The ratings on New York-based Bristol-Myers Squibb Co. (BMS) reflect the company's diverse pharmaceutical product portfolio, the challenge of an approaching "patent cliff," and a modest financial risk profile. The recently enacted Patient Protection and Affordable Care Act did have an immediate, but limited, impact on the company's revenues. With the retroactive increase in rebates on its Medicaid drug sales, net sales in the first quarter of 2010 for BMS were negatively affected by 1%. Quarterly rebates are expected to increase substantially throughout 2010 as a result of additional discounts for the Medicaid managed care plans and 340B program. The company further expects the negative impact of healthcare reform in 2011 to be approximately twice the impact anticipated in 2010.
