Bristol-Myers Squibb to Split Off Mead Johnson Holdings
Bristol-Myers Squibb Co. is splitting off its holdings in Enfamil infant formula maker Mead Johnson Nutrition Co., in order to focus on its biopharmaceutical business, particulary development of new biotechnology medecines.
For each $1 of Bristol-Myers stock swapped, shareholders will get about $1.11 worth of Mead shares. The shares have risen 89 percent in the past nine months since the stock was first sold publicly in February.
“Now is the right time to move forward with a split-off, given the excellent performance of Mead Johnson since the IPO earlier this year and our confidence in the current and future performance of our biopharmaceuticals business,” said Bristol-Myers Chief Executive Officer James M. Cornelius.
On Nov. 13 in New York Stock Exchange composite trading, Bristol-Myers rose 6 cents to $23.18 while Mead Johnson shares increased 14 cents to $45.25.