Bristol-Myers Squibb Company (BMY): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
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.

Overview:

New York-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 and virology.

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.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

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