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Bristol-Myers Squibb (NYSE:BMY) agreed to purchase Mirati Therapeutics (NASDAQ:MRTX) for about $4.8 billion.
Bristol-Myers (BMY) agreed to acquire Mirati for $58.00 per share in cash, for a total equity value of $4.8 billion, according to a statement on Sunday. Mirati (MRTX) holders will also receive one non-tradeable Contingent Value Right for each Mirati share held, potentially worth $12.00 per share in cash, representing an additional $1 billion of value.
The takeover comes after Mirati (MRTX) shares surged 45% on Thursday amid a Bloomberg report that Sanofi (SNY) was exploring a possible acquisition of the cancer drug company. Sanofi (SNY) had been studying a possible purchase of Mirati, according to the report.
Mirati (MRTX) shares closed at $60.20 on Friday. The acquistion represents a 52% premium to the 30-day VWAP as of Oct. 4, the day before takeover speculation was released.
“We are excited to add these assets to our portfolio and to accelerate their development as we seek to deliver more treatments for cancer patients,” said Giovanni Caforio, Chief Executive Officer and Board Chair of Bristol-Myers, in the statement.
The report on Thursday followed a Bloomberg item in November that Mirati (MRTX) was drawing interest from large pharmaceutical companies ahead of updates on its drug pipeline. The company has received interest in previous years without a deal coming to fruition.
The transaction is expected to be treated as a business combination and to be dilutive to Bristol-Myers (BMY) non-GAAP earnings per share by approximately $0.35 per share in the first 12 months after the transaction closes.
The acquisition is expected to close by the first half of next year, subject to customary closing conditions. Bristol-Myers (BMY) expects to finance the acquisition with a combination of cash and debt.
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