- AstraZeneca held talks with Bristol Myers Squibb about a nearly $400 billion merger, the Financial Times reported.
- AstraZeneca shares slumped more than seven percent in early London trading after the report.
- AstraZeneca was valued at £196 billion ($264 billion) before the report, while BMS was worth $133 billion.
- A deal would create one of the world's biggest pharmaceutical groups and strengthen AstraZeneca's push into the United States.
British pharmaceutical group AstraZeneca has held talks with US rival Bristol Myers Squibb about a merger valued at nearly $400 billion, The Financial Times has reported.
AstraZeneca, which declined to comment Monday in a message to AFP, saw its share price slump more than seven percent in early London trading following the report, published Sunday.
The drugmaker was valued at £196 billion ($264 billion) ahead of the report, while BMS was worth $133 billion.
A deal would create one of the world’s biggest pharmaceutical groups and strengthen AstraZeneca’s push into the United States.
The Financial Times said the “companies have held discussions about a tie-up in recent months, according to people familiar with the matter”.
According to the people, “the talks could yield a deal in the near future but may be delayed or fall apart”, the report said.
AstraZeneca, Britain’s largest drugmaker, announced last week that its net profit edged up to $2.5 billion in the second quarter, driven once again by strong sales of its cancer drugs.
BMS’s after-tax profit more than doubled in the second quarter to $3.3 billion.
AstraZeneca is focused on expanding in two of its largest markets, the United States and China, investing billions of dollar in the countries on researching and manufacturing new drugs.
AstraZeneca hopes the US market will account for half its global revenue by 2030 after reaching 43 percent last year.
In February the company began listing its shares directly on the New York Stock Exchange to attract more investors.
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