Bristol-Myers Squibb (NYSE:BMY) announced Wednesday that it will be restructuring to focus more on biotechnology and specialty drugs and that it expect to cut 10 percent of its workforce by 2010.
The restructuring is to "increase profitability," the global pharmaceuticals giant said in a statement. Another goal is to transform Bristol-Myers Squibb "into a next-generation BioPharma company that pairs the scale and resources of a mid-sized pharmaceutical company with the entrepreneurial spirit and innovative focus of a biotech startup."
The 10 percent cut in workforce affects approximately 4,300 employees and has already begun. The workforce cut will be accompanied by a reduction in mature brands drug portfolio and production capacity. The number of manufacturing plants is expected to be cut in half by 2010.
The company said that it wants to make strategic alliances and acquisitions that "should add to the company's innovative capabilities, portfolio and pipeline to amplify the company's ongoing focus on growth areas, such as specialty medicines and biologics."
It is expected that the restructuring will have a pre-tax cost of between 900 million and 1.1 billion dollars and should generate 1.5 billion dollars in pre-tax savings.
[Source: Yahoo News]
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» Bristol Myers Squibb from PharmaGazette
Bristol-Myers Squibb (NYSE:BMY), #12 in sales in 2006 and #13 in R&D in 2006 with $2.32 bn EUR budget still hasn’t managed to pull out of the mess of the last few years. While it has a few strategic partnerships with... [Read More]
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