AlphaValue/Baader Europe: AstraZeneca Should 'Think Twice' About Rumored Bristol Myers Squibb Tie-up

09:34 AM EDT, 08/03/2026 (MT Newswires) -- AlphaValue/Baader Europe said Monday it does not see a "strong" case for AstraZeneca (AZN.L, AZN.ST) to pursue Bristol Myers Squibb (BRM.F, BMYS.VI) amid chatter that the UK-based drugmaker is considering a merger with its US peer. London's Financial Times on Sunday, citing sources, that both companies are in discussions over a potential tie-up for a combined valuation of $400 billion. Talks could lead to a deal in the near future, although the possibility of it being delayed or collapsing also remains. "While Astra has the ability to digest big acquisitions (for example, the nearly $40bn Alexion Pharmaceuticals' acquisition in the rare disease space in 2021), the deal size may not be the biggest concern for Astra here. Presence in competing areas and BMS's key drugs about to lose exclusivity in the next two-to three years are more serious worries here. Instead of splurging a massive amount on acquiring the whole of BMS, Astra might be better placed in making multiple bets on assets/firms between $5-10bn size," the research firm said. "Astra's CEO, Pascal Soriot (who has had a stellar record until now in turning around Astra's operations in the last 14 years), should think twice before making this move, as the scope of error is often very narrow in these kinds of big acquisitions." Analysts also flagged that a deal could raise antitrust concerns among regulators and worries regarding the current protectionist US government, noting that "staying away from this deal might be in the better interest of shareholders." The stock is rated add, with a price target of 150.51 pounds sterling.