Bristol-Myers Squibb to Shut Down Three Sites by 2020 But Will Expand in New Jersey and Massachusetts
December 13, 2016
By Mark Terry, BioSpace.com Breaking News Staff
Bristol-Myers Squibb announced today that it is making a number of changes to its “geographic footprint.” This is consistent with an October 2016 announcement on changes to its operating model to focus on a more competitive and agile research-and-development organization.
Lawrenceville, New Jersey. Bristol-Myers Squibb plans to invest in the construction of a new research-and-development building at its campus. This new building will co-locate lab-based Discovery and Translational Medicine Activities. And it had previously announced that it plans to expand its recently opened Princeton Pike facility in Lawrenceville.
New Brunswick, New Jersey. The company is also continuing and advancing construction in support of biologics development.
Devens, Massachusetts. In addition to the New Brunswick site, the Devens location sill have additional construction to expand its biologics campus.
Hopewell, New Jersey. Bristol-Myers Squibb indicates that it plans to start a phased multi-year closure of its site in Hopewell, NJ, with plans for completion by the middle of 2020.
Seattle, Washington. The company says it will not renew its lease at the Lake Union Steam Plant in Seattle in 2019.
Wallingford, Connecticut. Bristol-Myers had previously announced that it had changed its plans about building a Connecticut Development site, and the company confirmed that decision.
Bristol-Myers Squibb also indicates that many of the jobs at Wallingford, Hopewell and Seattle will be moved to other locations.
“These important changes to our U.S. geographic footprint will ensure that we have the structural, operational and financial flexibility to deliver as effectively as possible on our mission for patients,” said Giovanni Caforio, chief executive officer, Bristol-Myers Squibb, in a statement. “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.”
Previously announced geographic changes include:
Cambridge, Massachusetts. The company plans to invest in developing a state-of-the-art research facility in Cambridge, Massachusetts.
Redwood City, California. It will expand its research campus.
In other news, multiple state attorney generals announced late last week that Bristol-Myers Squibb will pay $19.5 million to settle “allegations that it promised use of the antipsychotic Abilify in seniors, despite its known risks.”
The settlement involved 42 states and Washington, DC and is the result of an investigation into the company’s marketing of Abilify for off-label uses. Allegedly the company marketed the drug for older adults with dementia and Alzheimer’s risk, even though the U.S. Food and Drug Administration (FDA) had not approved it for that use. And, in fact, the FDA gave the drug a “black box” label warning in 2005 of the potential risk of premature death, and that it increased the possible risk of death in some patients with dementia-related psychosis.
Bristol-Myers Squibb indicates that it had not marketed Abilify since 2013. The drug is manufactured by Otsuka America Pharmaceutical.
The drug is approved in the U.S. to treat schizophrenia, bipolar disorder, major depressive disorders and Tourette’s disorder. In 2014, it created $5.5 billion in sales.
Bristol-Myers has denied the allegations, but agreed to the settlement and several marketing restraints. In a statement the company said, “We are pleased to put this matter behind us so that we can focus on making transformational medicines for patients battling serious diseases.”