07/26/2007 - A slim sales increase helped boost Bristol-Myers Squibb Co.'s second-quarter profit but a 10 percent sales jump wasn't enough to keep AstraZeneca PLC's profit from falling as it increases layoffs to cut costs.

The two drug developers were the latest large pharmaceutical companies to report an increase in drug sales for the second quarter.

Bristol-Myers has not specified how many jobs it might cut as it raised its 2007 outlook and offered a 2008 forecast, citing confidence in controlling costs and increasing sales. Its profit rose nearly 6 percent to $706 million, or 36 cents per share, on a 1 percent increase in revenue to $4.93 billion.

The blood-thinner Plavix again led sales for the company, rising 4 percent to $1.19 billion. Chief Executive James M. Cornelius said he expects the drug to drive growth for the company over the next few years.

He said the company would cut its work force by the end of the year as part of a cost-cutting program, though exact details aren't expected until December.

"This intensified focus on costs is essential to our future," he told investors. The CEO has now been at the company for 10 months, having replaced CEO Peter Dolan after he was fired by the board at the recommendation of a federal monitor. The board said Dolan left "involuntarily".

Bristol-Myers' goal is to streamline operations while investing more in specialty pharmaceuticals and biologic-based drug development over the next three years, Cornelius said.

But Wall Street analysts, while acknowledging the company met expectations for the quarter, said the Street would likely be disappointed at the results.

"While the company reported a decent quarter today, we believe the impact of this will be somewhat muted given the impressive performance by some of its peers," said Morgan Stanley analyst Jami Rubin.

Earlier this week,both Merck & Co. and Schering-Plough Corp. reported increases in second-quarter profit on higher sales of key drugs, beating Wall Street expectations. On Wednesday, Britain's largest drug maker GlaxoSmithKline said second-quarter profit rose 1.4 percent on steady sales.

On Thursday, AstraZeneca reported a 12.5 percent drop in second-quarter profit on costs from the $15.6 billion buyout of drug and vaccine maker MedImmune Inc. Its revenue rose 10 percent to $7.3 billion.

Britain's second-largest drugmaker also said it would double its previously planned job cuts to 7,600 positions, or 11 percent of its work force. Still, the company raised its full-year earnings forecast, narrowing the range to between $3.90 and $4.05 per share from between $3.80 and $4.05 per share.

The company's top-selling product, the heartburn drug Nexium, fell 1 percent in U.S. sales as it faces generic competition, though it rose 2 percent in other markets. Combined sales of Nexium, Crestor, Seroquel, breast cancer treatment Arimidex and asthma treatment Symbicort rose 12 percent to $3.8 billion.

Chief Executive David Brennan said the company is continuing its search for deals that would add to its late-stage drug pipeline.

Bristol-Myers and AstraZeneca are involved in a larger trend in the industry to streamline operations and invest more in biotechnology through its own programs or through buyouts. In January, Pfizer announced plans to cut 10,000 jobs as part of a restructuring plan that includes focusing more on pipeline development and drugs based on biotechnology.

Merck bought Sirna Therapeutics last year for $1.1 billion and Roche recently said it was licensing similar gene-based technology from Alnylam Pharmaceuticals Inc. Big Pharma has been focusing more on either partnering with or buying biotechnology companies over the last year to fill out lagging product pipelines.

AstraZeneca shares fell 3.1 percent to 2,592 pence ($53.23) on Thursday in London. Bristol-Myers shares fell $1.74, or 5.5 percent, to $29.85 on Thursday as the broader U.S. market sank.