Bristol-Myers cuts outlook after Mead split

AP News
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Posted: Dec 23, 2009 2:12 PM

Drug developer Bristol-Myers Squibb Co. cut its 2009 profit outlook Wednesday after completing a split off of its Mead Johnson Nutrition Co. holdings.

The company now expects adjusted profit from continuing operations between $1.75 and $1.80 per share, down from prior guidance of $2.00 to $2.05 per share.

Analysts polled by Thomson Reuters had expected 2009 profit of $2.02 per share, on average.

Last month, Bristol-Myers said it would split off its Mead Johnson holdings to focus on its biopharmaceutical business. It owned about 83 percent of Mead's stock when it made the announcement. Bristol-Myers said the split was the largest in the U.S. since 2001.

Mead Johnson spun off from Bristol-Myers in 2008, and the formula maker went public in February. The Glenview, Ill., company makes children's liquid and powder formulas under the Enfamil, EnfaKid and Choco Milk brands.

Shares of Bristol-Myers Squibb rose 9 cents to $25.68 in afternoon trading. Mead Johnson stock edged up 30 cents to $43.39.