1/3/2019, 1:10 PM (Source: TeleTrader)
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Bristol-Myers to pay $74B for Celgene

American pharmaceutical company Bristol-Myers Squibb Co. announced on Thursday it will acquire biotechnology firm Celgene Corp. for approximately $74 billion in cash and stock.

According to the deal, Celgene shareholders will get $50 in cash and one tradeable Contingent Value Right (CVR) for each share and 1.0 Bristol-Myers Squibb share. Based on the closing price of Bristol-Myers Squibb stock of $52.43 on January 2, 2019, the cash and stock consideration to be received by Celgene shareholders will be $102.43 per Celgene share and one CVR. Bristol-Myers Squibb shareholders are expected to own approximately 69% of the new company, while Celgene shareholders are to control the rest.

"Together with Celgene, we are creating an innovative biopharma leader, with leading franchises and a deep and broad pipeline that will drive sustainable growth and deliver new options for patients across a range of serious diseases. As a combined entity, we will enhance our leadership positions across our portfolio, including in cancer and immunology and inflammation," said Giovanni Caforio, Chairman and Chief Executive Officer of Bristol-Myers Squibb.

Bristol-Myers shares plunged close to 15% in premarket trading after the announcement of the deal, while Celgene stocks skyrocketed over 30%.

Breaking the News / NI