As per a media report over the weekend, AstraZeneca Plc (NYSE:AZN) and Bristol Myers Squibb Co.
(NYSE:BMY) are in potential discussions to form a pharmaceutical giant valued at nearly $400 billion.
The news took the healthcare sector by storm, and the merger would position AstraZeneca as the world’s fourth-largest drugmaker by market capitalization.
Prior Pharma Deals For Valuation Benchmarks AstraZeneca’s market value stands at approximately $263 billion, while Bristol Myers Squibb is valued at around $133 billion, according to Benzinga Pro data.
William Blair on Monday wrote, "Given the size of the two companies, we assume the deal would be largely stock-based, which could result in Bristol Myers shareholders holding roughly one-third of the combined company based on today’s market caps." Assuming 4 times William Blair's 2028 revenue estimate of $39.5 billion for Bristol Myers would suggest a take-out value of roughly $160 billion.
