Analyst: Bristol-Myers Squibb Co. Bid On Celgene Corp. Is Plausible

Bristol-Myers Squibb Co.'s BMY rumored interest in acquiring Celgene Corp. CELG sounds plausible, an analyst told Benzinga. SunTrust's Salveen Richter said virtually all biotech names are "in play" for large pharmaceutical companies eager to make gains in the fast-evolving market for cancer drugs. "Is it possible? Yes, it could be," Richter told Benzinga in an interview. Bristol-Myers and Celgene last year announced a collaboration for developing a cancer treatment. Unconfirmed market chatter surfaced Friday via anonymous tweets suggesting that Bristol-Myers might make a bid for Celgene at $138 a share. Bristol-Myers' market capitalization is $109.67 billion compared with Celgene's $95.29 billion. Celgene, which on Friday signed a collaboration agreement with Bristol-Myers' cancer rival AstraZeneca plc AZN, changed hands recently at 119.36, up 3 percent. Bristol-Myers was little changed at $65.74. Under Friday's agreement, Celgene will collaborate with AstraZeneca to develop a hematology drug and make an upfront payment of $450 million. Celgene will receive royalty rates on any resulting products starting at 70 percent of worldwide sales from all uses in hematology.