Bristol-Myers Squibb Company (BMSC) posted fourth quarter 2005 net sales of USD 5,019 million from USD 5157 million in corresponding period of last year, a decrease of 0.9 per cent. The company experienced declines in revenue during the quarter as exclusivity losses among older pharmaceutical products were partially offset by sales from newer pharmaceutical growth drivers and increased sales in the Health Care Group. Worldwide pharmaceutical sales decreased by 3 per cent to $ 4 billion in the fourth quarter of 2005. Its US pharma sales declined by one per cent to $ 2.2 billion and international pharmaceutical sales decreased by 6 per cent.

The net earnings before tax also declined by 19.9 per cent to $ 832 million from $ 1039 million in the last period. However, lower provision for taxation pushed its net earnings to $ 499 million from $ 139 million in the last period.

Peter R Dolan, CEO of BMSC, said, "We are continuing to increase investments in our pharmaceutical growth drivers and in our late-stage pipeline, with R&D expenditure alone up 14 per cent in the fourth quarter. These investments are already returning solid results, with continued double-digit growth in Plavix, Abifify, Erbitux and Reyataz and the progress of the nine compounds in our late-stage portfolio. We also expect to commercialise several drugs in 2006, including the anticipated launch of Orencia, our internally discovered biologic therapy recently approved in the US for rheumatoid arthritis. Enfamil infant formula, its third largest product, also grew 15 per cent for the year."

For the twelve months ended December 2005, the company posted net sales of $ 19.2 billion a decrease of one per cent compared to net sales of $ 19.4 billion for the same period in 2004. Its net earnings reached at $ 3 billion compared to $ 2.4 billion.

Andrew R J Bonfield, chief financial officer, said, "We are in the midst of fundamentally re-examining our operating model to make lasting changes that will make BMSC more productive, efficient and effective as we fully transition our pharmaceutical portfolio to growth products in serious disease areas with significant unmet medical need. This is not about cutting isolated expense items. Rather, we are working to reset and lower our cost base to prepare the company for a period of sustainable growth beginning in 2007."