AstraZeneca shares plummeted following news of a mega-deal with Bristol Myers
The market reacted skeptically to the possible formation of the world's largest pharmaceutical company
Shares of AstraZeneca, a British biopharmaceutical giant, fell nearly 7%. Photo: Mats Wiklund/Shutterstock
Shares of the British biopharmaceutical giant AstraZeneca plummeted following reports that it is in merger talks with its American rival, Bristol Myers Squibb. If the deal goes through, the combined company could be valued at around $400 billion.
Details
AstraZeneca shares fell 6% on the London Stock Exchange, after which they recovered slightly. Shares of the British company, which trade in New York, plummeted 6.8% in premarket trading. Bristol Myers shares rose 4.2%.
This was how investors reacted on Monday to a Sunday report in the Financial Times: sources cited by the newspaper said that the two pharmaceutical companies had been discussing a potential merger for several months. This could be one of the largest deals in the industry’s history, according to CNBC. However, the FT’s sources clarified that the deal may not yet go through.
AstraZeneca and Bristol Myers Squibb declined to comment to the television station.
Why is this deal necessary?
For AstraZeneca, one reason may be the desire to get closer to its key market—the U.S., CNBC notes. Sales in that country accounted for 42% of the pharmaceutical giant’s total revenue in the first half of 2026. Earlier this year, the company listed its shares on the New York Stock Exchange, replacing its previous American Depositary Receipts (ADR) program.
“Given AstraZeneca’s strong growth metrics and innovative profile, we’re a bit puzzled,” commented analysts at Jefferies on the proposed deal. “Of course, the financial synergies may look attractive, and the increase in cash flow would allow for higher R&D spending. But if there’s one company that doesn’t need this kind of financial maneuvering, it’s AstraZeneca.”
Analysts at Citi also noted that if reports of the talks are confirmed, it would come as a “surprise,” given that the British company has one of the best portfolios of promising projects.
Jefferies believes that the main focus will likely be on the potential creation of an even larger giant in the field of oncology: the combined portfolio of anti-cancer drugs from AstraZeneca and Bristol Myers would be the broadest in the industry. However, this will inevitably attract the attention of antitrust authorities, warns CNBC.
What Analysts Recommend Doing with Stocks
The Wall Street consensus on AstraZeneca is firmly positive: 17 out of 23 analysts recommend increasing holdings in the stock. Four advise holding the position, and only two suggest selling the shares.
The outlook for Bristol Myers Squibb is more cautious: 19 out of 31 analysts took a neutral stance with a “Hold” rating. Another 11 issued a “Buy” recommendation.
This article was AI-translated and verified by a human editor
