Jan 3, 2019

Bristol-Myers Squibb to acquire Celgene for $74 billion

Bristol-Myers Squibb is buying Celgene. Photo: John Greim/LightRocket via Getty Images

Bristol-Myers Squibb is acquiring Celgene in a stock-and-cash deal worth $74 billion, creating a pharmaceutical giant with roughly $37 billion in annual drug sales.

Why it matters: This is one of the largest drug company buyouts ever, combining two firms that are making a lot of money. However, Celgene has struggled to evolve over the past few years as its top product, the blood cancer drug Revlimid, loses patent protection — which has spurred a sell-off in Bristol-Myers' stock.

The details: Celgene's investors will receive one share of Bristol-Myers' stock and $50 for every share of Celgene they own, and they could earn extra cash if three Celgene drugs obtain federal approval by certain dates.

  • Several Celgene executives would get a huge payday if both companies approve the deal. That includes former Celgene CEO and failed Senate candidate Bob Hugin, who would immediately cash out $185 million and hold an additional 3.7 million shares of Bristol-Myers.
  • Both firms expect to cut $2.5 billion in costs by 2022, and a lot of those likely will come from laying off Celgene's scientists and other staff.

The big picture: Bristol-Myers and Celgene are still highly profitable companies within the health care industry, and the deal would turn Bristol-Myers into one of the largest cancer drug companies in the world.

My thought bubble: It's also a remarkably generous deal for Celgene. The company is heavily dependent on Revlimid, a high-priced drug that makes up two-thirds of its revenue and faces cheaper alternatives in the next few years. Regulators also have criticized Celgene for delaying generic competition. Bristol-Meyers is essentially banking on the success of Celgene's newly acquired drugs, like the cancer ones made by Juno Therapeutics.

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DOJ watchdog finds flaws in FBI surveillance process beyond Page application

Carter Page. Photo: Chip Somodevilla/Getty Images

The Justice Department inspector general found errors in 29 out of 29 randomized FBI applications for acquiring wiretap warrants through the Foreign Intelligence Surveillance Act, or FISA, according to a report released Tuesday.

Why it matters: The broad DOJ audit of the FISA program stems from a damning investigation into the FBI's surveillance of former Trump campaign aide Carter Page, which uncovered "serious performance failures" by some FBI officials during the Russia probe. The IG's final findings come as Congress debates whether to renew the authority it grants to the FISA courts.

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3:30 p.m. ET: 838,061 — Total deaths: 41,261 — Total recoveries: 174,115.
  2. U.S.: Leads the world in confirmed cases. Total confirmed cases as of 3:30 p.m. ET: 177,452 — Total deaths: 3,440 — Total recoveries: 6,038.
  3. Public health updates: More than 400 long-term care facilities across the U.S. report patients with coronavirus — Older adults and people with other health conditions are more at risk, new data shows.
  4. Federal government latest: The White House and other institutions are observing several models to better understand and prepare cities for when the coronavirus is expected to peak in the U.S.
  5. In Congress: New York Rep. Max Rose deploys to National Guard to help coronavirus response.
  6. 🎧 Podcast: Misinformation in the coronavirus age.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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U.S. coronavirus updates: White House studies models projecting virus peak

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

The White House and other institutions are observing several models to better understand and prepare cities for when the coronavirus is expected to peak in the U.S.

The state of play: The coronavirus is expected to peak in the U.S. in two weeks, but many states like Virginia and Maryland will see their individual peaks well after that, according to a model by the University of Washington's Institute for Health Metrics and Evaluation.

Go deeperArrowUpdated 3 hours ago - Health