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Coumadin medication by Bristol-Myers Squibb on pharmacy shelf in Princeton, Illinois.
Under the agreement, Celgene shareholders will receive 1 Bristol-Myers Squibb share and $50 in cash for each share of Celgene.
Shares of Bristol-Myers Squibb were down more than 13 percent in premarket trading.
“Together with Celgene, we are creating an innovative biopharma leader, with leading franchises and a deep and broad pipeline that will drive sustainable growth and deliver new options for patients across a range of serious diseases,” Bristol-Myers Squibb Chairman and CEO Giovanni Caforio said in a press release.
The boards of directors of both companies approved the deal. The combined company will have nine products with more than $1 billion in annual sales and significant potential for growth in oncology, immunology and inflammation and cardiovascular disease.
Celgene was set to lose patent protection by 2022 for Revlimid, its top-selling multiple myeloma drug. Early last year, Celgene agreed to to buy the rest of Juno Therapeutics it didn’t already own for about $9 billion in cash to gain access to Juno’s pipeline of cancer drugs.
The company has been working on an experimental new gene therapy called CAR T-cell therapy — taking a patient’s own immune cells, called T cells, genetically manipulating them to attack specific proteins on cancer, and infusing them back into the patient.
This story is developing. Please check back for updates.