Bristol-Myers Squibb To Cut Workforce By 10%

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Main Category: Pharma Industry / Biotech Industry
Article Date: 05 Dec 2007 - 12:00 PDT

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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

http://investor.bms.com

Written by - Christian Nordqvist


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