Bristol-Myers Squibb Co (NYSE:BMY) is seeking to reshape its research and development footprint across the U.S. With that, the company says it will be shutting down a host of it centers while integrating others. The integration, which is meant to foster greater speed and collaboration, will involve biologics development with clinical manufacturing at key sites.
The R&D hub of innovation in Jew Jersey, which currently hosts one million square feet of labs, office space, and computing facilities with expansion opportunities, is the first in the shutdown lineup though the company asserts that this will be in a decade’s time.
The move will facilitate flexibility to deliver; says Bristol-Myers
Though the closure of the Hopewell, New Jersey site will occur by mid-2020, the company asserts that it is for purposes of structural and operational flexibility to delivery. CEO at Bristol-Myers Squibb, Giovanni Caforio writes, “Today’s announcement underscores our commitment to make the right investments to continue to deliver on the promise of our pipeline and to bring transformational medicines to patients, today and in the future.”
Meanwhile, the company has already completed two new buildings at the Devens manufacturing site. It will also inject another $5 million to $10 million in a major expansion project on the same site. Plans are underway to build a new R&D facility in Lawrenceville, New Jersey. All this is in an effort to drive the company’s continued success model, which focuses on investment in commercial opportunities against key brands and markets. But where will everyone go to?
While it is not clear how many employees would lose their jobs, there will be a huge transition. Some of the U.S. employees will be relocated to the biologics manufacturing site in Devens
But Bristol-Myers has potential R&D’s impending deals
As all this unfolds, Bristol-Myers has other surprises in store. It has been seeking to join a parade of prominent drug makers in recent years. It has so far grabbed various deals that could put it at another level. In July, it acquired Sweden’s Cormorant Pharmaceuticals. In October last year, the company signed a deal worth of $1.74 billion to obtain universal rights to an early-stage anti-immunosuppressant drug from Five Prime Therapeutics Inc (NASDAQ:FPRX).
However, it has had a share of setbacks; the failure of its big I/O med Opdivo in a pivotal lung cancer trial, which would have boosted its chances of beating out its rival.
