AstraZeneca (NASDAQ:AZN) shares climbed around 6% on Wednesday after Reuters reported that there are “no discussions” between the company and Bristol Myers Squibb (NYSE:BMY) regarding a potential merger, contradicting recent speculation that had unsettled investors.
The report eased concerns surrounding a deal that, if completed, would have created a pharmaceutical group valued at close to $400 billion.
Reuters report counters merger rumours
According to Reuters, a senior source familiar with the matter said there are no ongoing negotiations between the two drugmakers.
“There is no deal between AstraZeneca and BMS. There never was a deal to be done, and there are no discussions between the companies,” the source told Reuters on Wednesday, speaking on condition of anonymity.
The statement follows reports published over the weekend that suggested AstraZeneca and Bristol Myers Squibb had been considering a combination. Reuters had previously reported, citing another person familiar with the situation, that preliminary discussions had taken place but could not determine whether they were still active.
Wednesday’s rally helped recover part of Monday’s sharp decline, when AstraZeneca recorded its largest one-day share price drop since 2020 after the merger rumours first emerged.
Analysts questioned the strategic rationale
The proposed transaction had attracted widespread scepticism from investors and analysts due to its size and limited strategic appeal.
With AstraZeneca valued at approximately $264 billion and Bristol Myers Squibb worth around $133 billion, the combined company would have become one of the largest pharmaceutical businesses in the world, eclipsing Bristol Myers Squibb’s $99.6 billion acquisition of Celgene in 2019.
Jefferies questioned the industrial logic behind such a transaction, describing the proposal as “more than a head scratcher,” and adding: “if there is one company that doesn’t need financial engineering, it’s AZ.”
Markus Manns, portfolio manager at Union Investment, also expressed doubts, telling Reuters the merger “does not make strategic or financial sense” and comparing it to “the pharmaceutical industry’s equivalent of the FIFA privatisation moment.”
AstraZeneca investors remained unconvinced
Many AstraZeneca shareholders viewed the proposed combination as offering greater benefits to Bristol Myers Squibb than to AstraZeneca.
Lucy Coutts, investment director at JM Finn, told Reuters that “the only advantage for AstraZeneca in this rumoured combination with BMS seems to be to accelerate its U.S. footprint and sales” and that “BMS shareholders would be the winners of any combination with AZN.”
That view was reflected in market performance earlier this week, when AstraZeneca shares dropped roughly 9% in London while Bristol Myers Squibb gained around 6% in U.S. pre-market trading.
Regulatory hurdles added further uncertainty
Analysts also pointed to significant antitrust challenges that could have complicated any merger.
Both companies compete directly in PD-(L)1 cancer immunotherapy through Opdivo and Imfinzi, while also marketing the only two commercially available anti-CTLA-4 therapies.
Andre Barlow, an antitrust lawyer at DBM Law Group cited by FiercePharma, said major asset disposals would likely be required before regulators would consider approving such a transaction.
AstraZeneca continues to focus on standalone growth
The speculation also came despite AstraZeneca continuing to deliver strong operational performance independently.
The company recently reported second-quarter 2026 earnings per share of $2.63, exceeding the consensus forecast of $2.48, and continues to target annual revenue of $80 billion by 2030.
AstraZeneca also completed a direct listing on the New York Stock Exchange in June 2026 and has committed $50 billion to research, development and manufacturing investment in the United States through 2030.
With regular U.S. trading set to begin on Wednesday, investors will be watching whether AstraZeneca’s recovery extends on the NYSE and whether Bristol Myers Squibb gives back some of the gains driven by takeover speculation.
AstraZeneca stock price
Bristol Myers Squibb stock price
