AstraZeneca, BMS weigh $400bn merger, FT says

British pharmaceutical group AstraZeneca has held talks with US rival Bristol Myers Squibb about a merger valued at nearly $400 billion, the Financial Times reported.

AstraZeneca declined to comment Monday. Its share price fell more than seven percent in early London trading after the report, which was published Sunday.

The Financial Times said the companies had discussed a tie-up in recent months, citing people familiar with the matter. It reported that the talks could lead to a deal in the near future but might be delayed or fall apart.

A deal would create one of the world's biggest pharmaceutical groups. AstraZeneca was valued at £196 billion, or $264 billion, ahead of the report, while Bristol Myers Squibb was worth $133 billion.

AstraZeneca announced last week that second-quarter net profit edged up to $2.5 billion, driven by sales of its cancer drugs. Bristol Myers Squibb's after-tax profit more than doubled in the second quarter to $3.3 billion.

AstraZeneca has been expanding in the United States and China, including through research and manufacturing investments. The company hopes the US market will account for half its global revenue by 2030, after reaching 43 percent last year.