Bristol Myers Squibb acquires Celgene (2019)
Bristol Myers Squibb agreed in January 2019 to buy Celgene for $74 billion, betting on experimental cancer and immunology drugs to replace revenue from the blood cancer drug Revlimid as its patents expired. The deal closed in November 2019 after a fight with activist investor Starboard Value, which argued the price was too high.
BMS absorbed Celgene's programs, including the immunology drug ozanimod, and faced shareholder pressure over the price.
Some Celgene pipeline bets paid off and others disappointed, illustrating the risk of buying early-stage science at a premium.
Like BMS-Celgene, the Merida deal is a bet that experimental science can extend a pharma giant's growth. Phase 1 drugs often fail, which is why the price is built around milestones.
