Bristol-Myers' first quarter 2014 adjusted earnings of $0.46 per
share beat the Zacks Consensus Estimate by 2 cents. Adjusted
earnings were 12% above the year-ago figure driven by lower costs.
Net sales (including the diabetes business) slipped 1% to $3.8
billion. Key oncology drugs performed very well in the quarter.
Bristol-Myers has been trying to offset the declining sales of some
of its important products by bringing in new products through
in-licensing deals. We are positive on Bristol-Myers decision to
sell 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.
N.Y.-based Bristol-Myers Squibb Company is a major producer and
distributor of pharmaceuticals and other healthcare 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
In late 2009, Bristol-Myers sold its interest (83.1% stake) in
infant formula maker Mead Johnson. The divestiture has enabled
Bristol-Myers to operate as a fully independent biopharmaceutical
company, focusing exclusively on its Pharmaceuticals segment.
Apart from the spin-off, Bristol-Myers acquired Medarex Inc. for
$2.1 billion in 2009. The acquisition has helped strengthen its
product portfolio since the company has acquired the UltiMAb Human
Antibody Development System, which produces high-affinity, fully
human antibodies for use in a broad range of therapeutic areas,
including immunology and oncology. Bristol-Myers has also gained
access to Medarex's next-generation Antibody-Drug Conjugate (ADC)
technology, which is a novel and proprietary platform that could
open new fields in oncology drug development. Furthermore,
Bristol-Myers acquired full ownership rights to Yervoy
(ipilimumab), which was launched in the U.S. in Apr 2011.
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.
Bristol-Myers Squibb Company (BMY): Read the Full
BRISTOL-MYERS (BMY): Free Stock Analysis Report
To read this article on Zacks.com click here.