Ailing Bristol-Myers Seeks
Options to Aid Its Pipeline
By JOANN S. LUBLIN and RACHEL ZIMMERMAN
Staff Reporters of THE WALL STREET JOURNAL
Beleaguered drug giant Bristol-Myers Squibb Co. has asked Goldman Sachs Group
Inc. to explore a host of alternative strategies that might help remedy its looming
drug-pipeline problems, said a person familiar with the situation. Among those
alternatives are a sale of the entire company, a merger of equals, a major acquisition
or a sizable equity stake in a promising smaller company, such as the deal made last
year with ImClone Systems Inc., this person said.
Bob Laverty, a spokesman for Bristol-Myers, wouldn't confirm or deny talks
between the drug company and Goldman. "To us, it's speculation, and we don't
comment on rumors or speculation," he said. Goldman Sachs also declined to
comment.
Rumors have been rampant in recent weeks that the New York pharmaceuticals
maker, plagued by problems on several fronts, is looking for a buyer or merger for
salvation. Patents on three of its top-selling drugs recently expired, 29 state
attorneys general are suing the company for blocking generic competition, and the
U.S. Federal Trade Commission is investigating alleged anticompetitive actions.
In the latest blow, Sam Waksal, former chief executive officer of Bristol's biotech
partner, ImClone, was arrested Wednesday and charged with insider trading.
Bristol agreed to pay $2 billion to the New York biotech company last year to
co-develop and market the cancer drug Erbitux, which has been buffeted by the
events surrounding the company.
So far, however, "there have been zero discussions," a person said, between Bristol
CEO Peter Dolan and leaders of three companies most mentioned as possible
partners: GlaxoSmithKline PLC of the United Kingdom; Pharmacia Corp. of
Peapack, N.J.; or Wyeth of Madison, N.J. Nor have there been any preliminary
merger chats between lower-level officials at Bristol-Myers and Glaxo.
However, it is likely that Bristol-Myers, with a market capitalization of about $50
billion, would seriously consider an attractive friendly offer from Glaxo, according
to someone familiar with Bristol-Myers's thinking.
A Glaxo representative said the drug maker doesn't comment on market rumors,
but "we're always looking at opportunities in the marketplace, particularly in
products to fill late-stage pipeline."
Another potential partner, though mentioned less frequently, is Aventis SA. The
French company, seeking to expand in the U.S. market, wouldn't comment.
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