '''This is really a sales job,''' Mr. Hughes said. '''It is commission-intensive, and you'''re paid on your ability to collect.''' Like many sales teams, Encore'''s collectors in India gather for a daily pep talk before their shift. In one recent session, they were schooled on the intricacies of American tax policy. '''One hundred thirty million U.S. families will get a tax rebate this season''' as part of the new economic stimulus package, Manu Sharma, the team leader, explained to a roomful of top-earning collection agents, most in their 20s. Those who qualify for the rebates will get as much $600 a person or $1,200 a household, he said, and '''the I.R.S. is going to start paying this money in May.''' Start bringing up the rebate during calls, he told them. '''This gives you an advantage so you can increase your wallet share,''' he went on. '''Get them set up on minimum balance arrangements''' based around their tax rebates.[9]

Growth in the quarter was driven by Plavix, which had worldwide sales of $1.3 billion, up 38.6% since the first three months of 2007. BMS also had strong sales from its anti-psychotic Abilify which brought in $454 million, up 24.0%.[23] Sales of Plavix, sold in partnership with Sanofi-Aventis (SASY.PA: Quote, Profile, Research ), jumped 39 percent to $1.31 billion from the 2007 quarter, when a rival generic form of the medicine was briefly available and badly hurt Plavix sales.[24] Bristol-Myers' revenue was driven mainly by a 39 percent rise to $1.31 billion in sales of Plavix, which loses patent protection in 2011.[2] Plavix sales recovered in 2007, when Bristol-Myers reported sales of $4.06 billion for the drug in the United States.[9]

Total sales climbed to $5.18 billion from $4.32 billion as the company recovers from temporary competition to Plavix from a generic-drug maker last year.[5] The drugmaker is relying on last year's $15.2 billion acquisition of U.S. biotechnology company MedImmune Inc. to help make up lost sales.[5]

Bayer's net income fell 73 percent to 762 million euros ($1.21 billion) after asset sales, the Leverkusen, Germany-based company said.[5] Net income fell 73 percent to 762 million euros ($1.21 billion), the Leverkusen, Germany-based company said today in an e-mailed statement. That beat the 659 million euro median estimate of nine analysts surveyed by Bloomberg.[5]

In the three months ended March 31, 2008 and 2007, the company recorded specified income and expense items that affected the comparability of the results. This included first quarter 2008 charges of $113 million in connection with the execution of the previously announced PTI and $25 million related to an additional impairment of the company's investments in auction rate securities that were previously impaired. [25] First quarter results included charges of $113 million related to layoffs and plant closings and $25 million tied to losses on investments in mortgage-backed securities.[4]

Dream. Wright Medical Group Inc. reported on Thursday its revenue in the first quarter was of $115.9 million which compared to $94.3 the same period last year,.[18] Estimated total U.S. prescription demand for branded PLAVIX(R) increased by 78% in the same period. -- Total revenue for ABILIFY(R), an agent for the treatment of schizophrenia, bipolar disorders and major depressive disorder, increased 24% to $454 million in the first quarter of 2008 from $366 million in the same period in 2007.[6]

Orencia has worldwide sales of $87 million in the first quarter for other uses.[23]

STOCK PERFORMANCE: Shares of Bristol-Myers fell about 20 percent during the first quarter to close at $21.30. The stock fell to $20.05 on March 17, its lowest point in nearly seven years.[8] Bristol-Myers Squibb Co. reported on Thursday its net first quarter profit dropped 4.2 percent. Get stories by e-mail on this topic.[27] NEW YORK (AP) - PepsiCo Inc. (nyse: PEP - news - people ), the world's second-largest soft drink maker, said Thursday its first quarter profit rose 5 percent on a big revenue boost in its international division that helped offset higher commodity costs.[30]

First quarter earnings excluding certain items of 42 cents beat the 41-cent average expected by 13 analysts surveyed by Bloomberg. Bayer, Germany's largest drugmaker, reported profit that beat analyst estimates on sales of its Yasmin contraceptive pill and demand for insecticides and herbicides.[5] The unit has annual sales of more than $2.5 billion. Bristol confirmed its 2008 expectations for earnings of $1.60 to $1.70 a share excluding items which is in line with analysts forecasts, excluding items, of $1.70 a share, on revenue of $21.52 billion. This article is copyrighted by International Business Times.[27] "We've seen decent growth in Plavix,'' said Linda Bannister, an analyst with Edward Jones & Co. in Des Peres, Missouri, in a telephone interview. "They're benefiting from stents, because people with the devices are now taking Plavix for a longer period of time.'' The drugmaker reiterated its 2008 forecast for net earnings of $1.36 to $1.46 a share.[5] "The company has been focusing on pharmaceuticals, and its efforts are consistent with that,'' said Michael Krensavage, an analyst with Raymond James & Associates, in a telephone interview today. "It's cutting expenses, divesting non-drug businesses.'' The drugmaker reiterated its 2008 forecast for net earnings of $1.36 to $1.46 a share.[7]

