Bristol-Myers Squibb buying Celgene in $74B cash-and-stock deal

By ROI-NJ Staff
Summit | Jan 3, 2019 at 8:17 am
Breaking News

Bristol-Myers Squibb is buying Summit-based Celgene in a deal valued at approximately $74 billion.

The combined company will have more than $1 billion in annual sales.

It is unclear how the deal will impact Celgene employees in New Jersey.

Bristol-Myers Squibb is based in New York City, but has a sizeable presence in New Jersey.

Bristol-Myers Squibb Chairman and CEO Giovanni Caforio, in a news release, lauded the deal.

“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,” he said.

Bristol-Myers Squibb and Celgene are both known for their cancer drugs, among other areas.

Here’s how the cash-and-stock deal will work out for investors, according to CNBC:

Shareholders of Celgene will receive one share of BSM stock, plus $50 in cash for each share they own. They’ll also receive one tradeable contingent value right for each Celgene share, allowing the holder to receive a payment when future regulatory milestones are hit.

The deal is valued at a premium of 53.7 percent to Celgene’s Wednesday close.

Shareholders of Bristol-Myers would own about 69 percent of the company, with Celgene shareholders owning about 31 percent.

Celgene shares surged 32 percent in premarket trading, to around $88 per share, while shares of Bristol-Myers Squibb were down more than 13 percent.

ROI-NJ Staff | editorial@roi-nj.com | @ROINJNews