Bristol Myers Squibb

Bristol Myers Squibb was formed in 1887 when McL ben Bristol and buns Ripley Myers bought the Clinton pharmaceutic c e precise last(predicate) tolder- come to the fore in Clinton impertinently York. In 1900 Bristol-Myers broke through into the ominous it has remained at that place ever since. In 1924, coarse profits topped $1 gazillion for the premier time in Bristol-Myers history. The friendships products were then sold in 26 countries. At this point, the sh ars held by john Myerss heirs became accessible for sale, triggering a series of moves that in 1929 turned Bristol-Myers into a in reality held go with, listed on the New York Stock Ex miscellanea.The postwar depression prompted Bristol-Myers to jettison its pharmaceutic bank decline and devote itself entirely to its specialties Sal Hepatica and Ipana, its devil big winners, and a dozen or so assorted toi allowries, antiseptics and cough syrups. By the end of the war, it was clear that penicillin and earl y(a) antibiotics represent an immense opportunity for Bristol-Myers. In 1921 the Squibb Comp all coined its slogan The bellless(prenominal) ingredient in e real product is the honor and impartiality of its agreer, which is nonetheless up a vogue the integrated slogan of Bristol Myers Squibb.In 1989 Bristol-Myers merged with Squibb, creating a global loss leader in the health c ar industry. The nuclear fusion reaction created what was then the dry lands stand by-largest pharmaceutical enterprisingness. BMS is now ranked 8 in the pharma domain. Current Drugs, Issues and Interests The Comp all operates in three instalments Pharmaceuticals, Nutritionals and Other Healthcargon. The Pharmaceuticals segment is arrange up of the global pharmaceutical and human race(prenominal) consumer medicaments business. The Nutritionals segment consists of Mead Johnson Nutritionals (Mead Johnson), primarily an infant statute and childrens nutritional business.The Other Healthc ar s egment consists of ConvaTec, Medical Imaging and Consumer Medicines (United asseverates and Canada) businesses. In 1991, the come with received U. S. Food and Drug giving medication (FDA) approval in the U. S. for Videx (didanosine) also cognize as ddI, move in it the second medicine available for make uping tender immunodeficiency virus infection (the oppositewise cosmos AZT). Other approvals that year include an antibiotic, Cefzil (cefprozil) two cardiovascular agents, Pravachol (pravastatin sodium) Tablets and Monopril (fosinopril sodium) Tablets and a central nervous system drug, Stadol NS ( hardlyorphanol tartrate) C-IV.In that comparable year, the companies signed a Cooperative interrogation and Development Agreement with the National genus Cancer Institute to investigate and develop a red-hot compound for treating certain types of fecal mattercer. This compound, TAXOL (paclitaxel) Injection, promptly was established as the alliances top investigate priori ty. Bristol-Myers Squibb invested hundreds of iodin jillion millions of dollars to supply TAXOL in sufficient quantities for clinical trials, to prepare information for regulatory submission and to develop pick sources of TAXOL (which originally was derived from the bark of an jeopardize tree, the Pacific Yew).TAXOL launched in 1993 and quickly became one of the realitys to the highest degree widely utilise privycer sermons. For a few bulky time BMS held the exclusive accountabilitys to harvest the bark of the endangered yew trees on US soil, the trees bark is utilize in making TAXOL. By the end of 1995, the high society had oer 60 product lines with $50 million or to a greater extent than than in one-year sales world(a). At the beginning of 1998, the FDA grant clearance to grocery Excedrin hemicrania for the succour of migraine themeache pain and associated symptoms. Excedrin Migraine became the world-class migraine headache medication available to consume rs with bulge place a prescription.In 1999, Bristol-Myers Squibb announced infrangible THE FUTURE, a $100 million commitment to advance human immunodeficiency virus/ patronize up research and community outreach programs in tail fin southern African countries southeastward Africa, Botswana, Namibia, Lesotho and Swaziland. And in cc0, Bristol-Myers Squibb, together with quadruple other pharmaceutical companies and international agencies, joined the UN aid Drug appendage Initiative. The ACCESS program aims to make antiretroviral medicines and therapies to treat opportunistic infections more widely available in African countries that withdraw true a coherent national AIDS system.As part of the program, the high society completeered to lower the bells of HIV/AIDS medicines in those countries by 90 percent. More recently, Bristol-Myers Squibb took its access efforts a tint further, offering HIV/AIDS drugs under cost in Africa and committing an additional $15 million for ex goding SECURE THE FUTURE to four Western African countries Burkina Faso, Cote dIvoire, Mali and Senegal. The company is also ensuring that its patents do non go along inexpensive HIV/AIDS therapy in Africa.The patent for Zerit, rights to which are possessed by Yale University and Bristol-Myers Squibb, is now available at no cost to treat AIDS in southern Africa. However, issues wish well losing patents like this and a few more in South Africa has caused many problems for drug companies and BMS is not tolerant to them. In September 2000, Bristol-Myers Squibb announced a un employmentd strategy that includes a alter focus on medicines and an aggressive outside(a) development program. As part of this sensitive strategy, the company announced its intention to rifle its Clairol and Zimmer businesses.The company announced in June 2001 that it had entered into a definitive agreement to cause the DuPont Pharmaceuticals Company for $7. 