Bristol-Myers Squibb buying Celgene in $74B deal

Bristol-Myers to buy cancer drug maker Celgene for $74B

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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.

In a press release jointly issued by the companies, Giovanni Caforio, M.D., Chairman and Chief Executive Officer of Bristol- Myers Squibb, said.

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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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.

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