British pharmaceutical company AstraZeneca is exploring a potential merger with its American competitor, Bristol Myers Squibb, according to sources familiar with the matter cited by the Financial Times. Such a transaction would result in the formation of one of the world's largest pharmaceutical groups, with a combined valuation approaching $400 billion. The companies have been engaged in discussions regarding a possible combination over the past few months.
The deal could materialize soon, though the possibility of delays or the termination of talks also exists. Reuters was unable to immediately verify the report, and AstraZeneca declined to comment. Bristol Myers Squibb did not respond to Reuters' request for comment outside of regular business hours.
This news emerges approximately twelve years after AstraZeneca successfully fended off an acquisition attempt by the larger U.S. rival, Pfizer. While AstraZeneca CEO Pascal Soriot has previously stated the company doesn't "need M&A to deliver" its $80 billion revenue target by 2030, following recent clinical setbacks, this potential merger suggests a significant shift in strategy. The company's CFO, Aradhana Sarin, had also indicated that recent drug failures wouldn't impact their M&A strategy.
