[THE INVESTOR] Global pharmaceutical giant Bristol-Myers Squibb is set to take over US-based Celgene for a record-breaking US$74 billion, according to a Bloomberg report on Dec. 4.
BMS has valued Celgene shares at US$102.43 apiece, a 54 percent premium to the stock’s closing price on Jan. 2. The cash-and-stock deal would rank as the biggest pharma acquisition to-date.
Under the proposed terms, Celgene shareholders will receive one BMS share and US$50 for each share of Celgene. With the completion of the transaction, BMS shareholders will hold 69 percent of its stocks with the rest going to Celgene.
With the blockbuster deal, BMS seeks to become a powerhouse in oncology and immunology, fields that it faced setbacks in last year, the report said
In buying out Celgene, BMS will get its hands on one of the most successful blood-cancer therapy Revlimid, which takes up almost 60 percent of Celgene’s sales.
BMS CEU Giovanni Caforio is quoted as saying the deal is “not about Revlimid,” and that the combined companies anticipate six product launches within the next two years.
By Choi Ji-won (firstname.lastname@example.org)