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AstraZeneca ends talks idea for Bristol Myers Squibb deal, shares swing
AstraZeneca’s shares fell 9% after reports of preliminary discussions, then steadied after Reuters said there were no ongoing talks.
AstraZeneca appeared to have moved away from potential takeover talks involving US rival Bristol Myers Squibb, after early reporting sparked a sharp market reaction. Shares in the UK drugmaker dropped 9% following a report by the Financial Times of preliminary talks, the Guardian Business noted.
On Wednesday, Reuters said there were no ongoing discussions between the two companies, prompting what the outlet described as a mini-relief rally in AstraZeneca’s share price. The Guardian Business added that neither company had explained the situation to shareholders, leaving investors uncertain whether the activity represented a tentative exploration or a deal that was effectively shut down.
The Guardian Business questioned why AstraZeneca would consider a transaction that would build a much larger pharmaceutical group. It cited AstraZeneca CEO Sir Pascal Soriot’s 14-year tenure and the company’s prior approach focused on backing internal laboratory ideas rather than debt-fueled acquisition strategies.
The opinion piece also referenced AstraZeneca’s stated revenue target of $80 billion by 2030 and said there is no clear reason to divert from that plan. It noted Bristol Myers Squibb’s near-term revenue pressures tied to a blockbuster cancer therapy approaching patent expiry, while raising other potential arguments for a deal that were not resolved by any public disclosure from the companies.