Back story.Bristol-Myers and Sanofi were "so blinded by the desire to extend their monopoly'' until 2011 that they made too many concessions to settle patent litigation, Sherman said yesterday in a telephone interview.
Generic Plavix "is going to be the biggest seller in the history of our company,'' Sherman said.
"I was quite surprised that Sanofi and Bristol were under the impression that we could get a deal through the Federal Trade Commission that delayed the launch for five years,'' Sherman said. "I never thought it would happen. They were foolish.''
"The next step in this debacle is the imminent decrease in Bristol-Myers's dividend by what we estimate will be an approximate 50 percent cut -- given the expected softening in earnings per share performance once Plavix goes generic,'' A.G. Edwards analyst Albert Rauch said in a note to clients. Rauch downgraded Bristol-Myers to "sell'' from "hold.''
Bloomberg
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