On Sunday, the Financial Times reported that AstraZeneca, a U.K. pharmaceutical giant, and the American drugmaker Bristol Myers Squibb have been discussing a possible combination. The deal would value the combined company at roughly $400 billion, according to sources who spoke to the FT. Such a tie-up would rank among the biggest deals ever.
Whether the two sides can reach an agreement remains an open question. CNBC reached out to AstraZeneca and Bristol Myers Squibb but did not receive an immediate response, and neither had issued a public statement about the report by the time this was published.
Through several well-timed deals, Bristol Myers has built a major oncology business. Since October 2007, Bristol Myers has bought seven companies. Through its July purchase of Medarex, Bristol Myers gained a key Phase III treatment for metastatic melanoma.
The drug might also be prescribed for lung and prostate cancer, giving it several possible uses, which drugmakers refer to as indications. Bristol Myers also sells Erbitux for colorectal and head and neck cancer, and Ixempra for breast cancer.
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Last week's second-quarter report from AstraZeneca pointed to sustained growth driven by its oncology and rare-disease medicines. Oncology products generated roughly $25 billion of 2025 revenue, close to half of the company's total. Cardiovascular, renal and metabolism treatments were worth about $12 billion.
Together, the two drugmakers would command a broad portfolio spanning Bristol Myers' Erbitux and Ixempra as well as AstraZeneca's cancer treatments. Bristol Myers' acquisition track record and AstraZeneca's strengths in cardiovascular, renal and metabolism drugs would also complement one another, though the deal remains speculative.
Under Pascal Soriot, who has been chief executive for 14 years, AstraZeneca's stock has risen more than fourfold, outpacing the FTSE 100 and British competitor GSK.
AstraZeneca announced a proposed direct listing in the U.S. last year, a move designed to take advantage of higher U.S. valuations while keeping its London listing.
AstraZeneca's chief financial officer said in a video segment, "Very confident we will hit $80 billion revenue target."
The reported talks arrive roughly a dozen years after AstraZeneca rejected a takeover attempt by larger American rival Pfizer.
Both companies have histories of major corporate moves. The talks are occurring against that backdrop.
A merger is still a big if. Investors should treat the FT report as unconfirmed, since neither company has publicly acknowledged the talks. If the discussions do not lead to a deal, AstraZeneca remains focused on its $80 billion revenue target and Bristol Myers keeps its portfolio of acquired cancer drugs.
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