Bristol-Myers to sell Otezla to gain FTC merger approval

Monday, 24. June 2019 13:08

Bristol-Myers Squibb Co. is planning to divest its Otezla drug in order to obtain the United States Federal Trade Commission's (FTC) approval for its proposed merger with Celgene Corporation, the former announced in a press release on Monday.

Bristol-Myers' divestiture of the Otezla drug, which is a medication for certain types of psoriasis and psoriatic arthritis, is subject to further review by the FTC and will require it to enter into a consent decree with the latter. The transaction may then proceed once the FTC accepts the consent order and all other customary closing conditions are satisfied. Bristol-Myers said that it intends to close the deal with Celgene either at the end of this year or at the beginning of next year. It also said that the two companies submitted their formal application for clearance by the European Commission earlier in the day.

The deal, which was initially announced in January, has been opposed by various Celgene shareholders, including Wellington Management Co. and hedge fund Starboard Value LP. However, Celgene subsequently said in April that 98% of its shareholders approved Bristol-Myers' acquisition of the company.

Related Links: Celgene Corp.Bristol-Myers Squibb Co.
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Breaking the News / DZ