AstraZeneca, Bristol Myers Squibb in talks over $400bn tie-up - report

3rd Aug 2026 08:15

(Sharecast News) - AstraZeneca is reportedly in talks to combine with US rival Bristol Myers Squibb in a deal that would create one of the world's biggest pharmaceutical groups, valued at nearly $400bn.

According to the Financial Times, citing people familiar with the matter, the companies have held discussions about a tie-up in recent months. It was understood the talks could yield a deal in the near future but may be delayed or fall apart.

AstraZeneca has a market value of about £196bn ($264bn), while BMS is worth roughly $133bn, the FT noted. A combination of the two would be among the biggest pharmaceutical deals of all time, and propel the combined entity to become the world's fourth-largest drugmaker by market capitalisation. The talks come after AstraZeneca completed a direct listing in New York in June.

The FT said the exact structure of any deal could not immediately be determined, but would probably require both cash and shares. AstraZeneca declined to comment and BMS did not immediately respond to requests for comment from the FT.

At 1328 BST, AstraZeneca shares were down 5.9% at 11,885.96p.

Analysts weigh in

Jefferies, which rates AstraZeneca at 'buy' with a 17,500p price target, said a tie-up between the two "would be more than a head scratcher".

"Given the strength of AZ's growth and innovation profile, we are a bit perplexed by the news," it said. "Of course financial accretion can look good and maybe more cash generation would allow for more R&D. But if there is one company that doesn't need financial engineering, it's AZ in our view."

Oddo, which rates AZN at 'outperform' with a 16,600p price target, said the report was a surprise. It noted that BMS has expected 2026 sales of around $50bn, strong positions in oncology, cardiology, immunology and neurology, and said a deal would materially increase AstraZeneca's exposure to the US, the largest pharma market.

However, it also pointed out that BMS faces significant patent cliffs by decade-end, notably Eliquis and Opdivo, with products exposed to loss of exclusivity accounting for around 50% of group sales, which is above sector average.

"While therapeutic fit appears strong, any transaction would also increase AZN's exposure to generic erosion and require substantial synergies to offset future revenue declines," Oddo said.

Russ Mould, investment director at AJ Bell, said: "The speculated blockbuster merger between AstraZeneca and US rival Bristol Myers Squibb would have implications outside of the pharmaceutical sector.

"Assuming it went through, AstraZeneca would likely overtake HSBC to become comfortably the largest company on the FTSE 100. However, the fear will be that such a move, coming on top of the company's recent direct listing in New York, would pull its centre of gravity across the Atlantic and ultimately see the UK stock market lose one of its crown jewels.

"Current CEO Pascal Soriot was a big player in the company's decision to reject a takeover bid from Pfizer for £70 billion in 2014 and has been vindicated in the interim. A tie-up with Bristol Myers Squibb could help the business to reach its ambitious revenue goals, with North America already a key source of growth.

"The initial market reaction to the reports is highly circumspect, reflecting understandable caution about the scale of the deal. Major transactions of this kind often run into difficulties around integration and matching up different workplace cultures.

"Getting a deal across the line could be as difficult as putting together a 10,000-piece jigsaw with the companies' overlapping focus in oncology likely to attract scrutiny from competition authorities. Political pressure might also be brought to bear, particularly on these shores given the importance of AstraZeneca to UK plc."