Tim Anderson Company Quotations

While the company beat earnings (expectations), sale for several key franchises lagged our estimates.

Although the company met consensus, the quality of earnings was poor, in our view, because sales growth was weaker than we forecast, expenses were lighter than expected, interest income was above guidance, and the tax rate was significantly below historical levels.

The company's not going out of business, but ironically it's acting like a cyclical, which drug companies aren't supposed to do. The turnaround may not happen for a couple of years, but it's a well run company that just happens to be facing a lot of problems.

The concern is that Bristol could be the next shoe to drop as far as patent expiration and reining in the numbers, ... But the company has a pretty decent late-stage pipeline.

We expect the company to put up a good show, give guidance that is ahead of consensus and not have any significant negative surprises.