B-MS cuts 2006 EPS to $0.95 after Plavix loss

US drug major Birstol-Myers Squibb says that the domestic market has been saturated with generic Plavix (clopidogrel) made by Apotex for the rest of the year and has recalculated its earnings to accomodate lost revenue from the blockbuster blood thinner. It now predicts full-year 2006 earnings per share from continuing operations of no less than $0.95, down from the $1.15-$1.25 it had previously stated.

B-MS is the US licensee of the drug, which achieved sales of $5.9 billion worldwide last year, developed by Sanofi-Aventis. The French drug giant, the world's third-largest R&D-based drugmaker, also slashed its profit forecast from 12% EPS growth in 2006 to 2% (see page 2).

According to some industry observers, B-MS may have underestimated the effect of Plavix. Credit Suisse analyst Catherine Arnold cut her 2006 EPS forecast for B-MS from $1.08 to $.90, while John Boris, an anaylst at Bear Stearns, lowered his projections to $0.94 from $1.21.