Pharmaceutical giant Bristol-Myers Squibb is set to acquire cancer drugmaker Mirati Therapeutics in a significant deal valued at $4.8 billion. Under the terms of the agreement, Bristol-Myers Squibb will pay $58 per share in cash, representing a substantial equity value for the acquisition. To finance the transaction, a combination of cash and debt will be utilized. This move comes as Bristol-Myers Squibb seeks to bolster its oncology portfolio and expand its presence in the cancer drug market.
The acquisition is expected to have an initial dilutive effect on Bristol-Myers Squibb’s non-GAAP earnings per share, estimated at approximately 35 cents per share during the first 12 months after the deal’s closure. Additionally, Mirati stockholders will receive a non-tradeable Contingent Value Right for each Mirati share held, which could potentially be worth $12.00 per share in cash. The acquisition follows the U.S. health regulator’s approval in December for Mirati’s lung cancer drug, Krazati, to treat adults with advanced lung cancer, making it a strategic addition to Bristol-Myers Squibb’s portfolio in the ever-evolving field of oncology therapeutics.