Dale M. Maas, Attorney at Law
888-680-3843 Wills, Trusts and Successions Real Estate and Business Litigation General Litigation and Appeals

Pharmaceutical merger will create mega-drug maker

The Illinois business landscape is a changing landscape. Businesses come and go, while others are bought and sold. Sometimes, though, two businesses merge into one. There can be a variety of benefits to a merger, including increased income, streamlined processes and cost savings. However, completing a merger can be a challenging task, and not without risks. This is why the merger process needs to be carried out carefully to not only ensure that the transaction is legally valid, but also so that those involved get exactly what they bargain for.

To see an example of a major merger one need only look to the pharmaceutical industry. Recently there, Celgene agreed to merge with Bristol-Myers Squibb in a deal worth $74 billion. The merger will make Bristol-Myers Squibb the fourth largest pharmaceutical maker behind Pfizer, Novartis and Roche. Through the deal, Celgene's shareholders will receive one share of Bristol-Myers Squibb and $50 for every Celgene share they own. The transaction is expected to be finalized toward the end of the year.

The two companies cite many benefits to the merger. To start, it will create a business entity that has a greater diversification of drug offerings, especially in the field of oncology. Bristol-Squibb Myers will now have about $34 billion in annual sales, and the merger is expected to cut more than $2 billion in expenses. The company hopes that this new business arrangement will allow it to increase its offerings to those in need of its medications.

There are a lot of legal issues to deal with when entertaining the idea of merger. Neglecting even one of them can lead to a failed merger that costs a significant amount of time and money. Successfully merging, on the other hand, can have enormous benefits if done so with a keen business and legal eye. This is why it is of critical importance that businesses considering a merger discuss the matter with a skilled business law attorney who can help them navigate the process with confidence.

No Comments

Leave a comment
Comment Information

Dale M. Maas, Attorney at Law
11777 Justice Avenue
Baton Rouge, LA 70816

Toll Free: 888-680-3843
Phone: 225-754-9864
Fax: 225-296-5778
Map & Directions

Best Estate Planners in Baton Rouge
}