Bristol-Myers Squibb Company
) inked a multi-year deal with the research oriented Chinese
university Tsinghua, founded in 1911.
Per the terms of the deal, the Chinese University's school of
Life Sciences' research aimed at identifying and validating
candidates in the oncology and immunoscience fields will be
financed by Bristol-Myers. Moreover, the partnership will also
target other areas such as structural biology research and the
science of mapping the 3D protein structure of biological molecular
We believe that by joining hands with the Chinese university,
Bristol-Myers has highlighted its intention to focus on high
potential emerging markets such as China. We note that
Bristol-Myers has been looking to strengthen its foothold in the
high potential Chinese market for quite some time.
Towards fulfilling this objective, Bristol-Myers expanded its
partnership with the Chinese pharmaceutical company
Simcere Pharmaceutical Group
) last year in the cardiovascular and oncology fields.
Emerging markets represent significant commercial opportunities
with factors like pricing pressure in the E.U. and intensifying
generic competition affecting sales in large pharmaceutical
markets. Bristol-Myers, like many other pharma players, is facing a
generic threat on many of its key drugs, including the blockbuster
blood thinner Plavix. This will result in significant loss of
revenues. Consequently, the focus on emerging markets makes
strategic sense for Bristol-Myers.
Bristol-Myers is also looking to combat the generic threat by
introducing new products. The company has tasted a great deal of
success in this regard in 2011.
We currently have a Neutral recommendation on Bristol-Myers. The
stock carries a Zacks #3 Rank (Hold rating) in the short run.
BRISTOL-MYERS (BMY): Free Stock Analysis Report
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