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  "docId": "019dd923-622b-71dc-a6d9-fc4318e06f9b",
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  "documentTitle": "Bristol-Myers Squibb Company (BMY)",
  "authorId": "03_Starboard_Value",
  "authorName": "Starboard Value",
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  "presentationDate": "2019-03-18 00:00:00",
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  "notes": "Uses a table to highlight a logical impossibility (synergies > costs) to challenge management's valuation assumptions.",
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      "text": "Synergies cannot be greater than costs! Therefore, the synergies cannot be fully allocated to marketed products.",
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      "text": "As shown earlier, management is using the ~$55 billion of value attributed to marketed products and the ~$20 billion of value attributed to cost synergies to back into an implied value for the pipeline of ~$15 billion. However, these synergies are not fully achievable from the current cost base of Celgene's marketed products. If we apply the full value of synergies per Bristol-Myers' S-4 filing against the expected future operating expenses for marketed products, we would have synergies greater than total costs – or EBITDA greater than revenue – which is obviously impossible.",
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      "text": "It is important to note the full value of these cost synergies cannot be achieved from Celgene's existing marketed products cost base.",
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      "text": "Source: Public company filings, Bristol-Myers investor relations.",
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      "text": "Announced Synergies vs Celgene's Marketed Products SG&A Expenses",
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      "text": "The synergies need to be allocated between Celgene's marketed products and its pipeline",
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      "text": "However, These Synergies Need To Be Allocated Appropriately",
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