Bristol-Myers Squibb Company (BMY) announced certain leadership changes approved by its board of directors including the appointment of Giovanni Caforio as the new chief executive officer (CEO) of the company. These changes will be effective at the close of the annual Shareholders’ Meeting on May 5.
Caforio joined Bristol-Myers Squibb in 2000 and has been a part of the company’s board of directors from last year. He has played a crucial role in the company’s successful transformation to a diversified specialty biopharma company.
As CEO, Caforio will succeed Lamberto Andreotti, will become the executive chairman of the board of directors on May 5 and will continue to serve as chairman after his retirement on Aug 3.
The new CEO will have his work cut out for him as generic competition for several drugs including the hepatitis B virus drug, Baraclude, continues to affect the company’s revenues. Bristol-Myers is looking to strengthen its product portfolio by launching new drugs to make up for the loss of revenues from genericization.
The successful development of the pipeline holds the key in this situation. We believe that investor focus will remain on updates from the company’s pipeline and its fourth quarter and full year results, scheduled to be announced on Jan 27.
Bristol-Myers carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Amgen Inc. (AMGN), AMAG Pharmaceuticals, Inc. (AMAG) and Impax Laboratories Inc. (IPXL). While Impax Labs and Amgen carry a Zacks Rank #1 (Strong Buy), AMAG holds a Zacks Rank #2 (Buy).
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