Bristol-Myers Squibb’s chief financial officer Jean-Marc Huet stated Thursday that the company plans to launch a “working capital” initiative to increase cash flow by $750 million to $1 billion by 2011. The company also said it has a strategy to handle revenue decline anticipated during the upcoming “patent cliff” period.

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Between 2011 and 2013, sales of anticoagulant Plavix and hypertension drugs Avapro and Avalide are expected to fall due to generic competition, and Bristol-Myers Squibb’s rights to market antipsychotic Abilify in the US are also expected to end. Altogether, the drugs accounted for nearly 40 percent of the company’s revenue last year. Through 2011, the company intends to boost sales of current products, improve productivity and reduce expenses by an additional $1 billion, partly through job cuts and other cost-saving efforts.

Regarding increasing cash flow, Huet indicated that the drugmaker would attempt to achieve the goal through a “three pillars” strategy involving more efficient management of its inventory, receivables and payables. Huet also stated that he expects the company to grow earnings between 2013 and 2017 by advancing its drug pipeline and moving more into biotechnology products.

Source: FirstWord

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