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See the full story · 6 sourcesThe combination of the two would create one of the world’s biggest pharmaceutical companies.
Listen Summarise AstraZeneca and Bristol Myers Squibb have held talks about a potential $512 billion merger to create one of the world's largest pharmaceutical companies. Both companies have strong cancer drug portfolios, but the deal could face antitrust scrutiny due to overlapping products and pipeline competition. Bristol Myers has boosted forecasts with new drugs, while AstraZeneca seeks US market gains; recent large pharma deals have been rare due to regulatory and pricing pressures. AI generated
LONDON – British drugmaker AstraZeneca and the US’ Bristol Myers Squibb held preliminary discussions about a possible combination that would create one of the world’s biggest pharmaceutical companies, with a combined value of nearly US$400 billion (S$512 billion), according to a person familiar with the situation.
The Financial Times first reported the news. Reuters could not determine whether the talks are ongoing.
A potential deal would carry regulatory risk because of concerns about how it might be assessed by US antitrust authorities under President Donald Trump’s administration, the person said on condition of anonymity.
Trump has been focusing on domestic investments in the sector and expanding US manufacturing.
While AstraZeneca in 2025 unveiled plans for a direct US listing, aiming to capitalise on stronger valuations in the US market , such a deal would mean a Britain-based company would effectively be buying a major US pharmaceutical champion.
AstraZeneca declined to comment, while Bristol Myers did not immediately respond to a Reuters request for comment.
AstraZeneca’s share price has more than quadrupled during Pascal Soriot’s 14-year tenure as chief executive , soaring above the wider FTSE 100 index and main British rival GSK.
Second-quarter results last week showed that strong demand for cancer and rare disease drugs continues to drive growth.
Cancer treatments accounted for about US$25 billion in 2025 sales, nearly half of the total, followed by cardiovascular, renal and metabolism treatments worth about US$12 billion.
Combining with Bristol Myers, whose shares are up around 44 per cent over the last year, could draw attention from antitrust regulators.
Oncology drugs accounted for over 40 per cent of its overall sales in the first six months of 2026, and the two companies’ cancer immunotherapies directly compete.
“I would expect a Trump FTC to scrutinise the merger, and if there are significant overlaps in certain drugs and late-stage pipeline overlaps, it would require meaningful divestitures,” said antitrust lawyer Andre Barlow with DBM Law Group, referring to the US Federal Trade Commission.
Bristol Myers has been doing smaller deals to gain new drugs as it faces declining sales of older medicines, some of which will soon face generic competition.
In 2019, Bristol Myers bought Celgene for about US$80 billion, acquiring its flagship blood cancer drug Revlimid, which became Bristol Myers’ top-selling product.
Revlimid has already lost patent protection and Bristol Myers’ current top sellers – cancer immunotherapy Opdivo and blood thinner Eliquis – could lose patent protection by 2028.
Barlow noted that in the deal for Celgene, the Trump FTC required Celgene to sell psoriasis treatment Otezla, a major divestiture at US$13.4 billion.
“There is bipartisan support to scrutinise pharma deals, so I would imagine that even the Trump FTC would ask the broader questions relating to bundling of products and a lack of future innovation, in addition to scrutinising all direct overlaps,” he said.
Bristol Myers raised its full-year revenue and profit forecast last week as strong sales of Eliquis and newer medicines pushed second-quarter results well past analysts’ estimates. Its promising newer drugs and pipeline assets include an experimental blood thinner, Milvexian , anaemia treatment Reblozyl and heart drug Camzyos.
The report of the potential deal comes about a dozen years after AstraZeneca fended off a takeover attempt by larger US rival Pfizer.
Large pharma deals have been rare in recent years, in part due to concerns about antitrust and US pressure to keep drug prices low.
Besides Bristol Myers and Celgene, AbbVie bought Allergan in 2020, and Takeda and Shire combined in 2019. REUTERS
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