{"id":5967,"date":"2019-01-03T17:38:06","date_gmt":"2019-01-03T17:38:06","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/bristol-myers-and-celgene-in-74bn-pharmaceutical-merger\/"},"modified":"2019-01-03T17:38:06","modified_gmt":"2019-01-03T17:38:06","slug":"bristol-myers-and-celgene-in-74bn-pharmaceutical-merger","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/bristol-myers-and-celgene-in-74bn-pharmaceutical-merger\/","title":{"rendered":"Bristol Myers and Celgene in $74bn pharmaceutical merger"},"content":{"rendered":"\n
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\"BristolImage copyright<\/span>
\n Getty Images<\/span><\/p>\n

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Two of America’s biggest drug companies have announced a blockbuster merger.<\/p>\n

Bristol-Myers Squibb is buying rival Celgene<\/a> in a cash and stock deal valued at about $74bn (\u00a358.8bn) or $90bn including debt. <\/p>\n

The tie-up, which is subject to various approvals, is expected to be completed in the second half of 2019, will unite their portfolios of cancer-fighting drugs.<\/p>\n

It comes as both companies face increased market pressure.<\/p>\n

Celgene, based in New Jersey, had more than $11.2bn in global sales in the first nine months of 2018, up about 18% on the year before.<\/p>\n

But the firm is fighting to preserve its patent for Revlimid, a cancer drug that accounts for about 60% of its sales.<\/p>\n

Pipeline<\/h2>\n

Bristol Myers, whose headquarters are in New York, boasted more than $16bn in revenue in the first nine months of 2018, up 8% from 2017.<\/p>\n

It has seen recent research setbacks tied to its leading cancer medicine, Opdivo.<\/p>\n

Bristol chief executive Giovanni Caforio said the deal would take his company to the “next chapter”.<\/p>\n

The combined firm will boast nine medicines that each generate more than $1bn in annual sales. <\/p>\n

It will also have a broad pipeline of drugs in development, including six that could launch in the next one to two years, with the potential for $15bn in revenue.<\/p>\n

“This deal is really all about the launches,” Mr Caforio said on a call with financial analysts.<\/p>\n

“Given the number of short-term launches and growth opportunities, we believe this is the right time.”<\/p>\n

He added that his team had reviewed the Revlimid patent dispute and was confident in the valuation.<\/p>\n

The deal values Celgene more than 50% higher than its market worth before the merger announcement. <\/p>\n

But Bristol shareholders appeared unconvinced. The firm’s share dropped 12% on the news, while Celgene’s stock jumped 25%.<\/p>\n

If completed, Bristol shareholders will own about 69% of the new company, with Celgene shareholders having the remainder.<\/p>\n<\/p><\/div>\n


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Source<\/a> by [author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Image copyright Getty Images Two of America’s biggest drug companies have announced a blockbuster merger. Bristol-Myers Squibb is buying rival Celgene in a cash and stock deal valued at about $74bn (\u00a358.8bn) or $90bn including debt. The tie-up, which is subject to various approvals, is expected to be completed in the second half of 2019, … <\/p>\n","protected":false},"author":0,"featured_media":5968,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5967","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=5967"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5967\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/5968"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=5967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=5967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=5967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}