Pharmaceutical giant Bristol-Myers Squibb is planning to sell off its medical imaging unit as part of a restructuring of the New York City-based company.
In a press release issued today, Bristol-Myers Squibb said it was implementing a corporate restructuring designed to increase profitability and generate higher revenues. The company said the plan includes personnel cuts of 10%, and is expected to generate pretax cost savings of $1.5 billion by 2010.
As part of the restructuring, Bristol-Myers Squibb will divest its medical imaging division, based in North Billerica, MA, as part of an initiative to "maximize the value" of its healthcare group. The group will focus its activities on what it called "key growth products," including specialty and biologic medicines as well as cardiovascular and metabolic drugs.
The company's activities in medical imaging are dominated by Cardiolite, a technetium-based radiopharmaceutical for nuclear cardiology imaging. While Cardiolite has been highly profitable for the company over the years, the product is going off patent protection shortly and will face increased competition from generic alternatives.
In a conference call with investors on December 5, Bristol-Myers Squibb CEO Jim Cornelius said that the company has been unable to develop a blockbuster follow-up to Cardiolite in medical imaging.
"We've had difficulty coming up with follow-on innovation, and as a result that mature brand (Cardiolite) has become very mature," Cornelius said. "We 've seen enough preliminary interest (from potential buyers of the division) to do the right thing for the employees."
The company also markets Definity, an ultrasound contrast agent, as well as Neurolite, a technetium-based SPECT brain perfusion radiopharmaceutical. Other Bristol-Myers Squibb products include Xenon Xe 133 gas, TechneLite, and Miraluma.
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