Bristol-Myers Squibb to acquire Celgene in $74bn deal
American pharmaceutical company Bristol-Myers Squibb (BMS) has announced it is purchasing drug manufacturer Celgene in a $74 billion deal.
The deal was announced today, January 3, in a press release.
Celgene, based in Summit, New Jersey, focuses on new cancer and inflammation treatments.
The cash and stock deal will see Celgene shareholders receive one BMS share and $50 cash for each share of Celgene held.
Both companies’ boards approved the deal, the press release confirmed. Celgene shareholders will also receive one contingent value right (CVR) for each share in the company. A CVR will entitle the holder to receive a payment “for the achievement of future regulatory milestones”.
The BMS press release estimated that the newly combined company will have six near-term launch opportunities for drugs in the areas of immunology, inflammation and haematology.
Giovanni Caforio, chairman and CEO of BMS, said in the press release that the agreement would create “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”.
“Together, our pipeline holds significant promise for patients, allowing us to accelerate new options through a broader range of cutting-edge technologies and discovery platforms,” Caforio added.
The two companies expect the transaction to be completed in the third financial quarter of 2019. Closure of the deal is subject to shareholder and regulatory approval.
Celgene’s patent protection on Revlimid (lenalidomide), a lucrative multiple myeloma drug, was to expire in 2022, according to CNBC.
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories sent like this straight to your inbox.
