AstraZeneca shares sink 7% on report of historic $400 billion merger talks with Bristol Myers Squibb
British pharmaceutical major AstraZeneca is exploring a possible merger with US-based Bristol Myers Squibb, which could create a combined company valued at nearly $400 billion
British pharmaceutical major AstraZeneca is exploring a possible merger with US-based Bristol Myers Squibb, which could create a combined company valued at nearly $400 billion, according to a Financial Times report published on Sunday. While there is no certainty that the discussions will result in a formal agreement, the FT report said the two drugmakers have been holding merger talks for several months, citing people familiar with the matter. If completed, the proposed transaction would rank among the largest corporate mergers ever undertaken. The development comes less than a year after AstraZeneca announced plans to pursue a direct listing in the United States, seeking to benefit from higher market valuations while retaining its primary listing in London.
AstraZeneca shares tumble 7% AstraZeneca shares tumbled as much as 7% on Monday following news of the talks between the U.K.'s biggest pharmaceutical company and Bristol Myers Squibb. The proposed combination, if finalised, would create a global healthcare giant with an estimated valuation of about $400 billion. Under Chief Executive Pascal Soriot, who has led the company for the past 14 years, AstraZeneca’s stock has risen more than fourfold through last Friday, significantly outperforming both the broader FTSE 100 index and domestic rival GSK. In early trading on Monday, AstraZeneca’s London-listed shares were down around 6%, making it one of the biggest drags on the otherwise little-changed FTSE 100 index.
Meanwhile, Bristol Myers Squibb shares climbed 3.8% in U.S. premarket trading. The company’s second-quarter earnings, released last week, underscored continued momentum in its core businesses, with robust demand for oncology and rare disease medicines driving growth. Cancer therapies generated roughly $25 billion in revenue during 2025, accounting for nearly half of total sales, while cardiovascular, renal and metabolism treatments contributed about $12 billion. News of the potential tie-up also revives memories of AstraZeneca’s successful defence against a takeover approach from larger U.S. pharmaceutical company Pfizer about 12 years ago. Bristol Myers Squibb generates most of its revenue from the United States, where it maintains one of the pharmaceutical industry's largest commercial operations.
Since U.S. President Donald Trump returned to the White House, AstraZeneca has committed tens of billions of dollars to expanding its manufacturing footprint across the United States while strengthening its relationship with the administration. The investment aligns with the company's long-term strategy to make the US its largest growth market. AstraZeneca has set an ambitious target of generating half of its planned $80 billion in annual revenue by 2030 from the U.S., underscoring the market's growing importance to its business. The company reported approximately $59 billion in total revenue last year, highlighting the significant growth needed to achieve its long-term objective.
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