Bristol-Myers Shares Look Good Despite Analyst Skepticism -- Bloomberg

Includes: AZN, BMY, SNY
by: SA Eli Hoffmann

Bloomberg says despite a majority of analysts rating Bristol-Myers Squibb Co. shares Hold or Sell, new medicines and takeover speculation could keep shares climbing even as they trade at five-year highs. A June court ruling that forbid generic manufacturers from copying its $3.3 billion/year anti-clotting pill Plavix until 2012 means the company will have spare cash to invest in developing pipeline drugs. JP Morgan analyst Chris Shibutani says its new diabetes drugs may generate $1 billion in revenues by then, and called the company's pipeline an "underappreciated Bristol Myers 09 07 2007 Chartasset." He also says new cancer therapies may yield $3.5 billion in sales by 2012. The court win also reduced uncertainty related to the company's revenue streams, making a rumored takeover more likely. Potential suitors include sanofi-aventis (its Plavix partner), Pfizer and AstraZeneca (each with agreements with Bristol-Myers to develop experimental drugs).

Sources: Bloomberg
Commentary: Plavix Patent Upheld; Bristol-Myers Shares Rise on Renewed Buyout ChatterWSJ: Bristol-Myers Transaction Price Already Priced In
Stocks/ETFs to watch: Bristol-Myers Squibb Co. (NYSE:BMY), sanofi-aventis (NYSE:SNY), AstraZeneca plc (NYSE:AZN)

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