Britain’s AstraZeneca is in discussions to acquire U.S. rival Bristol Myers Squibb in a deal that would create a pharmaceutical group worth close to $400 billion, according to the Guardian. The AstraZeneca Bristol Myers Squibb merger talks, first reported by the Financial Times, would rank among the largest pharmaceutical deals ever completed and create the world’s fourth-largest drugmaker by market value.
AstraZeneca, led by chief executive Pascal Soriot, is Britain’s second-biggest listed company, with a market value of nearly £196 billion before the news emerged, the Guardian reported. Bristol Myers Squibb, headquartered in Princeton, New Jersey, and known for its cancer treatments, is valued at $133 billion.
AstraZeneca’s FTSE 100-listed shares fell more than 7% in early London trading, dropping to a low of £116.46, as investors reacted to reports of the talks, according to the Guardian. Sources familiar with the matter said talks have taken place over recent months but cautioned there is no certainty a deal will be finalised.
A tie-up would deepen AstraZeneca’s presence in the United States, where the company is already investing $50 billion in research and manufacturing through 2030, the Guardian reported. Chris Beauchamp, chief market analyst at IG, noted that the companies’ overlapping cancer treatment divisions could pose a significant hurdle to completing any transaction.
AstraZeneca’s share price has more than quadrupled during Soriot’s tenure, during which it overtook UK rival GSK in size and fended off a hostile takeover bid from Pfizer in 2014 valued at almost £70 billion, the Guardian reported. A week before the merger talks emerged, AstraZeneca said it remained confident of reaching $80 billion in annual sales by 2030, up from $59 billion last year.
Bristol Myers Squibb reported second-quarter revenues of $12.97 billion, up 5% year-on-year excluding currency effects, beating Wall Street expectations and prompting the company to raise its 2026 outlook, the Guardian reported.
John Murphy, senior pharma analyst at Bloomberg Intelligence, said the deal made limited strategic sense for AstraZeneca and would likely face close regulatory scrutiny due to overlapping oncology portfolios, according to the Guardian. He noted the companies’ differing growth trajectories, with AstraZeneca forecast for double-digit earnings gains through 2030 while Bristol Myers Squibb faces continued declines linked to patent expirations.
AstraZeneca declined to comment on the reported talks, while Bristol Myers Squibb has been contacted for comment, the Guardian reported. The development comes amid a broader wave of major cross-border financial moves this year, including the recently confirmed joint currency intervention between Japan and the United States to support the yen.
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