How Bristol Myers Squibb Transformed Working Capital to Fund Its Future - SPONSOR CONTENT FROM EY-PARTHENON

"For pharmaceutical giant Bristol Myers Squibb (BMS), the moment came following its $74 billion acquisition in 2019 of Celgene Corp., when BMS had to fund a major post-merger integration while preparing for the expiration of valuable pharmaceutical patents. Determined to make the most of the opportunity presented by the merger, one of the largest ever in the pharmaceutical industry, BMS leaders have since embarked on an enterprise-wide initiative to modernize departments and improve the use of technology and innovation."

"With borrowing costs rising, the BMS Treasury Department kicked off a far-reaching cash management overhaul focusing on technology, process, and culture. Cash management is critical for pharmaceutical companies: The ability to fund drug innovation can make the difference between success and failure. At the same time, BMS needed to prepare for the impact of the imminent "patent cliff," the scheduled expiration of patents that would expose several valuable brands to generic competitors."

"Treasury ForwardRamos-Alves and her team embarked on a program called Treasury Forward, a multi-year, working capital and technology improvement initiative that was a critical part of the company's global finance transformation. The program is designed to generate additional free cash flow from operations and improve total shareholder return. The project helps reimagine cash management within the enterprise by automating processes and upgrading data and analytics capabilities. These changes establishe"

Bristol Myers Squibb faced financing pressure after its $74 billion acquisition of Celgene and approaching patent expirations that threatened revenue. The Treasury Department initiated a cash management overhaul emphasizing technology, process, and culture to secure liquidity amid rising borrowing costs. The Treasury Forward program aimed to generate free cash flow, enhance working capital, and improve total shareholder return. The initiative automated processes, upgraded data and analytics, and reimagined enterprise cash management to fund drug innovation, support business development, and offset expected loss of revenue from loss of exclusivity.

Read at Harvard Business Review