Bristol-Myers Squibb (NY, USA) have announced that they have entered an agreement to acquire Celgene (NJ, USA) for a cost of approximately $74 billion. This agreement is expected to benefit Celgene shareholders who will receive one Bristol-Myers Squibb share and $50 for each share of Celgene.
“As a combined entity, we will enhance our leadership positions across our portfolio, including in cancer and immunology and inflammation,” commented Giovanni Caforio, Bristol-Myers Squibb. “We will also benefit from an expanded early- and late-stage pipeline that includes six expected near-term product launches.”
Owing to this announcement, Celgene shareholders are expected to receive $102.43 per share and one contingent value right at the time of it’s closing. Bristol-Myers Squibb shareholders are expected to own approximately 69% of the merge entity whilst Celgene shareholders will own the remaining 31%.
“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,” commented Mark Alles, Celgene.
Part of the transaction will result in Bristol-Myers Squibb gaining the rights to Celgene’s cancer therapy Revlimid (lenalidomide) and its CAR-T portfolio. Caforio explained:“[the acquisition]is not about Revlimid. There are concrete, short-term growth opportunities that will deliver.” This includes growth in oncology, immunology, inflammation and cardiovascular disease research as well as a shared nine products with more than $1 billion expected in annual sales.
The deal is expected to close in the third quarter of this year and Bristol-Myers Squibb is believed to increase its per-share earnings by more than 40% in the first year, permitting cost savings of approximately $2.5 billion by 2022.