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Bristol-Myers Squibb is buying Celgene for $ 74 billion

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Bristol-Myers Squibb is buying Celgene for $ 74 billion
January 09
09:00 2019

Bristol-Myers Squibb and Celgene can make the biggest deal of the coming year. BMS wants to buy Celgene for $ 74 billion. Official releases say that one share will cost $ 50 + one share of BMS. Thus, one share of Celgene is estimated at more than $ 100.

Subject to the approval of three future products, the shareholders will receive $ 9 per share.

If the transaction is successful, the merger will turn into a huge pharmaceutical company, which will be a leader in the industry. Both companies pay great attention to the development and creation of drugs to combat cancer and immune diseases. Now BMS is ranked eighth among the US pharmaceutical companies. Its revenue is $ 20 billion. Celgene is the 9th ($ 13 billion).

The combined company will have 9 drugs with annual revenues of more than $ 1 billion a year. In addition to them, six more drugs are being prepared for the release.

It is predicted that BMS profits will increase a year after the purchase. By 2022, costs are expected to decrease by $ 2.5 billion. After the transaction, the BMS owners will have 69% of the company, and Celgene shareholders – 31%.

The current head of BMS Giovanni Caforio will become its Director General, and two representatives of Celgene will join the Board of Directors.

On the eve of the deal, Celgene shares have significantly grown by 33%, while BMS stocks, on the contrary, have slipped by 9%.

BMS works to develop drugs for people with serious illnesses, such as cancer, HIV, AIDS, heart and vascular diseases, etc. The company was formed due to the merger of Squibb and Bristol-Myers in 1989.

Celgene is a biotech company. It was founded in 1986. Revlimid is considered its main drug. It is used in the treatment of myeloma. Last year, the company’s position suffered greatly due to the emergence of competitors in the market.


The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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1 Comment

  1. hailporn
    hailporn January 15, 08:36

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