5 Major Drug Makers Post Gains in Second Quarter
Five big drug makers on Tuesday reported higher second-quarter earnings, though the gains were eclipsed by news that SmithKline Beecham Corp. is ready to enter the lucrative but crowded market for cholesterol-lowering drugs.
Warner-Lambert Co. and Schering-Plough Corp. beat expectations, while Bristol-Myers Squibb Co. and American Home Products Corp. matched estimates. Britain’s SmithKline had lower-than-expected profit, as the pound’s strength offset rising drug sales.
Investors focused on Warner-Lambert, Bristol-Myers and SmithKline, all of which have a stake in the $6-billion-a-year cholesterol-drug market. SmithKline said Tuesday that it will co-market Bayer’s new Baycol starting next year.
In New York Stock Exchange trading, Bristol-Myers shares fell $1.88 to close at $82.25; Warner-Lambert rose $3 to close at $142.50.
Schering-Plough shares rose $2.13 to close at $51; American Home rose $2.56 to close at $80.63, also on the NYSE.
In the U.S., the rising value of the dollar against foreign currencies shaved several percentage points from companies’ sales.
Bristol-Myers, based in New York, said second-quarter profit rose 13%. Net income rose to $738 million, or 74 cents a share, from $655 million, or 65 cents, in the year-earlier period.
SmithKline Beecham said second-quarter profit rose 1% (at constant exchange rates, it rose 14%). The company also announced a 2-for-1 stock split. Profit in the quarter ended June 30 rose to $388 million from $383 million a year earlier.
Warner-Lambert, based in Morris Plains, N.J., said second-quarter earnings rose a greater-than-expected 8.5%. Net income climbed to $231.4 million, or 85 cents a share, from $213.3 million, or 79 cents, a year earlier.
American Home’s earnings rose 17%. The Madison, N.J.-based drug maker reported net income of $459.1 million, or 71 cents a share, up from $391.2 million, or 62 cents, in the year-earlier quarter.
Schering-Plough, also based in Madison, said profit rose 18%. Net income rose to $373.1 million, or 51 cents a share, from $317.1 million, or 43 cents, a year earlier.
