Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Bristol-Myers gets $1.6 billion offer for French consumer health unit

Published 12/19/2018, 04:39 AM
© Reuters. Logo of global biopharmaceutical company Bristol-Myers Squibb is pictured on the blouse of an employee in Le Passage
DBKGn
-
BMY
-
4581
-

(Reuters) - Bristol-Myers Squibb Co (N:BMY) received an offer from Japanese healthcare firm Taisho Pharmaceutical Holdings Co Ltd (T:4581) to buy the company's French over-the-counter drugs business UPSA for $1.6 billion, the companies said on Wednesday.

Bristol-Myers said it estimates the potential deal would be approximately $0.04 dilutive to 2019 earnings.

The offer by Taisho, which has its presence in anti-inflammatory analgesic, cold and flu and hair growth segments in Japan and Southeast Asia, is structured in the form of a "put option" agreement, the companies said.

Upon exercise of the put option, Taisho would acquire UPSA as well as Bristol-Myers Squibb's assets and liabilities relating to the UPSA product portfolio, the companies said.

UPSA's portfolio covers a wide range of therapeutic areas such as pain, cough and cold, vitamins and supplements, gastrointestinal and sleep.

Deutsche Bank (DE:DBKGn) Securities Inc and Jefferies LLC acted as exclusive financial advisors to Bristol-Myers Squibb. Kirkland & Ellis LLP, Freshfields Bruckhaus Deringer LLP and Baker & McKenzie acted as its legal advisers.

The offer comes at a time when drugmakers are trying to survive a contraction in the Japanese drug market due to government-led price cuts and promotion of generic drugs.

Sales of the Japanese drugmaker's over-the-counter drugs in foreign markets was worth 8.8 billion yen in April-September, down 7.9 percent on year, according to its results.

Taisho could not be immediately reached for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.