Bristol-Myers Squibb Company Reports First Quarter 2007 Financial Results

- Posts First Quarter 2007 GAAP EPS of $0.35 compared to $0.36 in 2006

- Posts First Quarter 2007 Non-GAAP EPS of $0.38 compared to $0.32 in 2006

- Company Raises 2007 Full-Year GAAP EPS Guidance to $1.24 to $1.34 and

Non-GAAP Guidance to $1.30 to $1.40 reflecting strong first quarter

performance and a lower forecasted tax rate

    NEW YORK, April 26 /PRNewswire-FirstCall/ -- Bristol-Myers Squibb
 Company ( BMY) today reported financial results for the first quarter
 of 2007 and raised earnings guidance for the full year.
     Bristol-Myers Squibb posted first quarter 2007 net sales of $4.5
 billion, compared to $4.7 billion for the same period in 2006. The company
 reported first quarter 2007 net earnings of $690 million, or $0.35 per
 diluted share, under U.S. Generally Accepted Accounting Principles (GAAP),
 compared to $714 million, or $0.36 per diluted share for the same period in
 2006. The company's first quarter 2006 results included a $200 million
 pre-tax gain on the sale of the DOVONEX(R) assets. On a non-GAAP basis
 excluding specified items, first quarter 2007 net earnings were $744
 million, or $0.38 per diluted share, compared to $637 million, or $0.32 per
 diluted share for the same period in 2006. The first quarter 2007 results
 were driven by growth in demand for several pharmaceutical products, lower
 than expected operating expenses and a favorable tax rate, including a tax
 benefit due to a favorable resolution of certain tax matters.
     "Our strong first quarter resulted from a combination of factors,
 including increased demand for several of our pharmaceutical products,"
 said Jim Cornelius, chief executive officer, Bristol-Myers Squibb.
 "PLAVIX(R) performed better than expected, due to accelerated U.S.
 prescription growth for the molecule as we continue to recapture market
 share while remaining generic inventory is depleted. Our first-quarter
 performance enables us both to reinvest in our key products and raise our
 full-year earnings guidance by $0.12 and $0.10 on a GAAP and non-GAAP
 basis, respectively."
     NEW PRODUCT AND PIPELINE DEVELOPMENTS
     On April 26, the company and Pfizer Inc (Pfizer) announced a worldwide
 collaboration to develop and commercialize apixaban, an anticoagulant
 discovered by the company being studied for the prevention and treatment of
 a broad range of venous and arterial thrombotic conditions. Terms of the
 apixaban agreement include an upfront payment of $250 million by Pfizer to
 the company. Pfizer will fund 60% of all development costs effective
 January 1, 2007 going forward, and the company will fund 40%. The company
 may also receive additional payments of up to $750 million based on
 development and regulatory milestones. The companies will jointly develop
 the clinical and marketing strategy of apixaban, and will share
 commercialization expenses and profits/losses equally on a global basis. In
 a separate agreement, the companies will also collaborate on the research,
 development and commercialization of a Pfizer discovery program which
 includes advanced pre- clinical compounds with potential applications for
 the treatment of metabolic disorders, including obesity and diabetes.
 Pfizer will be responsible for all research and early-stage development
 activities for the metabolic disorders program, and the companies will
 jointly conduct Phase III development and commercialization activities. The
 company will make an upfront payment of $50 million to Pfizer as part of
 this agreement. The companies will share all development and
 commercialization expenses along with profits/losses on a 60%- 40% basis,
 with Pfizer assuming the larger share of both expenses and profit/losses.
     On March 22, the Committee for Medicinal Products for Human Use of the
 European Medicines Agency granted a positive opinion on the company's
 application for ORENCIA(R) in Europe for the treatment of rheumatoid
 arthritis.
     On April 25, the company announced that the U.S. Food and Drug
 Administration (FDA) approved an update to the ORENCIA(R) product labeling
 regarding the progression of structural joint damage -- an important
 measure in the treatment of rheumatoid arthritis (RA). The indication was
 strengthened from "slowing" to "inhibiting" the progression of structural
 damage in adult patients with moderately to severely active RA who have had
 an inadequate response to one or more disease-modifying anti-rheumatic
 drugs, such as methotrexate or tumor necrosis factor antagonists.
     On April 18, the FDA's Cardio-Renal Advisory Committee voted
 unanimously to recommend approval of a new indication for AVALIDE(R), as
 initial treatment of hypertension. AVALIDE(R), a fixed-dose combination of
 irbesartan and hydrochlorothiazide, is currently approved for the treatment
 of hypertension, for hypertensive patients with blood pressure uncontrolled
 on monotherapy. If approved, the new indication for AVALIDE(R) would be for
 the first-line treatment of hypertension in patients who are unlikely to
 obtain their blood pressure goals on monotherapy.
     On February 5, Bristol-Myers Squibb and ImClone announced that an
 application was submitted to the Japanese Pharmaceuticals and Medical
 Devices Agency for the use of ERBITUX(R) in treating patients with advanced
 colorectal cancer. The Japanese submission was based on results from
 studies conducted in Europe and Japan which confirm the activity of
 ERBITUX(R) in patients with metastatic colorectal cancer. The filing in
 Japan is a result of a development collaboration between Bristol-Myers
 Squibb, ImClone and Merck KGaA of Darmstadt, Germany.
     In February, BARACLUDE(R) was added to the American Association for the
 Study of Liver Disease treatment guidelines for hepatitis B as a first-line
 treatment option. BARACLUDE(R) also received approval and/or reimbursement
 in additional key European markets throughout the first quarter, including
 Italy.
     SPRYCEL(TM) received approval and/or reimbursement in additional
 European markets, including Ireland, Norway, Sweden and Greece during the
 first quarter, and was also approved in Canada and New Zealand.
     FIRST QUARTER RESULTS
     -- First quarter 2007 net sales decreased 4% to $4.5 billion compared to
        the same period in 2006.  U.S. net sales decreased 5% to $2.5 billion
        for the quarter compared to 2006, while international net sales
        remained constant at $2.0 billion, including a 5% favorable foreign
        exchange impact.
     -- Cost of products sold, as a percentage of net sales, decreased to 31.1%
        in the first quarter of 2007 compared to 31.6% in the same period in
        2006.  This decrease was due primarily to lower charges for asset
        impairment and accelerated depreciation in the current year and sales
        growth of higher margin products, partially offset by $24 million of
        certain costs, which were reported in marketing, selling and
        administrative expenses in the same period in 2006.
     -- Marketing, selling and administrative expenses decreased by 6% to $1.2
        billion in the first quarter of 2007 compared to the same period in
        2006, including a 2% decrease resulting from the above-mentioned
        classification in 2006, lower expenses for PRAVACHOL(R) and lower U.S.
        selling expenses.
     -- Advertising and product promotion spending decreased by 9% to $269
        million in the first quarter of 2007 from $295 million in the same
        period in 2006, driven primarily by lower spending within the
        pharmaceutical business.
     -- Research and development expenses increased by 8% to $807 million in
        the first quarter of 2007 from $750 million in the same period in 2006.
        This increase primarily reflects higher licensing up-front payments and
        continued investments in late-stage compounds, partially offset by an
        alliance partner's share of codevelopment costs related to saxagliptin
        and dapagliflozin.
     INCOME TAXES
     The effective income tax rate on earnings before minority interest and
 income taxes was 9.4% in the first quarter of 2007 compared to 27.5% in the
 first quarter of 2006. The first quarter 2007 effective tax rate included
 $105 million of benefit due to a favorable resolution of certain tax
 matters, including a $39 million benefit related to a prior year specified
 item.
     SPECIFIED ITEMS
     In the three months ended March 31, 2007 and 2006, the company recorded
 specified income and expense items that affected the comparability of the
 results.
     The pre-tax specified items before minority interest in 2007 included:
     -- $80 million in upfront payments
     -- $53 million of charges primarily related to downsizing and streamlining
        of worldwide operations and accelerated depreciation
     In addition, a benefit of $39 million was recognized to reflect a
 change in estimate for taxes on a prior year specified item.
     The pre-tax specified items in 2006 included:
 
