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AstraZeneca shares drop on reported talks to buy Bristol Myers Squibb

The proposed tie-up valued at nearly $400 billion would combine two oncology-heavy portfolios and could expand AstraZeneca’s US footprint as it targets $50 billion in R&D and manufacturing through 2030.

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AstraZeneca shares fell sharply after a report said the UK drugmaker was in discussions to acquire US peer Bristol Myers Squibb in a deal that would form a near $400 billion pharmaceutical group, according to The Guardian Business.

The report said the proposed combination would create the world’s fourth-largest drugmaker by market value, following a steep market reaction in London where AstraZeneca’s FTSE 100-listed shares slid 8.9% to close at a low of £115, reducing its value to about £178 billion.

Bristol Myers Squibb, headquartered in Princeton, New Jersey, was valued at $133 billion in the coverage. In New York, BMS shares initially rose 1.7% after Wall Street opened before reversing and giving up those gains by midday, the outlet said.

The Guardian Business added that while talks have reportedly been ongoing in recent months, there is no certainty a deal will be completed. Analysts cited by the outlet questioned the rationale for the move and said regulators would likely scrutinize the transaction due to overlap in the companies’ oncology portfolios.

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