Bristol-Myers Earnings: Mixed Results as New-Product Sales Slightly Miss Expectations

We are maintaining our $63 fair value estimate for Bristol-Meyers Squibb after mixed first-quarter results. While total sales and earnings were largely in line with our expectations, new-product sales were slightly below our expectations, and more mature drugs like cancer drug Revlimid outperformed our expectations. With Revlimid facing generic competition, its outperformance doesn’t have much of an impact on our valuation, since sales are expected to decline rapidly over the next couple of years.