Earnings were $661 million or 33 cents per share, compared to $690 million or 35 cents per share in the same period in 2007.[27] Excluding charges, profit from continuing operations reached 42 cents per share in the latest period.[3]

First-quarter profit was 96 cents a share, compared with 2.81 billion euros, or 3.44 euros, a year earlier when Bayer had a one-time gain of almost 2.2 billion euros from the sale of part of the German company's diagnostics unit and the H.C. Starck chemicals division.[5] The division, which sells Enfamil baby formula, has annual sales of more than $2.5 billion. Bristol-Myers had been considering an outright sale of the nutritionals business, whose profit margins pale compared to those of its prescription medicines.[24]

In late January, Bristol-Myers reported net sales from continuing operations of $5.4 billion increased 33% year-over-year.[31]

Bristol-Myers Squibb completed the sale of Bristol-Myers Squibb Medical Imaging to Avista Capital Partners in January 2008 for approximately $525 million.[25] Bristol-Myers Squibbs participates in the sale and marketing of Plavix in the U.S. through the Bristol-Myers Squibb Sanofi Pharmaceuticals Holding Partnership, the department said.[16]

WASHINGTON (AFP) — A former senior vice president of Bristol-Myers Squibb Company (BMS) has been indicted for lying about a patent deal involving the blood-thinning drug Plavix, justice officials said Wednesday.[28] The Department of Justice indicted Andrew Bodnar, former senior vice president of Bristol-Myers Squibb Co., for allegedly lying to the federal government about a patent deal for.[32]

Last June, Bristol agreed to plead guilty and pay a $1 million criminal fine for misleading the government about the Plavix patent deal.[15] The drugmaker has already pleaded guilty and paid a $1 million (630,000) fine for misleading the government about the Plavix deal.[12]

The FTC has been looking pretty closely lately at deals drug makers cut to try to delay generic competition. Earlier this year, the FTC filed a lawsuit against Cephalon, alleging that the company paid $200 million to push back competition for its drug Provigil.[14] The government has started challenging the practice as illegal and anticompetitive. In February, federal regulators sued Frazer, Penn. -based drug firm Cephalon for paying generic firms $200 million (125.47 million) to delay launching cheaper versions of its sleep disorder drug Provigil. Cephalon defended the agreements, saying they helped end costly and protracted patent infringement litigation.[12] The indictment stems from a federal investigation that led, in part, to the ouster of the previous Bristol-Myers chief executive, Peter R. Dolan, in September 2006. Earlier that year, Apotex was threatening to sell its own generic version of Plavix before expiration of a patent that gave Bristol-Myers and its partner, Sanofi-Aventis, exclusive rights to the brand-name drug until 2011.[9] Andrew Bodnar faces up to five years in prison and a fine of more than 250,000 dollars if found guilty of lying to federal authorities. In the indictment, the Department of Justice alleges that at a 2006 meeting, Bodnar reassured Canadian group Apotex Inc. that BMS "would not launch a generic version of Plavix if Apotex agreed to a settlement which would prevent Apotex from launching its Plavix generic until 2011."[28]

A ruling from a federal court determined that a generic version of Plavix manufactured by the Canadian company Apotex would be removed from the U.S. market.[27]

Back in the summer of 2006, drugmaker Bristol-Myers Squibb hit the skids when the feds investigated an agreement the company struck to delay the launch of a generic version of its blood-thinning drug, Plavix.[10] Bristol-Myers was bound by a separate, unrelated consent decree with the F.T.C. that required the New York company to submit any proposed patent settlements for review and approval. The commission had warned that it would not approve a settlement of the litigation if Bristol agreed not to compete in the Plavix generic market by not launching its own generic version.[15]

AstraZeneca shares fell 12 pence, or 0.6 percent, to 2,120 pence at the close of trading in London, while Bristol-Myers rose 78 cents, or 3.6 percent to $22.21 in New York.[5] Bristol-Myers rose 78 cents, or 3.6 percent, to $22.21 at 4:15 p.m. in New York Stock Exchange composite trading.[7]

New York-based Bristol-Myers Squibb Co., up 78 cents, or 3.6 percent, to $22.21.[33] The cancer treatment Erbitux, which Bristol-Myers markets in the U.S. with New York-based ImClone Systems Inc., generated $187 million, a 17 percent increase.[7]

Bristol-Myers pleaded guilty to charges in the case last June, and the company paid a $1 million fine.[9] In the previous quarter, Bristol-Myers booked $275 million in charges related to the securities.[7] Bristol-Myers booked a first-quarter charge of $25 million, writing off more auction-rate securities.[7]

If the executive Dr. Bodnar is found guilty he could face a penalty of five years in prison and up to $250,000 fine. The defender lawyer said Bodnar would plead not guilty and will vigorously contest the charges because they are baseless, the New York Times reported. [18] If convicted on the single charge, Dr. Bodnar, 60, could face penalties of up to five years in prison and a fine of up to $250,000.[9]

