Bristol Myers Squibb, AstraZeneca reportedly weigh $400B merger

U.K. drugmaker AstraZeneca and New Jersey-based competitor Bristol Myers Squibb are reportedly considering a tie-up that would create a pharmaceutical giant worth roughly $400 billion. 

Citing sources familiar with the matter, the Financial Times reported that the companies have held early-stage talks in recent months about combining. 

The Financial Times did not describe the structure of a potential transaction. It’s also unclear whether discussions are ongoing or if a deal will come together. 

A spokesperson for AstraZeneca declined to comment to NJBIZ on the Financial Times report. Media representatives for Bristol Myers Squibb did not immediately respond to a request for comment. 

Making history 

If a merger moves ahead, it would create the world’s fourth-largest drugmaker by market value and largest by revenue. 

Besides being one of the largest deals ever in the pharmaceutical industry, it would be one of the largest mergers in corporate history, Reuters noted. 

The transaction would also unite two major oncology players. It would bring together Bristol Myers Squibb’s strengths in immunology, hematology and neuroscience with AstraZeneca’s cancer portfolio and global reach. 

As of July 31, Lawrenceville-headquartered BMS was valued at $133 billion and U.K.-based AstraZeneca at $264 billion. 

The potential deal comes as Bristol Myers Squibb works to offset looming patent expirations of some of its biggest products, such as blood thinner Eliquis and cancer drug Opdivo. The company is also focused on bringing new therapies to market, including: 

• Blood cancer treatment Breyanzi 

• Skin cancer medication Opdualag 

• Heart drug Camzyo 

For AstraZeneca, a combination with BMS would strengthen its position in the U.S., as well as establish a broader portfolio of cancer, cardiovascular and specialty medicines. 

According to Reuters, investors question whether the massive deal would create enough strategic value. Concerns also cite possible integration challenges and regulatory scrutiny, the outlet reported. 

The Financial Times report comes about 12 years after AstraZeneca fended off a takeover bid from larger U.S. rival Pfizer.