NEW YORK (AFP) – New York-based pharmaceutical giant Bristol-Myers Squibb on Thursday announced it would buy US biotech firm Celgene in a $74-billion cash-and-stock deal, creating a rival to the world's largest drug makers.
The merger plans underscored the companies' efforts to diversify in the field of cancer treatments, with investors in recent months questioning their growth prospects.
In the deal, Bristol-Myers Squibb gains Celgene's blockbuster Revlimid treatment for multiple myeloma. The companies said the new entity would also offer nine products with more than $1 billion in annual sales.
Bristol-Myers Squibb Chairman and CEO Giovanni Caforio said in a statement the combined companies would also enjoy ''a deep and broad pipeline that will drive sustainable growth.''
They also pointed to oncology, immunology, inflammation and cardiovascular disease as important growth areas.
''We will also benefit from an expanded early- and late-stage pipeline that includes six expected near-term product launches,'' Caforio said in the statement.
Other advantages of the deal include a number of new product launches expected in the next 12 months and extensive cost savings. Executives described company assets as ''complementary'' and with the potential to create ''the preeminent global bio-pharmaceutical company,'' according to a conference call with analysts.