Emerging Business Models in the Pharmaceutical Industries ...

Strategic Direction
The company aims to grow through acquisitions,
divestitures, joint ventures, and co-promotion and comarketing
arrangements. In April 2004 BMS acquired
Acordis Specialty Fibres, which specialises in
developing innovative wound therapeutics and ostomy
products. The company also acquired DuPont
Pharmaceuticals to strengthen its medicines business.
They also try to maximise high-potential growth
products and accelerate its R&D pipeline. BMS is also
going in for a radical restructuring plan to focus on its
profitable pharmaceuticals division. The plan led to the
divesting of its beauty products division, Clairol, and the
sale of its orthopedic subsidiary, Zimmer.
To overcome the imminent threat of losing patents, the
company has secured licenses for basic compounds
whose patent exclusivity expires on a market-by-market
basis. For instance the company has licensed a patent
covering Pravastatin, marketed by them in the U.S. as
Pravachol, from Sankyo Company, Ltd. of Japan
(Sankyo). Pravastatin has patent different expiry
schedules in various markets.
In terms of biotechnology the company has partnered
with Corgentech, a biopharmaceutical company, and
entered into an agreement to jointly develop and
commercialise Corgentech’s E2F Decoy, a novel
Bristol Myers Squibb
treatment for the prevention of vein graft failure following
coronary artery bypass graft and peripheral artery bypass
graft surgery.
In the area of integrated research the company is
partnering with Exelixis, Inc. (Exelixis) under which the
two companies will continue to identify and validate
molecular targets implicated in the genesis of cancer. The
research alliance will support the company’s oncology
divisions.
Strategic Analysis of the Pharma Market, Future Revenue Models and Key Players 68