The ratings on New York-based Bristol-Myers Squibb Co. (BMS) reflect Standard&Poor's Ratings Services' view that company has a strong business risk profile due to its well-established position in the high-margin, patent-protected market for prescription drugs. The key uncertainty facing the company is to what extent its diverse pharmaceutical product portfolio and new product introductions will offset losses from an approaching patent cliff. Our view of the financial risk profile as modest incorporates an expectation that the company will use its substantial financial resources to continue to acquire products. Given partial credit to its substantial reserves of cash and investments, leverage is zero. With the 2009 spin-off of Mead Johnson Nutrition Co., BMS is now entirely focused on pharmaceuticals.
