NEW YORK – Bristol-Myers Squibb Co.'s reported Tuesday earnings rose in the first quarter because of increased sales, meeting Wall Street expectations.

For the three months ended March 31, Bristol-Myers earned $714 million, or 36 cents per share, compared with $533 million, or 27 cents per share in the same period last year.

Sales increased 3.2 percent over the first quarter of fiscal 2006 from $4.5 billion to $4.7 billion in the same period last year.

Company officials expressed confidence Wednesday in Bristol-Myers' performance because its flagship products are doing well and drugs in late stages of development, such as Dasatinib, are expected to reach the market later this year.

Dasatinib is used in the treatment of leukemia.

Bristol-Myers expects reduced earnings for 2006 following the sale of Dovonex for $200 million. Dovonex is a drug used in the treatment of psoriasis .

Rusty Todd of Tejas Securities Inc. said sale should help Bristol-Myers' development pipeline.

“The disposal of $200 million gave them a one-time bump, but the disposal of Dovonex means they will be able to develop other drugs more efficiently,” Todd said.

Company spokesperson Tony Plohoros was optimistic about a $660 million investment in a new facility to produce protein-based liquid injections known as biologics.

Orencia, used in the treatment of rheumatoid arthritis, is the first biologic developed by Bristol-Myers. Released during this quarter, sales exceeded company estimates.

The company predicts more than 25 percent of its future sales will be based on biologics.

Analyst Todd agrees with company forecasts for 2006 and recommends investors hold trading Bristol-Myers stocks.

He recommends shareholders who like to invest while a stock is out of favor to buy now. He predicts the company will pick up in 2007.

Bristol-Myers' shares closed at $23.97, down 2 cents, in Wednesday trading on the New York Stock Exchange.