Overview of the Deal
Acquirer: Bristol Myers Squibb (BMS)
Target: Mirati Therapeutics, Inc.
Total Transaction Size: Up to $5.8 billion
Offer Details: $58.00 per share in cash, totaling $4.8 billion, plus a Contingent Value Right (CVR) of $12.00 per share, adding up to $1.0 billion
Announcement Date: October 8, 2023
Completion Date: January 23, 2024
Target Advisors: Not publicly disclosed
Acquirer Advisors: Not publicly disclosed
On October 8, 2023, Bristol Myers Squibb announced a definitive agreement to acquire Mirati Therapeutics, a targeted oncology company, for $58.00 per share in cash, amounting to $4.8 billion. Additionally, Mirati shareholders received a non-tradeable Contingent Value Right (CVR) of $12.00 per share, potentially increasing the total transaction value to $5.8 billion. The acquisition was completed on January 23, 2024, making Mirati a wholly owned subsidiary of BMS.
Company Details (Acquirer – Bristol Myers Squibb)
Bristol Myers Squibb is a global biopharmaceutical company focused on discovering, developing, and delivering innovative medicines for patients with serious diseases.
- Founded: 1989 (merger of Bristol-Myers and Squibb Corporation)
- Headquarters: Princeton, New Jersey, USA
- CEO: Chris Boerner, Ph.D.
- 2023 Revenue: Approximately $46.4 billion
- Market Cap: Over $150 billion
- Recent Acquisitions:
- MyoKardia (2020)
- Turning Point Therapeutics (2022)
- Karuna Therapeutics (2024)
Company Details (Target – Mirati Therapeutics, Inc.)
Mirati Therapeutics is a commercial-stage targeted oncology company dedicated to discovering and developing breakthrough therapies to transform the lives of patients with cancer.
- Founded: 1995
- Headquarters: San Diego, California, USA
- CEO: David Meek
- Employees: Approximately 600 (as of 2022)
- Key Products:
- KRAZATI® (adagrasib): A KRASG12C inhibitor approved by the U.S. FDA for treating advanced non-small cell lung cancer (NSCLC) with a KRASG12C mutation.
- Pipeline:
- MRTX1719: A PRMT5/MTA inhibitor in clinical development.
- MRTX1133: A KRASG12D inhibitor in early clinical trials.
- MRTX0902: A SOS1 inhibitor targeting KRAS-driven cancers.
Projections and Assumptions
Short-Term Consequences
- Portfolio Expansion: The acquisition immediately adds KRAZATI® to BMS’s commercial offerings, enhancing its oncology portfolio with a best-in-class KRASG12C inhibitor.
- Pipeline Strengthening: Mirati’s pipeline assets, including MRTX1719 and MRTX1133, provide BMS with promising candidates for future development in targeted cancer therapies.
Long-Term Upsides
- Market Leadership: Integrating Mirati’s innovative therapies positions BMS to lead in the targeted oncology market, addressing unmet medical needs in various cancer types.
- Research Synergies: The combined expertise of both companies is expected to accelerate the development of novel treatments, leveraging complementary scientific capabilities.
Risks and Uncertainties
- Regulatory Approvals: Future approvals for pipeline products are subject to successful clinical trials and regulatory review, which carry inherent risks.
- Market Competition: The oncology landscape is highly competitive, and the success of new therapies depends on differentiation and clinical efficacy.
Sources
- Bristol Myers Squibb News Release
- Yahoo Finance
- Pharmaceutical Technology
- Mirati Therapeutics Wikipedia
