Bristol-Myers Squibb Reports Record Second Quarter and Six Month Sales

& Earnings NEW YORK (PROTEXT) - - Sales Increased 11% to $4.9 Billion in Second Quarter (12% excluding foreign exchange) - Worldwide Pharmaceutical Sales Increased 17% for the Second Quarter - U.S. Pharmaceutical Sales Increased 29% for the Second Quarter - Diluted Earnings Per Share Increased 15% for the Quarter and Six Months - Thirteen Key Products Have Double-Digit Sales Growth in the Second Quarter and for the Six Months - Agreement Signed with SmithKline Beecham to Co-Promote AVANDIA in the United States - Achieved Highest Quarterly Global Market Share Ever in Most Recent IMS Health Report Bristol-Myers Squibb Company (NYSE: BMY) today reported second quarter sales of $4.9 billion, up 11% (12% excluding foreign exchange), and diluted earnings per share up 15%. Six month sales were up 10% (11% excluding foreign exchange), and diluted earnings per share were up 15% for the period ended June 30, 1999. "We are pleased with our second quarter results as they continue to demonstrate the great forward momentum of our largest businesses. In particular, our U.S. pharmaceutical business grew 29 percent, a recent record for our company and certainly among the leading performances within our industry," said Charles A. Heimbold, Jr., chairman and chief executive officer. "Moreover there was good growth across a broad group of products. Strong demand for important pharmaceutical products that bring great benefits to patients, including TAXOL, GLUCOPHAGE and PLAVIX, as well as consumer products including HERBAL ESSENCES and others, contributed to this exemplary performance on a worldwide basis. In addition, we are pleased to note that the latest ratings from IMS Health demonstrated excellent pharmaceutical growth for the company. Our quarterly global market share improved significantly to our highest share level ever and our leading IMS market share in the United States grew as well. In terms of external opportunities, in May 1999, we entered into an agreement with SmithKline Beecham to co-promote AVANDIA, a major new anti-diabetes drug in the United States and initial results are encouraging." SECOND QUARTER RESULTS Sales for the second quarter increased 11% to $4.9 billion from $4.4 billion in 1998. The consolidated sales growth resulted from a 10% increase due to volume, a 2% increase due to changes in selling prices and a 1% decrease due to foreign exchange rate fluctuations. U.S. sales increased 19%, and international sales remained at prior year levels (an increase of 3% excluding the effect of foreign exchange). For the second quarter, earnings before income taxes increased 13% to $1,318 million from $1,164 million a year ago. Net earnings increased 14% to $952 million compared with $835 million in 1998. Basic earnings per share increased 14% to $.48 from $.42 in the prior year and diluted earnings per share increased 15% to $.47 from $.41. Basic and diluted average shares outstanding for the quarter were 1,984 million and 2,027 million, respectively, compared to 1,987 million and 2,031 million in 1998. SIX MONTH RESULTS For the six months, sales increased 10% to $9.8 billion from $8.9 billion in 1998. The consolidated sales growth resulted from a 9% increase due to volume, a 2% increase due to changes in selling prices and a 1% decrease due to foreign exchange rate fluctuations. U.S. sales increased 16%, and international sales increased 2% (3% excluding the effect of foreign exchange). For the six months, earnings before income taxes increased 14% to $2,794 million from $2,456 million a year ago. Net earnings increased 15% to $2,019 million compared with $1,762 million in 1998. Basic earnings per share increased 15% to $1.02 from $.89 in the prior year and diluted earnings per share increased 15% to $1.00 from $.87. Basic and diluted average shares outstanding for the six months were 1,985 million and 2,027 million, respectively, compared to 1,987 million and 2,033 million in 1998. WORLDWIDE MEDICINES (Pharmaceuticals and Consumer Medicines) SALES INCREASED 15% FOR THE QUARTER TO $3.4 BILLION -- WORLDWIDE PHARMACEUTICAL SALES INCREASED 17% FOR THE SECOND QUARTER. U.S. pharmaceutical sales increased 29% and international pharmaceutical sales remained at prior year levels (a 4% increase excluding foreign exchange). -- Worldwide sales of PRAVACHOL, the company's largest selling product, increased 5% to $380 million for the quarter. -- Sales of TAXOL(R) (paclitaxel), the