Bristol myers squibb merger. Is Celgene and Bristol

Bristol

bristol myers squibb merger

Don't just believe me, though. If it does, then Celgene's shares could tumble and Bristol-Myers shares could rise on hopes it will wind up becoming an acquisition target. Currently, Bristol-Myers shares yield 3. If the deal does go off without a hitch, then it wouldn't necessarily be bad news. For them, this deal will only makes sense if they hold the Bristol-Myers Squibb shares they acquire in this deal and those shares prove to be a good long-term investment. Consequently, the company will not update the information contained on the website and investors should not rely upon the information as current or accurate after the presentation date.

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Here's What Celgene Shareholders Are Getting From Bristol

bristol myers squibb merger

Here's what Celgene investors need to know about this deal. Those timelines are achievable because each of these drugs has data already or is in late-stage trials that could support regulatory approvals. In the third quarter, Bristol-Myers Squibb and Celgene's revenue grew 8% and 18%, respectively, and over the past 12 months, Celgene's operating margin was considerably better than Bristol-Myers Squibb's. As noted in the related , the exchange of shares of Celgene common stock for the merger consideration pursuant to the merger was a taxable transaction for U. I intend to vote my shares against this acquisition under the current terms.

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Is Celgene and Bristol

bristol myers squibb merger

Since Opdivo's failure, Keytruda's sales have grown more quickly. Not everyone agrees this is a smart deal Many investors could be unhappy because this deal values Celgene below where it was trading between 2015 and 2018. It diversifies Celgene's revenue away from Revlimid, while insulating it against possible pipeline failures. Keytruda and Opdivo have secured approvals in various cancer types, but only Keytruda has secured a regulatory green light as a monotherapy in first-line lung cancer, a multibillion-dollar indication. The biotech stock plunged nearly 40% in 2018 and was in desperate need of a catalyst. The only significant thing that has negatively changed for Celgene's business prospects since then is the. At the same time, it , providing it with multiple chances to spark revenue growth if competition slows demand for Opdivo.

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Bristol

bristol myers squibb merger

While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change, whether as a result of new information, future events or otherwise. See below for additional tax information for Celgene shareholders as a result of the acquisition: As noted in the related , the exchange of shares of Celgene common stock for the merger consideration pursuant to the merger was a taxable transaction for U. Historically, about 90% of clinical-stage drugs wind up in laboratory dustbins rather than on pharmacy shelves. Not everyone was happy, with the merger drawing the ire of some of the biggest institutional investors. I have owned Celgene stock for several years and have been a fan of the biotech even longer. Here's why this is a bad deal for Celgene.

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Acquisition

bristol myers squibb merger

For this reason, I plan to hold onto my shares in the combined company once this deal is done. These documents are available from the Securities and Exchange Commission, the Bristol-Myers Squibb website or from Bristol-Myers Squibb Investor Relations. If you hold shares through a financial institution or broker: 1-833-503-4131 toll-free within the U. Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. Is it a good deal for Celgene owners? What could happen now If more Bristol-Myers shareholders side with Wellington, then this merger could fall apart. Retain the receipt and photocopies until the exchange is complete. Admittedly, the transaction is likely to be approved.

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Why the Bristol

bristol myers squibb merger

Accordingly, a Celgene stockholder that is a U. But it's not Celgene investors who are balking. However, the bad news is that on a stand-alone basis, Bristol-Myers isn't nearly as profitable or fast growing as Celgene. In addition, any information contained on this website was current as of the date presented and should not be relied upon as representing our estimates as of any subsequent date. I think it's clearly the latter scenario. The situation is arguably more dire at Celgene because it gets about two-thirds of its revenue from Revlimid, a multiple myeloma drug that loses patent protection in a few years. Ozanimod, liso-cel, and bb2121 are worth more There's one other part of Bristol-Myers Squibb's offer, though, that sweetens the deal a little.

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Acquisition

bristol myers squibb merger

But that won't change the fact that this is simply not a good deal for Celgene. Todd has been helping buy side portfolio managers as an independent researcher for over a decade. To prevent more defectors, it's meeting with shareholders to convince them that buying Celgene makes sense. You must complete and return the letter along with all of your share certificates. For this reason, a good argument can be made for owning Celgene regardless of how Bristol-Myers' investors vote in April. Once the merger is complete, Bristol-Myers shareholders will own 69% of the combined company, while Celgene investors will own the remaining 31%.

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