Bristol-Myers Squibb to acquire Mirati in up to $5.8 billion deal
Summary
Bristol-Myers Squibb on Sunday said it will acquire cancer drugmaker Mirati Therapeutics for up to $5.8 billion, diversifying its oncology business and adding drugs it hopes can help offset expected lost revenue from patent expirations later this decade. A second compound - MRTX1719 - which could be used in some types of lung cancer was also attractive to the company, Bristol executives said in an interview. Mirati stockholders 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 opportunity, the company said Bristol will finance the transaction with a combination of cash and debt, the company said in a statement. "With multiple targeted oncology assets including Krazati, Mirati is another important step forward in our efforts to grow our diversified oncology portfolio and further strengthen Bristol Myers Squibbs pipeline for the latter half of the decade and beyond," said Chris Boerner, Bristols incoming CEO and current chief operating officer, in a statement. In April, Bristol said CEO Giovanni Caforio would step down in November and be succeeded by Boerner.