Bristol-Myers Squibb Company (NYSE:BMY) Reduces Cost While Increasing Sales on HIV Treatments

July 22nd, 2010 | by Heather Munoz |

According to the second quarter earnings reports for Bristol-Myers Squibb Company, (NYSE:BMY) the well known New York City based global biopharmaceutical company has succeeded in increasing sales for Plavix and other such treatments for HIV and hepatitis, while at the same time reducing the cost of many of these medicines. These figure that show the revenue from the sales far exceeded the estimates given by analysts in the field.

The increased sales, according to reports, are due to the company’s involvement in investment opportunities that both increase revenue and expand the market for the products. Plavix is a well known and used drug throughout the world and is currently the second biggest selling medicine on the market worldwide. New drug combinations such as Abilify and Plavix have proven successful as a treatment option and this has in turn resulted in an increased sales and a higher stock price. The New York Stock Exchange reports that Bristol-Myers has gained 23 percent in composite trading in the past year.

Bristol-Myers continues to be the leader in the production and sales of pharmaceuticals and have a proven track record of increasing revenue. The company projects that that this increase in sales and revenue will continue well into 2013. Other HIV related medicines such as Sustivia show increased revenue of $331 million and Reyataz shows a revenue increase of $357 million. The sale of hepatitis B medicine, Baraclude has also increased by $223 million.
Bristol-Myers has committed to cutting their expenses by 2.5 billion in the year 2010. 7,000 jobs have already been eliminated and the company is narrowing their focus on biotechnology. The goal is to replace the medicines that they offer that have generic counterparts to reduce the competition.

Analyst reports did project an increase in their estimate of rising sales and Bristol-Meyers exceeded that estimate by millions of dollars already. The company began repurchasing $3 billion dollars in stock in May. The company projects that the increased sales and revenue will continue well into 2013. Despite the obvious success of the company, investors sill question if the company will reduce its estimated figure for 2013. The implementation of the new U.S health care reform legislation, and the price cuts that have taken place in Europe, may take a toll on the future of the pharmaceutical market.

Financial News Headlines