Bristol-Myers Squibb Co BMY.N said on Thursday it would buy Celgene Corp CELG.O for about $74 billion (59 billion pounds), combining two of the world's largest cancer drug businesses in the biggest pharmaceutical deal ever. The business had revenue of $5.69 billion for the quarter, compared to analyst estimates of $5.72 billion. With the completion of the transaction, BMS shareholders will hold 69 percent of its stocks with the rest going to Celgene.
Celgene is the Hilltop City's second-largest employer, with more than 2,500 people total employed at its Summit Headquarters, located at 86 Morris Avenue, and at its "Summit West" campus at 556 Morris Avenue.
The New York-based drugmaker said it expects six product launches over the next two years - five coming from Celgene's pipeline.
Bristol-Myers had 23,700 employees at the end of past year, while Celgene had 7,647.
Under terms of the deal, Celgene shareholders will receive one Bristol-Myers Squibb share and $50 in cash for each share held, or $102.43 per share, a premium of 53.7 percent to Celgene's Wednesday close. That represents a premium of almost 54 percent to Celgene's closing price of $66.64. After $1.09 actual EPS reported by Bristol-Myers Squibb Company for the previous quarter, Wall Street now forecasts -22.94 % negative EPS growth. (NASDAQ:AAPL), Bristol-Myers Squibb Company (NYSE:BMY) - Apple's Lowered Guidance Underscores Worries About Trade, Global Growth - Benzinga" on January 03, 2019, "I'm Buying Bristol-Myers Down Near 52-Week Lows - Seeking Alpha" with a publish date: "April 18, 2018, "Bristol-Myers and Vedanta Biosciences collaborates to evaluate OPDIVO and VE800 in patients with advanced or metastatic cancers - Seeking Alpha" and the last "Cancer Research Highlight: "Yet Again, It's Bristol Drawing The Short Stick In Lung Cancer - Seeking Alpha" with publication date: "October 15, 2018. Celgene shareholders will also be eligible to receive a payment for the achievement of future regulatory milestones. Revlimid is expected to record almost $10 billion in 2018 sales.
Celgene CEO Mark Alles will be eligible for a severance benefit that would be three times his annual salary and cash incentive opportunity. In March 2022, Natco will launch a generic version with volume-limited sales through a 2015 settlement deal reached with Celgene.
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Erdogan further said, "We express our happiness with Pakistan's Supreme Court's decision to declare FETO a terror organisation". Hailing China as an example, he said the country had achieved what no other could in the history of mankind.
The critical calculus will be when other generics could enter market, which would drastically lower Revlimid revenues.
Celgene has laid out the expectation for a trial decision as early as late 2019 and an appeal decision as early as 2021.
Celgene shares surged 32 percent in premarket trading, to around $88 per share, while shares of Bristol-Myers Squibb were down more than 13 percent.
Investors in the pharma did not appear enthusiastic about the proposed takeover, however.
Virtu Financial LLC cut its position in Bristol-Myers Squibb Co (NYSE:BMY) by 75.7% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC).
The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 1st.
If completed, the acquisition would have a competitive impact across the industry, particularly in oncology.