Bristol-Myers Squibb Announces A "Strategy For Growth"

Company Sharpens Its Focus on Medicines Business

11-Oct-2000

NEW YORK, -- Charles A. Heimbold, Jr., chairman and chief executive officer of Bristol-Myers Squibb Company (NYSE:BMY), today announced an aggressive growth strategy and corresponding financial goals for the company. Mr. Heimbold said the company planned to meet or exceed consensus earnings growth rate expectations for 2001. In 2002, the company plans to improve upon the earnings growth rate achieved in 2001.

At a meeting in New York with several hundred securities analysts and fund managers, Mr. Heimbold and other senior executives outlined a comprehensive seven-point "Strategy for Growth."

Mr. Heimbold expressed his belief that the plan's objectives are aggressive but achievable, by citing what has been accomplished at Bristol-Myers Squibb over the past seven years. "In January 1994, I set the goal of doubling our sales, earnings and earnings per share by the end of the year 2000," Mr. Heimbold told investors. "I am proud to tell you that by December 31st of this year, we expect to have doubled earnings and earnings per share and to have virtually achieved the sales target."

Peter R. Dolan, president, Bristol-Myers Squibb, said "This new plan is intended to challenge the company over the next five years to again double sales, earnings and earnings per share, to create 'mega-blockbuster' products of several billion dollars and to pursue 'mega-blockbuster ideas' that can also add billions of dollars in revenue growth."

Highlights of the seven-point "Strategy for Growth":

Sharpen the Focus on Medicines. To devote greater attention and resources to the Medicines business, Bristol-Myers Squibb will divest two divisions -- Clairol, the world class beauty care business, and Zimmer, a leading producer of orthopaedic implants and devices. The company expects to complete the divestitures in the next six to 12 months.

Aggressive External Development. The company intends to broaden growth opportunities through a more active pursuit of co-promotions, joint ventures and acquisitions. A key strategy in this area will be to become a major presence in Japan, the world's second largest pharmaceutical market. Discussions are currently under way to broaden the company's presence in Japan during the 2001-2002 time frame.

The European primary care market also has been targeted for expanded growth through co-promotions, licenses and partnerships with discussions under way.

Mr. Dolan also cited external development as a means of growing the company's presence in the biologics arena. "We are already an industry leader in genomics with a sizeable biotechnology company integrated within our Pharmaceutical Research Institute. We plan to complement this genomics capability with the biologics expertise needed to develop and manufacture these important therapies. External development will be key to this strategy and we plan to move quickly toward this end."

Leverage Leadership in Licensing and Co-Promotions. To complement in-house R&D, Mr. Dolan said the company would further enhance its traditional strength of in-licensing significant products. Underscoring this renewed effort, he reported that the company was working to finalize an important new co-promotion and co-development agreement on a potential global blockbuster product. "This agreement will serve as a great example of the possibilities ahead," he said.

Maximize Promise of High Potential Products. Richard J. Lane, president, Worldwide Medicines, discussed company plans to commit additional resources to support growth objectives for existing products. Among the products Mr. Lane discussed were:

Glucovance™, the type II diabetes agent that has performed exceptionally well since its August launch. "We intend to build on this formidable momentum through an aggressive sales effort which will contribute to the Glucovance family growth of 20 percent in 2001," Mr. La

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