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Bristol-Myers Squibb to refocus on biotech sector

Bristol-Myers Squibb said on Wednesday it was undertaking a massive restructuring to focus in part on biotechnology and specialty drugs and would slash 10 percent of its workforce by 2010.

The restructuring is to "increase profitability," the global pharmaceuticals giant said in a statement.

The operation also is aimed at transforming Bristol-Myers Squibb "into a next-generation BioPharma company that pairs the scale and resources of a mid-sized pharmaceutical company with the entrepreneurial spirit and innovative focus of a biotech startup," it said.

ALREADY STARTED

The New York-based company said the 10 percent reduction in workforce, affecting some 4,300 employees, has already begun and would be accompanied by a reduction in the company's mature brands drug portfolio and production capacity. The number of manufacturing facilities will be halved by 2010.

Bristol-Myers Squibb said it wants to make strategic acquisitions and alliances that "should add to the company's innovative capabilities, portfolio and pipeline to amplify the company's ongoing focus on growth areas, such as specialty medicines and biologics."

PRE-TAX SAVINGS

The restructuring is expected to generate US$1.5 billion in pre-tax savings by 2010 and a pre-tax cost of between US$900 million and US$1.1 billion.

Bristol-Myers Squibb predicted its earnings per share (EPS) excluding exceptional elements would be unchanged this year, at US$1.42 to US$1.42. It lowered its guidance on net EPS to a range of US$1.15 to US$1.20, down from US$1.28 to US$1.33.

For next year, the company raised its estimated EPS -- minus exceptionals -- to between US$1.65 and US$1.75 from between US$1.60 and US$1.70 and provided its first estimate of net EPS at US$1.44 to US$1.54.
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