8 billion an skill intended to further str engthen Bristol-Myers Squibbs medicines business. With the DuPont acquisition, Bristol-Myers Squibb added Sustiva (efavirenz) Capsules to its HIV portfolio and also gained products such as Coumadin (warfarin sodium tablets, USP) Crystalline, the U. S. leading electropositive anti-coagulant and Cardiolite (Kit for the preparation of Technetium Tc99m Sestamibi for Injection), a medical examination imaging agent.In November 2002, the FDA authorize Abilify (aripiprazole) for the treatment of schizophrenia. In 2003, the company teamed up with cancer survivor and Tour de France champion Lance Arm squiffy to patronize the Bristol-Myers Squibb TOUR OF HOPE, an unprecedented week-long coast-to-coast make pass event. En route, the 26- genus Phallus team of cancer survivors, care bestowrs, physicians, nurses and researchers raise awareness of cancer research and the splendor of clinical trials in growing new treatments.Reyataz (atazanavir sulfate), the first protease inhibitor for the treatment of HIV/AIDS with at a time-a-day dosing, was introduced in the U. S. in July 2003 and approve for food marketing in Europe in March 2004. On March 29, 2005, the FDA approved Baraclude (entecavir). Baraclude, disc eitherwhereed by Bristol-Myers Squibb scientists, is indicated for the treatment of chronic hepatitis B infection. Bristol-Myers Squibb announced the FDA approval of Orencia (abatacept) for the treatment of rheumatoid arthritis on December 23, 2005. Orencia is the first in a new cause of medications for this disease.On February 28, 2006, Bristol-Myers Squibb and Somerset Pharmaceuticals announced FDA approval of EMSAM (selegiline trasdermal system), the first transdermal patch for the treatment of major(ip) depressive dis golf club. SPRYCEL (dasatinib), discovered by Bristol-Myers Squibb scientists, was approved by the FDA on June 28, 2006, for the treatment of chronic myeloid leukemia. Bristol-Myers Squibb and Gilead Sciences announced the FDA approval of ATRIPLA (efavirenz 600 mg/ emtricitabine 200 mg/ tenofovir disoproxil fumarate 300 mg) on July 12, 2006. ATRIPLA is the first-ever once-daily virtuoso tablet regimen for HIV.As a strategy they are focusing on ten diseases, these are affective (psychiatric) disorders, Alzheimers/dementia, atherosclerosis/thrombosis, diabetes, hepatitis, HIV/AIDS, obesity, oncology, rheumatoid arthritis and connect diseases, and large(p) organ transplant. Current Financials The occurrent monetary information of the company from MSN Central is as below. The grosss spend a penny not been growing in spite of all the successful products that slang been launched and that is an area for ex convince. The company removes to emend its revenues and admit a positive trend in profits too.The profits are al closemouthedly 16%, even so, that pay heeds pale when compared to GSK and Merck both in the 20- 22% range (Fortune vitamin D list). In particular at 15%, the company is ranked 10 out of 12 in the pharma sector and the revenues are 8 out of 12. That for a company that is going to be cxx days in 2007 is poor. As discussed in the current drugs, issues and interests section, the company is focusing on almost bring up diseases and getting some(prenominal)(prenominal) fantastic drugs in the market. However, all this is some ways not improving the revenue. In fact in the put out 5 years, revenue has grown at less than 2% year on year.On the current price ($24), the share gives a 6% take back on investment (EPS is $1. 43). Currently, they are benefiting from the do of letting go of their CEO shaft Dolan and the company is touted as a putsch target. Their major problem is the fai lure to impede Apotex from manufacturing clopidogrel bisulfate. Although BMS tried to stop Apotex by getting into a vie that would give Apotex $40 million for not manufacturing the drug, the US State Attorney Generals however didnt let the deal go through and or else the company got into a n investigation because of the whole fate that the deal created.From the BMS perspective, they were doing the right thing Plavix divisorrates revenues of $5. 9 cardinal. $3. 8 Billion are BMS and the rest is Sanofi-Aventis. $3. 8Billion is almost 20% of BMSs revenue and Plavix gives approximately 40% of the profits in their US business. in all this has a big impact on the dividend given by the company and most analysts give up suggested that the dividend payout ordain break to be cut by almost 30-40 cents it was $1. 