Bristol-Myers Squibb to acquire Celgene in $74bn pharma megadeal

Bristol-Myers Squibb has reached a definitive agreement to acquire Celgene Corporation in a monumental cash-and-stock deal worth approximately $74 billion. This acquisition will merge two pharmaceutical giants into a specialty biopharma company focused on cutting-edge therapies for cancer, cardiovascular disease, and immunological conditions.

Details of the Bristol-Myers Squibb Celgene merger

Under the terms of the agreement, Celgene shareholders will receive one Bristol-Myers Squibb share and $50 in cash for every share they own in Celgene. Additionally, they will gain a tradeable Contingent Value Right (CVR), which entitles them to payments tied to future regulatory milestones.

Following the merger, Bristol-Myers Squibb shareholders will hold approximately 69% of the combined company, while Celgene shareholders will control the remaining 31%. The merger has been approved by the boards of directors of both companies and is expected to close by the third quarter of 2019, pending regulatory and shareholder approvals.

A new biopharma powerhouse emerges

The combined company will command a dominant position in the oncology sector, leveraging leading therapies such as Opdivo, Yervoy, Revlimid, and Pomalyst to treat a wide range of cancers, including both solid tumors and hematologic conditions. In the field of immunology and inflammation, blockbuster treatments such as Otezla and Orencia will strengthen its portfolio, while the cardiovascular segment will benefit from Eliquis, a key revenue driver.

The newly combined entity will have nine blockbuster products, each generating over $1 billion annually, with a pipeline poised for growth. Bristol-Myers Squibb anticipates revenue of over $15 billion from six upcoming product launches, including TYK2 and ozanimod for immunology and inflammation, as well as four hematology treatments: luspatercept, bb2121, liso-cel (JCAR017), and fedratinib. The latter was secured through Celgene’s $7 billion acquisition of Impact Biomedicines.

Leadership views on the merger

Giovanni Caforio, Chairman and CEO of Bristol-Myers Squibb, described the acquisition as a milestone in transforming the company into a biopharma leader. He emphasized that the merger would strengthen its position in oncology, immunology, and inflammation while delivering significant value to patients through an expanded and innovative pipeline.

Mark Alles, Chairman and CEO of Celgene, expressed pride in Celgene’s three-decade legacy of innovation. He noted that the merger provides substantial value to Celgene’s shareholders while offering long-term growth opportunities as part of a larger and more diverse organization. Alles remarked that this partnership would accelerate the companies’ shared mission to deliver breakthrough treatments for patients with serious diseases.

A game-changer for the pharmaceutical industry

This acquisition represents one of the largest deals in the pharmaceutical sector, signaling an era of consolidation aimed at driving innovation and competitiveness. With its extensive portfolio, robust pipeline, and expanded resources, the new Bristol-Myers Squibb is positioned to shape the future of biopharmaceutical research and patient care.

The merger is set to close after meeting customary closing conditions and regulatory clearances, with both companies optimistic about the strategic and financial benefits for shareholders and patients.