Bristol-Myers Splits Off Mead Johnson Nutrition

NEW YORK (AP) — Bristol-Myers Squibb Co. is splitting off its holdings in infant formula maker Mead Johnson Nutrition Co. in order to focus on its biopharmaceutical business.

The New York-based drug maker, which owns about 83 percent of Mead stock, expects the deal to add to earnings starting in 2010.

The company says the stock swap is designed to allow Bristol-Myers shareholders to exchange some, all or none of their shares for Mead stock tax-free and at a discount. For each $1 of Bristol-Myers stock swapped, shareholders will get about $1.11 worth of Mead shares.

Bristol-Myers in 2008 decided to spin off Mead Johnson to focus on buying biotech drugs and shift its efforts into biopharmaceuticals, part of a strategy the company calls "String of Pearls."

Illinois-based Mead, which makes children's liquid and powder formulas under the Enfamil, EnfaKid and Choco Milk brands, went public in February, raising $680 million after expenses. The company earned a profit of $335.6 million on revenue of $2.11 billion in the first nine months of the year. Both totals are down about 3 percent from last year.