Shares in
Bristol Myers Squibb
Bristol Myers Squibb
dipped Monday after the global biopharmaceutical company reached a deal to acquire
Mirati Therapeutics,
which specializes in cancer medicine, for up to $5.8 billion.
Bristol Myers
Squibb (ticker: BMY) fell 0.4% to $56.43 after the definitive merger agreement was announced Sunday night. It offered to pay $58 per Mirati (MRTX) share in cash, as well as a non-tradeable contingent value right worth what could be $12 a share in cash for each Mirati share held.
Mirati stock fell 1.7% to $59.20. The purchase price was less than Mirati’s closing price Friday of $60.20.
The acquisition will help Bristol Myers boost revenue by offsetting upcoming competition from generics for its best-selling products and comes just over a year after it acquired small-cap cancer biotech Turning Point.
In a statement on Sunday, Giovanni Caforio, Bristol Myers CEO, said: “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.”
Charles Baum, founder, president and CEO of Mirati said: “This transaction is a testament to the potential of our platform and . . . dedication to changing lives.”
Write to Rupert Steiner at [email protected]
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