Bristol-Myers Squibb has announced that it will drop its holdings in Mead Johnson Nutrition, a move that will benefit shareholders and also help focus the company’s transformation into biopharmaceuticals.

Bristol-Myers Squibb chairman and chief executive officer James Cornelius said that the move marks the company’s latest step in its transformation into a biopharma leader.

“By executing our healthcare divestment strategy, we have sharpened our biopharma focus, improved the overall financial strength of the company and supported our ability to pursue strategic business development opportunities,” Cornelius said.

In the exchange offer, Bristol-Myers Squibb shareholders will be eligible to exchange some, none or all of their shares of Bristol-Myers Squibb common stock for shares of Mead Johnson common stock.

Bristol-Myers Squibb owns 170,000,000 shares of Mead Johnson class A and class B common stock, representing approximately 97.5% of the voting interest and 83.1% of the economic interest in Mead Johnson.