Posted on September 24, 2010 by BioJobBlogger

Bristol-Myers Squibb to Cut 840 Jobs Worldwide

Several months ago, I posted an article that suggested that layoffs in the pharmaceutical industry were beginning to slow. Apparently executives at Bristol Myers Squibb (BMS) didn’t read my blog post (I believe that they have in the past) and today announced that the company will eliminate 840 jobs or 3 per cent of its 28,000 member workforce.

The company says the jobs will be eliminated over the next six months, and the cuts could be spread across all its businesses and geographic locations. A BMS spokesperson indicated that company executives are still reviewing the entire organization to determine which jobs will be eliminated. The new round of layoffs is intended to further streamline the company. Interestingly, BMS purchased Seattle-based Zymogenetics for $885 million two weeks ago.

These cuts coupled with small biotechnology company acquisitions and a recent stock buyback initiative suggests that the company may be positioning itself for sale or merger. BMS’ top selling drug Plavix which represents almost 40 percent of the company’s revenue stream will lose patent protection in 2011.

Until next time...

Good Luck and Good Job Hunting!!!!!!!!

 

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Posted on September 8, 2010 by BioJobBlogger

Another One Bites the Dust: Bristol Myers Squibb to Acquire the Biotechnology Company Zymogenetics

The New York Times today reported that Bristol Myers Squibb (BMS) will acquire Seattle, WA-based Zymogenetics for $885 million or $9.75 per share. The two companies were jointly developing new medicines to treat hepatitis C infections. The $9.75 a share in cash represents an 84 percent premium to Zymogenetics closing stock price on Tuesday.

BMS executives must believe that the jointly-developed hepatitis C product, PEG-interferon lambda will be a winner because the company is usually reluctant to pay such high premium prices for acquisitions. The new PEG-interferon lambda product will have to compete against similar products PEG-Intron (peginterferon alfa-2b, Merck) and Pegasys (peginterferon alfa-2b, Roche) in a highly competitive hepatitis C treatment market currently dominated by Roche. Also, several companies, most notably Vertex Pharmaceuticals, have orally-bioavailable small molecule hepatitis C treatments in late stage clinical development. All of the PEGylated interferons must be administered via injection.

BMS has a variety of marketed treatments for HIV/AIDS and hepatitis B infections. These products, along with its market leading anti-clotting agent Plavix (co-marketed with Sanofi-Aventis) are facing fierce generic competition in the not-to-distant future.

The company’s acquisition of Zymogenetics is another step towards transforming BMS from a small molecule pharmaceutical company into a biotechnology-focused drug maker. In addition to PEG-interferon lambda, Zymogenetics is developing protein-based treatments for surgical bleeding (recombinant human thrombin), metastatic melanoma (IL-21) and atopic dermatitis (IL-31 mAb). 

Zymogenetics was founded in 1981 and is one of Seattle’s largest independent, publicly-traded biotechnology companies. Stay tuned as more consolidation continues in the biotechnology sector.

Until next time....

Good Luck and Good Job Hunting!!!!!!!

 

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