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Bristol-Myers Squibb Company Outlines Strategy and Productivity Transformation Initiative During Update to Investment Community
Date:12/5/2007

these businesses have made to earnings and cash flow, and we will take these factors into full consideration when weighing our strategic options," said James M. Cornelius, chief executive officer, Bristol-Myers Squibb.

As a next-generation BioPharma company, Bristol-Myers Squibb seeks to reallocate resources to enable additional strategic acquisitions, such as the recent acquisition of Adnexus Therapeutics, as well as pursue partnerships and other collaborative arrangements. These alliances 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.

Productivity Transformation Initiative

In addition to its overview of the company's strategy, senior management will discuss the scope and details of its Productivity Transformation Initiative, the company's first step to achieve a culture of continuous improvement which was begun earlier this year. Over 300 initiatives have been identified that will enhance the company's efficiency, effectiveness and competitiveness and substantially improve its cost base.

Key productivity initiatives include reducing general and administrative operations by simplifying, standardizing and outsourcing, where appropriate, processes and services, rationalizing the company's mature brands portfolio, consolidating its global manufacturing network while eliminating complexity and enhancing profitability, simplifying its geographic footprint and implementing a more efficient go-to-market model. Specific productivity goals include:

-- reducing the number of brands in the company's mature products

portfolio by 60 percent between 2007 and 2011;

-- reducing the number of manufacturing facilities by more than 50

percent by the end of 2010; and

-- reducing total headcount by approximately 10 percent between 2007

and 2010.

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SOURCE Bristol-Myers Squibb Company
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