Reuters has deflated rumors that AstraZeneca and Bristol Myers Squibb are discussing a possible merger, letting the air out of industry-wide speculation over what could have been the largest deal in pharma history.
After days of heated speculation, AstraZeneca and Bristol Myers Squibb are reportedly not pursuing a merger, according to Reuters.
“There is no deal between AstraZeneca and BMS,” a senior source close to the matter told Reuters under the condition of anonymity. “There never was a deal to be done, and there are no discussions between the companies.”
Over the weekend, The Financial Times reported that Big Pharmas BMS and AstraZeneca were discussing the possibility of a merger—a potential deal most analysts were highly skeptical of. Both companies are worth more than $130 billion, meaning that a deal between the two would be the largest in the pharmaceutical industry’s history with a combined value of around $400 billion.
Now, Reuters is squashing all of the hypotheticals, reporting that there are zero discussions occurring between the U.K. and U.S. pharmas.
The news will surprise few but ends a frantic couple days as the industry considered a deal that could’ve reset M&A for the entire sector. From the start, analysts deemed the idea as “unlikely,” given the companies’ major competing products that would significantly complicate antitrust reviews. Most notably, BMS sells Opdivo and AstraZeneca touts Imfinzi, rivaling each other in non-small cell lung cancer.
On the flip side, a potential deal could have addressed some of the looming patent cliffs both companies are facing, particularly BMS. The U.S. pharma is staring down exclusivity losses for two of its top-selling drugs: Pfizer-partnered blood thinner Eliquis and PD-1 checkpoint inhibitor Opdivo. Last year, the two drugs collectively accounted for half of BMS’ entire $48.2 billion in revenue.
Instead, both drugmakers will have to navigate patent cliffs and growth pressures on their own.
