Bristol-Myers Squibb to buy Celgene for around $74 billion

Bristol-Myers Squibb entered an agreement to acquire Celgene under a cash and stock transaction with an equity value of approximately $74 billion, the companies announced Thursday. As part of the deal, Celgene shareholders will receive one Bristol-Myers Squibb share and $50 in cash for each share of Celgene, while also receiving a contingent value right (CVR) linked to the achievement of future regulatory milestones.

Giovanni Caforio, CEO of Bristol-Myers Squibb, said "as a combined entity, we will enhance our leadership positions across our portfolio, including in cancer and immunology and inflammation." Caforio added "we will also benefit from an expanded early- and late-stage pipeline that includes six expected near-term product launches."

The drugmakers noted that based on the closing price of Bristol-Myers Squibb stock of $52.43 on January 2, the cash and stock consideration to be received by Celgene shareholders at closing is valued at $102.43 per share and one CVR. The transaction has been approved by the boards of directors of both companies, with Bristol-Myers Squibb shareholders expected to own approximately 69 percent of the merged entity, with Celgene shareholders owning the remaining 31 percent.

"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," remarked Mark Alles, CEO of Celgene.

The offer price represents a 54-percent premium to Celgene's closing stock price on January 2, with the company shares jumping more than 30 percent on the news. However, shares in Bristol-Myers Squibb fell more than 16 percent on news of the purchase.

Register as Visitor to CPhI China 2019!

-----------------------------------------------------------------------
Editor's Note:

To apply for becoming a contributor of En-CPhI.cn,

welcome to send your CV and sample works to us,

Email: Julia.Zhang@ubmsinoexpo.com.