BMS to acquire precision oncology company Turning Point Therapeutics for $4.1bn

Bristol Myers Squibb (BMS) has agreed to acquire Turning Point Therapeutics, a clinical-stage precision oncology company based in California, for $4.1 billion.

Listed on the Nasdaq, Turning Point Therapeutics is developing drug candidates that are said to target the highly common mutations related to oncogenesis.

Its flagship asset is repotrectinib, which is a tyrosine kinase inhibitor (TKI) that targets the ROS1 and NTRK oncogenic drivers of non-small cell lung cancer (NSCLC) as well as other advanced solid tumors.

Repotrectinib, which has three breakthrough therapy designations from the US Food and Drug Administration (FDA), has been shown in the phase 1/2 TRIDENT-1 clinical trial to provide longer duration of response compared to existing ROS1 agents in first-line NSCLC.

Bristol Myers Squibb believes that repotrectinib will be approved by the FDA in the second half of next year and become a new standard of care in the first-line setting for patients having ROS1-positive NSCLC.

The American pharma giant also intends to continue studying the potential of Turning Point Therapeutics’ pipeline of novel compounds.

Bristol Myers Squibb to acquire precision oncology company Turning Point Therapeutics for $4.1bn. Photo courtesy of Bristol-Myers Squibb Company.

Giovanni Caforio — Bristol Myers Squibb CEO said: “The acquisition of Turning Point Therapeutics further broadens our leading oncology franchise by adding a best-in-class, late-stage precision oncology asset.

“With this transaction, we are continuing our strong track record of strategic business development to further enhance our growth profile.”

As per the terms of the deal, Bristol Myers Squibb will launch a tender offer to acquire all of the outstanding shares of Turning Point Therapeutics at a price of $76 per share in cash.

The board of directors of the precision oncology company have recommended unanimously that the company’s shareholders tender their shares in Bristol Myers Squibb’s tender offer.

Athena Countouriotis — Turning Point Therapeutics President and CEO said: “Through this transaction, we will be able to harness the full potential of our precision oncology platform to advance the standard of care for cancer patients. Since our founding, we have leveraged our deep scientific expertise to develop a pipeline of promising precision oncology assets.

“With Bristol Myers Squibb’s leadership in oncology, strong commercial capabilities and manufacturing footprint, we will be able to further accelerate the pace at which we can bring our novel medicines to benefit people diagnosed with cancer around the world.”

The closing of the deal is expected to close in Q3 2022, subject to the tender of a majority of the outstanding shares of Turning Point Therapeutics and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.