Bristol-Myers Squibb Appoints Three New Independent Directors

NEW YORK–(BUSINESS WIRE)– Bristol-Myers
Squibb Company (NYSE:BMY) announced today that it has appointed Robert
J. Bertolini, Matthew
W. Emmens and Theodore
R. Samuels to its Board of Directors, effective immediately. In
connection with these appointments, the Board will temporarily expand to
14 directors until the 2017 Annual Meeting, to be held on May 2, 2017.
Only 11 directors will stand for election at the meeting. Bristol-Myers
Squibb also announced that it has entered into an accelerated share
repurchase (“ASR”) program to repurchase, in aggregate, $2 billion of
Bristol-Myers Squibb’s common stock.

Giovanni
Caforio, M.D., chief executive officer of Bristol-Myers Squibb,
said, “Bristol-Myers Squibb continues to take decisive action to best
position the company for growth driven by our leading portfolio of
Immuno-Oncology medicines, including Opdivo, and by an exciting
diversified portfolio of medicines such as Eliquis and Orencia.
We are committed to advancing the promising opportunities represented by
our portfolio and pipeline in oncology as well as continuing our efforts
to diversify through promising pipeline agents in heart failure,
immunoscience and fibrosis. Our new directors add important experience
and skills managing large businesses and operations, broaden our overall
expertise in the pharmaceutical sector and more broadly in capital
markets, and complement extremely well the existing skills on our Board.
We look forward to working with them to advance our business strategy.

“In addition, the decision to implement an accelerated share repurchase
program demonstrates our focus on enhancing shareholder returns as we
continue to capitalize on our long-term opportunities,” Caforio
continued.

“I am pleased to welcome Bob, Matt and Ted to the Board, and know that
their unique skill sets and experience will be invaluable to the company
going forward,” said Lamberto
Andreotti, chairman of the Board. “As I announced in December, I
will be retiring as chairman, effective May 2, 2017. I am happy to be
leaving with such a strong Board in place and am confident Bristol-Myers
Squibb has a bright future.”

Bristol-Myers Squibb noted that, since JANA Partners LLC (“JANA”) became
a Bristol-Myers Squibb shareholder in the fourth quarter of 2016,
members of the Board and management have engaged in discussions with
representatives of JANA to better understand their views. Today’s Board
appointments follow discussions between the two parties regarding the
Board.

“These three new independent directors will add valuable industry
knowledge and fresh perspectives to the Board, and shareholders stand to
reap a substantial benefit from the company’s sizable investment in its
undervalued shares,” said Barry Rosenstein, founder and managing partner
of JANA. “These are two very positive developments for all Bristol-Myers
Squibb shareholders.”

Togo
D. West, Jr., the board’s lead independent director, said, “Bristol
Myers-Squibb benefits from a strong Board that comprises leaders who
have diverse expertise relevant to the company’s strategy and mission.
We welcome Bob, Matt and Ted to the Board and look forward to their
contributions.”

“Bristol-Myers Squibb is widely regarded as an innovator and a leader
with a strong portfolio of assets that will help drive value for
shareholders,” said Samuels. “I look forward to working with my
colleagues on the Board to continue advancing the company’s important
mission.”

“I am honored to join the Bristol-Myers Squibb Board and to work
alongside some of the great minds in science and medicine,” said Emmens.
“With a diverse portfolio and a strong pipeline, I am confident that
Bristol-Myers Squibb will continue to find solutions for patients with
high unmet medical needs.”

“I am pleased to be joining the Board during a period of innovation and
scientific discovery,” said Bertolini. “I look forward to joining my
fellow directors and the management team in helping Bristol-Myers Squibb
with the compelling opportunities ahead.”

Accelerated Share Repurchase
Bristol-Myers Squibb has
entered into an ASR program with each of Morgan Stanley & Co. LLC and
Goldman, Sachs & Co. to repurchase, in aggregate, $2 billion of
Bristol-Myers Squibb’s common stock. The company expects to fund the
repurchase with a combination of debt and cash. Approximately 80 percent
of the shares to be repurchased under the transaction will be received
by Bristol-Myers Squibb on February 28, 2017. The total number of shares
ultimately repurchased under the program will be determined upon final
settlement and will be based on a discount to the volume-weighted
average price of Bristol-Myers Squibb’s common stock during the ASR
period. The program is part of Bristol-Myers Squibb’s existing share
repurchase authorization. Bristol-Myers Squibb anticipates that all
repurchases under the ASR will be completed by the end of the second
quarter of 2017. Bristol-Myers Squibb notes that it is commencing a
10b5-1 plan to facilitate continuous stock repurchase activity by the
company.

