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(Reuters) – Bristol-Myers Squibb Co said on Tuesday it added three directors to its board in an agreement with JANA Partners LLC, an activist investor holding less than 1 percent of the company’s stock.
The move comes as Bristol-Myers has fallen behind Merck & Co Inc after its immunotherapy Opdivo failed to prolong survival in previously untreated patients with non-small cell lung cancer, the largest oncology market. Merck’s rival drug, Keytruda, did extend survival as a so-called front-line treatment for NSCLC.
Bristol - Position - Shares - Percent - Lung
Bristol’s weaker competitive position has been reflected in its shares, off more than 28 percent since the lung cancer setback last August. Merck shares are up more than 11 percent over the same period.
Bristol-Myers, whose shares fell 2 percent to $53.45 on Tuesday, also disclosed that it expects to post charges of $1.5 billion to $2 billion in connection with a restructuring announced in October.
New - Drugmaker - Share - Program - Combination
The New York-based drugmaker also announced a $2 billion accelerated share repurchase program it will fund through a combination of debt and cash.
Bristol-Myers said company directors and executives have met with JANA representatives to understand their views since it became a shareholder in late 2016. The board appointments followed those discussions, the company said.
New - JANA - Shares - Bristol-Myers - Dec
New York-based JANA owned 3.9 million shares of Bristol-Myers as of Dec. 31, a $226 million stake well...
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Measuring his life out one teaspoon at a time.