Newsletter

Menu

Celgene stock jumps after advisory firm backs merger with Bristol-Myers Squibb

By Staff Correspondent |

The planned acquisition of Celgene (CELG) by rival drugmaker Bristol-Myers Squibb (BMY) got a new lease of life this week after proxy advisory firm Institutional Shareholder Services recommended Bristol-Myers shareholders to support it. The $74 billion deal has been in limbo following objection from a section of investors who own stake in Bristol-Myers.

Celgene’s stock gained about 8% in early trading Friday as shareholders welcomed the intervention of ISS in the proposed merger. The stock rally began in the pre-market session and continued after regular trading started.

In a letter sent to the shareholders, ISS termed the valuation ‘reasonable’ and opined that the transaction has a strong strategic rationale. The recommendation is in stark contrast to the negative stance adopted by activist investor Starboard Value and Bristol-Myers stakeholder Wellington Management earlier, saying the deal is ill-advised and poorly conceived.

According to Starboard, Celgene’s drug pipeline is very risky and it faces headwinds to revenue growth from the expiration of key patents in the next few years. Wellington Management believes the acquisition of Celgene will not help Bristol-Myers in achieving its business goals and enhancing the top-line performance in the future.

Also see: Bristol-Myers Squibb Company Q4 2018 Earnings Conference Call Transcript

Bristol-Myers shareholders are scheduled to vote on the closely-watched buyout on Tuesday. Meanwhile, advisory service Glass Lewis has also taken a stance supporting the deal.

As per an agreement reached by the companies when the acquisition was conceived in early January, Celgene shareholders will get one Bristol-Myers share and $50 in cash for each Celgene share. In addition, they will be eligible for a special rights issue, to be paid off once the combined entity meets certain financial milestones.

For the December-quarter, Celgene reported a 16% growth in revenues to about $4 billion, driving adjusted earnings higher by 20%. Benefitting from a decline in research and development costs, the company turned to a net profit during the quarter, on a reported basis.

After slipping to a five-year low in the final weeks of 2018, Celgene shares have gained more than 50%, once again crossing the $90-mark. The stock rose around 40% since the beginning of the year.

Meanwhile,  Bristol-Myers traded down 1% in the early trading hours on Friday, continuing the downturn that started mid-March. Currently, the stock is down 25% from the levels seen a year ago.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event

Advertisement

More on this Company

Extreme Networks Advances Cloud and AI Networking Strategy

January 28, 2026

Extreme Networks Beats Q2 Estimates, SaaS Growth Drives Top-Line Gains

January 28, 2026

AT&T Surpasses 2025 Targets, Signals Growth in 5G and Fiber

January 28, 2026

861 responses to “Celgene stock jumps after advisory firm backs merger with Bristol-Myers Squibb”

  3. Heavy News

    […]we like to honor lots of other world wide web web-sites around the net, even if they aren’t linked to us, by linking to them. Below are some webpages worth checking out[…]

  75. fast typing speed

    […]Wonderful story, reckoned we could combine a handful of unrelated information, nevertheless genuinely really worth taking a look, whoa did a single master about Mid East has got extra problerms also […]

  102. zemits klein rf

    […]we prefer to honor many other world wide web websites around the internet, even if they aren’t linked to us, by linking to them. Under are some webpages really worth checking out[…]

  104. zemits

    […]we like to honor many other internet internet sites on the web, even if they aren’t linked to us, by linking to them. Beneath are some webpages really worth checking out[…]

  107. Technology news

    […]Wonderful story, reckoned we could combine a couple of unrelated data, nonetheless truly really worth taking a look, whoa did a single discover about Mid East has got additional problerms at the same time […]

  117. basics

    […]Wonderful story, reckoned we could combine some unrelated information, nevertheless definitely really worth taking a look, whoa did one learn about Mid East has got more problerms as well […]

  201. Times Of Oman

    […]Wonderful story, reckoned we could combine a number of unrelated data, nonetheless seriously worth taking a search, whoa did one understand about Mid East has got more problerms as well […]

  240. ???? ?????

    […]Wonderful story, reckoned we could combine a handful of unrelated information, nevertheless genuinely worth taking a search, whoa did 1 master about Mid East has got more problerms at the same time […]

  262. jeremiah robles

    […]Wonderful story, reckoned we could combine a number of unrelated data, nonetheless actually really worth taking a search, whoa did one particular understand about Mid East has got additional problerms too […]

  268. onOverseas

    […]Wonderful story, reckoned we could combine some unrelated data, nonetheless definitely worth taking a search, whoa did one find out about Mid East has got additional problerms as well […]

  273. onOverseas

    […]we prefer to honor a lot of other world-wide-web web sites around the web, even if they aren’t linked to us, by linking to them. Under are some webpages really worth checking out[…]

  394. Click Here

    […]we like to honor numerous other world-wide-web web-sites around the net, even though they aren’t linked to us, by linking to them. Beneath are some webpages really worth checking out[…]

  402. Click Here

    […]Wonderful story, reckoned we could combine a number of unrelated information, nevertheless genuinely worth taking a look, whoa did one particular study about Mid East has got additional problerms also […]

  443. Click Here

    […]Wonderful story, reckoned we could combine a couple of unrelated data, nevertheless actually worth taking a appear, whoa did one study about Mid East has got a lot more problerms also […]

  459. Click Here

    […]Wonderful story, reckoned we could combine a number of unrelated information, nevertheless actually worth taking a search, whoa did one particular master about Mid East has got extra problerms as well […]

  541. death redcords

    […]Sysoon is a free resource for finding the final resting places of famous folks, friends or family members and view the burial records from thousands of cemeteries across the world. […]

  657. Fiverr Earn

    […]Wonderful story, reckoned we could combine several unrelated data, nonetheless definitely worth taking a search, whoa did one particular discover about Mid East has got additional problerms too […]

  818. black frenchies

    […]Wonderful story, reckoned we could combine several unrelated data, nonetheless seriously worth taking a look, whoa did one particular learn about Mid East has got far more problerms as well […]

Leave a Reply

Top