Bristol-Myers Squibb to Purchase Biopharma Firm Celgene

Global biopharmaceutical company Bristol-Myers Squibb revealed plans earlier this month to acquire Summit, NJ-based drug maker Celgene Corporation in a transaction valued at about $74 billion.

The companies said the tie up will result in “a leading focused specialty biopharma company” that will be well-positioned to serve patients with cancer, inflammatory and immunologic diseases, and cardiovascular disease.

“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,” Giovanni Caforio, M.D., the chairman and chief executive officer of Bristol-Myers Squibb, said in a joint press release announcing the plan. “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.”

Bristol-Myers Squibb plans to finance the purchase through cash and stock. Shareholders will receive 1 share of Bristol-Myers Squibb stock and $50 cash for each individual share of Celgene. Those holding Celgene shares will be entitled to a Contingent Value Right (CVR) that can be traded. 

“Combining with Bristol-Myers Squibb, we are delivering immediate and substantial value to Celgene shareholders and providing them with meaningful participation in the long-term growth opportunities created by the combined company,” Celgene Chairman and Chief Executive Officer Mark Alles said in the release. 

When the transaction reaches completion, Bristol-Myers Squibb shareholders will possess 69% of Celgene’s stock, and Celgene’s shareholders will retain the remaining 31% of ownership. The companies expect the deal to close in the third quarter of 2019 pending regulatory approvals and other closing conditions. 

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