The ratings on New York-based Bristol-Myers Squibb Co. (BMS) reflect Standard&Poor's Ratings Services' expectation that, despite sales losses and margin compression driven by patent expirations, the financial risk profile of this mid-sized U.S. pharmaceutical company will remain "modest" (according to our criteria) for the next two years, given very low current leverage. Our view of BMS' business risk profile as "strong" considers its well-established position in the high-margin, patent-protected market for prescription drugs and recent new product development successes. The key uncertainty facing BMS--unlikely to affect our strong assessment--is the extent to which its diverse pharmaceutical product portfolio and new product introductions will offset losses from an imminent patent cliff. We believe BMS will use its substantial financial
