Selected Developments in Biotechnology Law and the Biotechnology Industry
The proposed merger of Bristol-Myers Squibb and Celgene will create a pharmaceutical behemoth with $40 billion in annual revenue and will be the largest one in pharmaceutical sector history.
Abstract
Bristol-Myers Squibb (BMS) shareholders approved a $74 billion acquisition of Celgene Corp. in January 2019. Since then, the proposed deal has been moving forward, with BMS selling $19 billion of corporate bonds the first week of May 2019 in order to help fund the acquisition. The combination will create a pharmaceutical behemoth with $40 billion in annual revenue. Both companies will benefit: BMS will diversify its experimental drug pipeline and become less reliant on its two currently dominant drug offerings (blood thinner Eliquis and cancer drug Opdivo), while Celgene gains protection against the pending loss of revenue when cancer treatment Revlimid, which grosses the company $10 billion per year, loses IP protection and begins facing generic competition in 2022. ‘‘We are creating the science leader, the company that is No. 1 in oncology,’’ said BMS CEO Giovanni Caforio. The merger will be the largest one in pharmaceutical sector history.