Bristol-Myers Squibb To Acquire Celgene in a $74B Blockbuster Deal
In a blockbuster deal valued at $74B, Bristol-Myers Squibb will be acquiring Cancer drug specialists – Biotech company – Celgene, the announcement for the same was made by the respective companies on Thursday. Via the deal, Bristol-Myers aims at becoming the sole powerhouse in Oncology, cardiovascular disease & Immunology domains. The companies will collaborate on nine drugs that each generates more than $1bn in annual sales, as well as a large pipeline of treatments in early-stage development with revenue potential of $15bn. Both companies have been in talks about this deal since last year Sept. 2018, when Bristol first approached Celgene.
Post announcement of this deal shares Shares of Celgene skyrocketed 28 percent in midmorning trading, to near $85 per share, while shares of Bristol-Myers Squibb fell 11 percent.
This M&A is considered to be one of the biggest Pharma deals ever. This partnership will give Bristol-Myers Squibb a cutting edge over its competition – Merck in terms of leading immunotherapy cancer asset – Opdivo.
As per CNBC in a press release, Giovanni Caforio Bristol-Myers Squibb Chairman and CEO said: “Together with Celgene, we are creating an innovative biopharma leader, with leading franchises and a deep and broad
pipeline that will drive sustainable growth and deliver new options for patients across a range of serious diseases,”.Celgene is in a win-win situation now as per Wall Street analysts. By 2022 the company is slated to lose its patent protection for Revlimid, it’s top-selling multiple myeloma drug which will pave way for Copycat versions of Revlimid, this a major concern for its investors. In that past year, the stocks of collagen have fallen drastically.
Last year, Celgene acquired complete stakes in Juno Therapeutics in a $9 billion cash deal, wherein it gained access to Juno Therapeutics large pipeline of cancer drugs. Lately, Celgene has been conducting researches on CAR T – Cell Therapy, wherein they take T cells, genetically manipulate them to attack specific proteins on cancer, and infusing them back into the patient. This technique has been trending lately in the area of biotechnology.
The deal has been formulated based on consent from boards of directors of both companies and is expected to close in the third quarter. Under the deal two of the Celgene board members will take a position in the Bristol-Myers Squibb board. BMS will own approximately 69 percent shares of the company, and Celgene shareholders are expected to own 31 percent. Caforio will continue to serve as chairman and CEO of the company.