First-quarter net income fell to $661 million, or 33 cents a share, from $690 million, or 35 cents a year earlier, the drugmaker said today in a statement. [5] Bristol-Myers Squibbs shares closed the regular session up 11 cents at $21.43.[16] NEW YORK -- Shares of large pharmaceutical companies closed higher Thursday as Bristol-Myers Squibb Co. topped Wall Street's first-quarter profit forecast, and the broader market gained ground.[33] April 24 (Bloomberg) -- AstraZeneca Plc, the U.K.' s second- largest drugmaker, U.S. rival Bristol-Myers Squibb Co. and Bayer AG, the inventor of Aspirin, reported first-quarter profit declines on generic competition and costs from job cutting.[5]

The credit crunch left the company unable to sell some of the rest. The $330 billion auction-rate bond market collapsed within weeks of Bristol-Myers' January loss announcement, when dealers that run the periodic bidding to determine interest on the debt stopped using their own capital to prevent widespread auction failures. The auctions fail when there are too few bidders, leaving investors unable to liquidate their holdings. The fourth-quarter investment losses cost Bristol-Myers treasurer Edward Dwyer his job.[7] Bristol-Myers, like several major drugmakers, is in the throes of eliminating the jobs of thousands of workers and shutting down a number of plants in an effort to cut $1.5 billion in costs.[4]

Plavix is a best seller product of Bristol-Myers that prevents blood clots, it sold about $4.06 billion in 2007. This article is copyrighted by International Business Times.[18] "The sale of the company's medical imaging business closed in January and we hope to hear color on the level of interest it is receiving for the nutritionals and ConvaTec businesses, and how it may deploy proceeds received from a potential sale," said Citi analyst George Grofik. Those assets could be worth more than $10 billion in a sale, he added.[8] ANALYST TAKE: Sales of blood-thinners Plavix and Abilify should drive first-quarter profit, several analysts said. The company, like several of its peers, will also likely benefit from the weaker dollar's positive effect on international sales.[8] Citi analyst George Grofik expects surges in sales of Sprycel and Orencia, which treat leukemia and rheumatoid arthritis, respectively. Last week he forecast profit 2 cents below Wall Street expectations, saying the company's tax rate guidance could be too low because it assumed a research and development tax credit that was never enacted.[8]

Among the items in GAAP measures but excluded for purposes of determining adjusted earnings and other adjusted measures are: charges related to implementation of the Productivity Transformation Initiative; gains or losses from sale and leaseback of properties and from discontinuations of operations; restructuring and other exit costs; accelerated depreciation charges; asset impairments; charges relating to significant legal proceedings; upfront and milestone payments for in-licensing of products that have not achieved regulatory approval that are immediately expensed; payments for in-process research and development; impairments to investments; and significant tax events. This information is intended to enhance an investor's overall understanding of the company's past financial performance and prospects for the future.[25] Jankovskis cautioned that generic forms of Plavix are expected to return to the market by 2012, and will likely decimate sales of Bristol-Myers' biggest product. "Bristol is preparing for that now by cutting jobs, shutting plants," and shedding its less profitable products, Jankovskis said.[22]

Sales growth was also estimated to be 6% favorably impacted by the residual sales of generic clopidogrel bisulfate in the first quarter of 2007, after which time the generic inventory in the distribution channels was substantially depleted.[6] '''An unhelpful cocktail of factors, including an appreciating currency, persistent inflation pressures, an international credit crisis and a domestic unwinding of imbalances, are set to adversely impact Irish economic growth prospects in the short term.''' Goodbody sees consumption growth moderating to 1.6% this year, representing the lowest rate of growth since 1991, when spending grew by 1.1%. It said Irish consumer-spending growth will slow markedly on the back of weaker employment prospects and falling confidence levels. Goodbody also lowered its 2008 and 2009 earnings-per-share estimates for Bank of Ireland, AIB, Anglo Irish Bank and Irish Life & Permanent by as much as 9%, analyst Eamonn Hughes said in a separate note to clients. European officials said yesterday they are concerned that the euro'''s advance risks damping economic growth, after the currency rose past $1.60 to the dollar for the first time.[9] The FT also reports that signs emerged on Wednesday that the euro'''s record strength was hitting eurozone growth, with a closely watched survey showing the outlook for manufacturing deteriorating faster than expected. Manufacturing new export orders contracted this month for the first time in almost three years, according to purchasing managers''' indices for the 15-country region.[9]

The results will worry policymakers because the effects of currency appreciation typically take many months to feed through. This week, the euro rose above $1.60 for the first time since its launch almost 10 years ago ''' suggesting a further slowdown in exports is in the pipeline.[9]

