Bristol-Myers' third quarter 2014 adjusted earnings of $0.45 per
share beat the Zacks Consensus Estimate by 4 cents. Net sales
(including the diabetes business) however slipped 4% to $3.92
billion. Key oncology drugs performed encouragingly in the quarter.
However, sales of drugs from its virology unit were disappointing.
Bristol-Myers has been trying to offset the declining sales of some
of its important products by bringing in new products. We are
positive on Bristol-Myers' selling its underperforming diabetes
portfolio. We are also impressed by the company's efforts to
develop its pipeline. We believe that the stock is fairly valued at
current levels with limited scope for appreciation and hence retain
our Neutral recommendation.
New York-based Bristol-Myers Squibb Company is a major producer
and distributor of pharmaceuticals and other health care related
products. The company manufactures and sells branded pharmaceutical
drugs such as Baraclude for hepatitis B virus (HBV), Sustiva for
HIV and Erbitux for cancer. In Feb 2014, Bristol-Myers sold its
global diabetes business to AstraZeneca in its bid to evolve as a
specialty care-oriented company. With the global diabetes business
sold off, the company's primary focus will be on its existing
portfolio of oncology, neurosciences, immunology, cardiovascular
Bristol-Myers, which has entered into a challenging phase
following the genericization of Plavix, reported revenues of $16.4
billion in 2013, down 7% from 2012 levels. The company has been
very active on the deal signing/ acquisition front lately in a bid
to counter the loss of revenues and drive growth.
Bristol-Myers Squibb Company (BMY): Read the Full
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