Bristol Myers-Squibb to acquire Celgene for $74B
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Bristol-Myers Squibb's Devens facility
Bristol-Myers Squibb, with a biologics development facility in Devens, is purchasing New Jersey-based Celgene Corp. for $74 billion.
The New York City-based pharmaceutical company announced the cash and stock agreement Tuesday. Per the the deal, Celgene shareholders will get one Bristol-Myers Squibb share and $50 in cash for each share of Celgene.
Celgene shareholders will also get one tradeable contingent value right (CVR) for each share of Celgene, entitling the holder to a payment for the achievement of future regulatory milestones.
Based on Bristol-Myers Squibb’s stock price of $52.43 at Wednesday’s close, the cash and stock consideration going to Celgene shareholders is valued at $102.43 per Celgene share and one CVR.
When completed, Bristol-Myers Squibb shareholders will own about 69 percent of the company, and Celgene shareholders will own about 31 percent.
In a statement, Bristol-Myers Squibb Chairm and and CEO Giovanni Caforio said the deal will create an innovative biopharma leader with a broad portfolio of medicines.
“As a combined entity, we will enhance our leadership positions across our portfolio, including in cancer and immunology and inflammation,” Caforio said.
“Together, our pipeline holds significant promise for patients, allowing us to accelerate new options through a broader range of cutting-edge technologies and discovery platforms.”
Celgene operates a facility in Cambridge, as does as Bristol-Myers Squibb.
Bristol-Myers Squibb has a commanding presence in Devens with an 89-acre, four-building site built in 2015. The overall capital investment in the facility was about $1 billion.
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