Bristol-Myers’ next phoenix act?

How Celgene could be BMS’s next chance to reinvigorate growth, deliver on EPS

Bristol-Myers Squibb Co. will now be in the driver’s seat to monetize the assets gained from the myriad deals Celgene Corp. has forged. The pharma will need to mimic its history of using well-timed acquisitions to rise from the ashes and meet growth expectations.

This time, however, BMS won’t have the luxury of multiple first-in-class assets to fuel the turnaround, though it could have a batch of best-in-class candidates. Celgene’s pipeline is a mixed bag of programs that would compete in crowded spaces.

On Jan. 3, BMS proposed to acquire Celgene for $74 billion in a cash and stock deal, making it the largest pure-biotech takeout (see Figure: “Kind of a Big Deal”).


Figure: Kind of a big deal

Bristol-Myers Squibb Co. (NYSE:BMY)’s proposed $74 billion acquisition of Celgene Corp. (NASDAQ:CELG) is the largest one-time payout for a pure biotech takeout by a pharma, eclipsing the 2009 acquisition of the remaining shares of Genentech Inc. (DNA) by Roche (SIX:ROG; OTCQB:RHHBY). Last year’s proposed $62 billion bid by Takeda Pharmaceutical Co. Ltd. (Tokyo:4502) for Shire plc (LSE:SHP; NASDAQ:SHPG) rounds out the top three. Johnson & Johnson (NYSE:JNJ); Actelion Ltd. (ATLN); Actavis plc (ACT); Forest Laboratories Inc. (FRX); Sanofi (Euronext:SAN; NYSE:SNY); Genzyme Corp. (GENZ); AbbVie Inc. (NYSE:ABBV); Pharmacyclics Inc. (PCYC). Source: BCIQ: BioCentury Online Intelligence

BMS gains a clinical pipeline of 28 programs across cancer, hematology and autoimmune/inflammatory indications. Celgene also brings a marketed portfolio of cancer drugs to treat hematologic and solid tumors, supplementing BMS’s immuno-oncology franchise.

“This is truly a unique combination of two very complementary companies,” said BMS Chairman and CEO Giovanni Caforio on the investor call announcing the deal.

Celgene’s pipeline is the result of its prolific dealmaking. Five of its six Phase III programs were gained

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