Bristol-Myers Squibb announced on Thursday, January 3, it would buy Celgene for about US$74 billion, combining two of the world’s largest cancer drug businesses in the biggest pharmaceutical deal ever, reported Bloomberg.
Both companies have faced investor wariness about their prospects in recent months. Bristol makes an immunotherapy drug called Opdivo that accounts for roughly a quarter of its sales but that has trailed a rival medication from Merck & Co. Celgene, meanwhile, has been looking for a follow-up for its blockbuster blood-cancer therapy Revlimid.
The proposed union of the two companies represents a big bet that combined mass will help overcome the obstacles confronting their respective cornerstone products, reported Bloomberg.
If it is approved by shareholders and regulators, the cash-and-stock deal would rank as the largest pharmaceutical-company acquisition ever. Including net debt, the transaction values Celgene at US$88.8 billion, surpassing Pfizer’s deal for Warner-Lambert.
Full Content: Bloomberg
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