company's leading anti-cancer agent, increased 19% to $362 million as the product continues to benefit from increased use in ovarian, breast and non-small cell lung cancer. In April 1999, the company applied for regulatory approval to extend the use of TAXOL to treat breast cancer patients following surgery. In June 1999, the company submitted a regulatory application to the Food and Drug Administration (FDA) to gain marketing approval for TAXOL injection in combination with Genentech, Inc.'s Herceptin as first-line therapy for women with metastatic breast cancer. Also in June, the company filed for European marketing authorization to the Dutch Health Authorities for the use of TAXOL for the adjuvant treatment of node-positive breast cancer. -- GLUCOPHAGE, the leading branded oral medication for treatment of non- insulin dependent (type 2) diabetes, continued its strong growth rate with sales increasing 47% to $350 million. In May 1999, the FDA approved AVANDIA in combination with GLUCOPHAGE, for the treatment of type 2 diabetes. AVANDIA is a product of SmithKline Beecham, and is being co-promoted by Bristol-Myers Squibb Company in the United States. -- Sales of ZERIT and VIDEX, the company's two anti-retroviral agents, increased 19% to $151 million and 41% to $55 million, respectively. ZERIT is the most commonly prescribed thymidine nucleoside reverse transcriptase inhibitor in HIV therapy in most major markets in the world. During the quarter, the European Union gave mutual recognition agreement on the once-daily dosing of VIDEX for the treatment of HIV. -- Sales of BUSPAR, an anti-anxiety agent, increased 57% to $132 million and sales of SERZONE, a novel anti-depressant, increased 18% to $84 million for the quarter. -- Sales of the anti-cancer agent PARAPLATIN increased 11% to $138 million as the product continues to benefit from its use in combination with other chemotherapy agents. -- Sales of the anti-hypertensive MONOPRIL, a second generation angiotensin converting enzyme (ACE) inhibitor, increased 9% to $116 million for the second quarter. -- PLAVIX, a platelet aggregation inhibitor for the reduction of stroke, heart attack and vascular death in atherosclerotic patients with recent stroke, recent heart attack or peripheral arterial disease, had sales of $128 million for the quarter. AVAPRO, an angiotensin II receptor blocker for the treatment of hypertension, had sales of $64 million. AVAPRO and PLAVIX are cardiovascular products that were launched from the Bristol-Myers Squibb and Sanofi S.A. joint venture. In May 1999, the company and Sanofi S.A. announced the availability in the U.S. of the antihypertensive, AVALIDE, an angiotensin II receptor blocker combined with a thiazide diuretic. -- International sales of MAXIPIME, a fourth generation injectable cephalosporin, increased 19% to $32 million in the quarter. Effective January 1, 1999, Dura Pharmaceuticals, Inc. was appointed the exclusive distributor for MAXIPIME in the United States. -- Sales from Oncology Therapeutics Network, a specialty distributor of anti- cancer medicines and related products, reached $219 million, an increase of 41% over the prior year. -- The company is committing $100 million over the next five years in connection with the Secure the Future program, whose goals are to speed research, train doctors and enhance community outreach to fight HIV/AIDS in Southern Africa. -- In research and development highlights this quarter, data on the company's new novel cardiovascular agent in Phase II trials, VANLEV(TM) (omapatrilat), were presented at the American Society of Hypertension. The Phase II results showed that use of VANLEV was effective in reducing both systolic (top number) and diastolic (bottom number) blood pressure. The company plans to file for regulatory approval for VANLEV with the FDA by the end of the year with worldwide regulatory filings to follow. The company is also awaiting marketing approval from the FDA for ORZEL(TM) (UFT), an oral therapy for colorectal cancer, and TEQUIN(TM) (gatifloxacin), a broad-spectrum quinolone antibiotic for the treatment of multiple common infections, including those of the respiratory tract. SECOND QUARTER BEAUTY CARE SALES INCREASED 4% TO $626 MILLION -- Beauty Care sales increased 4% (5% excluding the effect of foreign exchange). CLAIROL continues to be the number one hair products company in the U.S. The introduction of a demand management manufacturing system slowed shipments during the