James Cornelius, Chief Executive of Bristol-Myers Squibb Co. (BMY) will retire in May after four years at the Pharmaceutical company. Lamberto Andreotti, the New York based company’s current Chief Operating Officer and President has been named as his replacement. Cornelius, who was known for moving his company away from non-pharmaceutical pursuits, will stay on as a board member.
Cornelius’ legacy of streamlining exclusively to pharmaceuticals is unique in that many like corporations seek to expand their assets beyond drug making. The 66-year-old’s departure comes as little surprise to the company who nominated Andreotti to the board of directors last year in preperation for the switch. Andreotti is 59-years-old and will take his new post beginning May 4.
The new CEO will be forced to address several larger issues facing Bristol, the worst of which being the end of the brand’s patent for blood clot remedy, Plavix in 2012. Plavix has been an enormous profit vehicle for the company, generating upwards of 6 billion in profit in 2009 alone. The patent losses will deplete that profit significantly as generic drugs increase competition. Andreotti is sure the company has cushion enough to endure the blow with $10 billion in cash and marketable securities. The company plans to use that cash for acquisitions that will expand their experimental drug sector.
Bristol shares gained 33 cents to $24.72 Tuesday.
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