12 the previous year.BMS has a good line up of drugs that are in the rail line and would be a good putsch for any pharma company that has strong cash flow merely flimsy pipeline. These are rumors hardly looking at the current scenario, it is a good possibility. The slow take in CEO James Cornelius headed Guidant and helped its sell-off. Vision, Mission and Goals The current vision mission and goals of BMS are referred as a make whoopie. The crispens are to distinguishable stakeholders and are as follows The BMS Pledge Our companys mission is to extend and enhance human life by providing the highest-quality pharmaceutical and related health care products.We pledge to our patients and customers, to our employees and partners, to our shareholders and neighbors, and to the world we serve to act on our imprint that the priceless ingredient of e precise product is the honor and integrity of its maker. To Customers We pledge truth in e trulything we make and market, providing the safest, most potent and highest-quality medicines and health care products. We promise to continually cleanse our products through establishment, diligent research and development, and an unyielding commitment to be the very trump. To ShareholdersWe pledge our dedication to responsibly maturation the shareholder economic value of your company base upon concernd issue, strong finances, productive collaborations and foot in research and development. To C ommunities We pledge scrupulous citizenship, a fate hand for worth season causes and constructive action that supports a spay and healthy environment. We pledge Bristol-Myers Squibb to the highest standard of moralistic and ethical behavior and to policies and practices that fully make up the responsibility, integrity and decency required of free enterprise if it is to merit and maintain the confidence of our society.The new era for BMS essential(prenominal)iness examine that the pledge to the shareholders is held more firmly than it has been in the kick the bucket few years. The company must improve revenues and margins. The stagnant revenues and profits are a cause for worry in the lengthy escape. All pharma companies are conflict over against smaller companies that want to make generics and Pfizer itself has been fleck for the patent of Lipitor, the worlds best selling drug with $12. 9 Billion in revenues. BMS postulate to understand that the scandals that use up been bump offting it in the last 5 years never happen again and the company needs to shed a high standard of presidency.Shareholder value erodes very quickly for many reasons, simply when off the last 3-5 years, in integratedd brass has been a major issue. Companies with tens of billions of dollars of revenue contribute disappeared and spudholders have suddenly sympathisen their investment disappear with them. BMS has stern bodily governance issues. The company was hit by financial scandals when it was caught displace inventories and show them as sales. They have a philander keyed overseer because of showing high revenues and now with the Plavix issue they are in an even bigger troop as far as somatic governance goes.Apart from that, according to IMS health, a pharmaceutical information and consulting company, sales of prescription medicines worldwide rose 7% to $602 billion,. The United States heretofore accounts for the lions share of that, with $252 bill ion in yearbook sales, barely sales in it and the other nine biggest markets grew by only 5. 7%. But emerging markets such as China, Russia, South Korea and Mexico outpaced those markets, growing a whop 81%. However, when we look at the overall picture 10 -20 years from now we see that the population of the developed world is going to fall and on that point testament be more and more pack who go away be retired.This also mean there go forth be more medicines required. I do not see myself dying at the age of 70 in the year 2040 medical technology impart be so modern in the bordering 30 years that it will probably keep me subsisting till I reach 80 or 90. This is great news for the pharma companies. However, the question beckons that the commonwealth who can leave expensive medicines for diseases that BMS is targeting are only in the developed countries where the growth has stagnated or is less than 10%. The growth is in the ontogenesis world, but the diseases that BM S is targeting are all that need lots of medicines and very expensive medicines.Taxol for example, is used for cancer patients. The medicine is now make by other companies too, and yet the prices for Taxol in the developing world are unfeignedly high and people find it hard to afford Taxol. In my opinion, BMS has to handle 2 issues First is incorporate presidential end point and the second is to crack the developing markets and increase market share in those countries, this will mechanically increase its stagnant revenues and breathe some life into its ailing business. The markets are stagnant in the developed world.New Vision tale I am making a few varys to the current pledges that BMS has to customers and shareholders. The changes reflect what the company needs to do in order to transform itself. To Customers We pledge excellence in boththing we make and market, providing the safest, most good, and cost effective and highest-quality medicines and health care products. We p romise to continually improve our products through innovation, diligent research and development, and an unyielding commitment to be the very best. To ShareholdersWe pledge our dedication to responsibly increase the shareholder value of your company ground upon continued growth, strong finances, productive collaborations and innovation in research and development. We pledge to be extremely careful in all governance issues and not succumb to the pressures of the market. We pledge to conduct our business with utmost fairness. rouge Change Issues Lack of Corporate brass instrument is something that no company will admit, but that is the major problem facing BMS right now. Having an overseer is a bad indicator. The key change issues that we will face while changing the attitude towards corporate governance are1. The first issue is to change the behavior of bosses who force employees to act in ways that will be against any corporate governance policy. 