AstraZeneca and Bristol Myers Squibb Merger Talks Send BMS Shares Up Nearly 8%, AstraZeneca Down Over 5%
AstraZeneca and Bristol-Myers Squibb are in merger talks, according to market reports, sending BMS shares up nearly 8% while AstraZeneca fell over 5%. In the first half of 2026, AstraZeneca reported revenue of $30.672 billion, up 6% year on year, with China sales down 5% to $3.51 billion, representing 11% of global revenue. BMS posted revenue of approximately $24.462 billion, up 4%, with US sales up 2% and other markets up 9%. Market capitalizations were about $264 billion and $133 billion respectively. The companies have a history of collaboration, including a 2007 diabetes alliance and AstraZeneca's $4.1 billion buyout of BMS's rights to dapagliflozin in 2013. Regulatory hurdles include overlapping oncology products.
AstraZeneca, headquartered in Cambridge, UK, and Bristol-Myers Squibb, headquartered in New Jersey, US, have not commented on the reports.
Financial data: AstraZeneca reported total revenue of $30.672 billion for the first half of 2026, up 6% year on year, with product revenue of $30.595 billion, also up 6%. Revenue from China was $3.51 billion, down 5%, representing 11% of global revenue. Bristol-Myers Squibb reported revenue of approximately $24.462 billion for the first half of 2026, up 4%, with US revenue of $16.779 billion, up 2%, and other markets revenue of $7.683 billion, up 9%. As of August 3, 2026, AstraZeneca's market capitalization was approximately $264 billion, while Bristol-Myers Squibb's was approximately $133 billion.
The two companies have collaborated before. In 2007, they formed a diabetes alliance to co-promote the SGLT-2 inhibitor dapagliflozin. In 2013, AstraZeneca acquired Bristol-Myers Squibb's related rights in the drug for $4.1 billion. AstraZeneca's current business spans oncology, cardiovascular, renal and metabolic, respiratory and immunology, and rare diseases, while Bristol-Myers Squibb focuses on oncology, hematology, immunology, and cardiovascular. AstraZeneca has previously announced a $50 billion investment in research and manufacturing in the US, while Bristol-Myers Squibb faces pressure from patent expirations on core products.
A potential transaction would face multiple regulatory challenges. The two companies have overlapping businesses in oncology, for example, AstraZeneca's durvalumab and Bristol-Myers Squibb's nivolumab are both immune checkpoint inhibitors.
The market reacted to the talks. On August 3, 2026, AstraZeneca's shares fell in London and New York, at one point down over 5%, while Bristol-Myers Squibb's shares rose nearly 8%. AstraZeneca had previously set a target of $80 billion in revenue by 2030, and its chief executive said in a conference call that the target does not depend on mergers and acquisitions.