The new year has started with a huge pharma deal as it emerged that Bristol-Myers Squibb Co (NYSE:BMY) offered to buy cancer drug company Celgene Corp (NASDAQ:CELG) in a cash and stock deal valued at an eye-popping $74 billion.
Bristol-Myers plunged 14% to $44.86, while Celgene rallied 26% to $84.21.
The boards of both companies have already approved the deal. The combined company will have nine products and more than $1 billion in annual sales.
Celgene is set to lose patent protection by 2022 for Revlimid, its top-selling multiple myeloma drug.
Early last year, Celgene agreed to buy the part of Juno Therapeutics that it didn't already own for about $9 billion in cash to gain access to Juno's pipeline of cancer drugs.
The tech giant had expected to generate revenue of US$91 billion in the final quarter of 2018 but said the amount would be closer to US$84 billion.
"We see the potential for further downside to FY19 numbers depending on the trajectory of Chinese demand in early 2019," said analyst Rod Hall in a note to clients. "We have been flagging China demand issues since late September, and Apple's guidance cut confirms our view."
Airline stocks slid after Delta Air Lines Inc (NYSE:DAL) lowered its outlook for revenue growth. American Airlines Group (NASDAQ:AAL) was the group's biggest loser, falling 10% to $29.27. Delta (NYSE:DAL) fell 9.2% to $45.54 while Alaska Air Group Inc (NYSE:ALK) decreased 6.5% to $57.53.