Bristol-Myers posts 8.2% uptick in net income; plans for $1B in cost-cutting

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Bristol-Myers Squibb (BMS) has reported an 8.2 percent increase in net income in the second quarter of 2008, compared to the same quarter of 2007. The pharmaceutical company also announced plans to trim an additional $1 billion in costs by 2012.

U.S. pharmaceutical net sales increased 17 percent to $2.6 billion in the second quarter of 2008, compared to the same period in 2007, which the company said was primarily due to increased sales of Plavix.

The New York City-based BMS said its marketing, selling and administrative expenses increased by 6 percent, including an unfavorable 5 percent foreign exchange impact, to $1.17 million in the second quarter of 2008 compared to the same period in 2007, primarily due to implementation costs associated with the productivity transformation initiative (PTI).

On a GAAP basis, the company reported second quarter 2008 net earnings from continuing operations of $722 million, compared to $588 million for the same period in 2007.

BMS and its partner AstraZeneca also said that the regulatory submissions for diabetes drug Onglyza (saxagliptin) were made in both the U.S. and in Europe on June 30 and July 1, respectively. The company said the concurrent European filing demonstrates its commitment to bring forward new medicines for unmet medical needs like type 2 diabetes.

“As part of the plan to maximize our growth opportunities through 2011 and improve our earnings base in 2012-2013, we have initiated an expansion of our productivity initiatives which will result in an additional $1 billion of cost savings by 2012,” said Jean-Marc Huet, senior vice president and chief financial officer at BMS.