As per a media report over the weekend, AstraZeneca Plc ) and Bristol Myers Squibb Co. ) are in potential discussions to form a pharmaceutical giant .

The news took the healthcare sector by storm, and the merger would position AstraZeneca as the world’s fourth-largest drugmaker by market capitalization.

Prior Pharma Deals For Valuation Benchmarks

AstraZeneca’s market value stands at approximately $263 billion, while Bristol Myers Squibb is valued at around $133 billion, according to Benzinga Pro data.

William Blair on Monday wrote, “Given the size of the two companies, we assume the deal would be largely stock-based, which could result in Bristol Myers shareholders holding roughly one-third of the combined company based on today’s market caps.”

Assuming 4 times William Blair’s 2028 revenue estimate of $39.5 billion for Bristol Myers would suggest a take-out value of roughly $160 billion.

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Analyst Matt Phipps notes the Celgene acquisition by Bristol Myers, the Allergan acquisition by AbbVie Inc. (NYSE:ABBV), and the Wyeth acquisition by Pfizer Inc. (NYSE:PFE) could serve as useful comps for revenue multiples, with a range of 3.5x to 4.5x one-year forward consensus revenues.

The impending loss of exclusivity for Bristol Myers’ Eliquis in April 2028 would likely weigh negatively on the forward multiple ahead of additional clinical readouts with milvexian.

Patent Expirations And Regulatory Review Could Shape Deal Outcome

Analyst Phipps said both companies face significant patent expirations by 2030, affecting key brands that generated about $50 billion in combined 2025 revenue. He said that would increase the importance of operational synergies to justify any merger.

Phipps also said a deal of this scale would likely face intense regulatory scrutiny, particularly in the U.K., where AstraZeneca is a key player in the country’s biopharma research and development ecosystem.

Overall, he noted that Bristol Myers is entering a challenging period as revenue declines from patent expirations accelerate, while smaller acquisitions may not be enough to offset losses from legacy products.

A large strategic merger could create near-term shareholder value, though he said it is too early to assess the merits of a potential AstraZeneca deal without details on the transaction terms.

AZN/BMY Stock Price Activity: AstraZeneca shares were down 7.98% at $156.10 at the time of publication on Monday, and Bristol-Myers Squibb shares were down 0.90% at $64.72 at the time of publication on Monday, according to Benzinga Pro data.

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