Bristol-Myers Squibb will divest its Medical Imaging business, the company told investors Wednesday. BMS is also reviewing a range of strategic alternatives for its ConvaTec and Mead Johnson businesses.

"We remain fully aware of the important contributions 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.

The Medical Imaging division markets the Cardiolite technetium-based radiopharmaceutical, as well as other radiopharmaceuticals and ultrasound contrast media.
The company is undertaking a number of anticipated moves to cut costs by $1.5 billion. These include consolidating some manufacturing operations. Specifically they will reduce the number of brands in the company's mature products portfolio by 60 percent between 2007 and 2011; reduce the number of manufacturing facilities by more than 50 percent by the end of 2010; and reduce total number of employees by approximately 10 percent (about 4,300 jobs) between 2007 and 2010. (Some positions have been eliminated in 2007 and the substantial majority of positions will be eliminated in 2008 and 2009.)

"It is difficult to see our valued colleagues leave the company, but right-sizing our workforce across all areas is critical to achieving our productivity goals and enhancing the competitive position of the company. While we are reducing headcount in certain functions, we will continue to invest in R&D, biologics and commercialization talent," said Mr. Cornelius.

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