Bristol-Myers Squibb posted a sharp drop in earnings today and said it will restate its results for several quarters after its wholesalers built up excess supplies of its drugs.
The company said it plans to reallocate more than $2 billion in revenue. That means 2002 earnings will be revised upwards; earnings for prior periods that were affected by the excess inventory will be revised downward.
Bristol-Myers said it is not yet clear whether the revisions will result in a change to its earnings forecasts.
Among the results were a series of gains and charges, including a $367 million write-down related to its investment in ImClone, the controversial biotechnology company at the centre of an insider trading investigation.
Revenue fell 12 per cent in the latest quarter to $4.2 billion as US pharmaceuticals sales tumbled 32 per cent. The decline came as wholesalers sold existing stock and the company suffered from cheaper generic competition.