Peter Dolan

Bristol-Myers Squibb

Peter R. Dolan, the 47-year-old chairman and CEO at Bristol-Myers Squibb Co. (BMY ) and a former marathon runner, has an athlete's endurance. The question these days is whether investors will allow him to finish his most challenging contest ever: fixing Bristol.

Since he took over in May, 2001, the stock has lost half its value. Dolan had been in the top job at Bristol, the world's seventh-largest drug company, only a few months when he struck a $2 billion deal with ImClone Systems Inc. (IMCL ) to co-develop and co-promote its cancer drug Erbitux. The Food & Drug Administration rejected ImClone's application just months later. How did Dolan miss the warning signs? He declined to comment. Dolan took a $367 million pretax write-down on the investment.

Then, in the fall Dolan announced Bristol would have to restate sales and earnings, primarily for 2000 through 2002, reallocating some $2 billion in sales. The SEC and the U.S. Attorney's Office in New Jersey are now investigating.

Dolan has shaken up management, including hiring a new CFO. But Bristol still faces sluggish sales growth. After these stumbles, Dolan may find this is one race he can't finish.

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