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January 3, 2019

BMS acquires Celgene for an equity value of $74bn

Bristol-Myers Squibb (BMS) has entered into a definitive merger agreement to acquire Celgene via a cash and stock transaction with an equity value of $74bn; Celgene shares have been valued at $102.43 per share.

By Allie Nawrat

Bristol-Myers Squibb (BMS) has entered into a definitive merger agreement to acquire Celgene via a cash and stock transaction with an equity value of $74bn; Celgene shares have been valued at $102.43 per share.

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The boards of directors of both companies have approved the deal.

According to the agreement, Celgene shareholders will receive one BMS share, the closing price of BMS stock was $52.43 on 2 January this year, and $50 in cash per share.

BMS expects a global, speciality biopharma company to be created with a particular focus on cancer, inflammation and immunologic diseases and cardiovascular diseases.

The new company will have a product portfolio comprising of nine products with more than $1bn in annual sales, six near-term launch opportunities with more than $15bn revenue potential and 50 high potential assets in the early stage pipeline offering positive growth.

BMS shareholders are expected to own 69% of the combined company, while Celgene shareholders will own the remaining 31%.

BMS CEO and chairman Giovanni Caforio said: “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. 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.”

Celgene chairman and CEO Mark Alles said: “Combining with Bristol-Myers Squibb, we are delivering immediate and substantial value to Celgene shareholders and providing them meaningful participation in the long-term growth opportunities created by the combined company.

BMS expects the rate of return from this acquisition o be in excess of both its and Celgene’s cost capital and a more than 40% accretive of BMS’ earnings per share on a standalone basis in the first full year.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
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  • Consumer context
  • Industry environment
  • Competitive environment
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Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
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