     -- $51 million of charges primarily related to asset impairment,
        accelerated depreciation, and downsizing and streamlining of worldwide
        operations
     -- $40 million charge related to commercial litigation matters
     -- $18 million for an upfront payment
     -- $200 million gain on the sale of assets related to DOVONEX(R), a
        product for the treatment for psoriasis
     -- $21 million income from an insurance recovery related to previously
        settled litigation matters
     For additional information on specified items, see Appendix 1. Details
 reconciling these non-GAAP amounts with GAAP amounts including specified
 items are provided in supplemental materials available on the company's
 website.
     PHARMACEUTICALS
     Worldwide pharmaceutical sales decreased 7%, including a 2% favorable
 foreign exchange impact, to $3.5 billion in the first quarter of 2007
 compared to the same period in 2006.
     U.S. pharmaceutical sales decreased 6% to $1.9 billion in the first
 quarter of 2007 compared to the same period in 2006, largely due to the
 loss of exclusivity of PRAVACHOL(R) and lower sales of PLAVIX(R), partially
 offset by continued growth of other key products and sales of newer
 products ORENCIA(R) and SPRYCEL(TM). In aggregate, estimated U.S.
 wholesaler inventory levels of the company's key pharmaceutical products
 sold by the U.S. Pharmaceutical business at the end of the first quarter
 decreased to less than two and a half weeks.
     International pharmaceutical sales decreased 7%, including a 4%
 favorable foreign exchange impact, to $1.5 billion for the first quarter of
 2007 compared to the same period in 2006. The decrease was due primarily to
 a decline in PRAVACHOL(R) and TAXOL(R) sales resulting from increased
 generic competition, partially offset by strong sales growth in REYATAZ(R),
 BARACLUDE(R), ABILIFY(R) and SPRYCEL(TM). The company's reported
 international sales do not include copromotion sales reported by its
 alliance partner, sanofi-aventis, for PLAVIX(R) and AVAPRO(R)/AVALIDE(R),
 which continue to show growth in the first quarter of 2007 compared to the
 same period in 2006.
     Product Sales
 
