Bristol-Myers to divest $1.6 billion drug to clear antitrust

As a condition of Federal Trade Commission approval for its takeover of Celgene, Bristol-Myers Squibb plans to sell off Otezla, a psoriasis drug made by Celgene that generated $1.6 billion of worldwide revenue in 2018.

Why it matters: The FTC seems worried Bristol-Myers would hold too much power in the psoriasis market; it has a psoriasis drug in development and sells Orencia, which treats psoriatic arthritis. The Otezla divestiture would significantly cut the value of the Celgene deal, and sent Bristol-Myers' stock down 7%.