Bristol-Myers Squibb to merge with Celgene in multimillion deal

By Murielle Gonzalez | Published: 3-Jan-2019

Transaction will see a combined pharmaceutical company in pole position within the immuno-oncology and the treatment of blood cancers market

US-based pharma giants Bristol-Myers Squibb (BMS) and Celgene Corporation have entered into a definitive merger agreement. The deal will see BMS acquire Celgene in a cash and stock transaction with an equity value of approximately US$74 billion.

The transaction will create a focused speciality biopharma company well positioned to address the needs of patients with cancer, inflammatory and immunologic disease and cardiovascular disease through high-value innovative medicines and unique scientific capabilities.

“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, Chairman and Chief Executive Officer of BMS.

Caforio stated the combined entity 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," he said.

Commenting on the news, Mark Alles, Chairman and Chief Executive Officer of Celgene, said: “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".

Alles continued: "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.”

Under the terms of the agreement, Celgene shareholders will receive 1.0 BMS share and $50.00 in cash for each share of Celgene. Celgene shareholders will also receive one tradeable Contingent Value Right (CVR) for each share of Celgene, which will entitle the holder to receive a payment for the achievement of future regulatory milestones. The Boards of Directors of both companies have approved the combination.

Based in the US, BMS is a global biopharmaceutical company focused on discovering, developing and delivering innovative medicines for patients.

Celgene, headquartered in Summit, New Jersey, is an integrated global biopharmaceutical business engaged primarily in the discovery, development and commercialization of innovative therapies for the treatment of cancer and inflammatory diseases through next-generation solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation.

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