AstraZeneca drops as reported Bristol-Myers Squibb tie-up talks unsettle investors

AstraZeneca shares tumbled almost 5% and Bristol-Myers Squibb shares jumped 6% after reports of early-stage deal talks.
Analysts questioned the strategic logic of a combination, citing AstraZeneca's pipeline, Bristol-Myers' upcoming clinical catalysts and substantial oncology regulatory overlap.
Bristol-Myers trades at 10 times estimated 2027 earnings versus 14 times for AstraZeneca, with Bristol-Myers' forthcoming patent expirations identified as a key reason for its discount.

Quotes

“odd”— Bank of America analysts led by Sachin Jain