Bristol-Myers lowers 2009 outlook after Mead deal
Bristol-Myers Squibb Co lowered its 2009 outlook on Wednesday to reflect the completion of its spinoff of Mead Johnson Nutrition Co .
The New York-based drug company said it would report Mead Johnson as a discontinued operation for the year.
The company's revised 2009 net earnings per share from continuing operations also reflects upfront licensing payments and funding to the Bristol-Myers Squibb Foundation for a philanthropic educational program.
Bristol-Myers, whose biggest product is the blood-thinner Plavix, said it expected 2009 net earnings per share from continuing operations to be $1.51 to $1.56, compared with a previous estimate of $1.72 to $1.77.
Earnings from continuing operations, excluding one-time items, are expected to be $1.75 to $1.80 a share, compared with a previous range of $2.00 to $2.05.
Analysts expect earnings from continuing operations, excluding items, to be $2.02 a share, according to Thomson Reuters I/B/E/S.
Non-GAAP earnings will only be affected by reporting Mead Johnson as a discontinued operation. They will not be affected by the philanthropic funding, the company said.
Total earnings will include discontinued operations consisting of the results of Mead Johnson as well as an expected gain of about $7 billion resulting from the split-off.
We are pleased to have successfully completed the split off of Mead Johnson Nutrition Company, which now focuses us completely on biopharmaceuticals, said Bristol Chief Executive Officer James Cornelius.
Bristol said in November that it would spin off its 83 percent stake in the infant nutrition company.
Analysts expect the move to add to earnings in 2010.
Shares of Bristol were down 0.4 percent at $25.50 in early New York Stock Exchange trading.
(Reporting by Toni Clarke; Editing by Lisa Von Ahn)
© Copyright Thomson Reuters 2024. All rights reserved.