'''I don'''t like the way things are developing,''' s aid Luxembourg finance minister Jean-Claude Juncker, who leads a group of counterparts from the euro area. '''Financial markets should pay higher attention to developments to come and should be concentrating less on short-term data,''' he said. The Financial Times reports that Deutsche Bank is preparing another multibillion-dollar sale of leveraged loans on its books, adding to the evidence of a rally in corporate credit markets. The growing demand for such credits is an encouraging sign because banks are trying to sell a backlog of about $100bn in leveraged loans they are still holding.[9] KKR declined to comment. In its first leveraged loan sale, Deutsche lent the buyers $3 to $4 ''' at below market rates ''' for every $1 of credits they bought.[9] Citigroup led the way with a $12bn sale, and Deutsche followed by selling about $5bn of U.S. leveraged loans. Other sales of leveraged loans by banks, insurers and finance companies are expected, market insiders say.[9] '''People are scrambling to get long.''' The second Deutsche sale could be comparable in size to its $5bn sale of leveraged loans to Apollo Management and Blackstone. Given the current demand for such credits, the sale could be expanded.[9]

Sales of the schizophrenia drug Abilify rose 24 percent to $454 million.[7] Sales of rheumatoid arthritis drug Orencia more than doubled to $87 million.[7]

Some 48 million Americans take it daily to prevent potentially fatal blood clots, generating $3.5 billion in sales in the United States alone in 2005.[15] Sales of hepatitis B treatment Baraclude more than doubled to $108 million.[7]

The first quarter 2007 effective tax rate included $105 million of benefit due to a favorable resolution of certain tax matters, including a $39 million benefit related to a 2006 specified item.[25] Bristol-Myers Squibb Co. reports earnings for the first quarter on Thursday.[8] First quarter earnings excluding certain items of 42 cents beat the 41-cent average expected by 13 analysts surveyed by Bloomberg.[7] The effective tax rate on earnings from continuing operations before minority interest and income taxes was 27.8% for the three months ended March 31, 2008, compared with 8.0% in the first quarter of 2007.[25]

Estimated total U.S. prescription demand for clopidogrel bisulfate (branded and generic) increased by 4% in the first quarter of 2008 compared to 2007.[6]

Cancer drug Taxol faced increased generic competition during the quarter while data from a large study of HIV patients showed patients on Bristol-Myers' Videx had an increased risk of heart attack.[8] The pharmaceutical industry as a whole has been trying to reduce costs as patent expirations on blockbuster drugs and the subsequent generic competition eat into revenue. While cutting costs, though, the companies have been searching for ways to flesh out their product pipelines, including investing more in research and development, signing licensing deals and buying up smaller players.[2] The company and pharmaceutical industry as a whole have been implementing cost-cutting plans as patent expirations on blockbuster drugs and the subsequent generic competition eat into revenue.[3]

Total revenue climbed 20 percent as the company recovered from temporary generic competition to Plavix last year.[7] Plavix was the second best-selling drug in the world last year, with revenue of $7.3 billion, according to health-care research firm IMS Health.[21]

Bristol will lose patent protection on Plavix in 2011. The company announced in December that it would cut 10% of its workforce, or 4,300 employees to save $1.5 billion annually by 2010. The company said it was about half way to meeting its goal on job cuts.[23] Company revenue rose 20 percent to $5.18 billion, matching expectations of $5.11 billion according to Reuters Estimates.[27] The company still has $40 million worth of subprime-backed investments "remaining on our books,'' Huet said today. "This represents approximately 13 percent of par value.''[7] The company also reported $142 million in unrealized losses, mostly on auction-rate securities.[7]

Bristol-Myers held $811 million in auction-rate securities, including some backed by subprime mortgages, at the end of 2007, it said in January.[7]

Shares in Bristol-Myers rose 78 cents, or 3.6 percent, to close at $22.21 Thursday.[2] Bristol-Myers Squibb currently plans to file a registration statement by year-end to sell approximately 10 percent and no more than 20 percent of Mead Johnson Nutritionals to the public through an initial public offering and to retain at least an 80% equity interest in Mead Johnson Nutritionals as part of the overall business portfolio for the foreseeable future. After extensively considering strategic options, management believes this plan will allow Mead Johnson Nutritionals to implement its growth plans, increase shareholder value, and maintain its important financial contribution to Bristol-Myers Squibb.[25] Bristol-Myers Squibb Corp. posted a 4.2% fall in first-quarter net income and announced plans to sell up to 20% of its nutritional business through an initial public offering by year's end.[26]

Bristol-Myers Squibb is a global pharmaceutical and related health care products company whose mission is to extend and enhance human life.[25] The table includes, where applicable, the estimated total U.S. prescription change for the retail and mail-order channels for the comparative periods presented for certain of the company's U.S. pharmaceutical products based on third-party data.[25]

A significant portion of the company's U.S. pharmaceutical sales is made to wholesalers. Where changes in reported net sales differ from prescription growth, this change in net sales may not reflect underlying prescriber demand.[25] The net sales growth included a 9% increase from product performance and a 5% favorable foreign exchange impact.[6] The following table sets forth worldwide and U.S. reported net sales for selected products for the three months ended March 31, 2008 compared to the three months ended March 31, 2007.[25]

