AstraZeneca has held discussions with US rival Bristol Myers Squibb over a potential merger that could create one of the world’s biggest pharmaceutical companies, in a deal that would reshape the global drugs industry.
The possible tie-up, first reported by the Financial Times, could create a healthcare giant valued at more than £300bn, ranking among the largest pharmaceutical mergers ever attempted.
Sources familiar with the discussions said talks had taken place in recent months and could progress further, although they warned that the deal could still be delayed or collapse entirely.
AstraZeneca, based in Cambridge, is currently Britain’s second-largest listed company with a market value of around £196bn before reports of the talks emerged. Shares fell more than 6 per cent on Monday morning following the news.
Bristol Myers Squibb, listed in New York, has a market value of roughly £133bn and specialises in major areas including cardiovascular medicine and oncology.
A successful merger would create a global pharmaceutical powerhouse with a particularly strong position in cancer treatments — but that same overlap could attract intense regulatory scrutiny.
Competition authorities in the US are expected to examine any agreement closely, particularly as the Trump administration has placed renewed emphasis on domestic investment and the strength of American industry.
The discussions come as AstraZeneca chief executive Pascal Soriot continues efforts to deepen the company’s presence in the US market. The company completed an additional listing on the New York Stock Exchange in June, a move that was viewed by some as another setback for London’s ambitions as a global financial centre.
Chris Beauchamp, chief market analyst at IG, said the potential deal highlighted the tension between growth ambitions and concerns over corporate identity.
He noted that AstraZeneca had recently said it did not require major acquisitions to meet its targets, adding that a merger involving two companies with large cancer portfolios could face significant obstacles.
For AstraZeneca, the talks represent a potentially transformative opportunity. But they also raise difficult questions over whether Britain’s remaining corporate champions can continue to expand globally without becoming vulnerable to political pressure, regulatory intervention and the growing battle for dominance in the world’s most valuable healthcare markets.