Similar to cannabis stocks, Bristol-Myers Squibb (NYSE:BMY) has not had a solid start to the week, and neither has Celgene Corporation (NASDAQ:CELG). These two, however, have something to do with one another. On news that Bristol-Myers’ proposed acquisition of Celgene will close later than forecasted, BMY stock dropped around 7%, while CELG fell nearly 6%.
Here’s what we know.
CELG Joins BMY Stock in the Red Zone
Back in January, Bristol-Myers Squibb announced the proposed acquisition of Celgene Corporation, an American biotechnology company. Initially set to close by quarter three, Bristol-Myers now says the $74 billion acquisition will close by the end of this year or the start of 2020.
Both BMY stock and CELG stock dropped on the news; both became Yahoo Finance trending tickers. According to Yahoo Finance, as of 2:43 PM EDT, CELG stock is down 5.41% on the Nasdaq, while BMY stock is trading at $45.65 on the NYSE, putting it down 7.49%.
Moving forward, it’s important to remember the deal between Bristol-Myers and Celgene has not been terminated, just delayed. For now, the FTC is reviewing it; European regulators will do the same.
The New York City-based company said in a securities filing that it is “committed to working with regulatory authorities around the world on the proposed combination with Celgene.” Bristol-Myers then went on to say the following: “The company is focused on realizing the promise of the transaction, and is continuing to work to complete the transaction on a timely basis.”
The stock market has not reacted well, with BMY stock and CELG stock gaining negative attention, but what do you think? Is the Bristol-Myers-Celgene deal being delayed a big deal?
Let us know your thoughts in the comments below! Don’t forget to follow along with this story either; it will be interesting to see where BMY stock and CELG stock trade over the next four days.
Featured image: PixaBay