Can BMS get out of the "water inverse" phase of mergers and acquisitions in 2021?

Fourteen months ago, the dust settled on a $74bn deal by pharmaceutical giant BMS to buy Celgene.
merger between the two companies is like an alliance between two young people into the marriage hall.
first year of marriage is often a challenging and mutually available year.
BMS and Celgene come together, and naturally it's not without its run-in.
back to 2020, BMS and Celgen's happy friends didn't seem to have a good time.
CVR was invalidated and shareholders questioned whether it was like a "prenuancity agreement" for young people to get married, and BMS bought Celgene under a clause of value right (CVR).
CVR, also known as a right of value, is an option given to the seller by the buyer in a merger that allows the seller's shareholders to buy more shares in the buyer's company at the time of a particular event.
CVR can determine a portion of the overall transaction price depending on whether the target company's pipeline products can successfully reach the set milestones, such as approval, listing or time to reach a certain sales target, which is similar to the "betting agreement" signed by a Chinese company at the time of the merger.
3 conditions for CVR cashing in on BMS and Celgene: (1) the multiple sclerosis drug Zeposia is approved by the FDA by March 2020; T therapy liso-cel was approved by December 31, 2020 and (3) CAR-T therapyide-cel for BCMA targets was approved before PDUFA (March 27, 2021).
all three conditions are met, BMS will have to pay Celgene shareholders a total of about $6.4 billion, or $9 per share, for 715 million shares of CVR.
BMS may choose not to pay as long as one of the three conditions mentioned above is not met.
affected by the FDA's failure to issue CRL by the last day of 2020, its CVR (NYSE:BMY. RT) shares plunged to less than $0.70 a share.
traditional sense, the development of candidate drugs is not expected, which is a loss to shareholders on both sides.
But there have also been allegations from Celgene shareholders that BMS was not active in FDA verification following Liso-cel's submission to the NDA, that there was a possibility of delaying progress to avoid paying CVR, and that Sanofi had deliberately delayed the development of the multiple sclerosis drug Lemtrada to avoid having to pay a CVR fee to Genzyme shareholders for fda approval as scheduled.
O drug commercialization has taken three seats in the world's TOP10 heavyweight drugs, including the anticoagulant drug apixaban ($12 billion, BMS contributed $7.9 billion), lynamin ($10.8 billion) and Opdivo ($8 billion).
the gap between O-drugs and competing Keytruda has widened to $3 billion.
in addition to sales revenue is not rival to K medicine, O drug in the adaptation certificate to open up also not rival K drug "good luck".
Especially in 2020, O-drugs had to withdraw their small cell lung cancer (SCLC) from August 2018 because of the failure of two corroropirative studies, CheckMate-331 and CheckMate-451.
, the newly diagnosed MGMT methylated glioblastoma (GBM) Phase III pro-study CheckMate-548 did not reach the expected endpoint.
drug development in the United States, the opening of the year 2021 O drug continued to "bad luck."
in the UK, the National Institute for Health and Care Excellence (NICE) recommends that nivolumab not be recommended for the treatment of adult patients with relapsed or metastatic head and neck squamous cell carcinoma (SCCHN) during or after platinum chemotherapy.
In China, O-drugs have had to suspend one of their associated clinical trials because of alleged material forgery by third-party clinical trial services, and O-drugs have failed to get into the health-care list in health-care negotiations and have had to turn to greater charitable drug giving (PAP) in exchange for the market.
"black swan" events in clinical trials of the drug are not yet confirmed to be positively related to its acquisition.
one thing is worth noting, there may also be some resistance to team integration between the two sides.
on the eve of the deal dust settled, there was a "big blood change" in research and development management.
head of oncology business development (CMO) is Dr. Samit Hirawat, Novart's former head of oncology development, rather than the respective business leaders of the two companies.
, Ms. Zhao Ping, the head of China, also left BMS and chose to join Keystone Pharmaceuticals, an innovative pharmaceutical company.
Ahmed, head of blood and oncology at BMS, also left on January 15 this year amid rumours that his departure was linked to the slow progress of CAR-T therapy.
three key words for 2021: collaboration, adaptation and development Fortunately, at the recent JP Morgan Healthcare conference, BMS executives were able to face up to what had happened in the past year and did not shy away from it.
its CMO Samit Hirawat says the focus of the company's growth in 2021 will be in three main words: collaboration, adaptation and development.
, a clinical expert, admits that many clinical trials have been suspended due to COVID-19, while others have had to be later than expected.
to get the development plan back on track, the company has been creative, and some of the solutions are even better than the original.
he even came up with ideas for simplifying the clinical trial process, including how to combine telemedicheal to reduce the frequency of patient visits to and from the hospital, and how to use electronic devices to collect and analyze data.
although liso-cel was not approved as scheduled, and whether ide-cel could be approved as scheduled is a "mystery", Samit Hirawat still has high hopes for these two CAR-T treatments.
CEO Giovanni Caforio seemed more confident, describing at JP Morgan that BMS had about $22 billion in cash on its books by 2020 and revenues of between $42.5 billion and $42 billion in 2020.
also expects BMS to generate free cash flow of $45 billion to $50 billion between 2021 and 2023.
BMS plans to strengthen balance sheet management by repaying $4 billion in debt by 2021, BMS will further seek medium-sized mergers and acquisitions.
in large mergers and acquisitions, the acquisition of operational control does not mean the end and success of mergers and acquisitions, can only be regarded as the first round of the entire merger and acquisition campaign victory, to achieve the success of mergers and acquisitions will take more hard work.
BMS completes its $74 billion "Big Acquisition of the Century", there is still a need to integrate new companies to bring the overall strategy and pace of operations into step.
BMS break through in 2021?