Bristol Keeping Cornelius as CEO

Updated from 1:31 p.m. EDT

Bristol-Myers Squibb(BMY Quote - Cramer on BMY - Stock Picks) has elevated James Cornelius to permanent CEO from interim chief executive, adding stability to corporate management but not necessarily dispelling the notion that the company could be a takeover target.

Cornelius, 63, was named interim CEO after the company's board ousted Peter Dolan in September. The major reason was a bungled attempt by Bristol-Myers Squibb to delay a generic company's challenge to Plavix, the New York drugmaker's best-selling drug.

On Thursday, the company said Cornelius would serve as CEO through the annual meeting in May 2009. Cornelius has been a board member since January 2005. He was a former chairman and CEO of Guidant, which is now part of Boston Scientific(BSX Quote - Cramer on BSX - Stock Picks), and a former chief financial officer of Eli Lilly(LLY Quote - Cramer on LLY - Stock Picks).

Cornelius "has brought stability and energy" to Bristol-Myers Squibb, the chairman, James Robinson III, told analysts. As the CEO search progressed, Robinson said "it became increasingly clear that Jim was the ideal person to continue leading our company."

Previously, Cornelius said he wasn't planning to be a permanent CEO, and analysts asked him why he changed his mind. The longer he worked at the company, "the more interested and confident I became" about its prospects, Cornelius said.

Despite takeover rumors, Cornelius sounded like someone trying to guarantee independence. "A key priority of mine will also be management development and succession planning to ensure that the company continues to benefit from strong and effective leadership," he said.

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