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FTC seeks more information to review Bristol-Celgene's $74 billion planned merger

FTC seeks more information to review Bristol-Celgene's $74 billion planned merger
FILE PHOTO: Logo of global biopharmaceutical company Bristol-Myers Squibb is pictured on the blouse of an employee in Le Passage, near Agen, France March 29, 2018. REUTERS/Regis Duvignau/File Photo   -   Copyright  Regis Duvignau(Reuters)
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(Reuters) – The U.S. Federal Trade Commission has sought additional information and documents from Bristol-Myers Squibb Co and Celgene Corp in connection with its review of their planned merger, Bristol-Myers said on Tuesday.

“The parties understand that the FTC’s review is focussed on marketed and pipeline products for the treatment of psoriasis,” Bristol-Myers said https://www.sec.gov/Archives/edgar/data/14272/000114036119005591/s002621×42_8k.htm in a filing.

Celgene’s psoriasis drug Otezla brought $448 million (339 million pounds) in sales in the quarter ended Dec. 31. Bristol-Myers is also developing a treatment for the condition and in September reported positive results from a mid-stage trial of its plaque psoriasis drug.

Some Bristol-Myers investors are against the planned $74 billion (56 billion pounds) takeover of Celgene, as they see potential risk associated with Celgene’s pipeline, and expect a drop in sales of its flagship multiple myeloma drug, Revlimid, when it loses U.S. exclusivity in 2022.

However, the cancer drugmaker maintains that the Celgene acquisition would provide “significant advantages” with fewer risks compared to options like pursuing a series of small transactions.

Bristol-Myers said both companies expect to close the merger in the third quarter of 2019.

(Reporting by Tamara Mathias in Bengaluru; Editing by Shinjini Ganguli)

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