Can Bristol-Meyers Squibb Recover?
Bob Frick, Senior Editor, Kiplinger.com Monday, March 31, 2008; 12:00 AM Bristol-Myers Squibb doesn’t have a pill to make shareholders feel better for the 30%-plus hit their stock has taken since peaking at $32 last July — or, for that matter, for the 71% plunge since early 2001. If you need a little pick-me-up for your portfolio, though, consider buying Bristol shares today. The stock (symbol BMY) is washed-out, suggesting little downside risk from current levels and, if a few things go right, the shares could gain 25% over the coming year. But first, why the big drop? Bristol-Myers is in good company, having slid along with most of the other drug makers that are collectively known as big pharma. The two big concerns: Many major patents are due to expire in coming years, and a tighter regulatory environment will create a “revolutionary change” in the industry, says Credit Suisse analyst Catherine Arnold. She says the Food and Drug Administration will ratchet up scrutiny in the coming
