AstraZeneca May Keep Chasing Transformative M&A or Merger After Abandoned BMS Deal (Mergermarket)

AstraZeneca may still pursue a large-scale transformative deal after reported talks about a potential acquisition of Bristol Myers Squibb (BMS) were terminated, a source and two sector advisors familiar with the company said. While several market watchers approached for this story felt bolt-ons were the more likely path forward for the UK pharma giant, they wouldn't rule out bigger deals. According to the source, AstraZeneca's CEO, Pascal Soriot, has wanted to do a transformative deal for a long time and has pursued other potential large mergers. Oncology is the obvious therapeutic area where AstraZeneca would look for M&A, said Arvin Abraham, a Mergers and Acquisitions partner at Goodwin. However, given the transaction risk involved with a mega-merger, AstraZeneca may be better off continuing on the path it has been on with smaller, more targeted bolt-ons, Abraham argued. Among potential bolt-ons, the company could look for targets in bispecific antibodies, antibody-drug conjugates (ADCs), radio conjugates, and assets that can expand the company's already-excellent presence in lung, breast, and gastrointestinal cancer, Abraham said. One of the drivers for AstraZeneca doing the deal was likely to increase its US presence and scale.

Read the Mergermarket article for more.