     -- Sales of PLAVIX(R), a platelet aggregation inhibitor that is part of
        the company's alliance with sanofi-aventis, decreased 5%, including a
        1% favorable foreign exchange impact, to $938 million in the first
        quarter of 2007 from $986 million in the same period in 2006.  Sales of
        PLAVIX(R) decreased 7% in the U.S. in the first quarter of 2007 to $787
        million from $850 million in the same period in 2006.  This was due to
        the impact of residual sales of generic clopidogrel bisulfate,
        partially offset by the replenishment of branded PLAVIX(R) inventory in
        the distribution channels.  U.S. PLAVIX(R) net sales in the first
        quarter of 2007 have increased by 129% compared to $343 million in the
        fourth quarter of 2006 as generic clopidogrel bisulfate inventory in
        the distribution channels is depleted.  The company estimates the
        adverse effect of the at-risk launch of generic clopidogrel bisulfate
        to be in the range of $300 million to $350 million for the first
        quarter of 2007.  Estimated total U.S. prescription demand for
        clopidogrel bisulfate (branded and generic) increased by 18% in the
        first quarter of 2007 compared to 2006, while estimated total U.S.
        prescription demand for branded PLAVIX(R) decreased by 28% in the same
        period.
 
     -- Sales of AVAPRO(R)/AVALIDE(R), an angiotensin II receptor blocker for
        the treatment of hypertension, also part of the sanofi-aventis
        alliance, increased 16%, including a 2% favorable foreign exchange
        impact, to $270 million in the first quarter of 2007 from $233 million
        in the same period in 2006.  U.S. sales increased 17% to $163 million
        in the first quarter of 2007 from $139 million in the same period in
        2006, primarily due to higher average net selling prices compared to
        the first quarter of 2006.  Estimated total U.S. prescription demand
        decreased approximately 1% compared to 2006.  International sales
        increased 14%, including a 5% favorable foreign exchange impact, to
        $107 million in the first quarter of 2007 from $94 million in the same
        period in 2006.
 
     -- Total revenue for ABILIFY(R), an antipsychotic agent for the treatment
        of schizophrenia, acute bipolar mania and bipolar disorder, increased
        29%, including a 2% favorable foreign exchange impact, to $366 million
        in the first quarter of 2007 from $283 million in the same period in
        2006.  U.S. sales increased 27% to $293 million in the first quarter
        2007 from $231 million in the same period in 2006, primarily due to
        higher demand and higher average net selling prices.  Estimated total
        U.S. prescription demand increased approximately 14% compared to the
        same period last year.  International sales continued to gain momentum,
        increasing 40%, including a 10% favorable foreign exchange impact, to
        $73 million in the first quarter of 2007 from $52 million in the same
        period in 2006.  Total revenue for ABILIFY(R) primarily consists of
        alliance revenue representing the company's 65% share of net sales in
        countries where it copromotes with Otsuka Pharmaceutical Co., Ltd.
 
     -- Sales of REYATAZ(R), a protease inhibitor for the treatment of human
        immunodeficiency virus (HIV), increased 27%, including a 3% favorable
        foreign exchange impact, to $263 million in the first quarter of 2007
        from $207 million in the same period in 2006.  U.S. sales increased 20%
        to $143 million in the first quarter of 2007 from $119 million in the
        same period in 2006, primarily due to higher demand.  Estimated total
        U.S. prescription demand increased approximately 17% compared to 2006.
        International sales increased 36%, including a 7% favorable foreign
        exchange impact, to $120 million in the first quarter of 2007 from $88
        million in the same period in 2006, primarily due to increased demand
        in Europe, Latin America and Canada.
 
