Mirati Therapeutics
stock fell sharply after global biopharmaceutical company Bristol Myers Squibb reached a deal to acquire the cancer medicine specialist for up to $5.8 billion.
A definitive merger agreement was announced Sunday night. Bristol Myers offered to pay $58 per Mirati (ticker: 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 5.6% to $56.86. The purchase price was less than Mirati’s closing price Friday of $60.20. Bristol Myers Squibb (ticker: BMY) fell 0.4% to $56.43.
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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