AstraZeneca said to have explored Bristol Myers merger

AstraZeneca Plc has explored an acquisition of Bristol Myers Squibb Co., in a megadeal that would create one of the world’s largest drugmakers, according to people familiar with the matter.

The companies have held early-stage discussions about combining, the people added, asking not to be identified because the matter is private.

It’s unclear if discussions are ongoing or whether they will result in a transaction, the people cautioned.

A representative for AstraZeneca declined to comment and Bristol Myers Squibb couldn’t immediately be reached for comment on the talks, which were first reported by the Financial Times.

Bristol Myers Squibb, which has a $133 billion market capitalization, could provide AstraZeneca with a bigger foothold in the US market. AstraZeneca has a market value of about £196 billion ($264 billion)

Bristol is preparing for the loss of patent protection for some of its biggest products, including the blood thinner Eliquis and cancer drug Opdivo. Together they make up about half of Bristol’s sales.

Last week it reported quarterly sales of $13 billion, its highest ever. The growth was primarily driven by newer products like the blood cancer treatment Breyanzi, Opdualag for skin cancer and the heart drug Camzyos.