It's facing a major loss of revenue when Plavix, which it sells with sanofi-aventis
Overall, Bristol-Myers' revenue was up just 4% for the quarter, but that was dragged down because Bristol-Myers records a smaller fraction of sales from Mead Johnson Nutrition
Adjusted earnings per share were up 16%, which excludes a gain (you've got to love the vagaries of GAAP) for acquiring partner Medarex, among other things. Bristol-Myers is doing well with its initiatives to decrease costs before the revenue starts falling. In fact, the company actually shrank selling, general, and administrative expenses year over year, even though revenue increased.
Going forward, the drug to watch is diabetes treatment Onglyza, which Bristol-Myers is marketing with AstraZeneca
Even after the Medarex acquisition, Bristol-Myers has plenty of cash to make additional acquisitions and still pay its massive dividend, which sits above 5%. The acquisitions won't save the company from inevitable revenue declines when Plavix's patent expires, but at least investors will get paid well to see how Bristol-Myers can adapt. So far, so good.