Horizontal Integration

the company introduced the String of Pearls approach to complement and enhance its internal
capabilities with a suite of innovative alliances, partnerships and acquisitions with small and large
companies.In 1989, Bristol-Myers merged with Squibb, creating a global leader in the health care
industry. The merger created Bristol-Myers Squibb company, which was then the world’s second-largest
pharmaceutical enterprise.In 1967, Bristol-Myers acquired Mead Johnson & Company, a leader in
science-based infant and children’s nutrition.In 1994, the company completed its acquisition of Union
Pharmacologique Scientifique Appliquee , a leading manufacturer of pharmaceutical and consumer
medicines, based in France.in 2009, Bristol-Myers Squibb acquired Medarex Inc., a biotech company and
a partner since 2005.

Vartical Integration

Bristol Myers-Squibb has pursued what it terms its "string of pearls" strategy. Through this approach,
the drug maker has acquired companies and licensed in medicines designed to strengthen its standing in
specific therapeutic areas.Over the deals signed by Bristol Myers-Squibb under its "string of pearls
strategy," there has only been one outright failure, and that is the acquisition of Inhibitex. The majority
of products related to these deals are still in development. With only a limited amount of information
about them, it is too early to tell if they have been a success. However, with the marked success of
Onglyza, Forxiga and Yervoy, and the hope for success of some of the products in late-stage
development, it would seem that this strategy has been a success.

In examining their competitive position in 2007, the firm realized that several key pharmaceutical
patents were about to expire and they did not have new patented drugs in their development pipeline.
Realizing the time involved in new product development and approval, the company undertook a
strategy of horizontal acquisitions and purchased several small companies that with pre-identified drugs
well into the development and approval phase, dramatically shortening the time to market for Bristol-
Meyer Squib and preserving their revenue stream.