Pharma To Date

Bristol Myers Squibb (BMS) continues its cost-cutting initiative with the layoff of 79 employees at its Lawrenceville, New Jersey, site. This decision is part of the company’s broader $1.5 billion cost-reduction program, which aims to streamline operations by 2025. The latest round of layoffs will take effect between December 2024 and May 2025, following previous reductions earlier in the year.

The company’s Strategic Productivity Initiative, revealed in April 2024, targets approximately 2,200 roles, equating to a 6% workforce reduction. BMS has been strategically trimming its research and development (R&D) budget, reallocating resources to focus on programs with higher return potential. This includes prioritizing key growth brands and optimizing internal operations to maintain innovation and drive future growth.

This latest reduction brings the total number of layoffs in Lawrenceville to 1,134 employees in 2024 alone, including a significant purge of 863 jobs in May. BMS has faced mounting pressure due to impending patent expirations, particularly for its blockbuster drugs, the blood thinner Eliquis and the PD-1 inhibitor Opdivo. Additionally, Eliquis is set to face a Medicare price adjustment under the Inflation Reduction Act in 2026, further adding to the company’s challenges.

BMS has also pursued acquisitions as part of its long-term growth strategy. In January 2024, the company completed a $4.8 billion acquisition of cancer specialist Mirati Therapeutics, followed by layoffs within the newly acquired subsidiary. These efforts align with industry trends, as several other major pharmaceutical companies, including Pfizer, Novartis, Bayer, and Biogen, have also launched similar cost-reduction campaigns.

For healthcare professionals, these layoffs highlight the evolving landscape of pharmaceutical companies as they navigate patent expirations, regulatory pressures, and market dynamics. BMS’s strategy emphasizes a balance between reducing costs and reinvesting in innovation to remain competitive. As a key player in the pharmaceutical industry, BMS’s restructuring may impact drug development timelines and future advancements in oncology and cardiovascular care.