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.
A biotechnology and sci fi nerd, that enjoys writing about new innovations within the science world and industry.