UPDATE 3-Bristol profit slips on charges; drug sales soar

(Adds analyst comment, company forecast)

By Ransdell Pierson

NEW YORK, April 24 (Reuters) - Bristol-Myers Squibb Co (BMY.N) on Thursday said first-quarter profit slipped on charges from a cost-cutting program, but drug sales soared as a generic form of the company's Plavix blood-clot preventer disappeared from the market, lifting its shares more than 4 percent.

The New York-based drugmaker said it earned $661 million, or 33 cents per share. That compared with $690 million, or 35 cents per share, in the year-earlier period.

Excluding special items, including a $113 million charge for the cost-cutting initiative and a $25 million charge for investment losses, the company earned 42 cents per share. On that basis, analysts polled by Reuters Estimates, on average, expected 41 cents per share.

The generic form of Plavix had been sold by Canadian drugmaker Apotex, but is no longer available in the United States due to a federal court order prohibiting shipments.

"Results in the quarter were encouraging, helped by the fact that the Plavix competitor has been sidelined," said Peter Jankovskis, co-chief investment officer of OakBrook Investments.

But Jankovskis cautioned that generic forms of Plavix are expected to return to the market by 2012, and will likely decimate sales of Bristol-Myers' biggest product.

"Bristol is preparing for that now by cutting jobs, shutting plants," and shedding its less profitable products, Jankovskis said.

The New York-based drugmaker said it plans by year end to file an initial public offering for about 10 percent, but no more than 20 percent of its Mead Johnson nutritionals business. The division, which sells Enfamil baby formula, has annual sales of more than $2.5 billion.

Bristol-Myers had been considering an outright sale of the nutritionals business, whose profit margins pale compared to those of its prescription medicines.

Company revenue rose 20 percent to $5.18 billion, in line with the Reuters Estimates forecast of $5.11 billion.

Sales of Plavix, sold in partnership with Sanofi-Aventis (SASY.PA), jumped 39 percent to $1.31 billion from the 2007 quarter, when the rival generic form of the medicine was briefly available and badly hurt Plavix sales.

Erbitux, a cancer drug marketed with ImClone Systems Inc IMCL.O, rose 17 percent to $187 million. Sales of schizophrenia drug Abilify, which does not cause worrisome weight gain seen with rival treatments, rose 24 percent to $454 million.

Nutritional sales rose 16 percent to $703 million, the company said.

Bristol-Myers reaffirmed its full-year 2008 forecast for earnings from continuing operations of $1.60 to $1.70 per share, excluding special items. That translates into growth of as much as 15 percent from last year.