Robert J. Bertolini
Bob Bertolini, who currently serves on
the boards of Charles River Laboratories and Actelion Pharmaceuticals
Ltd., is the former president and CFO of Bausch & Lomb. Previously,
Bertolini served as executive vice president and CFO at Schering-Plough
Corporation and as a Partner and Pharmaceutical Industry Practice Leader
at PricewaterhouseCoopers LLC. He brings extensive financial and
accounting expertise and significant strategic and operational
leadership experience in the biopharmaceutical industry to the Board of
Bristol-Myers Squibb.

Matthew W. Emmens
Matt Emmens is the former chairman,
president and CEO of Vertex Pharmaceuticals. Prior to Vertex, Emmens
served as chairman and CEO of Shire Pharmaceuticals and as president and
CEO of Astra Merck, the joint venture between Merck and Astra AB. He
brings to the Board of Bristol-Myers Squibb more than 40 years of
experience in the biopharmaceutical industry, with significant
management, business development and operations expertise.

Theodore R. Samuels
Ted Samuels, who currently serves on the
boards of Perrigo Company plc and Stamps.com, has more than 35 years of
financial industry experience. As the former president of Capital
Guardian Trust Company and a former global equity portfolio manager at
Capital Group, Samuels has extensive business and operational
experience, particularly with respect to economics, capital markets and
investment decision making.

Morgan Stanley is serving as financial advisor to Bristol-Myers Squibb
and Kirkland & Ellis LLP is serving as legal counsel. Covington &
Burling LLP is serving as legal counsel to Bristol-Myers Squibb in
connection with the ASR.

About Bristol-Myers Squibb
Bristol-Myers
Squibb is a global biopharmaceutical company whose mission is to
discover, develop and deliver innovative medicines that help patients
prevail over serious diseases. For more information about Bristol-Myers
Squibb, visit us at BMS.com
or follow us on LinkedIn,
Twitter,
YouTube
and Facebook.

Statement on Cautionary Factors

These materials contain certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
regarding, among other things, statements relating to goals, plans and
projections regarding the company’s financial position, results of
operations, market position, product development and business strategy.
These statements may be identified by the fact that they use words such
as « anticipate, » « estimates, » « should, » « expect, » « guidance, » « project, »
« intend, » « plan, » « believe » and other words and terms of similar meaning
in connection with any discussion of future operating or financial
performance. Such forward-looking statements are based on current
expectations and involve inherent risks and uncertainties, including
factors that could delay, divert or change any of them, and could cause
actual outcomes and results to differ materially from current
expectations.

These factors include, among other things, effects of the continuing
implementation of governmental laws and regulations related to Medicare,
Medicaid, Medicaid managed care organizations and entities under the
Public Health Service 340B program, pharmaceutical rebates and
reimbursement, market factors, competitive product development and
approvals, pricing controls and pressures (including changes in rules
and practices of managed care groups and institutional and governmental
purchasers), economic conditions such as interest rate and currency
exchange rate fluctuations, judicial decisions, claims and concerns that
may arise regarding the safety and efficacy of in-line products and
product candidates, changes to wholesaler inventory levels, variability
in data provided by third parties, changes in, and interpretation of,
governmental regulations and legislation affecting domestic or foreign
operations, including tax obligations, changes to business or tax
planning strategies, difficulties and delays in product development,
manufacturing or sales including any potential future recalls, patent
positions, the ultimate outcome of any litigation matter, and our level
of indebtedness. These factors also include the company’s ability to
execute successfully its strategic plans, including its business
development strategy, the expiration of patents or data protection on
certain products, including assumptions about the company’s ability to
retain patent exclusivity of certain products, and the impact and result
of governmental investigations. There can be no guarantees with respect
to pipeline products that future clinical studies will support the data
described in this release, that the compounds will receive necessary
regulatory approvals, or that they will prove to be commercially
successful; nor are there guarantees that regulatory approvals will be
sought, or sought within currently expected timeframes, or that
contractual milestones will be achieved. For further details and a
discussion of these and other risks and uncertainties, see the company’s
periodic reports, including the annual report on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K, filed with or
furnished to the SEC. The company undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future events or otherwise.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170221005787/en/