Proposed $400bn tie-up with Bristol Myers Squibb would create world’s fourth-largest drugmaker but analysts question rationale

More than £17bn was wiped off the value of Britain’s biggest drugmaker, AstraZeneca, on Monday after a report that it was in discussions to take over its US rival Bristol Myers Squibb in a deal that would create a near $400bn (£300bn) pharmaceutical group.

AstraZeneca, run by Pascal Soriot, its longtime chief executive, had been worth nearly £196bn before the news broke. BMS, headquartered in Princeton, New Jersey, and known for its cancer treatments, was worth $133bn (£98bn).

Europe and US risk being outpaced on innovation, as happened in the car industry, warns Pascal Soriot

AstraZeneca must operate at “Chinese speed” to ensure it does not suffer the fate of the western automotive industry by losing out to more innovative rivals, the drug company’s boss has said.

The FTSE 100 company is watching the rise of China’s pharmaceutical industry closely and collaborating to take drugs to global markets, but its chief executive, Pascal Soriot, said the US and European pharmaceutical sectors must focus on increasing the speed of innovation.