One Factor Driving Bristol-Myers Squibb (BMY) Down Today

NEW YORK (TheStreet) -- Bristol-Myers Squibb  (BMY) continued its decline from Friday and was falling 2.18% to $49.83 on Monday after concerns about the rate at which the company is developing a new combination of cancer treatment drugs.

The New York City-based company announced Friday that it was not yet planning a late-stage trial to combine two of its promising lung cancer treatment drugs. Instead, the company revealed it would continue with mid-stage trials of the two drugs: an experimental medicine called nivolumab and an approved melanoma treatment called Yervoy, both of which strengthen the immune system's ability to combat cancer. Bristol-Myers Squibb then plans to transition the drugs into a greater Phase III trial.

The company also reported a 21.5% drop in its fourth-quarter profits despite an increase in drug sales because the results from the same period one year earlier included a $411 million tax benefit from the company's writing off a a failed experimental hepatitis C drug. The quarterly earnings of $726 million, or 44 cents a share, surpassed analysts' expectations.

TheStreet Ratings team rates BRISTOL-MYERS SQUIBB CO as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BRISTOL-MYERS SQUIBB CO (BMY) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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