Bristol-Myers Squibb to Buy Celgene for $74bn
Bristol-Myers Squibb (BMS) has announced intentions to buy Celgene for $74bn. This transaction, the fourth largest such deal in pharma history, will merge two oncology giants to provide BMS with access to several cancer franchises, including experimental cell therapies which attack tumours. It also means, however, that it will have to face the possible upcoming patent expiration of Celgene’s blockbuster multiple myeloma drug Revlimid.
Under the deal, Celgene is being bought out for $102.43 per share. The consideration includes a contingent value right, to pay out if three Celgene pipeline drugs win approval. BMS shareholders will own around 69% of the combined company, and Celgene shareholders will own 31%.
BMS CEO Giovanni Caforio will stay as chairman and CEO of the combined company, and two Celgene board members will join Bristol’s board. Nothing as yet has been mentioned, however, for Celgene CEO Mark Alles.