Bristol-Myers Squibb fails to beat analysts’ Q4 estimates

Bristol-Myers Squibb Co failed to beat analysts’ fourth-quarter profit estimates as the company invested in new products and sales fell for Plavix and Avapro, top-selling pills that will face generic competition this year.

Net income rose to $852 million (€647m), or 50c a share, from $483m, or 28c, a year earlier when the company reported one-time tax charges from restructuring. Revenue increased 7% to $5.45bn, while spending on marketing and sales grew 22% to $1.22bn.

Bristol-Myers agreed this month to buy Inhibitex Inc for $2.5bn, gaining experimental hepatitis C drugs as it seeks to diversify and add new products. Sales of the blood-thinner Plavix, which generated 31% of the quarter’s revenue, declined 3% to $1.67bn, the drugmaker said yesterday.