Biotechnology sector-related exchange traded funds strengthened Thursday after Bristol-Myers Squibb (NYSE: BMY) agreed to acquire rival Celgene (NasdaqGS: CELG) in a $74 billion deal, reigniting hopes of further deals in the industry.

The iShares Nasdaq Biotechnology ETF (NASDAQGM: IBB), which includes a 6.7% position in CELG, rose 1.2% Thursday.

Bristol will acquire Celgene through a combination of stocks and cash, which represented a 54% premium above CELG’s closing price on Wednesday, but Bristol agreed to pay more later if Celgene delivers on three new approved drugs, the Wall Street Journal reports.

“This is a deal that brings the pipeline of Bristol-Myers Squibb to a fundamentally different level,” Bristol-Myers’s Chief Executive and Chairman Giovanni Caforio said.

CELG shares surged 21.7% in mid-day trading Thursday after the announcement while BMY was 14.1% lower.

The acquisition would be the second-biggest pharmaceutical and biotechnology deal if Bristol’s potential later payout is included.

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