Bristol-Myers Squibb and Celgene Merger Overview (2019)

CASE 7 Bristol-Myers Squibb and Celgene Merger Overview (2019)

1. Announcement and Motivation:

   - The merger between Bristol-Myers Squibb (BMS) and Celgene was announced in January 2019.

   - The deal was valued at approximately $74 billion, making it one of the largest mergers in the pharmaceutical industry.

2. Companies Involved:

   - Bristol-Myers Squibb (BMS): A global biopharmaceutical company with a focus on discovering, developing, and delivering innovative medicines for serious diseases.

   - Celgene: A biopharmaceutical company known for its expertise in hematology and oncology, particularly in the development of cancer therapies.

3. Purpose and Strategic Rationale:

   - The merger aimed to create a leading biopharmaceutical company with a strong presence in oncology, immunology, and cardiovascular disease.

   - BMS sought to enhance its pipeline and portfolio of innovative drugs, particularly in the field of cancer treatment.

4. Key Highlights:

   - Celgene brought a robust pipeline of potential blockbuster drugs, including Revlimid, a leading multiple myeloma treatment.

   - The merger was expected to create operational synergies and cost savings.

   - Shareholders of both companies approved the merger in April 2019.

5. Regulatory Approval:

   - The merger faced scrutiny from regulatory bodies in various countries to ensure compliance with antitrust laws.

   - To address regulatory concerns, BMS agreed to divest certain assets, including Celgene's psoriasis drug Otezla.

6. Completion and Ongoing Developments:

   - The merger was completed in November 2019 after receiving regulatory approvals.

   - With the completion of the merger, Bristol-Myers Squibb became a stronger player in the field of oncology and gained access to a diversified portfolio of medicines.