Bristol-Myers Squibb Co investors are asking why Chairman Peter Dolan, who got a 40 percent salary raise last year to take control of the drugmaker, didn't foresee slipping profits. Some find little reassurance in his plan to expand his role in running the business.
The company on Wednesday said profit will fall as much as US$1 a share this year as Bristol-Myers cuts shipments to wholesaler customers who stocked up on discounted drugs last year. The sales slowdown adds to Dolan's woes after he lost battles against cheaper generic drugs and had setbacks with two experimental products.
This is the second time the company has lowered profit estimates in four months, suggesting it didn't know the extent of the inventory backlog until recently. Dolan inherited company problems when he took over in May, though investors say some of his moves made the troubles worse.
"Dolan is saying he's going to take over this and do that, but he may be part of the problem," said Chris Delpi, director of equity research at Philadelphia International Advisors, a unit of Bristol-Myers shareholder Glenemede Trust Co. "I know he's only been in office a little while but how could he not have known about the inventory issue?" Dolan asked.
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