AstraZeneca shares suffered their biggest one-day drop since 2020, closing down as much as 9%, after reports emerged that the company held merger talks with U.S. rival Bristol-Myers Squibb. A combined entity would be worth close to $400 billion, making it the fourth-largest drugmaker globally by market value, though neither firm confirmed the discussions and people familiar with the matter told Reuters a deal may never materialize. Investors and analysts reacted with skepticism, with Jefferies analysts saying they were "a bit perplexed" given AstraZeneca's strong growth trajectory under CEO Pascal Soriot, who recently reiterated the company does not need M&A to reach its $80 billion annual revenue target by 2030. Union Investment's Markus Manns called the idea strategically and financially unsound, while ATG Healthcare's Lukas Leu described it as growth-dilutive in the near term. Bristol-Myers Squibb shares initially rose as much as 6% on the news, reflecting a view that the company needs a deal more urgently as its top products Eliquis and Opdivo face looming patent expirations, though BMO's Evan Seigerman warned that antitrust concerns over overlapping cancer drugs could reduce the odds of a successful merger.
AstraZeneca PLCMerger talks with BMS are viewed skeptically as growth-dilutive and strategically unsound, causing shares to plunge 9%.
Bristol-Myers Squibb CompanyMerger talks with AstraZeneca could create a $400B entity, seen as a needed deal for BMS amid patent expirations.
