AstraZeneca slides 7% after report of merger talks with Bristol‑Myers Squibb
AstraZeneca PLC’s London‑listed shares fell 6.7% to 11,804 pence in Monday trading after a Reuters report said the drugmaker had been holding merger discussions with Bristol‑Myers Squibb Company (BMY). The FTSE 100 was little changed. In pre‑market trading, Bristol‑Myers Squibb rose 2.7% after closing Friday at $65.31, just below its 52‑week high of $65.66.
The reported combination would create a pharmaceutical giant valued at almost $400 billion, placing it among the world’s largest drug groups. AstraZeneca’s market capitalisation is approximately $264 billion, while Bristol‑Myers Squibb adds roughly $133 billion.
The Financial Times, citing people familiar with the matter, said the discussions have taken place over recent months but cautioned that talks could be delayed or collapse entirely. No deal structure has been disclosed and neither company issued a comment.
AstraZeneca’s NYSE‑listed shares ended Friday’s session at $169.64, down $1.70 on the day and more than $40 below their 52‑week high of $212.71. Bristol‑Myers Squibb closed Friday at $65.31, a whisker from its own 52‑week high of $65.66, on above‑average volume of 14.58 million shares.
Bristol‑Myers Squibb has gained roughly 47.7% over the past year, helped by a strong second‑quarter. The company reported Q2 2026 earnings per share (EPS) of $2.04, beating the consensus estimate of $1.61, on revenue of $12.97 billion, topping estimates of $11.71 billion.
AstraZeneca also delivered a solid Q2, posting EPS of $2.63 against a $2.48 estimate on revenue of $15.38 billion, versus consensus estimates of $15.45 billion released on July 27.
Under CEO Pascal Soriot, AstraZeneca previously rebuffed a $118 billion takeover approach from Pfizer in 2014, and its share price has more than quadrupled since. More recently, the company announced a $50 billion U.S. manufacturing and R&D investment commitment and outlined plans for a direct U.S. listing to capture stronger American equity valuations. How a merger with BMY would fit alongside those ambitions remains unanswered.
Bristol‑Myers Squibb has pursued acquisitions to reinvigorate a pipeline under pressure from patent cliffs, with GAAP R&D spending falling roughly 11% to about $10 billion in 2025. Its oncology and immunology assets, including partnership agreements with BioNTech and Hengrui Pharma, have helped underpin the stock’s rally, though a larger platform could accelerate pipeline diversification.
Investors will receive the next formal updates in late October. Bristol‑Myers Squibb is scheduled to report Q3 2026 results on October 29, with consensus pointing to EPS of $1.61 on revenue of $12.04 billion. AstraZeneca follows on October 30, where consensus EPS stands at $2.63 on revenue of $16.06 billion.
Analysts at Jefferies expressed puzzlement over the reported talks, arguing that AstraZeneca possesses one of the strongest growth and innovation profiles in the sector and does not need a transformational acquisition to boost earnings. The brokerage warned that any transaction would likely face significant antitrust scrutiny given both companies’ sizeable oncology businesses, and noted that Bristol‑Myers Squibb’s looming patent expiries could dilute AstraZeneca’s long‑term growth profile despite potential near‑term earnings accretion.