Bristol Myers to Acquire Mirati Therapeutics in a $5.8 Billion Deal

Bristol Myers Squibb, a global biopharmaceutical company, has announced its agreement to acquire Mirati Therapeutics, a specialist in cancer medicine, in a deal valued at up to $5.8 billion. The news caused a slight dip in Bristol Myers Squibb’s shares, which fell 0.4% to $56.43 following the announcement.

Under the definitive merger agreement, Bristol Myers Squibb will pay $58 per Mirati share in cash, along with a non-tradeable contingent value right that could be worth $12 per share in cash for each Mirati share held. Despite the purchase price being lower than Mirati’s closing price on Friday, Mirati stock only experienced a 1.7% decline, closing at $59.20.

This acquisition comes as Bristol Myers aims to boost its revenue and counter upcoming competition from generics for its top-selling products. It follows their previous acquisition of small-cap cancer biotech company Turning Point just over a year ago. Giovanni Caforio, CEO of Bristol Myers, stated that the Mirati transaction aligns with their business development goals, offering a strong strategic fit, great science, and clear value creation opportunities for shareholders.

Charles Baum, founder, president, and CEO of Mirati, expressed his belief that this transaction is a testament to the potential of their platform and their dedication to changing lives.

For more information, contact Rupert Steiner at rupert.steiner@barrons.com.