Bristol Myers Squibb, a global pharmaceutical company, made a momentous announcement on Sunday regarding its plans to acquire Mirati Therapeutics. With an eye-catching price tag of up to $5.8 billion, this deal is set to bolster Bristol Myers Squibb’s already impressive oncology business portfolio.
As part of the agreement, Bristol Myers Squibb will pay $58 per share in cash, ensuring a substantial return for Mirati stockholders. In addition to this, shareholders will also receive a non-tradeable contingency value for each share held, potentially amounting to $12 per share in cash. This additional benefit represents a lucrative opportunity, providing an extra $1 billion of value.
A significant aspect of this acquisition is the inclusion of Mirati’s extensive drug portfolio. Notably, their lineup features drugs specifically designed to target genetic drivers of various cancers. One such drug, Krazati, has received recent approval for the treatment of lung cancer. By acquiring Mirati, Bristol Myers Squibb is set to expand its reach into this critically important sector of the pharmaceutical market.
Both companies’ board of directors have given unanimous approval to the acquisition, paving the way for its anticipated completion in the first half of 2024. However, the finalization of the deal is subject to approval from Mirati’s stockholders and regulatory authorities. If all goes according to plan, Bristol Myers Squibb will be able to solidify its position in the industry and advance its mission to improve patient outcomes through innovative treatments.
To finance this ambitious acquisition, Bristol Myers Squibb plans to utilize a combination of cash and debt. This strategy reflects the company’s commitment to investing in breakthrough therapies and advancing scientific research in the field of oncology.
Overall, this acquisition represents a significant move by Bristol Myers Squibb to enhance its oncology business. With a price tag of $5.8 billion, the deal’s completion in the first half of 2024 will be eagerly anticipated by investors and industry professionals alike. As Bristol Myers Squibb continues to prioritize advancements in cancer care, this acquisition will undoubtedly contribute to their mission of making a positive impact on the lives of patients worldwide.
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