Skip to main content

Celgene Corp. and Bristol-Myers Squibb Co. will have to pay US$2.2-billion if either of the drugmakers walks away from their US$74-billion merger announced on Thursday, according to a regulatory filing.

The deal, which is worth US$95-billion including Celgene’s debt, is the largest pharmaceutical deal ever and brings together two of the world’s largest cancer drug businesses.

Celgene’s top executives, including its chief executive and chief financial officer, are entitled to severance benefits if they resigned with good reason or are terminated without cause within two years of the deal closing, according to the filing with the U.S. securities regulator on Friday.

The severance benefits include a cash severance payment equal to 2.5 times the officer’s annual base salary and annual cash incentive opportunity, Celgene said.

Celgene CEO Mark Alles will be eligible for a severance benefit that would be three times his annual salary and cash incentive opportunity.

The company is yet to disclose his 2018 compensation.

If the termination or resignation is not connected to the deal closing, the severance payment would be 1.5 times the officer’s salary, or two times in Mr. Alles’ case, and would include cash incentive opportunity, Celgene said.

Report an editorial error

Report a technical issue

Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/05/24 7:00pm EDT.

SymbolName% changeLast
BMY-N
Bristol-Myers Squibb Company
-1.82%40.49

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe