Aug 2 - UK drugmaker AstraZeneca has been engaged in talks with U.S. peer Bristol Myers Squibb over a potential merger, according to people familiar with the matter. If consummated, the transaction would create one of the largest pharmaceutical companies globally, with an estimated combined value approaching $400 billion.
Those familiar with the discussions say the two firms have held conversations about a possible tie-up in recent months. The report notes that the companies could reach an agreement in the near term, but it also cautions that talks may be postponed or end without a deal.
AstraZeneca did not provide comment on the discussions, and Bristol Myers did not immediately respond to a request for comment. The UK company previously announced plans for a direct listing in the United States, a move intended to take advantage of relatively stronger U.S. valuations while maintaining its London listing.
Growth drivers and business mix
During Pascal Soriot’s 14 years as chief executive, AstraZeneca’s share price has increased more than fourfold, outpacing the wider FTSE 100 index and its principal British rival GSK. The company’s recent quarterly results underlined that demand for cancer and rare disease therapies remains a key growth engine.
In 2025, cancer treatments accounted for about $25 billion of AstraZeneca’s sales - roughly half of the company’s total revenue. Treatments in the cardiovascular, renal and metabolism category generated around $12 billion.
Bristol Myers, meanwhile, has seen its shares rise by approximately 44% over the last year. Oncology medicines made up more than 40% of its sales in the first half of 2026. Several of the two companies’ cancer immunotherapies are direct competitors, a fact that could draw scrutiny from antitrust regulators if the firms attempt to combine.
Commercial pressures and product lifecycle issues
Bristol Myers has pursued smaller acquisitions to replenish its portfolio as revenues from older drugs decline, in part because some of those products are nearing or have reached the end of patent protection. The company’s 2019 acquisition of Celgene, valued at about $80 billion, brought the blood cancer drug Revlimid into Bristol Myers’ portfolio; Revlimid has already lost patent protection.
Looking ahead, two of Bristol Myers’ current top sellers - cancer immunotherapy Opdivo and anticoagulant Eliquis - could face patent expirations by 2028. Despite those risks to established products, the company recently raised its full-year revenue and profit guidance after second-quarter results exceeded analysts’ expectations, driven by continued strong sales of Eliquis and newer medicines.
Bristol Myers’ pipeline and recent development-stage assets include an experimental anticoagulant milvexian, the anemia treatment Reblozyl and the heart drug Camzyos.
Deal context and industry pattern
The potential merger report follows a history of major consolidation attempts in large pharma. Approximately a dozen years ago AstraZeneca resisted a takeover approach from a larger U.S. rival. In the broader sector, sizable transactions in recent years have included AbbVie’s acquisition of Allergan in 2020 and the 2019 combination of Takeda and Shire. Large-scale deals have been less common lately, influenced in part by regulatory concerns and U.S. policy pressure to keep drug prices lower.
The current discussions between AstraZeneca and Bristol Myers, if they progress, would be closely watched for their implications across the pharmaceutical sector, capital markets and regulatory community. However, those discussions remain preliminary and could be delayed or collapse.