A significant portion of the company's U.S. pharmaceutical sales is made to wholesalers.[6] WHAT'S AHEAD: Wall Street is looking for updated study data for new Sprycel and Orencia indications in 2008. The company is mulling the possible sale of its non-pharmaceutical businesses.[8]

A federal judge subsequently ordered Apotex to halt sales pending a patent trial, which Bristol-Myers ultimately won.[21] According to the one-count indictment filed yesterday in U.S. District Court in Washington, Bristol-Myers and Apotex, a Canadian drugmaker, were engaged in litigation over the validity of the patent for Plavix.[21] According to the one-count indictment filed today in the U.S. District Court in Washington, D.C., in 2006, BMS and another company, Apotex Inc., were engaged in litigation over the validity of the patent for Plavix and were negotiating a settlement of that litigation.[17]

At the time, Apotex and Bristol were in litigation over the validity of Plavix's patent and were negotiating a settlement.[15]

In June 2007 Bristol-Myers pleaded guilty and paid a one million dollar criminal fine for misleading the government about the Plavix patent deal. [28] A spokeswoman for Bristol-Myers said that the company wouldn't comment on Bodnar's indictment. In a letter to employees at the time of its guilty plea last year, the company said it had never entered into a secret deal but was taking responsibility for the actions of a former senior executive. Although that was an apparent reference to Bodnar, says the NYT, the letter did not name him.[10] Now, three years after the controversial deal with Apotex was made, the man who made it, a former Bristol VP, Dr. Andrew Bodnar, is being indicted for allegedly making a false statement to the Federal Trade Commission regarding the deal. ( Here's a story from the NYT; and one from the WSJ's own Avery Johnson.)[10]

The alleged incident involving Andrew Bodnar occurred two years ago in connection with the possible introduction of a generic drug that would compete with Plavix, the government said in a statement.[13] Bristol Meyer Squibb probably knew what was going on, Plavix is their goldmine drug, one of the drugs whose commercial is on all three network national nightly news shows every weekday night. Whatever Bodnar did, BMS will pay his legal fees.[10] With a yield of 5.6%, Bristol-Myers Squibb is an industry standout as very few drug companies pay a dividend.[31] "Our medicines are performing well, as was evident this quarter, and our pipeline is steadily advancing. This is good news for patients and healthcare professionals who count on us, as well as shareholders who invest in us," said James M. Cornelius, chairman and chief executive officer, Bristol-Myers Squibb. "As we have pledged to patients and investors, we remain focused on discovering and developing medicines that will help people prevail in their fight against serious disease.[6] Bristol-Myers Squibb is milking Plavix for all it can now, and reorganizing to prepare for when it loses patent protection on the blockbuster blood-thinner.[23]

At the time, Bristol-Myers was subject to a separate consent decree with federal authorities for unrelated conduct. This decree required the company to submit any proposed patent settlements for review and advisory approval.[21]

Financial services clients are saying, '''We want you to collect my debt, to analyze it and change the way that we sell''' the loans, said Tiger Tyagarajan, executive vice president at Genpact, the business processing company spun off from General Electric that has roots in India. Genpact, which works with lenders to get customers to pay, rather than buying loans directly like Encore, employs thousands of debt collectors in India, Romania, Mexico and the Philippines, and is hiring in all those locations. In the past, the prevailing wisdom about wringing money from late payers has been '''if you'''re calling the Midwest, you want someone from the Midwest to twist their arm,''' said Mark Hughes, an analyst with Sun Trust Robinson Humphrey who covers the industry. That theory is changing as the pool of trained phone professionals in India and other locations deepens, and companies look outside the United States for lower costs. [9] The Irish Times reports that the credit crunch continued to bite yesterday as two more Irish lenders introduced changes for mortgage brokers in response to rising funding costs in the volatile financial markets. The State's largest bank, AIB, is halving the commission it pays to mortgage brokers, while Haven, a subsidiary of EBS Building Society which sells mortgages through brokers, is cutting its maximum home loan to 85 per cent of the value of the property from 92 per cent. Financial institutions are adjusting lending procedures, raising rates and tightening borrowing rules on an almost daily basis as they pass on to customers the higher cost of funding, which has spiralled due to the credit crisis.[9]

"Each 1pc increase in the public service pay bill costs just under '''200m a year. "The development of public service pay costs must be such as to ensure that resources allocated to public service pay do not cause a shortfall of resources for other key priorities," he said. The Tanaiste also warned his own party colleagues in Fianna Fail and the coalition of the need for loyalty in "good and bad times in politics". He said loyalty was a "political virtue", especially when there would be opinion polls on a weekly basis. "But as politicians we have a duty to maintain our focus on what is important, which is having colleagues that will work and stand by one," he said. The Irish Independent also reports that Bank of Ireland's pursuit of a 'strategic partner' for its once high-flying asset management business has attracted less than a handful of written expressions of interest.[9] Mr Cowen said the key to maintaining Ireland's competitive, and rising, living standards was to raise the level of productivity and keep costs down, adding that measures to increase productivity would take time to reach fruition. "In the meantime it would not be appropriate to respond to externally generated price increases by simply increasing pay costs to match such increases. "This would be futile and self-defeating. It would add domestic price increases to imported ones," he said. "It would not only fail to improve living standards but instead would lead to widespread job losses, thus leaving those without jobs much worse off than before." With regard to the current economic position, the budgetary outlook and the need to sustain Ireland's competitive position, the Government must not undermine this position relative to our main trading partners, Mr Cowen said. He said that any future pay increases must be linked to a number of factors, including productivity growth and inflation levels.[9] '''Without access to monetary levers, the Government'''s response to the slowdown will be crucial. Although capital spending plans for the next number of years are well ahead of international peers, we believe that an acceleration of the roll-out of the National Development Plan, rather than a possible delay of some projects, is the best course of action,''' he said. While this will come at the expense of larger than desired budget deficits, Mr O'''Leary said it is a short-term cost of both '''smoothing the cycle and increasing the productive capacity of the Irish economy in the medium-term'''. He said a further '''1 billion of capital spending next year could add at least 0.5% to GDP growth.[9]

The Irish Examiner reports that an accelerated roll-out of the National Development Plan is the best course of action as a response to the slowing economy. This is according to Goodbody Stockbrokers chief economist Dermot O'''Leary who yesterday lowered his forecast for Irish economic growth for this year, and said profit at the country'''s largest companies will be less than previously anticipated. Mr O'''Leary said gross domestic product will expand 1.1% this year rather than 2.3%, while his prediction for 2009 has been lowered to 2% from 2.5%.[9]

Businesses in the United States put $141 billion in delinquent consumer debt up for collection in 2005, according to a PriceWaterhouseCoopers survey commissioned by an industry group, and debt collection agencies collected $51 billion that year. They kept nearly a quarter of that in profits. Collection veterans are seeing an unusual phenomena in this economic downturn. '''People are walking away from their homes and hanging on to their credit cards, because that is their lifeline,''' said Rajinder Singh, the head of global analytic services for Genpact. Encore hires people with call center experience in India, and then trains them in unexpected skills like sympathy.[9] Profit fell from $1.56 billion, or $1.02, a year earlier, the drugmaker said.[5]

Sales rose to $5.18 billion from $4.32 billion, excluding revenue from a medical imaging unit sold in January. [7] Eight analysts surveyed by Bloomberg had estimated earnings would rise to $1.58 billion.[5]

Banks want to sell the loans ''' used to finance private equity buy-outs ''' to free up capital after suffering heavy losses in the subprime mortgage meltdown. The latest Deutsche deal, which would involve European loans, is expected to be announced with the bank'''s earnings release next week and would mark the third big sale of leveraged loans by a bank this month.[9] The deal offers Deutsche additional protection because if the price of the loans drops, the buyers would have to put up more collateral, the loan buyer says. For the private equity firms, the key to the deal is the low-cost leverage, which gives them a chance to boost potential profits even though they paid a full price for the loans themselves.[9] The three-month Euribor inter-bank rate climbed for a ninth day, to 4.83 per cent. It has risen 0.46 per cent in the past two months, reducing the profit margins lenders earn on mortgages. Haven, which is introducing the changes from Monday, is ending 100 per cent mortgages for certain professionals and civil servants, capping home loans to these borrowers at 92 per cent of a property's value. It is also withdrawing free legal fees to customers who switch their mortgages to EBS. Haven is capping its residential investment mortgages at 80 per cent of the property's value.[9]

The groups profit benefited from sales of the drug Plavix, for preventing blood clots.[27] The Department said that the alleged illegal actions of Bodnar related to the possible introduction of a generic drug that would compete with Plavix.[17] A spokeswoman for New York-based Bristol declined to comment. Drugmakers often use lucrative settlement payments to keep rivals from launching low-cost generic versions of their drugs.[12] In February, a supplemental New Drug Application for ABILIFY(R) was approved by the U.S. Food and Drug Administration (FDA) for the acute treatment of manic and mixed episodes associated with Bipolar I Disorder, with or without psychotic features in pediatric patients (10 to 17 years old).[25] The company recently announced that the U.S. Food and Drug Administration (FDA) has approved ORENCIA(R) (abatacept) for reducing signs and symptoms in pediatric patients six years and older with moderately to severely active polyarticular juvenile idiopathic arthritis (JIA). "In a JIA clinical trial, ORENCIA provided meaningful and sustained improvements in this patient population across three major sub-types of JIA through one year," said Edward H. Giannini, M.Sc., Dr.P.H., Professor of Pediatrics, Division of Rheumatology, Cincinnati Children's Hospital Medical Center, OH.[31]

The process is at an early stage with initial contact with some of the potential partners and will take some time to complete." BIAM, which once counted as a big player in the North American market, has seen its U.S. assets under management slump almost 90pc over the past four years to $3bn ('''1.9bn), according to Fundfire, a fund information service. Last year, it shut three of its five offices in the region in response to the collapse of its client base there. [9] Estimated total U.S. prescription demand increased approximately 14% compared to the same period last year.[6]

Chump change compared to the billions BMS has made off Plavix in the past three years.[10] According to health-care research firm IMS Health, Plavix was the second best-selling drug in the world last year next to Pfizer's Lipitor. Bristol also announced Thursday that it would hold an initial public offering for its Mead Johnson Nutritional unit, selling off 10% to 20%.[23]

WASHINGTON, April 23 (UPI) -- An ex-Bristol-Myers Squibb Co. executive was indicted Wednesday for allegedly lying to the U.S. government about a deal involving Plavix, prosecutors said.[20] The agreement was designed to settle Apotexs challenge to the patents on Plavix, but the deal soured when state attorneys general refused to sign off.[12]

The generic form of Plavix had been sold by Canadian drugmaker Apotex, but is no longer available in the United States due to a federal court order prohibiting shipments.[24] Worries about the competition it would face were alleviated after a federal court barred shipments of Apotex's generic. "This quarter represents our strongest financial performance since I became CEO approximately 18 months ago," Chief Executive James M. Cornelius said in a conference call with investors.[2]

Just over 4.5 percent of all bank credit card accounts were delinquent in the fourth quarter of 2007, according to the Federal Reserve, up from 3.5 percent two years before.[9]

Revenue from the AIDS medicine Reyataz climbed 13 percent to $297 million and the AIDS therapy Sustiva grew 21 percent to $273 million.[7] The 2008 operating results include charges of $113 million associated with the implementation of the previously announced Productivity Transformation Initiative (PTI), while the 2007 results included a lower tax rate of 8.0% reflecting a tax benefit due to a favorable resolution of certain tax matters.[6]

"Lying to the federal government is a serious felony that obstructs the law enforcement process," said Thomas Barnett, assistant U.S. Attorney General in charge of the Justice Department's Antitrust Division. Bodnar, reached at his home in Princeton, had no comment.[21] "The overhang remains. Other companies in health care have taken some write-offs during the quarter. With auction-rate securities, it's really specific to what's backing them up.'' Bristol-Myers and other companies including ImClone invested their cash in AAA/Aaa auction-rate securities seeking higher returns than those available on U.S. government securities.[7] The criminal conduct Bristol-Myers is admitting to violates a deferred-prosecution agreement with the U.S. attorney for New Jersey.[19]

The stock fell 25 percent in 12 months before today. "We would expect the shares to be higher on this positive announcement, which exceeded consensus revenue and earnings,'' wrote James Kelly, an analyst at Goldman Sachs in New York, in a note to investors today.[7] "I'm disappointed in the sales figures, especially Crestor,'' analyst Beatrice Muzard of Natixis Securities in Paris, who rates the shares "reduce,'' said in a telephone interview.[5]

The results were steep additions to employment and incomes, Prof Ruane said. In the evolving second phase of Ireland's engagement with the global economy, Ireland would be faced with stiffer competition in export markets and increased rates of productivity growth in competitor countries while services would continue to increase their share of Irish exports. It was imperative to develop a long-term view to meet emerging challenges in the global economy, Prof Ruane said. "If we don't take a long view, we will make some very silly mistakes," she added. In formulating future strategy, Ireland was constrained by its dependence on global economic trends - a consequence of its openness - the limited range of available policy options and the potentially magnified effects of small shocks on the economy.[9] The Irish Times also reports that the medium-term prospects for the Irish economy are good, if people behave sensibly, the director of the Economic and Social Research Institute (ESRI), Prof Frances Ruane told the Ictu economic conference yesterday. The forthcoming ESRI Medium Term Review would show that the economy can continue to grow at an annual average rate of 4 per cent or more over the medium-term, in line with its long-run average growth rate since 1970, Prof Ruane said. The Medium-Term Review would also show "employment growth just shading negative in 2008", she added.[9]

Our strong first quarter performance and our focus on execution put us on the right track for continued growth in 2008." [25] Apr 24, 2008 Abbott experienced a strong first quarter, boosted by Humira, and hiked its dividend.[31]

Collectors in the United States, make about $6,500 a month. Thanks to the income, a windfall in India, where the average monthly income is $63, collectors are amassing some of the status symbols that probably got their clients into trouble in the first place ''' new scooters, iPods, Swatch watches and exotic vacations. [9] If convicted, Bodnar, 60, reportedly could face penalties of up to five years in prison and a fine of up to $250,000.[10] A spokeswoman for Bristol-Myers, Laura Hortas, said Wednesday that the company would not comment on Dr. Bodnar'''s indictment.[9] FiercePharma is the pharma industry's daily monitor, with a special focus on pharmaceutical company news and the market development of FDA approved products.[11] The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.[25]

