News of the Week
Bristol Myers and Squibb to merge Two pharmaceutical companies are merging into a giant new entity. Bristol-Myers Co. and Squibb Corp., whose total pharmaceutical sales will be nearly $4.2 billion, will combine to form the world's second largest drug company. Merck & Co. is the largest with 1988 sales of $5.9 billion. Total product sales for the newly merged company will be $8.6 billion. Acquisition has become an increasingly popular means for companies to diversify their product lines, to increase the return on investment for new products, and to hedge against prospective losses from expiring patents. Only four m o n t h s ago, it was SmithKline Beckman and Beecham Group, which announced the formation of what was then the second largest company with combined pharmaceutical sales of more than $3.5 billion. The new company, Bristol-Myers Squibb, is no exception to this acquistion pattern. Squibb's Capoten
(for high blood pressure) garnered 1988 sales of more than $1 billion, but the patent runs out in 1992 and it is expected to face competition from Merck's Vasotec. Bristol-Myers, has sales of approximately $4 billion in a diverse line of over-thecounter drugs and consumer products. Together, the companies will have an R&D budget of about $600 million with several new pharmaceutical products being developed. Agreed upon by the boards of both c o m p a n i e s , the merger is expected to occur in October with shareholder approval. Bristol-Myers, with 288 million shares outstanding, will issue 242 million new shares for a tax-free exchange of 2.4 shares for each of Squibb's 97 million shares. Squibb will keep a separate identity, continuing to market products under its own name and tradenames. Effective immediately, the companies have entered into a five-year copromotion agreement for each other's pharmaceutical products at a fee of 8% of the other company's sales. Ann Thayer
With his confirmation hearings out of the way, D. Allan Bromley, President Bush's choice for science adviser, is now focusing attention on filling the key positions for his Office of Science & Technology Policy. Bromley, who likely will be confirmed before the Senate adjourns in early August, can now expect a budget of about $2 million in fiscal year 1990, thanks to a supplementary request that has recently been sent to Capitol Hill. Also, he has what he calls "a gentleman's agreement" with the Office of Management & Budget for a $3 million budget for fiscal 1991. No names have been officially announced for the much-desired associate jobs, but sources close to the selection process have disclosed to C&EN some of Bromley's choices. One is James F. Decker, currently deputy director of research at the Department of Energy. Decker is expected to be Bromley's associate director for physical sciences. The new post of associate director for industrial technology will be offered to Jules Blake, director U.S. by exposing them to radioac- of research at Colgate-Palmolive. tive plutonium. They hope to enlist And J. Thomas Ratchford, deputy the support of other activist groups, executive officer at the American says Lanny A. Sinkin, litigation di- Association for the Advancement of Science, slated to be associate direcrector of Christie Institute. Dudley G. McConnell, deputy di- tor for policy and international afrector for advanced programs in fairs, will be Bromley's right-hand NASA's Solar System Exploration man for a variety of issues. A surprising selection is that of Division, defends use of plutonium in the spacecraft's radioisotope ther- James B. Wyngaarden, soon-to-retire mal generators (RTGs) as well-tested, director of the National Institutes well-protected, and safe. And "plu- of Health, who is expected to be tonium's health and environmental associate director for biomedical sciconsequences have been very badly ences. Observers say that if Wyngaarmisrepresented," he adds. NASA has den's name does become official, launched 22 missions with 38 RTGs Bromley will have pulled off a coup since 1961, he notes. Galileo is to of major symbolic proportion by carry two RTGs, each with 11 kg of attracting to his staff a prominent plutonium dioxide. Ulysses will national policy figure. The national security staff posihave one RTG. NASA considered all other ener- tion—an assistant directorship—will gy sources, McConnell says. "But likely go to Michelle VanCleave, there is no other feasible alterna- who served in the same position tive." It would take many years to under previous science adviser Wildevelop new solar array technolo- liam R. Graham. She is now minorigy or long-lived batteries meeting ty counsel at the House Science, Space & Technology Committee. deep-space probe needs. Wil Lepkowski Richard Seltzer
Activists oppose plutonium use on spacecraft Several citizens' action groups are hoping to stop the National Aeronautics & Space Administration from using plutonium-238 as a power source on two spacecraft slated for launch by the space shuttle. They hope to persuade NASA to delay the October launch of the Galileo mission to Jupiter until alternate power sources are developed. Failing that, the groups contemplate an injunction to stop it. The groups are calling for a new environmental impact study on alternatives to plutonium for Galileo and for the Ulysses mission to explore the sun's polar regions and energy fields, to be launched in October 1990. The groups include Christie Institute, Florida Coalition for Peace & Justice, SANE/Freeze, Women's International Coalition to Stop Making Radioactive Waste, and National Mobilization for Survival. These critics charge that an accident might cause catastrophic damage to the health of residents of Florida—the launch site—and the 6
July 31, 1989 C&EN
Science advisory team taking shape
