Buyout of the Century, with 74 Billion in hand Bristol-Myers Squibbs Acquires Celgene

Bristol Myers Squibb (BMS) has agreed to acquire Celgene for $102.43 dollars per share, valuing Celgene at 74 Billion dollars. In exchange Celgene stock holders will get $50 dollars in Cash and a BMS share, allowing Bristol-Myers Squibb to hold a position of 69% in Celgene.

Why this strategic move? CEO of BMS, Giovanni Caforio, M.d. believes that this mega merger (buyout of the Century) will lead to BMS to stronger positions in drug pipelines for inflammation, cardiovascular diseases,  and cancers.

It’s not say that this move is a surprise for Big Pharma and changes the game in what next Big Pharma (Pharmaceutical) will be bought out.  Pharmaceutical companies are known to purchase small biotech companies that are tackling diseases that are uncommon or are investigating new technologies hoping to make a breakthrough, new technologies like CAR T and CRISPR. This acquisition gives us a clue on how pharmaceutical companies will react and strategize their acquisitions in 2019. Maybe we are moving away from a small piece of the pie to a larger?

Since the announcement of the acquisition, Celgene stock has sky rocketed from its lowest of $66 dollars a share to $87 dollars a share.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.