AstraZeneca and Bristol Myers Squibb Discuss $400 Billion Merger

AstraZeneca PLC and Bristol Myers Squibb Company have held preliminary discussions over a potential merger that would value the combined entity at approximately $400 billion. If completed, the deal would create the world's fourth-largest pharmaceutical group. The transaction would likely involve a combination of cash and shares, though sources indicate the process could be delayed or collapse.

Reports of the talks triggered a sharp decline in AstraZeneca shares, which dropped between 6.1% and 7.7% as investors and analysts questioned the strategic necessity of the move. Skeptics from Jefferies, Bernstein, and Union Investment cited risks that a mega-merger could disrupt research and development productivity.

The potential tie-up faces significant regulatory scrutiny from antitrust authorities under the Donald Trump administration, specifically regarding overlapping portfolios in oncology and cardiovascular medicine. The discussions align with a broader strategic pivot toward North America by AstraZeneca, which recently listed on the New York Stock Exchange and entered a $50 billion agreement with the U.S. government to invest in domestic manufacturing and research.

Both companies have declined to comment or have not responded to requests for comment regarding the negotiations.