Shares in Bristol Myers Squibb (BMY) saw a slight dip following the announcement of its definitive merger agreement with Mirati Therapeutics, a leading cancer medicine company. The global biopharmaceutical company plans to acquire Mirati for up to $5.8 billion.
Bristol Myers Squibb's stock fell 0.4% to $56.43 after the announcement, while Mirati's stock dropped 1.7% to $59.20. The agreed-upon purchase price of $58 per share in cash will also include a non-tradeable contingent value right that could potentially be worth $12 per share in cash for Mirati shareholders.
This acquisition comes at a crucial time for Bristol Myers Squibb, as it aims to counteract the upcoming competition from generic drugs for its top-selling products. It serves as a strategic move, following their acquisition of small-cap cancer biotech Turning Point just over a year ago.
Giovanni Caforio, CEO of Bristol Myers Squibb, stated that the merger with Mirati aligns perfectly with their business development goals and presents significant value creation opportunities for their shareholders.
Mirati's founder, president, and CEO, Charles Baum, expressed his belief that this transaction is a testament to the potential of their platform and their unwavering dedication to improving lives.
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