Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Summary: Bristol-Myers reported a 65% drop in its third-quarter earnings because two of its leading drugs, Plavix and Pravachol faced fierce competition from generics and last year's report was inflated by a one-time gain. The popular drug company earned $338 million or 17 cents a share from July to September, down from $964 million or 49 cents a share a year ago after selling its North American consumer products business. Sales of the cholesterol drug Pravachol fell 64 percent to $192 million after losing patent protection, and blood-thinner Plavix dropped 36 percent to $630 million. A Federal investigations into the conflict over Plavix's patent might uncover security violations, as former CEO Peter Dolan was fired after documents in his office revealed undisclosed dealings with Canadian drugmaker Apotex to keep its generic Plavix off the market. Bristol-Myers denies joining Plavix inventor Sanofi-Aventis in an illegal deal with Apotex. In addition, the company is being investigated to determine whether it violated the terms of a consent order from the SEC following an accounting scandal in 2004.
Related links: Bristol-Myers' Board Behaved Responsibly in CEO Dolan's Departure • Peter Dolan Ousted[Forbes]
Potentially impacted stocks and ETFs: Bristol-Myers (NYSE:BMY), Sanofi-Aventis (NYSE:SNY)• Competitors: Merck (NYSE:MRK), Novartis (NYSE:NVS), Pfizer (NYSE:PFE)
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