B-MS takes remedial action and cfo leaves

Weaker performance than anticipated in the first quarter of 2002 has led Bristol-Myers Squibb to launch a number of initiatives to reduce costs and put the company back on track for future growth. With immediate effect Peter R Dolan is assuming direct responsibility for the global pharmaceuticals business, in addition to his duties as chairman and ceo. The company also confirmed that its chief financial officer, Fred Schiff, has left the firm 'to pursue other interests.' Harrison Bains, vp of tax and treasury, will serve as acting cfo until a replacement is found.

One aspect of the company's performance that must be addressed quickly is inventory management across its product portfolio in the US pharmaceutical business. 'Current wholesaler inventory levels significantly exceed desirable levels, and B-MS has begun to reduce shipments in an attempt to lower inventories to levels more consistent with market demand,' stated Dolan.

It now estimates that sales for the first quarter of 2002 will decline by about 7% compared with the first quarter of 2001. For the full year, sales are expected to be in the low single digit range.

The company will continue to pursue strategies for increasing sales of key brands.The recent additional indication for Plavix, which was based upon the 20% reduction in the incidence of heart attack, stroke or cardiovascular death in patients with mild heart attack or unstable angina, is expected to expand its growth. The launch of the higher strength Pravachol 80mg. tablet has had a positive impact on sales, while prescriptions for Glucovance and Glucophage XR in the treatment of diabetes continue to grow.

The company's short-term pipeline of new products is strong and includes aripiprazole, a novel investigational treatment for schizophrenia. B-MS is also continuing discussions with the FDA on the Vanlev hypertension filing, and regulatory filings are planned for submission in the US and Europe later this year for two novel investigational drugs: atazanavir and garenoxicin. In addition, the company is working closely with ImClone Systems to bring Erbitux, an investigational treatment for advanced colorectal cancer, through the clinical and regulatory process quickly and efficiently.

Dolan concluded: 'We fully expected 2002 to be a transition year. I am confident that the successful implementation of these initiatives will result in a stronger, healthier Bristol-Myers Squibb for the long term.'