Bristol-Myers to Acquire Celgene in Deal Worth $74 Billion

Bristol-Myers Squibb said on Thursday that it would buy Celgene, which makes cancer drugs, in a cash-and-stock deal valued at $74 billion.

Together, the merged companies will produce nine pharmaceutical products with more than $1 billion in annual sales, Bristol-Myers said in a statement.

Bristol-Myers shareholders will own 69 percent of the combined entity while Celgene shareholders will own 31 percent. Celgene shareholders will receive one share of Bristol-Myers stock and $50 in cash for each share, valued at $102.43 per share, or a 53.7 percent premium to Bristol-Myers’s closing price on Wednesday.

The deal, which was approved by the boards of Bristol-Myers and Celgene, will help the companies advance their work in oncology, cardiovascular disease, immunology and inflammation, Bristol-Myers said in the statement.

In premarket trading, the stock price of Bristol-Myers, which has headquarters in New York, fell more than 14 percent. Shares of Celgene, which is based in Summit, N.J., surged more than 30 percent.

The deal, which awaits shareholder and regulatory approval, is expected to be completed in the third quarter.