Wednesday, 19 Feb 2020

You are here

BMS Buyout of Celgene for $74 Billion

Reuters reports that Bristol-Myers Squibb (BMS) has announced its intention to buy Celgene Corp for nearly $74 billion in a cash-and-stock deal.

Celgene shareholders will receive one BMS share and $50 in cash per share (or $102.43 per share), and a premium of 53.7 percent to Celgene’s Wednesday close.

Celgene and BMS will have to pay $2.2 billion if either of the drugmakers walks away from their $74 billion merger according to a regulatory filing.

BMS shareholders are expected to own nearly 69% of the merged company, with Celgene shareholders owning the remaining 31%.

As part of the transaction, BMS will gain rights to Celgene's cancer therapy Revlimid (lenalidomide), as well as its CAR-T portfolio, which it acquired via its $9-billion takeover of Juno Therapeutics last year.

The combined company will have nine products with more than $1 billion in annual sales. Together, the company will have an oncology pipeline for solid and hematologic tumors led by blockbuster treatments Opdivo, Revlimid, Pomylyst and Yervoy. Its cardiovascular pipeline will be led by Eliquis and the immunology and inflammation franchise will be led by Orencia and Otezla.

The deal, which is worth $95 billion including Celgene’s debt, is the largest pharmaceutical deal ever and brings together two of the world’s largest cancer drug businesses.

 

Disclosures: 
The author has received compensation as an advisor or consultant on this subject

Add new comment

More Like This

QD Clinic - Hepatitis B and Biologics

QD Clinic - Lessons from the clinic Active HBV infection (HGsAg+) on anti-viral therapy but needs a biologic - what should you use?

Biosimilars for Rheum Disease: Failure to Launch

The availability of biologic biosimilars has thus far had negligible impact on prescribing practices in the United States, in stark contrast to what has been observed in some European countries, researchers reported.

Best of 2019 - Is Methotrexate Necessary with Tofacitinib?

Rheumatoid arthritis patients taking tofacitinib (Xeljanz) plus methotrexate who achieved low disease activity (LDA) may be able to withdraw from the latter agent without significant worsening of disease activity, a researcher reported at EULAR 2019 in Madrid.

Best of 2019 - Ups and Downs with Abatacept

Two recent studies have examined the effect of starting abatacept upon the risk of serious hospitalized infections or cancer, showing divergent results from claims data analyses.

Best of 2019 - Are Non-TNF Biologics Superior to TNF inhibitors?

Current ACR and EULAR guidelines list TNF-inhibitors (TNFi) abatacept, rituximab, and tocilizumab as being equally effective after methotrexate or as second line therapies when treating rheumatoid arthritis. An analysis from the Swedish Rheumatology Register shows that the non-TNFi biologic DMARDs (bDMARDs), in particular tocilizumab and rituximab, are more effective than TNFi.