Back to top

Analyst Blog

Recently, Bristol-Myers Squibb Company (BMY - Analyst Report) inked a multi-year deal with the research oriented Chinese university Tsinghua, founded in 1911.

Per the terms of the deal, the Chinese University’s school of Life Sciences’ research aimed at identifying and validating candidates in the oncology and immunoscience fields will be financed by Bristol-Myers. Moreover, the partnership will also target other areas such as structural biology research and the science of mapping the 3D protein structure of biological molecular targets.

We believe that by joining hands with the Chinese university, Bristol-Myers has highlighted its intention to focus on high potential emerging markets such as China. We note that Bristol-Myers has been looking to strengthen its foothold in the high potential Chinese market for quite some time.

Towards fulfilling this objective, Bristol-Myers expanded its partnership with the Chinese pharmaceutical company Simcere Pharmaceutical Group last year in the cardiovascular and oncology fields.

Emerging markets represent significant commercial opportunities with factors like pricing pressure in the E.U. and intensifying generic competition affecting sales in large pharmaceutical markets. Bristol-Myers, like many other pharma players, is facing a generic threat on many of its key drugs, including the blockbuster blood thinner Plavix. This will result in significant loss of revenues. Consequently, the focus on emerging markets makes strategic sense for Bristol-Myers.

Bristol-Myers is also looking to combat the generic threat by introducing new products. The company has tasted a great deal of success in this regard in 2011.

Our Recommendation

We currently have a Neutral recommendation on Bristol-Myers. The stock carries a Zacks #3 Rank (Hold rating) in the short run.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%