While some large drugmakers have been hedging their pharmaceutical bets by diversifying into areas like animal health and consumer health, Bristol-Myers Squibb Co. is going all-in on its wager on biopharma. The company announced on November 15 its plans to split off its 83.1% holdings in Mead Johnson Nutrition Co., its last diversified business. [See Deal] The move will provide short-term financial gain for BMS at the expense of losing an element of stability afforded by its arms-length relationship with Mead.
In the stock swap transaction, Bristol investors who choose to tender their shares will receive approximately $1.11 of Mead Johnson...