Bristol Myers Squibb to acquire cancer drug maker in deal worth up to $5.8B

Bristol Myers Squibb on Sunday said it plans to acquire cancer drugmaker Mirati Therapeutics in a deal worth up to $5.8 billion. This move will diversify BMS’ oncology business and add a portfolio of drugs targeting certain cancers’ genetic drivers.

Mirati Therapeutics brings its lung cancer drug, KRAZATI, to the acquisition, which gained approval from the U.S. Food and Drug Administration in December.

In a news release, BMS, which has U.S. headquarters in Lawrenceville, said it will acquire Mirati for $58 per share in cash, totaling approximately $4.8 billion. Mirati shareholders will also receive a non-tradeable contingent value right, potentially worth $12 per share in cash, bringing an additional $1 billion of value opportunity to the deal. BMS will utilize cash and debt to finance this transaction.

“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,” Giovanni Caforio, board chair and CEO, BMS, 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. Importantly, by leveraging our skills and capabilities, including our global commercial infrastructure, we will ensure patients globally can benefit from Mirati’s portfolio of innovative medicines.”

“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 Squibb’s pipeline for the latter half of the decade and beyond,” Chris Boerner, the company’s executive vice president and incoming CEO, said.