Bristol Myers Squibb Strengthens Oncology Portfolio With Mirati Therapeutics' $5B Deal

Bristol Myers Squibb & Co BMY has agreed to acquire Mirati Therapeutics Inc MRTX for $58.00 per share in cash, for a total equity value of $4.8 billion. 

Mirati stockholders will also 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. 

Also Read: Amgen's Adcomm Meeting Paves Way To Launch Boost For Mirati Therapeutics' Lung Cancer Drug: Analysts

Mirati's assets are a strong fit with Bristol Myers Squibb's portfolio and innovative pipeline and represent an attractive opportunity to grow Bristol Myers Squibb's oncology franchise. Mirati's portfolio includes:

• Krazati (adagrasib) was granted accelerated FDA approval for KRASG12C-mutated locally advanced or metastatic Non-Small Cell Lung Cancer (NSCLC) who have received at least one prior systemic therapy. 
• MRTX1719 targets MTAP-deleted tumors that comprise approximately 10% of all cancers, currently in Phase 1 development. Phase 2 clinical trial initiation for MRTX1719 is expected in the first half of 2024;
• KRAS and KRAS enabling programs, including MRTX1133 and MRTX0902. 

The transaction is expected to be treated as a business combination and dilutive to Bristol Myers Squibb's adjusted EPS by approximately $0.35 per share in the first 12 months after the transaction closes.

The transaction is anticipated to close by the first half of 2024.

Bristol Myers Squibb expects to finance the acquisition with cash and debt.

Price Action: MRTX shares are down 5.80% at $56.71 during the premarket session on the last check Monday.