Bristol Myers Squibb Acquiring Mirati Therapeutics

Bristol Myers Squibb Co. has announced its plans to acquire Mirati Therapeutics Inc. in a deal worth up to $5.8 billion. The pharmaceutical giant will purchase Mirati at a rate of $58 per share, resulting in a total equity value of $4.8 billion. In addition to this, each Mirati shareholder will also receive a non-tradeable Contingent Value Right, potentially offering an extra $12 per share in cash, totaling an additional $1 billion in value.

Mirati, known for their advancements in commercial-stage oncology therapies, will bring valuable assets to Bristol Myers Squibb’s portfolio with the inclusion of lung-cancer medicine Krazati, among other treatments.

Giovanni Caforio, the chief executive and chairman of Bristol Myers Squibb, expressed excitement over the acquisition, stating, “We are pleased to add these assets to our existing portfolio and expedite their development as we strive to provide more effective treatments for cancer patients. The strategic fit, exceptional scientific advancements, and evident value creation opportunities for our shareholders make the Mirati transaction perfectly aligned with our business development goals.”

It is anticipated that the transaction will have a dilutive effect on Bristol Myers Squibb’s non-GAAP earnings per share by approximately 35 cents within the first year after the deal is finalized. The merger is expected to conclude by the first half of 2024.

Despite experiencing a 21% decline in shares this year, Bristol Myers Squibb maintains a solid market capitalization of approximately $118.4 billion. Conversely, Mirati shares have seen a 33% increase in value during this year alone. By comparison, the S&P 500 has recorded a 12% gain in 2023.