AstraZeneca, BMS in merger talks that could create revenue leader
2026-08-03
The Financial Times reported on the 2nd that Britain's AstraZeneca and U.S. Bristol Myers Squibb (BMS) are advancing talks on a merger. If completed, the deal would create the world's largest pharmaceutical group by revenue.
Merger talks
According to the FT, the two companies have been in discussions for several months. While there is a possibility of an agreement soon, the risk remains that the talks could be postponed or collapse. Details of the deal terms have not been disclosed, but it is expected to involve a mix of cash and stock.
Scale and performance
AstraZeneca's market capitalization in the U.K. market as of July 31 was about 196 billion pounds, or about 42 trillion yen, while BMS was about 133 billion dollars, or about 21 trillion yen. Combined, that comes to roughly 60 trillion yen, exceeding U.S. Merck. In Evaluate's 2025 global pharmaceutical market ranking, AstraZeneca is fifth and BMS is 10th, and on a combined basis they would rank first by revenue.
Business strategies
AstraZeneca has grown under Pascal Soriot, who became CEO in 2012, with cancer drugs as a core driver. In 2014, it rejected an acquisition proposal from U.S. Pfizer, and in 2021 it entered the rare-disease field by acquiring U.S. Alexion Pharmaceuticals for about 39 billion dollars. Revenue for the year ending December 2025 rose 9% from the previous year to 58.7 billion dollars, while operating profit increased 37% to 13.7 billion dollars.
In a plan announced in 2024 running through 2030, the company set a target of 80 billion dollars in revenue. By 2030, it plans to launch 20 new drugs in areas including cancer treatment and biopharmaceuticals. BMS has strengths in cancer drugs, but growth in revenue at the biopharmaceutical company it bought for 74 billion dollars in 2019 has slowed. Revenue for the year ending December 2025 edged down from the previous year to 48.1 billion dollars, while gross profit was flat at 34.2 billion dollars. Over the next few years, patents on key products including the cancer immunotherapy drug Opdivo are also set to expire.
Merger issues
If the integration is realized, synergies are expected in cancer drugs and in the U.S. market. In oncology, BMS also works on newer technologies such as cell-based therapies and radiopharmaceuticals.
On the other hand, because both companies have large cancer treatment divisions, antitrust reviews in various countries would be a burden. AstraZeneca is the second-largest stock on the London market after HSBC Holdings, and if the deal were to involve moving its headquarters to the United States, negotiations could become even more difficult.
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