quarter. -- HERBAL ESSENCES, now the number two brand in the U.S. shampoo/conditioner category and number three in the body wash category, continued to grow, increasing 16% to $159 million. Clairol launched HERBAL ESSENCES FACIAL CARE, a line of skin care products, in March 1999. FACIAL CARE contributed $6 million to second quarter sales. -- Sales of DAILY DEFENSE were $30 million for the second quarter, up 100% over the prior year, following its launch into international markets. -- Sales of AUSSIE products were $33 million, an increase of 22% over the prior year. AUSSIE LAND, hair products for children, was launched in March 1999 and had $7 million of second quarter sales. MEDICAL DEVICES INCREASED 4% TO $421 MILLION IN THE SECOND QUARTER -- Medical devices sales increased 4% to $421 million, excluding sales from a 1998 distribution agreement with the acquirer of Zimmer's divested arthroscopy and surgical powered instrument business. -- Zimmer sales on the same basis increased 7% to $240 million (6% excluding foreign exchange). Knee joint replacement sales increased 12% to $95 million and hip replacement sales increased 9% to $72 million. -- ConvaTec sales increased 1% to $180 million (2% excluding foreign exchange). Sales of ostomy products increased 2% to $116 million while sales of modern wound care products decreased 3% to $56 million. NUTRITIONALS MAINTAINS ITS WORLDWIDE LEADERSHIP POSITION IN THE INFANT FORMULA MARKET; U.S. SALES UP 7% FOR THE QUARTER -- Nutritional sales increased 4% to $438 million (6% excluding foreign exchange) as U.S. sales increased 7% and international sales decreased 1% primarily due to market conditions in Asia. -- Mead Johnson continues to build on its number one infant formula share position in the U.S. and worldwide. -- ENFAMIL, the company's largest-selling infant formula, recorded sales of $163 million, a 5% increase over the prior year. -- Sales of BOOST, an adult nutritional supplement, increased 45% to $29 million. -- In March 1999, Mead Johnson Nutritionals introduced VIACTIV Soft Calcium Chews to address the need for a convenient, great-tasting calcium supplement for women. Sales of VIACTIV reached $6 million in the second quarter. BRISTOL-MYERS SQUIBB COMPANY CONDENSED CONSOLIDATED STATEMENT OF EARNINGS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, (Unaudited, in millions of dollars except per share amounts) Three Months Ended Six Months Ended June 30, June 30, % % 1999 1998 Increase 1999 1998 Increase Net Sales $4,920 $4,430 11 $9,774 $8,876 10 Cost of products sold 1,361 1,206 13 2,666 2,358 13 Marketing, selling, administrative and other 1,122 1,034 9 2,243 2,082 8 Advertising and product promotion 666 642 4 1,195 1,213 (1) Research and development 453 384 18 876 767 14 Provision for restructuring -- 76 -- -- 201 -- Gain on sale of business -- (76) -- -- (201) -- 3,602 3,266 10 6,980 6,420 9 Earnings Before Income Taxes 1,318 1,164 13 2,794 2,456 14 Provision for income taxes 366 329 11 775 694 12 Net Earnings $952 $835 14 $2,019 $1,762 15 Earnings Per Common Share - Basic $ .48 $ .42 14 $ 1.02 $ .89 15 Average Common Shares Outstanding (in millions) 1,984 1,987 -- 1,985 1,987 -- Earnings Per Common Share - Diluted $ .47 $ .41 15 $ 1.00 $ .87 15 Average Common Shares Outstanding - Diluted (in millions) 2,027 2,031 -- 2,027 2,033 -- BRISTOL-MYERS SQUIBB COMPANY SELECTED PRODUCTS - WORLDWIDE TOTALS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1999 (Unaudited, in millions of dollars) Three Months Six Months 1999 Percent 1999 Percent Sales Increase Sales Increase PRAVACHOL $380 5% $866 7% TAXOL 362 19% 692 24% GLUCOPHAGE 350 47% 631 51% ENFAMIL 163 5% 350 6% HERBAL ESSENCES 159 16% 323 21% ZERIT 151 19% 302 18% PARAPLATIN 138 11% 287 13% BUSPAR 132 57% 264 15% PLAVIX 128 * 216 * MONOPRIL 116 9% 222 10% KNEES 95 12% 189 10% SERZONE 84 18% 147 9% HIPS 72 9% 143 8% AVAPRO 64 * 114 * VIDEX 55 41% 99 34% AUSSIE HAIR CARE 33 22% 61 22% DAILY DEFENSE 30 100% 64 100% * Over 200% Growth ots Original Text Service: Bristol-Myers Squibb Company Internet: http://www.newsaktuell.de Contact: Public Affairs - Sarah Moran, 212- 546-4927, sarah.moran@bms.com, or Nancy Goldfarb, 212-546-5107, nancy.goldfarb@bms.com, or Investor Relations - Timothy P. Cost, 212-546-4103, timothy.cost@bms.com, all of Bristol-Myers Squibb Company News On-Call: http://www.prnewswire.com/comp/269329.html or fax, 800-758-5804, ext. 269329 Web site: http://www.bms.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT