Bristol-Myers Squibb said onÂ January 3 it would buy Celgene Corp for about $74 billion in a cash-and-stock deal, creating a powerhouse that will have several blockbuster cancer drugs.
The combined company will have nine products with more than $1 billion in annual sales and significant potential for growth in oncology, immunology and inflammation and cardiovascular disease.
Celgene shareholders will receive one Bristol-Myers Squibb share and $50 in cash for each share held, or $102.43 per share, a premium of 53.7 percent to Celgene's closing on January 2.
Celgene shareholders will also receive one tradeable contingent value right for each share held, which will entitle them to payments for future regulatory milestones.
Bristol-Myers shares fell 13 percent at $45.20, while Celgene shares rose 30.5 percent at $87 in premarket trading.