Bristol-Myers Squibb (BMY) - Get Bristol-Myers Squibb Company Report shares edged higher Thursday after the pharmaceutical group said it has completed its $74 billion acquisition of cancer drug specialist Celgene Corp. (CELG) - Get Celgene Corporation Report .
Celgene shareholders received 1 Bristol-Myers share, $50 in cash and special rights for a further $9 in cash if certain performance milestones under the combined group are met. The January deal valued Celgene at $102.43 each at the time, a 53.7% premium to the previous session's closing price. The combined group -- which will be 69% owned by Bristol-Myers -- would have a portfolio with nine drugs that generate more than $1 billion in sales.
"With our leading franchises in oncology, hematology, immunology and cardiovascular disease, and one of the most diverse and promising pipelines in the industry, I know we will deliver on our vision of transforming patients' lives through science," said CEO Giovanni Caforio. "I am excited about the opportunities for our current employees and the new colleagues that we welcome to the Company as we work together to deliver innovative medicines to patients."
Bristol-Myers shares were marked 0.8% higher in early trading Thursday to change hand at $56.82 each, a move that would nudge the stock 9% higher than where it was trading prior to the January 3 announcement of the Celgene takeover.
In order to gain Federal Trade Commission approval for the deal, Bristol-Myers sold Celgene's highly successful oral psoriasis treatment Otezla to rival Amgen (AMGN) - Get Amgen Inc. Report for $13.4 billion in late August.
Last month, Bristol-Myers Squibb (BMY) - Get Bristol-Myers Squibb Company Report lifted its full-year profit guidance after a stronger-than-expected third quarter earnings report that was highlight by slowing sales growth for its key lung cancer treatment, marketed as Opdivo.
Bristol-Myers said group revenues rose 5.4% to $6 billion, topping analysts' estimates, but noted sales of Opdivo grew 1.3% to $1.817 billion, a far cry from the 42% growth rate the group's blockbuster cancer treatment notched over the same period last year.
Looking into the final months of the year, Bristol-Myers said it sees 2019 non-GAAP earnings in the region of $4.25 to $4.35 per share, a five cent improvement from its prior guidance, while lowering its GAAP earnings forecast to $3.46 to $3.56 per share.