The fine may be increased to twice the gain from the offense or twice the loss incurred by the victims of the crime. This case is part of an ongoing investigation being conducted by the Antitrust Division's National Criminal Enforcement Section and the New York Field Office of the Federal Bureau of Investigation. Anyone with information about this matter should contact the Antitrust Division's National Criminal Enforcement Section at 202-307-6694.[17] Prior to that, Bristol-Myers was on federal probation for two years as part of a so-called deferred prosecution agreement stemming from a major accounting scandal.[21] "The announcement that the majority of the nutritionals business will be retained is also positive, as it improves the stability of cash flows through Bristol-Myers' next patent hole in 2011-2013," said Goldman Sachs analyst James Kelly.[23] The threat by Apotex, which had filed a lawsuit challenging the validity of that patent, was viewed as a serious problem for Bristol-Myers.[9]

Nexium sales were hurt by lower prices and distributors using up excess inventory. AstraZeneca needs to boost revenue of its best-selling medicines to counter increasing competition from generic rivals, pricing pressure on Nexium in the U.S., and product-development failures. [5] All employees enthusiastically respond by clapping three times, and Rajesh is the first on the day'''s sales board.[9]

While cutting costs, though, the companies have been searching for ways to flesh out their product pipelines, including investing more in research and development, signing licensing deals and buying up smaller players. [3] Fourth-quarter earnings of 33 cents, which topped the previous year's result.[31] The company expects the full year 2008 non-GAAP effective tax rate from continuing operations to be in line with the previously issued guidance of approximately 24%.[25]

SOURCES

1. Earnings roundup: PepsiCo, Hershey's | Chron.com - Houston Chronicle
2. Bristol-Myers 1Q profit falls on restructuring costs | Chron.com - Houston Chronicle
3. Bristol-Myers Squibbs 1st-quarter profit dips on restructuring costs, but still tops forecast - International Herald Tribune
4. Bristol profits fall 4.2 percent - New Jersey Local & Small Business News ' Economics & Finance News Articles - NJ.com
5. Bloomberg.com: Worldwide
6. Strong Double-Digit Net Sales Growth and Solid Earnings Growth Highlight First Quarter for Bristol-Myers Squibb Company
7. Bloomberg.com: U.S.
8. Earnings Preview: Bristol-Myers Squibb's 1st-quarter report - Forbes.com
9. Thursday Newspaper Review - Irish Business News and International Stories - - April 24, 2008
10. Law Blog - WSJ.com : Former Bristol-Myers Exec Charged Over Secret Settlement
11. As former exec indicted, BMS posts growth - FiercePharma
12. Former Bristol-Myers Squibb executive indicted in antitrust probe - International Herald Tribune
13. UPDATE 1-Ex-exec at Bristol-Myers indicted for lying | Industries | Healthcare | Reuters
14. Health Blog : Former Bristol-Myers Exec Indicted, Accused of Lying to Feds
15. Bristol-Myers Executive Charged - Portfolio.com
16. Former Bristol-Myers Squibbs executive indicted for lying about drug: DOJ - Forbes.com
17. Former Bristol-Myers Squibb Senior Vice President Indicted for Lying to the Federal Government About Popular Blood-Thinning Drug
18. Bristol-Myers Executive Indicted for Hiding Deal on Blood-thinner Plavix - International Business Times -
19. Free Preview - WSJ.com
20. Ex-Bristol-Myers executive indicted - UPI.com
21. Ex-Bristol executive hit with indictment - NJ.com
22. UPDATE 3-Bristol profit slips on charges; drug sales soar | Deals | IPOs | Reuters
23. Bristol-Myers Gets Blood Pumping - Forbes.com
24. CORRECTED - (OFFICIAL)-UPDATE 1-Bristol-Myers 1st-qtr profit slips | Reuters
25. Strong Double-Digit Net Sales Growth and Solid Earnings Growth Highlight First Quarter for Bristol-Myers Squibb Company
26. Free Preview - WSJ.com
27. Bristol-Myers 1Q Profit Down 4.2 Pct - International Business Times -
28. AFP: Ex-Bristol-Myers Squibb official indicted for lying to feds
29. Bristol-Myers Squibb's 1st-quarter profit dips on restructuring costs, but still tops forecast | Markets | Market News | Canadian Business Online
30. Earnings roundup: PepsiCo, Hershey's - Forbes.com
31. Zacks.com - Zacks Commentary: Growth & Income
32. Free Preview - WSJ.com
33. Closing Glance: Pharmaceuticals gain on Bristol-Myers 1Q | Chron.com - Houston Chronicle

GENERATE A MULTI-SOURCE SUMMARY ON THIS SUBJECT:

Please WAIT 10-20 sec for the new window to open...
You might want to EDIT the default search query below:
Get more info on Generics and Job-Cutting Costs Lower Drug Makers' Profits by using the iResearch Reporter tool from Power Text Solutions.

Give Us Your Feedback!

How did you like this article?

Above is the automatically generated multi-source news digest.

Its main content has been compiled basing on the fair use of snippets from original news stories (initially clustered by the Google News) by applying our multi-document summarization technology. The title has been excerpted from this article, and the top image was found here.

Generics and Job-Cutting Costs Lower Drug Makers' Profits

Give Us Your Feedback!

Web discoveries