Bristol-Myers Squibb would create a world leader in oncology

Bristol-Myers Squibb, the US drug-maker, has struck one of the largest pharmaceutical deals in history, agreeing to buy Celgene in a cash-and-stock deal valuing the rival drugmaker at about $90 billion, including debt. The companies said the tie-up would create a world leader in oncology, with nine drugs that each generate more than $1 billion in annual sales, as well as a pipeline of treatments in early-stage development with revenue potential of $15 billion. The deal underlined the growing number of big pharma groups turning to biotechs to replenish their drug pipelines. It is set to presage further deals as big companies seek partners that put in the early research work before large players commit to investment… Celgene stockholders will receive one share of Bristol-Myers Squibb and $50 in cash per share. They will also receive rights to shares, which will pay out based on the companies passing regulatory milestones… A takeover of Celgene, if approved by regulators, would follow a spree of tie-ups in the healthcare industry over the past fours years. Japan’s Takeda last year agreed to pay $77 billion to purchase Shire, and a month ago GlaxoSmithKline announced it was buying Tesaro, a cancer-focused US biotech, for $5.1 billion.

Eric Platt, James Fontanella-Khan and Sarah Neville