Astra Zeneca, Bristol Myers Squibb Reportedly Discuss Merger; Shares Diverge
AstraZeneca and U.S. drugmaker Bristol Myers Squibb have begun discussions about a potential merger, according to several media reports. AstraZeneca shares fell more than 4% after the report, while Bristol Myers Squibb shares rose more than 5%. Market analysts took a cautious view of the potential deal. One analyst said the companies have significant overlap in oncology drugs, creating substantial antitrust scrutiny for any combined company. Bristol Myers Squibb is also expected to face the expiration of patents on several blockbuster drugs over the next few years, which could weigh on the long-term growth prospects of the combined company. Some observers said targeted acquisitions may be more feasible for Bristol Myers Squibb, which needs to expand its product pipeline, than pursuing a large-scale merger.
AstraZeneca shares fell more than 4% after the report, while Bristol Myers Squibb shares rose more than 5%.
Market analysts took a cautious view of the potential deal. One analyst said the companies have significant overlap in oncology drugs, creating substantial antitrust scrutiny for any combined company. Bristol Myers Squibb is also expected to face the expiration of patents on several blockbuster drugs over the next few years, which could weigh on the long-term growth prospects of the combined company.
Some observers said targeted acquisitions may be more feasible for Bristol Myers Squibb, which needs to expand its product pipeline, than pursuing a large-scale merger.