8-KOther EventsExhibits & Filings

BRISTOL MYERS SQUIBB CO 8-K Report, Corporate Update (Sep 28, 2007)

Filed September 28, 2007For Securities:BMYCELG-RIBMYMP

Summary

Bristol-Myers Squibb Company (BMY) announced on September 28, 2007, that it has finalized a significant civil settlement with the U.S. Department of Justice and the U.S. Attorney's Office for the District of Massachusetts. This settlement resolves investigations into the company's historical drug pricing and sales and marketing practices. The company has agreed to pay $499 million, a sum that has already been fully reserved, to resolve these matters. Importantly, the company faces no criminal charges. As part of the resolution, Bristol-Myers Squibb has also entered into a five-year corporate integrity agreement with the Department of Health and Human Services' Office of the Inspector General. This agreement mandates the continued development and maintenance of the company's compliance programs for its U.S. pharmaceuticals business. The settlement is not expected to impact ongoing business relationships with customers, including government entities.

Key Highlights

  • 1BMY finalized a civil settlement with the U.S. Department of Justice and U.S. Attorney's Office for the District of Massachusetts.
  • 2The settlement resolves investigations into the company's drug pricing and sales/marketing activities.
  • 3Bristol-Myers Squibb will pay $499 million, the full amount of which has been reserved.
  • 4No criminal charges were filed against the company.
  • 5A five-year corporate integrity agreement has been entered into with the HHS Office of the Inspector General.
  • 6The integrity agreement requires continued development and maintenance of U.S. pharmaceutical business compliance programs.
  • 7The settlement will not affect ongoing business relationships with customers.

Frequently Asked Questions

The 8-K filing announces the finalization of a civil settlement agreement between Bristol-Myers Squibb and the U.S. Department of Justice, resolving investigations into the company's past drug pricing and sales/marketing practices.

The company will pay a civil penalty of $499 million. This amount has already been fully reserved by the company, indicating that it was anticipated and accounted for in its financial planning.

No, the filing explicitly states that there are no criminal charges against the company.

The corporate integrity agreement is a five-year commitment with the Department of Health and Human Services' Office of the Inspector General. It requires Bristol-Myers Squibb to continue developing and maintaining robust compliance programs for its U.S. pharmaceuticals business.