American pharmaceutical group Bristol-Myers Squibb has agreed to take over rival Celgene in a cash-and-stock deal worth $74bn.
The combined company will have nine products with more than $1 billion in annual sales and significant potential for growth in oncology, immunology and inflammation and cardiovascular disease.
Giovanni Caforio, chief executive of Bristol-Myers Squibb, said: “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. 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”.
Under the terms of the proposed deal, Celgene shareholders will receive one Bristol-Myers Squibb share and $50 in cash for each share held, or $102.43 per share, a premium of 53.7 percent to Celgene’s Wednesday close.
Celgene shareholders will also receive one tradeable contingent value right for each share held, which will entitle them to payments for future regulatory milestones.