     -- Sales of ERBITUX(R), which is sold by the company almost exclusively in
        the U.S., increased 16% to $160 million in the first quarter of 2007
        from $138 million in the same period in 2006, due to increased demand
        for usage in the treatment of head and neck cancer.  ERBITUX(R) net
        sales have decreased by 4% compared to the fourth quarter of 2006
        reflecting increased competition in the colorectal cancer market.
        ERBITUX(R) is marketed by the company under a distribution and
        copromotion agreement with ImClone.
 
     -- Total revenue for the SUSTIVA(R) Franchise, a non-nucleoside reverse
        transcriptase inhibitor for the treatment of HIV, increased 29%,
        including a 4% favorable foreign exchange impact, to $226 million in
        the first quarter of 2007 from $175 million in the same period in 2006.
        Estimated total U.S. prescription growth increased approximately 25%
        compared to 2006.  Total revenue for the SUSTIVA(R) Franchise includes
        sales of SUSTIVA(R) as well as revenue from bulk efavirenz included in
        the combination therapy ATRIPLA(TM), which is sold through a joint
        venture with Gilead Sciences, Inc.
 
     -- Sales of BARACLUDE(R), an oral antiviral agent for the treatment of
        chronic hepatitis B, increased to $45 million in the first quarter of
        2007 from $11 million in the same period in 2006, as the product
        becomes commercialized in international markets and continues to grow
        in the U.S.
 
     -- Sales of ORENCIA(R), a fusion protein indicated for adult patients with
        moderate to severe rheumatoid arthritis, increased to $41 million in
        the first quarter of 2007 from $5 million in the same period in 2006.
        ORENCIA(R) was launched in the U.S. in February 2006 and Canada in
        August 2006.
 
     -- Sales for SPRYCEL(TM), an oral inhibitor of multiple tyrosine kinases,
        were $21 million in the first quarter of 2007, compared to $14 million
        in fourth quarter of 2006.  SPRYCEL(TM) was launched in the U.S. in
        July 2006 and in certain European markets beginning in the fourth
        quarter of 2006.
 
     -- Sales of PRAVACHOL(R), an HMG Co-A reductase inhibitor, decreased 75%,
        including a 1% favorable foreign exchange impact, to $135 million in
        the first quarter of 2007 from $536 million in the same period in 2006,
        due to loss of market exclusivity resulting in generic competition for
        most strengths in the U.S. beginning in April 2006, and generic
        competition in key European markets, including France beginning in July
        2006.
 
     -- Sales of TAXOL(R), an anti-cancer agent sold almost exclusively in non-
        U.S. markets, decreased 24%, including a 1% favorable foreign exchange
        impact to $111 million in the first quarter of 2007 from $147 million
        in the same period in 2006, primarily due to increased generic
        competition in Europe and generic entry in Japan during the third
        quarter of 2006.
     HEALTH CARE GROUP
     The combined first quarter 2007 revenues from the Health Care Group
 increased 4% to $1.0 billion compared to the same period in 2006.
     Nutritionals
 
     -- Worldwide Nutritional sales increased 7%, including a 2% favorable
        foreign exchange impact, to $606 million in the first quarter of 2007
        from $565 million in the same period in 2006.  U.S. Nutritional sales
        increased 11% to $274 million in the first quarter of 2007, primarily
        due to increased sales of ENFAMIL(R), the company's best-selling infant
        formula.  International Nutritional sales increased 4% to $332 million
        in the first quarter of 2007, including a 3% favorable foreign exchange
        impact.
 
     Other Health Care
 
     -- Worldwide ConvaTec sales increased 10%, including a 5% favorable
        foreign exchange impact, to $254 million in the first quarter of 2007
        from $230 million in the same period in 2006.  Sales of wound
        therapeutic products increased 9%, including a 5% favorable foreign
        exchange impact, to $107 million in the first quarter of 2007 from $98
        million in the same period in 2006, primarily due to continued growth
        of AQUACEL(R).
     -- Worldwide Medical Imaging sales decreased 12% to $159 million in the
        first quarter of 2007 from $181 million in the same period in 2006,
        primarily due to higher sales in 2006 for Technetium Tc99m Generators
        and a 4% decrease for CARDIOLITE(R) primarily due to lower U.S. average
        selling prices.
 
