New $74 Billion Acquisition: Bristol-Myers to Buy Celgene

Bristol-Myers Squibb has announced it will buy Celgene and create a leading specialty biopharma company. The cash and stock deal is valued at $74 billion. 

“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,” said Giovanni Caforio, MD, chairman and chief executive officer of Bristol-Myers Squibb.

“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.”

Together, Bristol-Myers Squibb and Celgene’s biopharma company will address the needs of patients with cancer, inflammatory and immunologic diseases and cardiovascular disease through high-value, innovative medicines and leading scientific capabilities. According to Bristol-Myers Squibb, the combined company will “operate with global reach and scale, maintaining the speed and agility that is core to each company’s strategic approach.”

The combine company allows leading franchises with complementary product portfolios to provide enhanced scale and balance. The combined company will consist of nine products with more than $1 billion in annual sales and significant potential for growth in the core disease areas of oncology, immunology and inflammation, and cardiovascular disease. Further, near-term launch opportunities hold great value for the combined company. It is expected that the company will have six near-term product launches that represent more than $15 billion in revenue potential.

“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,” said Mark Alles, chairman and chief executive officer of Celgene. “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.”

 According to CNBC, the two companies began discussion in September 2018 when Bristol-Myers Squibb originally approached Celgene.—Julie Gould