2019 Begins With a $74 Billion Bang as BMS Buys Celgene

The new year is starting off with a $74 billion bang. Bristol-Myers Squibb will acquire Celgene Corporation to create a pharma giant with a significant pipeline focused on oncology, inflammatory and immunologic diseases, and cardiovascular disease. The deal comes days ahead of the 37th annual J.P. Morgan Healthcare Conference and, in some ways, mirrors Celgene’s significant $9 billion acquisition of Juno Therapeutics and $7 billion acquisition of San Diego-based Impact Biomedicines at the beginning of 2018. The BMS deal for Celgene is a cash and stock transaction. Celgene shareholders will receive one share of BMS stock and $50 in cash for each share of Celgene stock they own. Celgene shareholders will also receive one tradeable Contingent Value Right (CVR) for each share of Celgene. The CVR will entitle the holder to receive a payment for the achievement of future regulatory milestones. Shares of Celgene have shot up more than 31 percent on the news, rising to $87.90 in premarket trading. Celgene closed at $66.64 on Wednesday. Shares of BMS, on the other hand, are down 11.5 percent to $46.40 in premarket trading.