Bristol’s Integration Strategy With Celgene Includes “Ring-Fencing” Oncology Teams
Firm hopes to minimize merger disruption by maintaining separate BMS, Celgene cancer expertise. Opdivo posts solid growth, but longer-term worries persist.
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Q1 Earnings Preview: With the positive vote on its merger with Celgene behind it, Bristol now needs to focus on growing its immuno-oncology business, where several upcoming catalysts could bolster Opdivo.
With no more activist investor challenge, shareholders of both companies overwhelmingly approved the deal. Bristol said it will have leading positions in oncology and cardiovascular disease, and gain five potential blockbusters in the Celgene buyout.
Bristol's surprising purchase diversifies its portfolio beyond Opdivo, while stopping Celgene's ongoing stock price declines after several setbacks. While Bristol execs downplayed the mid-term risk of generics for Celgene's blockbuster Revlimid, they highlighted near- and long-term growth drivers.