Bristol-Myers Squibb lost $37 billion in market value this past year due to a failed clinical trial for a new lung cancer treatment indication of its best-selling cancer drug Opdivo. Industry analysts believe the financial setback puts the drugmaker in a vulnerable position for a potential takeover, reports Bloomberg.
A major investor wants Bristol-Myers to "expand its [immunotherapy] portfolio as much as possible," potentially through a merger with another drugmaker, an unnamed source told Bloomberg.
Analysts identified Pfizer, Novartis and Gilead Sciences as potential candidates to takeover the drugmaker.
Despite talk of a deal, Bristol-Myers is urging investors to wait for new trial results and scientific data on a myriad of combination therapies — some of which combine Opdivo with other drugs, according to the report.
A breakthrough combination therapy would expand the market for Opdivo, which represents nearly 20 percent of Bristol-Myers' $19.4 billion in annual revenue, reports Bloomberg.
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