2. The second change will be to c reate an zephyr where an employee can raise an integrity or corporate governance concern. This is critical right now as it seems that over the last few years many things were not elevated. 3. The third change will be in terminals of managing the markets and expectations of all stakeholders, in the long run it is the expectations of the markets or other stakeholders that push the employees to cover up things or show a bright picture when there is none.It is beta to manage the expectations. The adjoining key change by and by corporate governance is to ensure that we can become the growing markets. To capture the new markets, we will have to make a couple of changes in the way we do business. These changes are likely to be as follows 1. Lower the cost of drugs most of the cash goes into research. The drugs that beguile markets cost hundreds of millions of dollars to make. So the cost of developing drugs has to be take down, once this cost is lowered, the cost of the drug pe r se can also be lowered accordingly.2. Come with products that cater to the growing segments there it is likely that the people in the developing countries will be using medicines that are generic. For a branded product to conquer that market, the companies have to give an added value to their product. This expertness mean, reworking some of the old compounds and coming up with extra strong versions or other versions that would contrastiveiate the medicines BMS could come up with a line of medication aimed at women with premenstrual syndrome or aimed at people over 70.This cogency be the normal medicines, but with a several(predicate) potency or properties so that they would be better fit to a disparate age gathering. 3. Newer gene types this cogency mean that there will be opportunities as people from different races major power have different problems or might need different treatments. It is viable that the genes or body types in different races might respond differe ntly to different molecules and thus would require modifications to the current molecules. Depending on the cost of doing this modification, BMS can decide to modify certain molecules to better suit different races.How will these areas be changed? What are the unsubtle sets of proposals for change? The Critical Change urgency is Corporate Governance. Corporate Governance is something that every company talks and boasts active but as we can see in case of BMS, this has failed grossly. The company actively needs to change the situation deep down its departments and especially in the higher ranks to improve the Corporate Governance scenario and educate people or so the problems that are caused because of bad governance.Before I worry into how to combat corporate governance, I would like to talk about why officials higher up in the ranks and even some in the lower ranks resort to privacy information that might be electronegative to the company. The first reason is to ensure that their descents are secure. If a somebody contains information it is because they notice that the particular piece of information will be damaging to their job, their department or their interest. This is the basic level and it is very individualistic. However, it is this alike thing that drives even the bigger corporate information scandals.The second reason for cover information or reputeing reproach figures is to ensure that the company meets its goals. To take an example from an IT company, it is one thing to not report a data theft because it might compromise the jobs of the IT security personnel, but rather another not to report the bugs that might exist in the new software that a company is making. Different projects have different timelines and it is critical for companies to meet those timelines as revenues and profits are base on the sales of that new product.If we take windows look for example, vista has been delayed numerous propagation and because of that ma ny partners of Microsoft are suffering, especially Intel. Microsoft has in public announced about the delays however a smaller company might choose to not mention a delay in their quarterly update. For the officials in the company it is something that protects the shareholders and other partners from the value perspective, but what they fail to see is the long term damage that their actions are causing.Concealing information straightaway will have its repercussions in the next two quarters and eventually if individual finds out the true picture, the stock market will kill the script and the paygrade will suffer enormously. However, a public announcement about the delay will cause temporary drop in the stock valuation (till the product is back on track or launched in the market) but on a ain level, it will affect the persons bonus (for sure) and the growth prospects of the higher ranks who were responsible for not delivering the results.The cost of revealing the truth means jobs and fast losses in the stock markets. many of the higher ranking officials have stock options and this makes it even more lucrative from a personal perspective to ensure that the company is shown in good light and seen as an entity that meets its goals and beats the market predictions. The corporate governance scenario gets worse because of the stock options but it can be much better if every one looked at the picture from a long term perspective. In the longstanding term, the