The Bristol-Myers Squibb's "String of Pearls" initiative to buy small biotech companies, as well as the rights to market or develop drugs from other companies, might not be the best strategy for the company, according to an article in today's New York Times.
In fact, the company's earnings report indicates that its specialization on drugs for Alzheimer disease, cancer and hepatitis C might not be enough to help it overcome lost revenues when some major drugs go off patent over the next few years.
Drugs like Abilify, Avapro and Plavix [1] have been bringing Bristol-Myers big bucks, but the company might just be suited for a merger or takeover in the current climate.
Still, reported earnings of $1.2 billion were respectable, and ahead of forecasts, for now at least.
- see the New York Times story [2]
Related Articles:
Bristol-Myers will layoff yet another 10% [3]
Execs talk deals, diversification and downturn [4]
Bristol looks to free up $1B in cash [5]
ZymoGenetics scores mega-deal with BMS [6]
BMS to pay Exelixis $240M for cancer drugs [7]
Rumor mill: BMS positioning itself for sale [8]
Links:
[1] http://www.fiercepharma.com/tags/plavix
[2] http://www.nytimes.com/2009/01/28/business/28drug.html?ref=business
[3] http://www.fiercepharma.com/story/bristol-myers-will-layoff-yet-another-10/2008-12-17
[4] http://www.fiercepharma.com/story/execs-talk-deals-diversification-and-downturn/2008-10-31
[5] http://www.fiercepharma.com/story/bristol-looks-free-1b-cash/2008-11-14
[6] http://www.fiercebiotech.com/story/zymogenetics-scores-billion-dollar-hep-c-deal-bms/2009-01-13
[7] http://www.fiercebiotech.com/story/bms-pay-exelixis-240m-cancer-drugs/2008-12-12
[8] http://www.fiercepharma.com/story/rumor-mill-bms-positioning-itself-sale/2008-06-30