2Q Revenues: $4.9 billion (flat)
2Q Earnings: $667 million (-34%)
YTD Revenues: $9.5 billion (+1%)
YTD Earnings: $1.4 million (-10%)
Comments: U.S. pharmaceutical sales increased 5% to $2.2 billion driven by growth of Plavix, Avapro/Avalide, Erbitux, Abilify, Reyataz and Sustiva, and sales of new products Emsam and Orencia. These sales partially offset the loss of exclusivity of Pravachol. R&D expenses increased by 14% to $740 million in the quarter. International pharmaceutical sales were down 8% to $1.7 billion mainly due to a decline in Pravachol and Taxol sales resulting from increased generic competition in Europe. Sprycel for adults with Philadelphia chromosome-positive acute lymphoblastic leukemia and Atripla for HIV, recently received approval.