US biotech company Celgene to be acquired by Bristol-Myers Squibb for $74bn

Bristol-Myers Squibb acquisition of Celgene : US biotech company Celgene has agreed to be acquired by Bristol-Myers Squibb in a stock and cash deal worth about $74 billion, as per the latest pharma acquisition news.

The merger of the two US pharma companies will form a specialty biopharma company focused on developing high-value innovative medicines for the treatment of patients suffering from cancer, cardiovascular disease, and inflammatory and immunological disease.

Terms of Bristol-Myers Squibb acquisition of Celgene

As per the terms of the Bristol-Myers Squibb Celgene merger, Celgene shareholders will receive 1.0 Bristol-Myers Squibb share and $50.00 in cash in exchange each share they own in the former. In addition to that, they will also receive one tradeable Contingent Value Right (CVR) for Celgene share they hold, which will grant them the rights to be paid for regulatory milestones in the future.

Post merger, Bristol-Myers Squibb shareholders will hold nearly 69% of the enlarged US pharma company while present Celgene shareholders will hold the remaining 31% or so stake.

Scenario after Bristol-Myers Squibb Celgene Merger

Following the Bristol-Myers Squibb Celgene merger, enlarged pharma company will own leading oncology franchises covering treatments for solid tumors and hematologic conditions through Opdivo, Yervoy, Pomalyst and Revlimid.

The immunology and inflammation franchise will feature Otezla and Orencia. On the other hand, the cardiovascular franchise will have Eliquis among others.

The enlarged US pharma company will own nine products that have recorded annual sales of more than a billion dollars.

In addition to the established drugs, the enlarged drugmaker will have a potential to generate revenues of more than $15 billion through new drug launches.

Bristol-Myers Squibb anticipates six product launches in the near-term in the form of TYK2 and ozanimod in immunology and inflammation in addition to four hematology drugs – luspatercept, bb 2121, liso-cel (JCAR017) and fedratinib.

For the record, the small molecule JAK2 kinase inhibitor Fedratinib is owned by Celgene following its $7 billion worth acquisition of Impact Biomedicines last year.

Commenting on Bristol-Myers Squibb acquisition of Celgene, Giovanni Caforio – Chairman and CEO of Bristol-Myers Squibb, 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.

“As a combined entity, we will enhance our leadership positions across our portfolio, including in cancer and immunology and inflammation. We will also benefit from an expanded early- and late-stage pipeline that includes six expected near-term product launches.

“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.”

Bristol-Myers Squibb acquisition of Celgene has been approved by board of directors of the two US pharma companies. Bristol-Myers Squibb Celgene Merger is anticipated to be wrapped up in Q3 2019 should it get approved by shareholders of the two firms, satisfy customary closing conditions and receive the necessary regulatory approvals.

Mark Alles – Chairman and CEO of Celgene, commenting on Bristol-Myers Squibb acquisition of Celgene, said: “For more than 30 years, Celgene’s commitment to leading innovation has allowed us to deliver life-changing treatments to patients in areas of high unmet need. Combining with Bristol-Myers Squibb, we are delivering immediate and substantial value to Celgene shareholders and providing them meaningful participation in the long-term growth opportunities created by the combined company.

“Our employees should be incredibly proud of what we have accomplished together and excited for the opportunities ahead of us as we join with Bristol-Myers Squibb, where we can further advance our mission for patients. We look forward to working with the Bristol-Myers Squibb team as we bring our two companies together.”

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