Bristol-Myers Squibb (BMY) to acquire Mirati (MRTX) in a deal worth up to $5.8 billion
- S&P, Nasdaq end at records as inflation data supports rate cut view
- Salesforce rolls out first-ever dividend as Q4 results, guidance beat estimates
- Global equities gain on in-line US inflation, treasury yields dip
- Snowflake Q4 results top estimates; CEO retires
- SEC investigating whether OpenAI misled investors in Altman saga- WSJ
Moreover, Mirati stockholders will receive one non-tradeable Contingent Value Right (CVR) for each Mirati share held, potentially worth $12.00 per share in cash, representing an additional $1.0 billion of value opportunity.
BMY shares fell 0.5% on the news.
The merger has received unanimous approval from both companies' Boards of Directors.
“We are excited to add these assets to our portfolio and to accelerate their development as we seek to deliver more treatments for cancer patients,” said Giovanni Caforio, Chief Executive Officer and Board Chair, Bristol Myers Squibb.
“With a strong strategic fit, great science and clear value creation opportunities for our shareholders, the Mirati transaction is aligned with our business development goals. Importantly, by leveraging our skills and capabilities, including our global commercial infrastructure, we will ensure patients globally can benefit from Mirati’s portfolio of innovative medicines.”
Mirati Therapeutics is a targeted oncology company with a focus on discovering, designing, and delivering breakthrough therapies for cancer patients. The assets of Mirati align well with Bristol Myers Squibb's existing portfolio and innovative pipeline, offering an opportunity to enhance Bristol Myers Squibb's oncology franchise.
The transaction is expected to be dilutive to Bristol Myers Squibb’s non-GAAP earnings per share by approximately $0.35 per share in the first 12 months after the transaction closes.
For BofA analyst Geoff Meacham, the deal makes sense from the BMY's point of view.
"We think the acquisition makes strategic sense as Mirati’s precision oncology portfolio complements Bristol’s IO portfolio with lead Mirati drug adagrasib likely to see a more rapid commercial rollout under Bristol's leadership."
By Senad Karaahmetovic
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- VSE Corp. (VSEC) Announces Strategic Actions
- Amadeus Says Not Interested In Shift4 Payments (FOUR) Transaction
- EXL (EXLS) Announces $500M Share Buyback
Create E-mail Alert Related CategoriesAnalyst Comments, Corporate News, Hot List, Mergers and Acquisitions
Related EntitiesEarnings, Definitive Agreement, Senad Karaahmetovic
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!