Bristol-Myers Shareholders Approve $74 Billion Deal For Celgene
April 12 2019 - 10:26AM
Dow Jones News
By Jared S. Hopkins
Bristol-Myers Squibb shareholders on Friday approved the
company's $74 billion acquisition of rival Celgene Corp., looking
past an unsuccessful activist campaign to break up the deal.
The deal, first announced Jan. 3, passed with more than 75% of
shareholders voting in favor of it. About 24% of shareholders voted
against the deal, with less than 1% abstained. A majority of the
shares voted were needed for approval. The deal is expected to be
completed in the third quarter this year.
The combined company will have nearly $38 billion in annual
sales and command a leading position in the $123 billion world-wide
market for cancer drugs.
New York-based Bristol pioneered the development of cancer drugs
known as immunotherapies, which unleash the body's immune system on
tumors. Summit, N.J.-based Celgene leads in the sale of treatments
for multiple myeloma.
On Friday morning, shares of Bristol-Myers were up slightly at
about $46, while Celgene shares edged up to about $95.
Serious challenges for the combined company lie ahead. Bristol
faces heavy competition from Merck & Co. for immunotherapy
sales, while Celgene's top-selling product, multiple myeloma
treatment Revlimid, is expected to lose U.S. patent protection in
the next several years.
Given the risks, Bristol-Myers shareholders were cool on the
deal when it was announced in January, driving the company's stock
down 14%.
Then in February, hedge fund Starboard Value LP voiced
opposition to the combination and moved to install its own set of
directors.
Boston-based investment firm Wellington Management Co. also
publicly opposed the deal. A handful of other shareholders also
expressed displeasure, including the fifth-largest shareholder,
Dodge & Cox, The Wall Street Journal reported.
Wellington has a stake of 7.2% in Bristol-Myers, according to
FactSet, but doesn't control the votes on most of those shares. And
Starboard dropped its fight after a thumbs-up from Institutional
Shareholders Services Inc. and Glass Lewis & Co.
(END) Dow Jones Newswires
April 12, 2019 11:11 ET (15:11 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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