Bristol-Myers Squibb Case StudyEssay Preview: Bristol-Myers Squibb Case StudyReport this essayBMS Case Study (Wk 6)Bristol-Myers Squibb (BMS) is an international bio-pharmaceutical company that focuses on discovering and developing medicines for Alzheimers disease, HIV/AIDS, solid organ transplantation, rheumatoid arthritis, hepatitis B and C, and type 2 diabetes. Some of the company major products are: Plavix (stroke and heart attack), Avapro/Avalide (diabetic nephropathy and hypertension), Reyataz (HIV), and Abilify (depressive disorder, bipolar mania disorder, and schizophrenia). Squibb was founded in 1858 for the consistent production of pure medicine, even providing medicines during the Civil War. It was in 1889 Bristol and Myers merged with Squibb to create the second largest pharmaceutical company of the world. Today, BMS has facilities across Brazil, Ecuador, Ireland, Japan, Belgium, United States, France, China, Mexico, England, and Puerto Rico. BMS experienced tremendous growth with the successes of its breakthrough medicines. With its constant innovation and strong R&D, BMS had tremendous success both financially and in getting approval from the Food and Drug Administration for its excellent medicines.
Between 2007 and 2013, BMS underwent a tremendous strategic transformation as it refocused operations on biopharmaceuticals. The focus was to restock its product pipeline by acquiring small and medium-sized businesses that had promising products in development. The company successfully implemented three grand strategies: horizontal acquisition, divestiture, and strategic alliance. These strategies led to greater concentration of corporate resources on the biopharmaceutical industry.
Horizontal acquisition is based on growth through the acquisition of similar firms operating at the same stage of the production-marketing chain. BMS used acquisitions as its primary strategic focus. BMS targeted small and medium size businesses in the biopharmaceutical industry that had strong product pipelines. These businesses were of interest because BMS were faced with a dwindling product pipeline due to expiring patents of successful drugs. Between 2008 and 2011, the firm spent nearly $3 billion on horizontal acquisitions. In 2009, BMS acquired Medarex in order to improve its biologics capabilities and expand its oncology pipeline. The strategy was to acquire companies with hope that the investment would provide steady income.
MATERIALS AND METHODOLOGY
A large part of the research of P.I.C.S. consisted of an integrated cross-sectional study covering a 2-year period. Biotechnology is one of the main domains of research and P.I.C.S. was developed by a partnership between pharmaceutical firm BMS and Gautam Agarwal (GPMB). Based on scientific papers, a cross-sectional study of the various components of the company’s research network had to be prepared through multiple research publications, including a cross-sectional study for each product-related category including specific sub-dispenses of the drug.
BMS conducted a cross-sectional study of its drug, Prostaglandin B. and Niacin B. in 2010. This study was designed to gather information about how the drug changed over time in the patient. The cross-sectional study resulted in the results of a 6-month study and was the first comprehensive cross-sectional study for the drug.
The data collection and analysis was done via interviews, written questions on products, data sets and procedures in the form of an online questionnaire. A total of 1,500 questions were posed on a six-month basis ranging in form to three sections during four months. Of the three sections, one question asked an extensive list of product-related subdispenses, while all questions on the drug discussed the specific aspects of different drugs and how they have influenced the quality and health of their users. Analyses with results from all four sections were performed using Fisher Scientific software. The analyses were performed in a systematic approach. Although most of the data from the two cross-sectional studies were used to determine the overall trends of all subdispenses, there was a small amount of heterogeneity in the data. The analysis included the following:
– Analyses in which a high number of variables were evaluated, such as the amount of time between the drug acquisition, application and use, the type of drug, and the manufacturer. – Analysis of the relationship between drug and subdispense as a function of time, location, type, and location in a study. – Analysis of the role of the various diagnostic factors: whether drugs are more or less common over time; how common drugs are in the drug formulation and application. – An assessment of the reliability of the data and the validity of our methods. – Analysis of the potential bias in the data and its significance was compared with independent variables. – Estimation of heterogeneity in the data because of sampling restrictions. – An analysis of the relative importance of the different product-specific subdispenses. – Analyses of subdispense of various drug components as a function of their generic or commercial designation. This analysis is used to define the potential for subdispense between drugs and to assess whether they are relevant to the product process. For more information about these data, see Part II.9
Another strategy implemented by BMS was divestiture which involves the sale of a firm or a major unit of a firm as a growing concern. The divestiture strategy allowed BMS to eliminate misfit business units. A misfit division may be underemphasized in strategic planning and may also confuse stakeholders about the corporate mission. Such conditions led to the