Plavix Generics Would Threaten Bristol Dividend
This article was originally published in The Pink Sheet Daily
|
A victory by generic companies in the pending Plavix patent litigation could threaten Bristol's current dividend level, CEO Peter Dolan acknowledged during the Bear Stearns conference in New York Sept. 13. "In the event we were to lose the Plavix patent earlier than 2011, we would have to reconsider our financial priorities," Dolan said. Dolan made his comments in response to a question about the security of Bristol's relative high quarterly dividend. "The dividend is indicated by the board on an annual basis," Dolan noted. "It is approved on a quarterly basis." "What we have said is we will continue to make the dividend a priority, barring some significant event," he continued. "Our base plan would be to make our dividend a priority." Bristol and Plavix-innovator Sanofi maintain that the cardiovascular agent will remain free of generic competition until 2011. Generic companies, however, believe they could come to market as early as 2005; the patent case is set to go to trial in 2005. During its unsuccessful attempt to fend off a hostile takeover bid by Sanofi, Aventis maintained that there is a "substantial" threat that generics will prevail in the patent case (1 'The Pink Sheet' DAILY, March 26, 2004). - Michael McCaughan |