     2007 GUIDANCE
     Bristol-Myers Squibb raises its 2007 earnings guidance for
 fully-diluted earnings per share from continuing operations on a GAAP basis
 to be between $1.24 and $1.34 from the previous guidance of $1.12 to $1.22.
     The company also raises its 2007 fully-diluted earnings per share
 guidance on a non-GAAP basis to be between $1.30 and $1.40 from the
 previous guidance of $1.20 to $1.30, reflecting strong first quarter
 performance and a lower forecasted tax rate. The non-GAAP guidance excludes
 specified items as discussed under "Use of Non-GAAP Financial Information."
 Details reconciling adjusted non-GAAP amounts with the amounts reflecting
 specified items are provided in supplemental materials available on the
 company's website.
     The company expects generic clopidogrel bisulfate that was sold into
 distribution channels following the Apotex at-risk launch in August 2006
 will continue to have a declining residual impact on PLAVIX(R) net sales
 and the company's overall financial results at least through the second
 quarter of 2007. While the company cannot estimate with certainty the full
 amount and duration of the impact, the potential variability around the
 estimate of the impact has been factored into the company's 2007 guidance
 range, assuming the absence of renewed or additional generic competition.
     For 2007, the company expects reductions of net sales for products that
 have lost exclusivity in previous years to moderate to a range between $900
 million and $1.0 billion, as compared to $1.4 billion in 2006, and $1.3
 billion in 2005. While the company expects generic clopidogrel bisulfate
 inventory in the market to have a continued residual impact on 2007
 PLAVIX(R) net sales, the company does expect PLAVIX(R) net sales and
 earnings growth in 2007, assuming the absence of renewed or additional
 generic competition. The company expects increased prescription demand for
 PLAVIX(R) as well as for other key brands and newly launched products.
 Compared to 2006, the gross margin is expected to improve due to net sales
 growth of higher margin products, lower margin erosion related to
 exclusivity losses, and manufacturing efficiencies. Marketing, selling and
 administrative expense is expected to remain relatively unchanged as the
 company continues to focus on high value primary care and specialist
 physicians and implements various productivity initiatives. The company
 expects to continue to increase investments to develop additional new
 compounds and support the introduction of new products.
     The company and its subsidiaries are the subject of a number of
 significant pending lawsuits, claims, proceedings and investigations in
 addition to the pending PLAVIX(R) litigation, described below. It is not
 possible at this time reasonably to assess the final outcome of these
 investigations or litigations. Management continues to believe, as
 previously disclosed, that the aggregate impact, beyond current reserves,
 of the pending PLAVIX(R) patent litigation, these other litigations and
 investigations and other legal matters affecting the company is reasonably
 likely to be material to the company's results of operations and cash
 flows, and may be material to its financial condition and liquidity. The
 company's GAAP and non-GAAP guidance for 2007 described above does not
 reflect the potential impact of either the pending PLAVIX(R) patent
 litigation as described below or the impact of any other legal matters on
 the company's results of operations for 2007, beyond current reserves for
 ongoing matters.
     As previously disclosed, the composition of matter patent for
 PLAVIX(R), which expires in 2011, is subject to litigation in the U.S. with
 Apotex. The trial testimony ended on February 15, 2007 and the parties are
 awaiting the court's decision. If Apotex were to prevail in the trial in
 the patent litigation, the company would expect to face renewed generic
 competition for PLAVIX(R) promptly thereafter. There are other pending
 PLAVIX(R) patent litigations in the United States and in other less
 significant markets for the product. The company continues to believe that
 the PLAVIX(R) patents are valid and infringed, and with its alliance
 partner, sanofi-aventis, is vigorously pursuing these cases.
     It is not possible at this time reasonably to assess the ultimate
 outcome of the patent litigation with Apotex or of the other PLAVIX(R)
 patent litigations, or the timing of any renewed generic competition for
 PLAVIX(R) from Apotex or additional generic competition for PLAVIX(R) from
 other generic pharmaceutical companies. Loss of market exclusivity of
 PLAVIX(R) and/or the development of sustained generic competition would be
 material to the company's sales of PLAVIX(R), results of operations and
 cash flows, and could be material to the company's financial condition and
 liquidity. PLAVIX(R) is the company's largest product by net sales, and
 U.S. net sales for PLAVIX(R) were $2.7 billion and $3.2 billion in 2006 and
 2005, respectively.
     As previously disclosed, the Antitrust Division of the United States
 Department of Justice (DOJ) is conducting a criminal investigation into the
 proposed settlement and the company has received a Civil Investigative
 Demand by the Federal Trade Commission (FTC) requesting documents related
 to the proposed settlement. In addition, on April 13, 2007, the company
 received a subpoena from the New York State Attorney General's Office --
 Antitrust Bureau for documents relating to the proposed PLAVIX(R)
 settlement. The company is cooperating fully with the investigations. It is
 not possible at this time reasonably to assess the outcome of the
 investigations or its impact on the company. It is also not possible at
 this time reasonably to assess the impact of the investigations, if any, on
 the company's compliance with the Deferred Prosecution Agreement (DPA) with
 the United States Attorney's Office for the District of New Jersey.
     As previously disclosed, in December 2006, the company, the DOJ and the
 Office of the United States Attorney for the District of Massachusetts have
 reached an agreement in principle, subject to approval by the DOJ, to
 settle several investigations involving the company's drug pricing, and
 sales and marketing activities. The agreement in principle provides for a
 civil resolution and an expected payment of $499 million, which is fully
 reserved. There would be no criminal charges against the company. The
 agreement in principle also provides for the company to enter into a
 corporate integrity agreement with the Office of Inspector General of the
 U.S. Department of Health and Human Services. The settlement is contingent
 upon the parties' agreement to the terms of a final settlement agreement,
 including on the terms of the corporate integrity agreement, and approval
 by the DOJ. There can be no assurance that the settlement will be
 finalized.
     For additional discussion of legal matters, including the PLAVIX(R)
 patent litigation, the Antitrust Division investigation related to the
 proposed settlement with Apotex and the terms of the DPA and SEC Consent,
