Bristol-Myers Squibb
Sales were up 14% year over year, but 4% of that was due to a weaker dollar which increased foreign sales. Currency movements are something Bristol-Myers has no control over and the dollar continuing to drop is (hopefully) not sustainable.
U.S. sales of Plavix, the company's top-selling drug that it sells with Sanofi
Despite those concerns, the rest of the earnings report looked pretty good. Bristol-Myers' new melanoma treatment, Yervoy, is off to an excellent start, bringing in $95 million during its first quarter on the market.
Sticking with the new drugs that will help deaden the blow from the loss of Plavix, Bristol-Myers and Pfizer
Despite some recent wins in the clinic and regulatory approvals, Bristol-Myers is sticking with its guidance of at least $1.95 per share in 2013 after Plavix begins to fall. Assuming it hits the minimum, Bristol-Myers is trading at 14.8 times 2013 earnings. I have a hard time seeing investors assigning a much higher premium to the early post-Plavix comeback, so if shares are going to move substantially higher, investors will need to be convinced that Bristol-Myers can make more than $1.95 per share in 2013.
That, or be content with the 4.6% dividend yield until the growth starts happening -- whenever that might be. The yield is substantially higher than its peers', including Pfizer, Johnson & Johnson
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