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The drugmaker Bristol-Myers Squibb Co. said Thursday its first-quarter profit fell on higher restructuring costs and taxes, but adjusted results topped Wall Street forecasts.

Its shares rose 47 cents, or 2.2%, to $21.90 in afternoon trading.

The New York-based company earned $661 million, or 33 cents per share, compared with $690 million, or 35 cents per share, during the same period a year ago. Excluding charges, profit from continuing operations reached 42 cents per share in the latest period.

Revenue rose 20% to $5.18 billion from $4.32 billion.

Analysts polled by Thomson Financial expected profit of 41 cents per share on revenue of $5.12 billion.

In December, the company said it would lay off about 4,300 employees, or 10% of its work force, and close more than half of its manufacturing plants as part of its goal to save $1.5 billion annually by 2010. The company and pharmaceutical industry as a whole have been implementing cost-cutting plans as patent expirations on blockbuster drugs and the subsequent generic competition eat into revenue.

While cutting costs, though, the companies have been searching for ways to flesh out their product pipelines, including investing more in research and development, signing licensing deals and buying up smaller players.

"This quarter represents our strongest financial performance since I became CEO approximately 18 months ago," said Chief Executive James M cash advance. Cornelius, in a conference call with investors. "We see many of the current positive trends continuing throughout the year."

Revenue during the first quarter was driven mainly by a 39% rise in sales to $1.31 billion of the blood-thinner Plavix, which loses patent protection in 2011. Sales of anti-psychotic drugs, including Abilify, rose 24% to $454 million. Overall, international sales gained 16% to reach $2.3 billion because of the positive effects of a weaker dollar.

Bristol-Myers reaffirmed its 2008 outlook for adjusted profit between $1.60 and $1.70 per share - analysts expect profit of $1.70 per share, on average.

Also, the company said it will file an IPO to sell between 10% and 20% of its Mead Johnson Nutritional unit, which posted sales of $703 million in the first quarter. It was one of three units the company had put under review. In January it closed the $525 million sale of its medical imaging unit and is still exploring the possible sale of its ConvaTec unit.

Looking ahead, Cornelius said research and development investment will continue, calling it the "cornerstone" of the company’s strategy. 

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