Bristol-Myers expected to focus on drug research progress, approval prospects in 2Q report

Earnings Preview: Bristol-Myers to discuss R&D

NEW YORK — Drugmaker Bristol-Myers Squibb Co. is expected to focus on a raft of recent positive research data and plans to seek approval for several drugs when it reports its second-quarter results before the stock market opens Thursday.

WHAT TO WATCH FOR: Analysts anticipate detailed updates on several key drugs in development.

Last month, Bristol reported strong results for biologic drug ipilimumab, in late-stage testing against advanced melanoma and in midstage testing in lung cancer patients. The company also reported that a late-stage test of diabetes drug dapagliflozin found it helped patients on insulin reduce doses of the hormone and lower their long-term blood sugar levels.

Also in June, a late-stage study of apixaban in patients with an irregular heartbeat was stopped early due to evidence it reduced risk of stroke and dangerous blood clots, compared to aspirin; Bristol is developing that with Pfizer Inc. The same month, Bristol-Myers reported a study of its year-old diabetes drug Onglyza helped reduce blood sugar levels in patients also taking the cheap, widely used generic diabetes pill metformin. The Food and Drug Administration is set to rule on approval of Onglyza in combination with metformin by Oct. 29.

Credit Suisse analyst Catherine Arnold wants to hear how Onglyza sales are progressing and when Bristol will file for approval of apixaban in the U.S. and dapagliflozin in the U.S. and Europe. She also is hoping for an update on acquisition plans.

Analyst Jeffrey Holford at brokerage Jefferies International Ltd. wants to hear how Bristol executives think their revenue will be affected by shifts in currency exchange rates and increasing European government health program demands for lower prices. He also expects Bristol to update its 2010 profit forecast, now at $2.10 to $2.20 per share, excluding one-time items.

WHY IT MATTERS: Unlike the many large pharmaceutical companies diversifying into consumer health products, vaccines and medicines for animals and generic drugs, Bristol-Myers has chosen to focus on developing and acquiring biologic drugs. Along with drugs for heart disease and diabetes, it makes more specialized products for HIV, hepatitis, cancer, rheumatoid arthritis and schizophrenia.

Its research of late has been more successful than some rivals. Meanwhile, its strategic acquisitions appear to be paying off, particularly last summer’s $2.1 billion purchase of Medarex Inc., a biotech drugmaker developing treatments for immune system diseases and cancer.

All the drugs in development are crucial because blockbuster blood thinner Plavix, which Bristol sells jointly with France’s Sanofi-Aventis SA, gets U.S. generic competition in 2012. That will slash Bristol’s revenue from the drug, which was about $6.1 billion last year. Plavix is the world’s second-best-selling prescription medicine. A couple of other products also are facing generic competition, and Bristol is working to replace all those revenue.

WHAT’S EXPECTED: Analysts surveyed by Thomson Reuters are anticipating earnings of 53 cents per share and revenue of $4.86 billion.

LAST YEAR’S QUARTER: A year ago, Bristol-Myers reported net income of 49 cents per share and revenue of $5.4 billion.