Bristol Myers Squibb has announced a new goal to slash an additional $2 billion in costs by the end of 2027, just nine months after unveiling a previous plan to cut $1.5 billion in costs.
The company’s new “strategic productivity initiative” aims to reduce costs through organizational design changes and operational efficiency enhancements. While the exact number of layoffs is not disclosed, CEO Chris Boerner said that $1 billion of the savings will be achieved this year, with the remainder coming by 2027.
BMS faces challenges due to patent expirations for its top-selling cancer treatment Opdivo and blood thinner Eliquis. The company also recently lost exclusivity on blood cancer medicine Revlimid, which is expected to impact sales.
However, the company’s latest acquisition, Cobenfy, has shown promising signs, with $10 million in sales in the fourth quarter. BMS has initiated seven phase 3 studies for the treatment and plans to invest behind growth drivers.
The new cost-cutting plan comes as BMS faces increasing competition from generic drugs. Analysts note that while Bristol Myers Squibb has a strong management team and improving pipeline, fully overcoming current and upcoming competition may take time.
Source: https://www.fiercepharma.com/pharma/bristol-myers-squibb-unveils-plan-cut-additional-2b-costs