AstraZeneca is in talks with Bristol Myers Squibb (BMS) over a potential merger that would create one of the world’s largest pharmaceutical companies with a combined market value approaching $400 billion.
People familiar with the discussions said the companies have held talks in recent months, although negotiations could still be delayed or fail to result in an agreement. Neither company has confirmed that a deal will proceed. AstraZeneca declined to comment, while Bristol Myers Squibb did not immediately respond to requests for comment.
The proposed transaction would combine AstraZeneca, valued at about $264 billion, with BMS, which has a market capitalisation of roughly $133 billion. If completed, the merged company would become the world’s fourth-largest pharmaceutical company by market value.
AstraZenca Expansion Efforts
The discussions mark a dramatic shift for AstraZeneca, whose Chief Executive Sir Pascal Soriot famously resisted Pfizer’s takeover attempt in 2014. Since then, AstraZeneca has undergone a series of strategic acquisitions, including its $39 billion purchase of Alexion in 2021.
A merger with BMS would significantly strengthen AstraZeneca’s presence in the United States, where the company already generates almost half of its revenue. The move comes shortly after AstraZeneca completed a direct listing in New York.
For Bristol Myers Squibb, the transaction could help address looming revenue pressures as several blockbuster medicines approach patent expiry. The company has struggled to generate the expected returns from its $74 billion acquisition of Celgene in 2019 and has been under pressure to refresh its product pipeline.
Despite the strategic rationale, the deal is expected to face intense scrutiny from competition regulators as both companies are major players in cancer treatments, with overlapping oncology portfolios that could trigger demands for divestitures before any merger receives approval.
The transaction could also attract political attention in both the UK and the US, particularly if it results in AstraZeneca shifting its corporate domicile to the U.S.
