In a drive to cut costs by $1.5 billion, Bristol-Myers Squibb Co. (BMS) says it will get rid of one tenth of its workforce, approximately 4,300 employees. On the same day the company announced that it is also raising its forecast for 2008 earnings, raising its 2008 forecast excluding restructuring costs to $1.65 to $1.71 per share (from a previous $1.60 to $1.70).
Workforce numbers have been steady at around 44,000 since 2002, despite the fact that two blockbusters, Taxol (for cancer) and Prevachol (for cholesterol) had to make way for generic versions.
The downsizing of its labor force started in November and will continue for the coming three years, the company announced. BMS is also looking into the possibility of selling its baby formula (Mead Johnson Nutritionals), wound care (ConvaTec), and imaging divisions. Mead Johnson Nutritionals could bring in about $10 billion, and ConvaTec about $3 billion.
James Cornelius, CEO of BMS since September last year, is said to be getting the company ready for generic competitors of Plavix, a drug used for the treatment of recent heart attack, recent stroke, or peripheral arterial disease (poor circulation in the legs). In 2012 Plavix’s patent life will have expired.
Cornelius says BMS aims to focus more on drug development, and the buying of products and possibly companies, that might broaden its range of medications for inflammation, diabetes and cancer.
Experts on both sides of the Atlantic have commented that BMS has been one of the last major pharmaceutical companies to restructure itself.
Some information about Bristol-Myers Squibb
Sales (2006)
$17,914 billion
Products
Cardiovascular
Plavix
Pravachol
Avapro/Avalide
Virology
Reyataz
Sustiva Franchise
Baraclude
Oncology (Cancer)
Erbitux
Taxol
Sprycel
Affective Disorders
Abilify
Immunoscience
Orencia
Other Pharmaceuticals
Efferalgan
Nutritionals
Enfamil
Enfagrow
ConvaTec
Ostomy
Wound Therapeutics
Medical Imaging
Cardiolite
Written by – Christian Nordqvist