HQ Team
October 9, 2023: Bristol Myers Squibb, one of the world’s largest pharmaceutical companies, will acquire Mirati Therapeutics for $5.8 billion through a combination of cash and debt to broaden its cancer portfolio.
Bristol Myers Squibb through a subsidiary will acquire all of the outstanding shares of Mirati common stock at a price of $58.00 per share in cash — a premium value of 52% — for an amount of $4.8 billion.
Mirati shareholders will receive one non-tradable contingent value right for every share held totalling $1 billion, according to a company statement.
The deal is expected to close by the first half of 2024.
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.
Lung cancer
Bristol Mayers will add Mirati’s lung cancer medicine, Krazati, to its commercial portfolio which will help the New York-based company to step up its oncology franchise.
Other drugs in Emirati’s pipeline include ones for treating cholangiocarcinoma (bile duct cancer), melanoma, pancreatic cancer and colorectal cancer.
“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,” said Giovanni Caforio, Chief Executive Officer and Board Chair, Bristol Myers Squibb.
Chris Boerner, PhD., Executive Vice President and Chief Operating Officer and Chief Executive Officer-Elect, Bristol Myers Squibb said the acquisition will help the company to diversify.
“With multiple targeted oncology assets including Krazati, Mirati is another important step forward in our efforts to grow our diversified oncology portfolio and further strengthen Bristol Myers Squibb’s pipeline for the latter half of the decade and beyond,”
Lung cancer is one of the most common cancers worldwide, accounting for 2.21 million new cases and 1.8 million deaths worldwide in 2020.
Mirati Therapeutics Inc., a California-based company founded in 2013, is a commercial-stage biotechnology company engaged in the discovery, design and deliverance of cancer therapies.
