Bristol-Myers Squibb to split off Mead Johnson Nutrition

NEW YORK Mead Johnson Nutrition soon will be its own company, Bristol-Myers Squibb announced Sunday. BMS plans to split off the nutrition division on account of tax advantages realized by the move.

“This transaction represents the important final step in our journey to be a fully independent public company,” stated Mead-Johnson CEO Stephen Golsby. “We believe the decision to split off Mead Johnson reflects confidence in the success of our growth strategy and our strong financial performance since our IPO in February.”

“This marks the latest step in our company’s transformation into a BioPharma leader,” stated James Cornelius, BMS chairman and CEO. “By executing our healthcare divestment strategy, we have sharpened our BioPharma focus, improved the overall financial strength of the company and supported our ability to pursue strategic business development opportunities.”

BMS, which has an 83% stake in Mead Johnson, executed an initial public offering of Mead Johnson in February at an opening share price of $24. On Monday mid-morning, the first day of trading following the announcement, Mead Johnson shares were down $1 to $44.24.