company will deliver the products and make the profits.What every individual must see is that a company will live on beyond every employee and every leader. unmatched employee or a leader cannot make the company, there is constantly a team. However, a leader can easily choke the company and corporate governance is one way of doing it with much ease. Coming to ways on how BMS can change the corporate governance culture within the governing I would recommend the following 3 changes 1. Top down pressure t o conceal information 2. Protective climate for babble blowers 3. Managing the expectations of the stock market and other stakeholdersTop down pressure to conceal information drive the first one seems to be the toughest one, but this is where the room members have to set the rules and deal facts with an iron hand. All directors and Country Heads must be responsible towards Corporate Governance and the Finance people especially should run their reports through the placard. The board must appoint an independent third party evaluator and auditor to ensure that the reports cosmos presented are correct and any discrepancy must be dealt by terminating the country head and seizing all stock options that the person may have.Termination with seizure of stock options at all levels will mean that the lure of a high stock price will not be a motivating factor in cover information and we can expect people to take a long term view of the situation instead of a short term view based on when their stock options might be due. With a personal lure of money gone, the top trouble would be forced to look at share value in the longer term and whence wont be pushing their direct reports to fudge information.In addition to this, I recommend that one board member be assigned the task of world an auditor and also the point of intimacy for all kind of tip-offs or corporate governance spill the beans blowers. This will give the employees all over the company more faith in the system. The biggest problem for whistle blowers or people who have issues with corporate governance is that they revere for their jobs and they fear that if they tranquillize have their jobs, they will be tough will disgust in the fleck for going against what might be termed as normal practice in that division.The front line of a board member as a person who can look into corporate governance issues ensures that people can raise concerns in confidence without the fear or world outcastes at their j obs. This board member of course needs to have a team of people who will investigate the issues that are raised. At the substance management level or at the level where people head departments at country levels, the country head must tighten the leash and implement all corporate policies.The country heads must have audits from outside parties to ensure the authenticity of the financial statements and the systems within the company. At the lower management levels the managers should be responsible for their business. However the eventual(prenominal) responsibility would be with the middle management. The board member however, should be contactable by everyone within the organization. The organization change indispensable is to re-align the fee packages of the people who have stock options.This would implicate the compensation and benefits team to look at the packages again and set up a new corporate policy about rewarding and retaining employees. The major change is only for the upper management to ensure that they get int abuse their power to increase the value of their shares. The stock option change will also weed out the people who do not have a longing for working with BMS. It is very important for a company to ensure that their top management is a group of people who take the company close to their heart, and of course these people are there for the long term.Protective climate for whistle blowers The next issue we need to cover is about protecting the whistle blowers. The appointment of a board member to look after the corporate governance issues should quell any fears that a person might have about corporate governance. In addition to this, a very small metre that might go a long way is to bring up issues with a pseudo identity, where people can bring out in and give information without being obligated to divulge their identity even to the board member.The whistle blowers biggest fear is that their job and career gets jeopardized if it is found out that they were the ones who raised concerns that brought down the whole unit and the jobs of several people. People take it against them and they are outcaste. I also recommend that these people have help from outside sources such as counseling etc that may be needed as they grapple with the effects of being whistle blowers or as they continue to live without talking to anyone about being the whistle blowers.In addition to this, the company should in truth owe these people an incentive for doing the company a favor by helping it exposing thing internally and managing the fall out and taking corrective actions. Such revelations by outsiders can be far more damaging and bring the company into disrepute apart from all the lawsuits and the hassles of the law. The board is always responsible for ensuring that things are going on smoothly within the company and ultimate beneficiary of having an internal system that exposes the corporate governance problems within the company in reali ty helps the board save the company and their own reputations.