Yesterday's Q3 results show that Bristol-Myers Squibb (NYSE:BMY) will remain a dominant player in the oncology market, and shareholders might actually be able to expect some upside in terms of share price. This has not been the case over the past five or so years. In addition to reporting strong earnings, the drugmaker has made clear that it is intent on seeking out new revenue streams from biologics as well as new cancer treatments.

For its Q3, Bristol reported a 73% increase in EPS, when adjusting for non-recurring items, compared to its year-ago quarter. Net sales were up 22% over the same time frame. Of that 22%, 4% is attributable to price increases, 3% is related to foreign currency translation, and 15% is related to selling more drugs. Among the company's key drivers were its blood thinner Plavix, which the company sells with Sanofi-Aventis (NYSE:SNY), and Abilify, the company's antipsychotic drug.

The outlook for Bristol shareholders is favorable for multiple reasons. The drugmaker continues to build a strong pipeline for future growth. Key contributors to this pipeline include Ixempra, Erbitux, and the acquisition of Adnexus Therapeutics. Ixempra, a treatment for breast cancer, was granted approval by the FDA this month, while Erbitux, another oncology drug which the company has partnered with ImClone (NASDAQ:IMCL), has recently demonstrated positive trial data to expand its use into non-small cell lung cancer. The acquisition of Adnexus will enable Bristol to further expand its R&D efforts in biologics because Adnexus develops new protein therapeutics.

Aside from its robust pipeline, Bristol has made positive strides in terms of improving its operational efficiency. Alliances with Pfizer (NYSE:PFE) and AstraZeneca (NYSE:AZN) to share co-development R&D costs have had a favorable impact on the company's bottom line. The right-sizing of its workforce, which the company has indicated will continue in the coming weeks as well as in 2008, has also proved beneficial in terms of cost savings. All in all, Q3 was a healthy quarter for Bristol and produced many signs of good things to come.

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Fool contributor Billy Fisher owns shares of Bristol-Myers Squibb. Pfizer is a selection of the Inside Value newsletter. The Fool has a disclosure policy.