Initial thoughts on AZN-BMY media report

Research evidence excerpt

Initial thoughts on AZN-BMY media report

Update

August 3, 2026 12:13 PM GMT

Morgan Stanley & Co. LLCMBristol Myers Squibb Co | North America Terence C Flynn, Ph.D.

Equity Analyst

Initial thoughts on AZN-BMY Terence.Flynn@morganstanley.comAlexander Yevdokimov, Ph.D. +1 212 761-2230

Research Associate

Alexander.Yevdokimov@morganstanley.com +1 212 761-2167

media report Hailey Horowitz

Hailey.Horowitz@morganstanley.com +1 212 761-5264

The Financial Times reported on 8/2 that AZN (covered by Sarita Kapila) and

Chris Yu, J.D., Ph.D.

BMY are in talks regarding a potential merger, which would value the combined Equity Analyst

company at ~$400bn (LINK). Per the report, the structure remains uncertain, Chris.L.Yu@morganstanley.com +1 212 761-2535

Connor M Massari

although speculates that a transaction could involve a mix of cash and shares. Equity Analyst

Neither company has confirmed the discussions, and the report notes that talks Connor.Massari@morganstanley.com +1 212 761-2417

Damien H Kerner

could be delayed or terminate without an agreement. If this moves forward it would Research Associate

be the largest biopharma deal since Abbvie-Allergan in 2019, and the combination Damien.H.Kerner@morganstanley.com +1 212 761-3829

would create one of the largest global biopharma companies, with ~$115bn of Morgan Stanley India Company Private Limited+

combined 2027 revenue. Strategically, the transaction could provide AZN with Saket Agarwal

greater scale in the US (currently ~42% of revenues), while offering BMY a potential Saket.Agarwal@morganstanley.com +91 22 6995-4012

path through a significant LOE cliff (we estimate BMY has ~$22bn in 2026 revenue

that is exposed to LOE's by 2030 - see our analysis HERE). Bristol Myers Squibb Co (BMY.N, BMY UN)