Much like its big brother Pfizer
Revenue was up 3%, which would have been an 8% increase at constant currencies, but, just like with Pfizer, investors should be focused on costs. Being lighter as the company goes over the cliff should make hitting the ground less painful, and Bristol-Myers seems to have things under control, with cost of goods as well as marketing, selling, and administrative expenses coming in lower year over year. Operating margins increased nearly 300 basis points year over year; that included a substantial increase in research and development spending, which will help fuel post-cliff growth.
Bristol-Myers has also done a good job at pushing out the patent cliff a little. In addition to losing blockbuster blood thinner Plavix (29% of revenue this quarter), which it sells with sanofi-aventis
Thanks in part to the partial spinoff of Mead Johnson Nutrition
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Fool contributor Brian Orelli, Ph.D., thinks cliff divers are cool, unless they're big drug companies. He doesn't own shares of any company mentioned in this article. Pfizer is a Motley Fool Inside Value pick. The Fool's disclosure policy likes to fold itself up into a paper airplane and take dives off cliffs.