A senior source with knowledge of the matter said on Wednesday that AstraZeneca and Bristol Myers Squibb are not conducting talks over a potential transaction. The source, who requested anonymity, was unequivocal: "There is no deal between AstraZeneca and BMS. There never was a deal to be done, and there are no discussions between the companies," the individual said.
The statement directly contradicts earlier reporting that suggested the two drugmakers had held preliminary discussions about a potential merger that would combine their businesses into a company with an approximate combined value of nearly $400 billion. At the time of that reporting, it was unclear whether any conversations were still ongoing.
That earlier coverage also noted that a financial publication had first raised the possibility of talks. The suggestion of a possible tie-up sparked market moves: AstraZeneca shares fell by about 9% after the reports, while Bristol Myers Squibb shares were described as having remained relatively steadier in comparison.
The senior source emphasized that no negotiations are underway and that there was never a deal agreed between the two companies. The source's comments serve to quash the notion of an imminent or active merger process between the firms.
Market reaction earlier in the week had highlighted how merger speculation can quickly affect equity valuations in the pharmaceutical sector. AstraZeneca's sharp decline following the reports underlined investor sensitivity to potential consolidation in the drug industry, while Bristol Myers Squibb's shares showed less dramatic movement.
Beyond the denial from the senior source, the reporting available does not provide further details about what prompted the initial reports of talks or about any internal deliberations at either company. Observers and market participants therefore remain limited to the public statements and share-price movements documented to date.
Quick takeaway
- A senior anonymous source says there are no discussions between AstraZeneca and Bristol Myers Squibb about a deal.
- Earlier reports had described preliminary talks that could have created a nearly $400 billion combined company.
- Following the initial reports, AstraZeneca shares fell around 9% while Bristol Myers shares were steadier.