Probe Stings Bristol-Myers

Updated from 9:33 a.m. EDT

Bristol-Myers Squibb(BMY Quote) reported a better-than-expected second quarter and reaffirmed its full-year earnings projections, but the drugmaker's stock was hit by word that the federal government is conducting a criminal investigation.

The Justice Department is looking into a proposed settlement Bristol-Myers has reached for the anticoagulant Plavix, the company's biggest drug. By early afternoon, the stock was down $1.89, or 7.3%, to $24.10 on trading volume of 19.3 million shares, roughly three times the daily average.

CEO Peter Dolan told analysts and investors Thursday that his company learned about the investigation the previous day. He said the company is cooperating, but he added that he doesn't have any specific information about the reason for the probe, which is being conducted by the Justice Department's antitrust division. ...