 see "Item 1. Financial Statements Note 21. Legal Proceedings and
 Contingencies," and "Management's Discussion and Analysis -- SEC Consent
 Order and Deferred Prosecution Agreement" in the company's Form 10-K Annual
 Report for the fiscal year ended December 31, 2006.
     Use of Non-GAAP Financial Information
     This press release contains non-GAAP earnings and earnings per share
 information adjusted to exclude certain costs, expenses, gains and losses
 and other specified items. Among the items in GAAP earnings but excluded
 for purposes of determining adjusted earnings are: gains or losses from
 sale of businesses and product lines; from sale or write-down of equity
 investments and from discontinuations of operations; restructuring items
 that meet the requirements of SFAS 112 for severance and SFAS 146 for other
 exit costs; accelerated depreciation charges under SFAS 144 related to
 restructuring items described above; asset impairments; charges and
 recoveries relating to significant legal proceedings; upfront and milestone
 payments for in-licensing of products that have not achieved regulatory
 approval that are immediately expensed; copromotion or alliance charges and
 payments for in-process research and development which under GAAP are
 immediately expensed rather than amortized over the life of the agreement;
 income from upfront and milestone payments that is immediately recognized
 for out-licensing of products, including deferred income recognized upon
 termination; costs of early debt retirement; and significant tax events.
 This information is intended to enhance an investor's overall understanding
 of the company's past financial performance and prospects for the future.
 For example, a non-GAAP earnings per share information is an indication of
 the company's baseline performance before items that are considered by the
 company to be not reflective of the company's ongoing results. In addition,
 this information is among the primary indicators the company uses as a
 basis for evaluating company performance, allocating resources, setting
 incentive compensation targets, and planning and forecasting of future
 periods. This information is not intended to be considered in isolation or
 as a substitute for diluted earnings per share prepared in accordance with
 GAAP.
     Statement on Cautionary Factors
     This press release contains certain forward-looking statements within
 the meaning of the Private Securities Litigation Reform Act of 1995
 regarding, among other things, statements relating to goals, plans and
 projections regarding the company's financial position, results of
 operations, market position, product development and business strategy.
 These statements may be identified by the fact that they use words such as
 "anticipate", "estimates", "should", "expect", "guidance", "project",
 "intend", "plan", "believe" and other words and terms of similar meaning in
 connection with any discussion of future operating or financial
 performance. Such forward-looking statements are based on current
 expectations and involve inherent risks and uncertainties, including
 factors that could delay, divert or change any of them, and could cause
 actual outcomes and results to differ materially from current expectations.
 These factors include, among other things, market factors, competitive
 product development, pricing controls and pressures (including changes in
 rules and practices of managed care groups and institutional and
 governmental purchasers), economic conditions such as interest rate and
 currency exchange rate fluctuations, judicial decisions and governmental
 laws and regulations related to Medicare, Medicaid and healthcare reform,
 pharmaceutical rebates and reimbursement, claims and concerns that may
 arise regarding the safety and efficacy of in-line products and product
 candidates, changes to wholesaler inventory levels, changes in, and
 interpretation of, governmental regulations and legislation affecting
 domestic or foreign operations, including tax obligations, difficulties and
 delays in product development, manufacturing and sales, patent positions
 and the unpredictability of the ultimate outcome of any litigation matter,
 including whether the company will prevail at trial in the patent
 litigation with Apotex, as well as any risks associated with the criminal
 investigation conducted by the Department of Justice, the civil
 investigation conducted by the Federal Trade Commission, or the
 investigation conducted by the New York State Attorney General's Office in
 connection with the proposed settlement with Apotex, and the launch of a
 generic clopidogrel bisulfate product by Apotex, including the amount of
 generic product distributed and the rate at which it will be utilized by
 prescription demand, and the time-period in which it will impact the
 company's results. These factors also include the ability to realize
 projected cost savings and the expiration of patents on certain other
 products, and the impact and result of governmental investigations. There
 can be no guarantees with respect to pipeline products that future clinical
 studies will support the data described in this release, that the products
 will receive necessary regulatory approvals, or that they will prove to be
 commercially successful; nor are there guarantees that regulatory approvals
 will be sought, or sought within currently expected timeframes, or that
 contractual milestones will be achieved. For further details and a
 discussion of these and other risks and uncertainties, see the company's
 periodic reports, including current reports on Form 8-K, quarterly reports
 on Form 10-Q and the annual report on Form 10-K, furnished to and filed
 with the Securities and Exchange Commission. The company undertakes no
 obligation to publicly update any forward-looking statement, whether as a
 result of new information, future events or otherwise.
     Company and Conference Call Information
     Bristol-Myers Squibb is a global pharmaceutical and related health care
 products company whose mission is to extend and enhance human life.
     There will be a conference call on April 26, 2007 at 10:30 a.m. (EDT)
 during which company executives will address inquiries from investors and
 analysts. Investors and the general public are invited to listen to a live
 webcast of the call at www.bms.com/ir or by dialing 913-981-4911. Materials
 related to the call will be available at the same website prior to the
 call.
     For more information, contact: Tony Plohoros, 212-546-4379,
 Communications, Jeff Macdonald, 212-546-4824, Communications, or John
 Elicker, 212-546-3775, or Blaine Davis, 212-546-4631, Investor Relations.
     ABILIFY(R) is the trademark of Otsuka Pharmaceutical Co., Ltd.
     AVAPRO(R), AVALIDE(R) and PLAVIX(R) are trademarks of sanofi-aventis
     Erbitux(R) is a trademark of ImClone Systems Incorporated
     ATRIPLA(TM) is a trademark of both Bristol-Myers Squibb Co. and Gilead
 Sciences, Inc.
                          BRISTOL-MYERS SQUIBB COMPANY
                        NET SALES BY OPERATING SEGMENTS
               FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006
                        (Unaudited, dollars in millions)
 
