AstraZeneca Explores Potential $400 Billion Merger with Bristol Myers Squibb, FT Reports

British pharmaceutical giant AstraZeneca has been exploring a potential merger with U.S.-based rival Bristol Myers Squibb, a deal that would create one of the world's largest drugmakers with a combined valuation of nearly $400 billion. The development was first reported on Sunday by the Financial Times, which cited people familiar with the matter.

Details of the Reported Talks

According to the Financial Times report, the two companies have held discussions about a potential tie-up in recent months. However, the sources indicated that the outcome remains uncertain, stating that a deal could materialize soon, be delayed, or ultimately fall apart.

As of the report, the companies have not publicly confirmed the talks. AstraZeneca declined to comment, while Bristol Myers Squibb did not immediately respond to a request for comment, according to Reuters, which could not independently verify the report.

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Strategic Context

A merger would significantly scale both companies' operations, particularly in the lucrative oncology market. AstraZeneca has seen substantial growth driven by its cancer and rare disease treatments, which have propelled its stock price to more than quadruple during the 14-year tenure of CEO Pascal Soriot.

In 2025, the company's cancer treatments generated approximately $25 billion in sales, accounting for nearly half of its total revenue. This potential megadeal comes about a dozen years after AstraZeneca successfully defended itself against a takeover attempt from larger U.S. competitor Pfizer.