Earlier this month, Bristol-Myers Squibb (BMS) has announced to buy Celgene for a cash-an-stock deal of worth $74 billion, making it one of the industry’s largest acquisitions ever.
Under the term of deal, shareholders of Celgene will get a cash amount of $50 for each share along with 1 share of BMY and 1 tradable contingent value right (CVR).
The largest deal will potentially be accelerating the development of new treatments for the company in areas like cancer immunotherapy by using expertise of Juno, a subsidiary of Celgene. The long-term-effects of the deal on biotech employment in the Seattle region if not much clear yet.
Spinning out of the Fred Hutchinson Cancer Research Center in 2013, Juno employ more than 500 people out of which about 350 staff has been working is in Seattle since Sep 2017 at its custom built headquarters in the neighborhood of Seattle’s South Lake Union. After few months, Celgene bought Juno in a deal worth $9 billion. The R&D space in Seattle and Bothell, Washington based manufacturing facility of Juno continued to operate by the Celgene. Now the current plan of BMS to acquire Celgene has been creating new uncertainty among the employees of Juno.
As part of the integration planning process, many details are yet to be decided, but the company will combine best of both the organizations, especially when it comes to people and processes, said a Bristol-Myers Squibb spokesperson in an email.
Bristol-Myers Squibb and Celgene are carrying nine drugs in their combined portfolio and all these drugs made annual sales of $1 billion each which also includes Opdivo, a cancer drug from Bristol-Myers Squibb used for boosting the immune response against the cancer cells. Two complementary treatment pipelines will also merge through this deal.
The deal is likely to be closed by the end of this year.