Bristol-Myers taps insider Caforio as next CEO

By Bill Berkrot NEW YORK (Reuters) - U.S. drugmaker Bristol-Myers Squibb Co on Tuesday said Chief Operating Officer Giovanni Caforio will replace Lamberto Andreotti as chief executive on May 5, in another selection of a long-time insider to lead the company. Caforio, 50, who has a medical background and led the company's global oncology operations, will take over Bristol-Myers at a time when it is riding high on its new high-profile cancer drugs that help the immune system fight the disease. Late last year, U.S. regulators approved Bristol's Opdivo, from a highly promising new class of immunotherapies called PD-1 inhibitors, to treat advanced melanoma. Opdivo is also being tested against lung cancer, with ambitious plans to test it in combination with several other medicines, both from in-house and from other companies, against a variety of cancers. Prior to Opdivo, Bristol's Yervoy, which uses another mechanism to take the brakes off the immune system, became the first drug to improve overall survival in patients with advanced melanoma - the deadliest of skin cancers. The company has several other immunotherapies in its developmental pipeline, as well as drugs for hepatitis C, fibrotic diseases and cardiovascular medicines. Andreotti, 64, who has been CEO since May 2010 after a long career with the company, will become executive chairman of the board on May 5 and continue as chairman after his Aug. 3 retirement, the company said. "I have a high level of confidence in Giovanni that is shared by everyone who has seen him consistently and successfully drive performance," Andreotti said in a statement. Caforio has been on the Bristol-Myers board since last year. He joined the company in 2000 as an executive in Italy following a medical affairs role at Abbott Laboratories. John Boris, an analyst with Suntrust Robinson Humphrey, said Caforio has a highly desirable combination of global commercial operations expertise and background as a medical doctor that will serve Bristol-Myers well as it launches new cancer medicines and other drugs. "He is a logical succession and someone who will do a good job," Boris said. "It will be a very smooth passing of the torch." Former Chairman and Chief Executive James Cornelius, who helped restore luster to the drugmaker after an inventory scandal involving his predecessor, has chosen not to stand for re-election as non-executive chairman and will retire from the board, the company said. (Reporting by Bill Berkrot and Ransdell Pierson; Editing by James Dalgleish)