Bristol-Myers Squibb has announced the completion of its acquisition of Celgene, for the grand sum of $74 billion. The final announcement follows the receipt of regulatory approval from all government authorities required by the merger agreement and, as announced on April 12, 2019, approval by Bristol-Myers Squibb and Celgene stockholders.
The pharma giant says that on completion of the acquisition, Celgene is now a wholly owned subsidiary of Bristol-Myers Squibb Company, and that under the terms of the merger, Celgene shareholders received for each share, 1.00 share of Bristol-Myers Squibb common stock, $50.00 in cash without interest, as well as one tradeable Contingent Value Right (CVR), which will entitle the holder to receive a payment of $9.00 in cash if certain future regulatory milestones are achieved.
The news of the completion marks an “exciting day” for both companies, With BMS reminding how it is “bringing together the leading science, innovative medicines and incredible talent of Bristol-Myers Squibb and Celgene to create a leading biopharma company,” according to Giovanni Caforio, chairman and chief executive officer.
He continued, “With our leading franchises in oncology, haematology, immunology and cardiovascular disease, and one of the most diverse and promising pipelines in the industry, I know we will deliver on our vision of transforming patients’ lives through science. I am excited about the opportunities for our current employees and the new colleagues that we welcome to the Company as we work together to deliver innovative medicines to patients.”
Back in February, the purchase hit a significant obstacle after BMS’ largest institutional shareholder said it did not back the deal. Wellington Management, which owns around 8% of BMS’ stock, issued a statement that it is “not supportive of the company’s proposed acquisition of Celgene”, as it “does not believe that the Celgene transaction is an attractive path towards accomplishing this goal”.
The acquisition, however, went ahead and since initially announcing the transaction on January 3, 2019, there have been a number of tangible advancements toward delivering on the key value drivers for the merger, including: further progress relating to the patent estate for Revlimid (lenalidomide), as well as US Food and Drug Administration (FDA) approval for Inrebic (fedratinib) and Reblozyl (luspatercept-aamt).