                                                            Three Months
                                                            Ended March 31,
                                                        2007           2006
 
     Pharmaceuticals                                   $3,457         $3,700
 
     Nutritionals                                         606            565
     Other Health Care                                    413            411
       Health Care Group                                1,019            976
 
     Net Sales                                         $4,476         $4,676
 
 
 
 
                          BRISTOL-MYERS SQUIBB COMPANY
                               SELECTED PRODUCTS
               FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006
           (Unaudited, dollars in millions except prescription data)
     The following table set forth worldwide and U.S. reported net sales for
 selected products for the three months ended March 31, 2007 compared to the
 three months ended March 31, 2006. In addition, the table includes, where
 applicable, the estimated total U.S. prescription change for the retail and
 mail-order channels for the comparative periods presented for certain of
 the company's U.S. pharmaceutical products based on third-party data. A
 significant portion of the company's U.S. pharmaceutical sales is made to
 wholesalers. Where changes in reported net sales differ from prescription
 growth, this change in net sales may not reflect underlying prescriber
 demand.
                                    Three Months Ended March 31,
                        Worldwide Net Sales      U.S. Net Sales
                                                                   % Change in
                                                                    U.S. Total
                                        %                    %    Prescriptions
                         2007   2006  Change   2007  2006  Change    vs. 2006
     Pharmaceuticals
     Cardiovascular
       Plavix            $938   $986   (5)%    $787  $850    (7)%      (28)%
       Pravachol          135    536  (75)%      57   302   (81)%      (86)%
       Avapro/Avalide     270    233   16%      163   139    17%        (1)%
       Coumadin            46     55  (16)%      38    47   (19)%      (17)%
     Virology
       Reyataz            263    207   27%      143   119    20%        17%
       Sustiva Franchise
       (total revenue)    226    175   29%      144   108    33%        25%
       Baraclude           45     11   **        17     9    89%       127%
     Oncology
       Erbitux            160    138   16%      158   136    16%        N/A
       Taxol              111    147  (24)%       4     4    --         N/A
       Sprycel             21     --   --        10    --    --         N/A
     Affective
     (Psychiatric)
      Disorders
       Abilify
       (total
        revenue)          366    283   29%      293   231    27%        14%
     Immunoscience
       Orencia             41      5   **        40     5    **         N/A
     Other
      Pharmaceuticals
       Efferalgan          81     68   19%       --    --    --         N/A
     Nutritionals
       Enfamil            254    237    7%      171   155    10%        N/A
       Enfagrow            72     67    7%       --    --    --         N/A
     Other Health
      Care
       Ostomy             130    123    6%       34    34    --         N/A
       Wound
        Therapeutics      107     98    9%       32    30     7%        N/A
       Cardiolite          99    103   (4)%      87    91    (4)%       N/A
 
