Thursday 3 January 2019 12:55 pm

US pharmaceutical company Bristol-Myers Squibb to buy cancer drug developer Celgene in $74bn deal

US pharmaceutical firm Bristol-Myers Squibb will buy cancer drug research company Celgene Corporation in a cash-and-stock deal valued at $74bn (£58.87bn), the company announced today.

Shares in New York-listed Bristol-Myers Squibb fell around 15 per cent in pre-market trading on the announcement, while Celgene's stock soared more than 30 per cent. 

The merged company will have nine products with more than $1bn in annual sales.

Under the agreement Celgene shareholders will receive one Bristol-Myers Squibb share and $50 in cash for each share held, or $102.43 per share. 

Morgan Stanley and Evercore and Dyer are serving as financial advisors to Bristol-Myers Squibb, while JP Morgan Securities and Citi are advising Celgene. 

Bristol-Myers Squibb chief executive and chairman Giovanni Caforio said: “As a combined entity, we will enhance our leadership positions in cancer, immunology and inflammation and cardiovascular disease, and benefit from an expanded early and late stage pipeline.

“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.”

"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," said Celgene chief executive Mark Alles.

"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."