Rumor mill: BMS positioning itself for sale

Tracy Staton — Mon, 30 Jun 2008 10:28:15 -0400

Speculation that Bristol-Myers Squibb might be a takeover target--that's old news. Informed speculation based on certain strategic moves BMS has made recently--now that's worth passing on. Tim Anderson, the Sanford Bernstein analyst, says he believes Bristol-Myers is actively entertaining the idea of selling itself. In a recent note to investors, Anderson ticked off his evidence. Two key patents expire in 2012, for Avapro and Plavix, and the same year, BMS loses U.S. rights to Abilify. But its pipeline is promising, and it has the second-smallest market cap among big drugmakers.

Additionally, Anderson notes, CEO Jim Cornelius recently bought 100,000 shares; is this a "calculated bet on the future of the company?" Its new CFO is an ex-Goldman Sachs investment banker. And the company recently announced plans to partially spin off its Mead Johnson nutritionals unit, which establishes fair value for that business in case any potential buyer wanted to keep or sell it.

This is circumstantial evidence to be sure. But rest assured that Anderson will keep his eyes peeled for more--so we should all keep an eye on him.

- read the story at Pharmalot

Bristol's Abilify gets nod for adolescents

Tue, 06 Nov 2007 06:59:57 -0500

Better late than never, Bristol-Myers Squibb might say. In a move that's sure to incite debate, the FDA says it will allow BMS to market its schizophrenia med Abilify for use in adolescents.

The agency had accepted Bristol's app to expand indications for the drug back in June, giving it priority review. But the fast track couldn't have been fast enough to deter a federal prosecutor who'd been pursuing civil penalties against the company, in part for marketing Abilify to children. Bristol settled with U.S. Attorney Michael Sullivan in September, agreeing to pay $515 million to nullify a variety of fraudulent marketing and pricing claims.

Despite concern over the long-term side effects of atypical antipsychotics, such as weight gain leading to diabetes, Abilify is the second drug in this class to get FDA approval for adolescent use this year. Johnson & Johnson won the FDA's blessing for Risperdal in August, without having to submit to an advisory committee debate over its safety and efficacy. Eli Lilly's Zyprexa is next in the approval line. You'll recall, though, that Lilly last month added new warnings to Zyprexa's label, citing the drug's tendency to cause high blood sugar and cholesterol, weight gain, and other metabolic problems.

- see BMS's release
- take a look at the CNN Money report
- read background on the fraud settlement in the Boston Globe
- read about Zyprexa's new warnings in The New York Times

Related Articles:
BMS to pay $515M in kickback case. Report
Better times ahead for BMS? Report
Probation draws to a close for Bristol-Myers. Report
FBI agents raid BMS office in deal probe. Report