Carl Icahn just jumped into a $90 billion drug maker, and people are betting it'll be a takeover target (BMY)

pulse

February 22, 2017 5:33 PM

Carl Icahn's reported investment in Bristol-Myers has left the industry buzzing about which company could be a potential buyer.

Chairman of Icahn Enterprises Carl Icahn participates in a panel discussion at the New York Times 2015 DealBook Conference at the Whitney Museum of American Art on November 3, 2015 in New York City.

First, Jana Partners pressured the drugmaker into adding three new board members and announcing a stock buyback deal. Jana became a shareholder in BMS in the fourth quarter of 2016.

Now, The Wall Street Journal reports that billionaire Carl Icahn has invested in the company, reportedly because he thinks the company's drug portfolio could be ripe for a takeover.

Analysts have said that the company could make for a good acquisition, but more data on its cancer immunotherapy drugs may need to come in first.

Given Bristol-Myers Squibb market capitalization, any deal would likely be worth more than $100 billion, as takeover offers usually occur at a premium to the existing share price.

That would make it a blockbuster transaction.

Heres what you need to know about Bristol-Myers

treatment.
Investors expect
Trials are currently underway
key lung cancer trial
succeeded
when the full data
said that
approval
for the combination of its two immunotherapy drugs as an initial treatment for
lung
cancer. This helped Merck secure its lead in lung cancer combination treatments.

Beyond cancer immunotherapy, BMS also makes the bloodthinner Eliquis in collaboration with drug giant Pfizer, and treatments for hepatitis C and rheumatoid arthritis. It's also one of a growing number of companies going after NASH, a type of liver disease that's estimated to affect about 16 million Americans.

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