Bristol-Myers Squibb buying drugmaker Celgene in $74B deal

Share
Bristol-Myers Squibb buying drugmaker Celgene in $74B deal

In a major biopharmaceutical shake-up, Bristol-Myers Squibb has announced that will acquire Celgene for $74 billion.

Shareholders of Celgene will receive one share of BSM stock, plus $50 in cash for each share they own.

The combined company will have nine products with more than $1 billion each in annual sales and significant potential for growth in the core disease areas of oncology, immunology and inflammation and cardiovascular disease.

Shareholders of Bristol-Myers would own about 69 percent of the company, with Celgene shareholders owning about 31 percent.

Celgene's shares rocketed in premarket trading Thursday morning on the deal news, soaring around 32 percent to $88.80.

In a press release jointly issued by the companies, Giovanni Caforio, M.D., Chairman and Chief Executive Officer of Bristol- Myers Squibb, said. Morgan Stanley lowered their price objective on shares of Bristol-Myers Squibb from $63.00 to $59.00 and set a "hold" rating for the company in a research note on Tuesday, November 6th.

Bristol expects to achieve the $2.5 billion in cost savings by 2022 and said the deal will add more than 40 percent to its earnings in the first year after the deal closes, expected in the third quarter of 2019.

Some analysts, including Baird Equity's Brian Skorney, said it raised the possibility of a new era of big drug deals, much like in 2009, when Pfizer Inc, Merck, and Roche Holding AG all pulled off transformational acquisitions.

The cash-and-stock portion of the deal totals $102.43, based on Wednesday's closing price of $52.43 for Bristol shares.

The company has said in securities filings that it expects competitors could market generic versions of its Revlimid cancer drug ahead of patent expirations, which Celgene has said will remain in force "at least through 2022".

Revlimid is expected to bring in almost $10 billion in revenue for 2018 and is the backbone of new combination multiple myeloma treatments. Two investment analysts have rated the stock with a sell rating, thirteen have given a hold rating and seven have given a buy rating to the company's stock.

Now let's take a look at what's on the horizon: for the financial results of the current quarter, So far - there have been 6 different Wall Street analysts that have provided investors with their professional projections for Bristol-Myers Squibb Company For net profit, these analysts are collectively forecasting an average estimate of $0.84 per share, versus the $0.68 per share reported in the year-ago quarter.

According to Reuters' report, Bristol Myers approached Calgene in September 2018 to initiate talks of a purchase. The Boards of Directors of both companies have approved the combination.

"Both of them were coming into this year kind of limping".

But cash flow from Revlimid buys Bristol-Myers time to pay down debt and position for another transaction, Boris said.

But a note from Cowen said the effect of the deal was "mixed".

Those drugs include the three treatments whose approval the CVR payment is based on - Celgene's high-profile multiple sclerosis drug ozanimod, lymphoma treatment liso-cel by December 31, 2020 and a CAR-T therapy for multiple myeloma known as bb2121 from a partnership with bluebird bio by March 31, 2021.

Share

Advertisement

Related Posts

Danny DeVito joins cast of Jumanji sequel
Still awaiting a title, director Jake Kasdan is returning from the first film, as are writers Scott Rosenberg and Jeff Pinkner . That month proved lucky for Sony in 2017, when Jumanji: Welcome to the Jungle grossed an eye-opening $ 962 million worldwide.

These Are the 5 Best Diets for 2019, According to Experts
Although the popular Keto diet ranked high for fast weight loss, it landed way down on the Best Diets list - tying for number 38. Choosing a diet is a "very individual thing", Heller noted, adding that you have to find a diet plan that works well for you.

Djokovic into Qatar quarter-finals after scare
While the next generation makes progress, Novak Djokovic feels the "Big Four" are still set to dominate grand slams . The Serbian siblings beat Damir Dzumhur of Bosnia and Dusan Lajovic of Serbia 7-5, 3-6, 10-7 in the quarter-finals.

Marcus Harris edges closer to Australia's first century against India
Day three will resume with Marcus Harris and Usman Khawaja [VIDEO ] taking the guard on Saturday, January 5, 2019. Australian batsmen need to hold their nerves and bat well in the next three days if they want to draw this match.

Wall Street soars as United States jobs boom
Although still low by historical standards, this latest hike put interest rates at the highest level in almost a decade. At the conference on Friday, Mr Powell said he has not spoken directly to Mr Trump and would not resign if asked.

Sex abuse claims against singer R. Kelly re-upped in new documentary
Kelly is refuting all their claims, stating that the documentary subjects have made false allegations in order to become famous. He further elaborated, adding , "Just wanna make that abundantly clear in a non "he doth protest too much" way".

76ers' Butler 'disrespectful' in argument with coach Brown
Rival teams reportedly believe that Butler will talk to other teams this summer interested in signing him. He has reportedly met with Brown and Sixers GM Elton Brand privately to express some of his concerns.

Ukrainian Orthodox Church gets ‘tomos of autocephaly’ at historic ceremony in Istanbul
The Russian church, which now has about 150 million Orthodox Christians under its authority, could lose a fifth of its members. Poroshenko, president since 2014, has pushed for the creation of the church as he campaigns for the March 31 elections.

Quadrantid shower: How to watch 2019's first meteors tonight
The Quadrantids meteor showers have already been shooting across the skies since December 22, and will continue until January 17. According to the American Meteor Society, the shower is expected to reach its peak in the USA between midnight and dawn Friday.

McIlroy eyes fast start on PGA Tour
And that is why McIlroy, who is from Northern Ireland, is unlikely to play an event in Europe on his home tour until July. When McIlroy won the FedExCup in 2016 he had played twice before the turn of the calendar year.

© 2015 ExpressNewsline. All Rights reserved.