     ** Change is in excess of 200%
 
 
 
                          BRISTOL-MYERS SQUIBB COMPANY
                       CONSOLIDATED STATEMENT OF EARNINGS
               FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006
             (Unaudited, dollars in millions except per share data)
 
 
                                                  Three Months Ended March 31,
                                                         2007      2006
 
     Net Sales                                         $4,476    $4,676
 
     Cost of products sold                              1,392     1,476
     Marketing, selling and administrative              1,158     1,238
     Advertising and product promotion                    269       295
     Research and development                             807       750
     Provision for restructuring, net                      37         1
     Litigation income, net                                --       (21)
     Gain on sale of product asset                         --      (200)
     Equity in net income of affiliates                 (126)       (93)
     Other expense, net (a)                                22        37
                                                        3,559     3,483
 
     Earnings Before Minority Interest and
      Income Taxes                                        917     1,193
     Provision for income taxes                            86       328
     Minority interest, net of taxes                      141       151
 
     Net Earnings                                        $690     $ 714
 
     Earnings per Common Share:
     Basic                                              $0.35     $0.36
     Diluted                                            $0.35     $0.36
 
     Average Common Shares Outstanding:
     Basic                                              1,962     1,957
     Diluted                                            1,997     1,988
 
     (a) Other expense, net
       Interest expense                                  $109      $116
       Interest income                                    (53)      (62)
       Foreign exchange transaction losses/(gains)          8       (12)
       Other, net                                         (42)       (5)
                                                          $22       $37
 
 
 
                                                                     APPENDIX 1
                          BRISTOL-MYERS SQUIBB COMPANY
                                SPECIFIED ITEMS
               FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006
                        (Unaudited, dollars in millions)
 
 
 
       Three months ended March 31, 2007
                                                          Provision for
                              Cost of      Research and   restructuring,
                           products sold    development        net        Total
 
     Upfront payments            $--          $80              $--         $80
     Downsizing and
      streamlining of
      worldwide operations        --           --               37          37
     Accelerated depreciation     16           --               --          16
                                $ 16          $80              $37         133
     Income taxes on items
      above                                                                (40)
     Change in estimate for
      taxes on a prior year
      specified item                                                       (39)
     Reduction to Net Earnings                                             $54
 
 
 
     Three months ended March 31, 2006
 
                 Cost    Re-   Marketing, Provision Litiga- Other   Gain on
                 of    search  selling      for      tion  expense, sale of
                 prod-  and      and      restruct- settle-  net    prod-
                 ucts  develop- admin       uring,   ment           uct   Total
                 sold   ment                net     income          asset
 
     Litigation
      Matters:
     Insurance
      recovery   $--    $--     $--        $--     $(21)     $--    $--  $ (21)
     Commercial
      litigations --     --      --         --       --       40     --     40
                  --     --      --         --      (21)      40     --     19
     Other:
     Accelerated
      depreciation
      and asset
     impairment   46     --       4         --       --       --     --     50
     Upfront
      payments    --     18      --         --       --       --     --     18
     Downsizing
      and
      stream-
      lining of
      worldwide
      operations  --     --      --          1       --       --     --      1
     Gain on
      sale of
      product
      asset       --     --      --         --       --       --   (200)  (200)
                 $46    $18      $4         $1     $(21)     $40 $ (200)  (112)
     Income
      taxes on
      items
      above                                                                 48
     Minority
      interest,
      net of
      taxes
                                                                           (13)
     Increase
      to Net
      Earnings                                                           $ (77)
 
 

SOURCE Bristol Myers Squibb Company