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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": "The slide uses a DCF model to cap the potential synergy value, explicitly noting that 100% cost elimination is unrealistic.",
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      "text": "THEORETICAL MAXIMUM VALUE. In reality, the value will be less as it is highly improbable that 100% of operating costs can be eliminated",
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      "text": "To be clear, $7 billion is a MAXIMUM value, as 100% of operating costs cannot actually be eliminated, since the Company will still need dedicated sales, marketing, and support functions for these marketed products.",
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      "text": "Using the same DCF assumptions for Celgene's marketed products, we arrive at a maximum synergy valuation of $7 billion.",
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      "text": "In the calculation below, we apply management's cost synergy ramp as presented in the S-4, which assumes full synergies are realized by 2022. We then cap realized synergies at 100% of Celgene's marketed products-related operating costs.",
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      "text": "synergy valuation: $7 billion",
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      "text": "At a maximum, we believe $7 billion of the total synergy value should be allocated to marketed products.",
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      "text": "Source: Public company filings, Bristol-Myers investor relations, Starboard estimates.",
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      "text": "DCF Value summary showing Value of Discounted FCF, Value of Terminal Value, and Total Value of Synergies.",
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      "text": "DCF table showing Marketed Products OpEx, Total Synergies, Unlevered FCF, Discount Rate, and Discounted FCF from 2019-2028.",
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      "text": "We believe a maximum of $7 billion in synergy value should be allocated to Celgene's marketed products",
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      "text": "Appropriately Allocating Cost Synergies to Marketed Products Would Imply a Maximum Value of $7 Billion",
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