Bristol-Myers Squibb Co., Princeton, N.J., said it will divest its Clairol subsidiary to concentrate on the medicines business. In a meeting with investors, CEO Charles A. Heimbold Jr. said Clairol will be spun off or sold within the next six to 12 months as part of the company's effort to grow its core businesses. BMS also will divest Zimmer, an orthopedic implant manufacturer. "Clairol is a great company with a great franchise that, over the years, has made millions of people feel better about themselves. But quite obviously, it's not a health care company,'' said BMS President Peter Dolan. "We need to focus the majority of our attention and our resources on our medicines business.'' Proceeds from the sales will be reinvested into the medicines business, Mr. Dolan said. BMS plans to accelerate new-product development and increase its marketing activity to encourage patient retention among its prescription drugs. As part of the new focus on medicines, BMS will increase its commitment to direct-to-consumer marketing, the Internet and other vehicles, Mr. Dolan said.
Copyright September 2000, Crain Communications Inc.