Bristol-Myers agrees to divest Celgene’s drug to close deal

Bloomberg

Bristol-Myers Squibb Co. agreed to divest one of Celgene Corp.’s most lucrative drugs in order to close their planned $74 billion merger. Under an agreement with the Federal Trade Commission, Bristol-Myers will sell off the psoriasis pill Otezla to appease antitrust regulators’ concerns, the company said in a statement. Bristol- Myers shares fell 7.6 percent to $45.57 in New York, the biggest intraday drop since the deal was announced on January 3. Celgene declined as much as 5.2 percent to $93.74.
Otezla is a major product for Celgene, projected to bring in $1.86 billion this year, and was seen as an important driver of future growth as the two companies knit together their businesses. Otezla has as much as a decade of strong sales ahead, according to analysts’ estimates surveyed by Bloomberg.
Now, a rival drugmaker will get the rights to the pill, potentially at a discounted price. Johnson & Johnson’s Janssen unit has said it’s interested in pursuing an oral psoriasis treatment through an acquisition or its own pipeline.