8-KOther Events

BRISTOL MYERS SQUIBB CO 8-K Report, Corporate Update (Aug 18, 2006)

Filed August 18, 2006For Securities:BMYCELG-RIBMYMP

Summary

Bristol-Myers Squibb Company (BMY) issued an 8-K filing on August 18, 2006, detailing significant developments concerning a Department of Justice (DOJ) criminal investigation related to the Plavix settlement. The Board of Directors affirmed its commitment to full cooperation with the grand jury and highlighted an ongoing internal investigation by outside counsel, which has reportedly found no evidence of unlawful conduct by company employees. The Board expressed its desire for a thorough DOJ inquiry to ascertain if any criminal conduct occurred during the settlement negotiations. The company is actively engaged in legal actions to prevent the sale of a generic version of Plavix by Apotex, having filed a preliminary injunction motion. The Board is receiving frequent updates on both the commercial strategy for Plavix and legal developments, with independent directors consulting with external counsel on governance matters. The paramount focus for the Board remains protecting the best interests of the Company and its shareholders amidst these ongoing investigations and legal challenges.

Key Highlights

  • 1BMY Board of Directors is treating the DOJ criminal investigation regarding the Plavix settlement with utmost seriousness and ensuring full employee cooperation with the grand jury.
  • 2An independent internal investigation by BMS's outside counsel has reportedly found no evidence of unlawful conduct by BMS employees.
  • 3The Company is pursuing legal action, including a preliminary injunction motion, to halt Apotex's sales of a generic version of Plavix.
  • 4BMY has retained prominent legal counsel, including Mary Jo White and Kenneth Conboy, to conduct independent investigations and advise on corporate governance.
  • 5The Board is receiving frequent updates from management and legal counsel on Plavix commercial plans and legal developments.
  • 6The Board's primary concern is to protect the best interests of the Company and its shareholders.
  • 7A hearing on the preliminary injunction motion to halt generic Plavix sales is scheduled to begin on August 18, 2006.

Frequently Asked Questions

This 8-K filing addresses the ongoing Department of Justice (DOJ) criminal investigation into the settlement of the Plavix litigation. The company's Board of Directors is making a statement about their involvement and the company's response to this investigation.

Bristol-Myers Squibb's Board of Directors is treating the investigation with high seriousness and has directed all employees to cooperate fully with the grand jury. They welcome a broad inquiry by the DOJ to determine if any unlawful or criminal conduct occurred during the Plavix settlement negotiations.

The company has filed a preliminary injunction motion to stop Apotex from selling a generic version of Plavix, which BMY alleges infringes on the patent of its product partner, sanofi-aventis. The company also seeks to recall all generic Plavix product. A hearing on this motion is scheduled to commence shortly.

An internal investigation conducted by BMS's outside counsel has reportedly not found any evidence of unlawful conduct by BMS employees. The results of this review are being shared with the DOJ.