8-KOther EventsExhibits & Filings

BRISTOL MYERS SQUIBB CO 8-K Report, Corporate Update (Dec 19, 2018)

Filed December 19, 2018For Securities:BMYCELG-RIBMYMP

Summary

Bristol-Myers Squibb Company (BMY) has announced a significant divestiture through a press release filed on December 19, 2018. The company has entered into a put option agreement with Taisho Pharmaceutical Holdings Co., Ltd. for the sale of its UPSA consumer health business for approximately $1.6 billion. This proposed transaction, structured as a put option, allows BMY to exercise its right to sell the business to the buyer following necessary employee consultation processes. This divestiture is expected to be completed in the first half of 2019, subject to regulatory approvals and other customary closing conditions. While the company anticipates the transaction would be approximately $0.04 dilutive to 2019 earnings per share, it represents a strategic move to streamline its portfolio. Investors should monitor the satisfaction of closing conditions and the impact on the company's future financial performance.

Key Highlights

  • 1Bristol-Myers Squibb has agreed to sell its UPSA consumer health business to Taisho Pharmaceutical Holdings for $1.6 billion via a put option agreement.
  • 2The proposed transaction is expected to be completed in the first half of 2019.
  • 3The sale is contingent upon the company exercising the put option after information and consultation processes with employee representative bodies.
  • 4Regulatory approvals and satisfaction of other customary closing conditions are required for completion.
  • 5The company estimates the transaction will be approximately $0.04 dilutive to 2019 earnings.
  • 6This divestiture signals a potential strategic refocusing of BMY's business operations.
  • 7A press release detailing the offer is attached as an exhibit to the filing.

Frequently Asked Questions

Bristol-Myers Squibb announced an agreement for Taisho Pharmaceutical Holdings to purchase its UPSA consumer health business for $1.6 billion. The agreement is structured as a put option, meaning Bristol-Myers Squibb has the right to sell this business to the buyer.

The proposed transaction is anticipated to be completed in the first half of 2019, pending regulatory approvals and the satisfaction of other closing conditions.

Bristol-Myers Squibb estimates that the sale of the UPSA business will be approximately $0.04 dilutive to its earnings per share in 2019.

The transaction is subject to Bristol-Myers Squibb exercising its put option following necessary information and consultation processes with employee representative bodies, obtaining regulatory approvals, and satisfying other customary closing conditions.