As announced on August 26, 2019, celgene has entered into an agreement to divest the global rights to OTEZLA® (Apremilast) to Amgen (NASDAQ: AMGN) for $13.4 billion in cash following the completion of the merger with Bristol-Myers Squibb as part of the transaction`s regulatory approval process. On November 15, 2019, Bristol-Myers Squibb announced that the U.S. Federal Trade Commission (FTC) has accepted the proposed Order of Approval for the upcoming merger of Bristol-Myers Squibb and Celgene, allowing the parties to finalize the merger. Bristol-Myers Squibb expects the sale of OTEZLA to be completed immediately after the completion of the merger and plans to prioritize the use of the proceeds for deleveraging. However, the merger was only made possible with the discontinuation of the successful psoriasis and psoriatic arthritis drug Otezla. The companies sold Otezla to Amgen for $13.4 billion to facilitate the merger`s antitrust review process. The principal of the deal should be used to repay the debt, BMS said. The sale of Otezla was also finalized today, Amgen said. Under the terms of the agreement, Celgene shareholders received one common share of BMWS and $50 in cash, excluding interest on each share. NEW YORK–(BUSINESS WIRE)–Bristol-Myers Squibb Company (NYSE: BMY) announced today that it has completed the acquisition of Celgene Corporation (NASDAQ: CELG) after receiving regulatory approval from all government agencies required by the merger agreement and, as announced on April 12, 2019, shareholder approval of Bristol-Myers Squibb and Celgene.
Since the announcement of the transaction on the 3rd. In January 2019, a number of tangible advances were made in implementing the key value drivers of the merger, including: further progress on patent repayment for REVLIMID® in the United States. Food and Drug Administration (FDA) approval of INREBIC® (fedratinib) for the treatment of certain forms of myelofibrosis, approval of REBLOZYL® (luspatercept-Aamt) by the U.S. FDA for the treatment of anemia in certain adult patients with beta-thalassemia, and regulatory filings for luspatercept and ozanimod in the United States and Europe. The company has also made significant progress in planning for a successful integration. For an overview of the combined company and milestones achieved during the transaction, see www.bestofbiopharma.com. BMS kicked off the year with its successful announcement ahead of the annual J.P. Morgan Healthcare conference.
Executives of both companies had to overcome some resistance to the merger, with some larger interest groups resisting the deal. Ahead of the shareholders` meeting that approved the deal, BMS`s board of directors issued a letter praising the merger, saying the combined companies will be well positioned to support long-term growth. To defend the deal, Caforio said the merger would create “the number one oncology franchise” for solid and hematological tumors. Caforio said the pillars of the combined pipeline will rely on the successful checkpoint inhibitor Opdivo, as well as the powerful drugs Revlimid and Pomalyst from Yervoy and Celgene. In addition, BMS said its board of directors had approved the repurchase of its $7 billion common stock. The company has signed accelerated share repurchase agreements with Morgan Stanley and barclays Bank to facilitate the buyback. However, the acquisition has continued and since the first announcement of the transaction on January 3, 2019, there has been a number of tangible progress in implementing the key value drivers of the merger, including: further progress regarding patent reduction for Revlimid (lenalidomide) as well as U.S. Food and Drug Administration (FDA) approval for Inrebic (Fedratinib) and Reblozyl (luspatercept-Aamt). Upon completion of the acquisition, Celgene became a wholly-owned subsidiary of Bristol-Myers Squibb Company under the terms of the merger agreement. Under the terms of the merger, Celgene shareholders received 1.00 common shares of Bristol-Myers Squibb for each share, $50.00 in interest-free cash and a conditional marketable value (CVR) right to a $9.00 cash payment if certain future regulatory milestones are met. Celgene`s common shares were discontinued at the close of trading today. On November 21, 2019, the newly issued Bristol-Myers Squibb shares and CVR will trade on the New York Stock Exchange, with CVRs trading under the symbol “BMYRT”.
The next day, BMS confirmed in a brief statement that the CVR deal had been “automatically terminated” and would no longer trade on the New York Stock Exchange. Since the announcement of the merger on Jan. 3, BMS said there have been a “number of tangible steps” toward achieving those value factors that management teams have expressed. This includes other advances related to Revlimid`s patent cliff, as well as several regulatory approvals. In August, the U.S. Food and Drug Administration approved Inrebic (fedratinib) for the treatment of certain forms of myelofibrosis. And just this month, the FDA approved Celgenes Reblozyl (luspatercept-Aamt) for the treatment of anemia in some adult patients with beta-thalassemia. This was the first approval of this indication in the United States. BMS also said the company has made regulatory filings of luspatercept and ozanimod in the U.S. and Europe. Following the announcement of the merger, Bristol-Myers Squibb announced its intention to repurchase $7 billion of bristol-Myers Squibb common stock.
As previously announced, Michael Bonney, Julia A. Haller and Phyllis Yale have joined Bristol-Myers Squibb`s Board of Directors in connection with the closing of the transaction. Bonney and Haller served on Celgene`s Board of Directors. As part of this authorization, Bristol-Myers Squibb has entered into Accelerated Share Repurchase Agreements (ASRs) with Morgan Stanley & Co. LLC and Barclays Bank PLC to repurchase a total of $7 billion of Bristol-Myers Squibb common shares. Bristol-Myers Squibb plans to finance the buyout with cash. Approximately 80% of the shares to be repurchased in the transaction will be received by Bristol-Myers Squibb on November 27, 2019. The total number of shares ultimately repurchased under the Program will be determined at the time of final settlement and will be based on a discount to the volume-weighted average price of Bristol-Myers Squibb common shares during the ASR period. Bristol-Myers Squibb expects all asR acquisitions to be completed by the end of the second quarter of 2020. .