With the disruptive technology and the rapid change in the business environment, the current business environment results in a spike in the M&A activity. But is M&A beneficial to companies? Fundamental analysis on the actual financial performance for pre- and post-M&A of the sample M&A case, Bristol Myers Squibb – Celgene Acquisition is conducted to help determine if this business methodology truly bring about benefits to the companies over the study period.

1. Chapter 1 Introduction 1
1.1. Research Motive 1
1.2. Research Purpose 2
1.3. Thesis Structure 2
2. Chapter 2 Business Literature Review 4
2.1. Mergers and Acquisitions 4
2.2. Efficient Market Hypothesis (EMH) 5
2.3. Review of Relevant Literatures 5
3. Chapter 3 Data and Methodology 7
3.1. Data and Scope of Research 7
3.2. Scope of Research 7
3.3. Research Methodology 7
4. Chapter 4 Coherent Industry’s Information 9
4.1. General Information 9
4.2. Drug Development Process and Patent Issues 12
4.3. Industry M&A Trend 16
5. Chapter 5 Coherent Companies’ Information 20
5.1. Bristol-Myers Squibb Company 20
5.2. Celgene Corporation 23
6. Chapter 6 Acquisition Hypothesis 29
7. Chapter 7 Acquisition Analysis 30
7.1. Acquisition Transaction and Stock Market’s Reaction 30
7.2. Events After the Acquisition 32
7.3. Fundamental Analysis of the Acquired Company 32
7.4. Fundamental Analysis of the Acquiring Company 35
7.5. Fundamental Analysis of the Acquiring Company: Divestiture Adjustment 39
7.6. Stock Performance 41
8. Chapter 8 Summary 43
8.1. Conclusion 43
8.2. Suggestions 46
8.3. Limitation of the Study 47
9. Reference 48
10. Appendix 50
10.1. Appendix 1 Bristol-Myers Squibb Company’s Financial Statements 50
10.2. Appendix 2 Celgene Corporation’s Financial Statements 53
10.3. Appendix 3 Bristol-Myers Squibb Company: Fundamental Analysis 55
10.4. Appendix 4 Celgene Corporation: Fundamental Analysis 56

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