Bristol-Myers Squibb reported a quarterly loss today due to special charges.
The charges included a $275 million write-down from securities that had subprime mortgages as a component.
The drugmaker is among the first companies outside the financial sector to disclose its exposure to the world-wide credit crisis. The charge related mainly to mortgages and credit-card debt pooled and sold to investors.
The unexpected charge took the market by surprise, especially because the investments had high credit ratings.
Bristol-Myers said the market value of its securities fell by $392 million to $419 million as of the end of the fourth quarter, December 31st.
Shares of New York-based Bristol-Myers, whose drugs include blood-clot preventer Plavix and schizophrenia treatment Abilify, fell as much as 6.5 per cent to $21.75 before closing at $23.19.
The $275 million charge does not have a material impact on the company's liquidity or financial flexibility, or hinder its ability to fund its dividend, Bristol-Myers said.