AstraZeneca-Bristol Myers’ $400B Merger Buzz Cools After Report Denies Talks – ‘There Never Was A Deal To Be ​Done’

• The update follows an earlier report from the Financial Times, which said the companies had been in discussions for several months over a potential merger.
• According to Semafor, a merger could shift a large share of AstraZeneca’s business toward the U.S., potentially paving the way for a full relisting.
• Both AstraZeneca and Bristol Myers have so far declined to comment on the development to Reuters.

Following the speculation about a potential $400 billion merger between AstraZeneca (AZN) and Bristol Myers Squibb (BMY), Reuters reported on Wednesday that the two drugmakers are not engaged in any discussions.

“There is no deal between AstraZeneca and BMS. There never was a deal to be done, and there are no discussions between the companies,” Reuters reported, citing a senior source familiar with the matter.

Both AstraZeneca and Bristol Myers declined to comment, according to the report.

At the time of writing, BMY shares fell 3.6% while AZN stock climbed 4.5% higher.

A Potential $400B Pharma Behemoth

The update follows a weekend report from the Financial Times, which said the companies had been in discussions for several months over a potential merger.

A combination of the two companies would create a pharmaceutical group valued at nearly $400 billion, making it the world’s fourth-largest drugmaker by market capitalization, the report added.

At the time of writing, AstraZeneca is valued at about $256 billion, while Bristol Myers has a market capitalization of roughly $130 billion.

Merger Could Have Led To Antitrust Scrutiny

FT noted that a transaction of such magnitude would likely face significant regulatory hurdles. Both companies have major oncology businesses, raising the prospect of close antitrust scrutiny.

According to Semafor, a merger could also shift a larger share of AstraZeneca’s business toward the U.S., potentially paving the way for a full relisting in New York. Any deal would also likely require commitments on research investment, manufacturing and jobs as part of a U.S. regulatory review.

Retail sentiment surrounding both BMY and AZN on Stocktwits trended in the ‘extremely bullish’ territory, amid ‘high’ message volumes.

AZN shares have declined around 11% so far this year while BMY shares have surged nearly 19%.

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