Drugmaker Bristol-Myers Squibb announced Thursday a $74 billion deal to buy Celgene, in one of the biggest mergers in pharmaceutical industry history.
The deal, which still needs the approval of shareholders and regulators, will be paid with a combination of stock and cash. Bristol-Myers is the result of a 1989 merger of two companies that traced their roots back to the 19th century, and is the eighth largest US drugmaker, with annual revenue of $20.8 billion in 2017. Celgene is the ninth largest with revenue of $13 billion.
The combined company could become the fourth largest pharmaceutical company in the United States.
Shares of Bristol-Myers ( BMY ) tumbled 14% in early trading on the news, while shares of Celgene ( CELG ) jumped 28%.