Bristol Myers Squibb to acquire Mirati Therapeutics in $4.8bn deal

Bristol Myers Squibb (NYSE: BMY) is set to acquire Mirati Therapeutics, Inc. (NASDAQ: MRTX) at $58.00 per share in a cash deal valued at $4.8 billion. Additionally, Mirati Therapeutics stockholders will benefit from a non-tradeable Contingent Value Right (CVR) for each share held, offering a potential $12.00 per share, signaling an extra $1 billion in value. Both companies’ Boards of Directors have given their unanimous approval for the merger.

Mirati Therapeutics’ Strong Fit with Bristol Myers Squibb’s Oncology Portfolio

Mirati Therapeutics, a leading commercial stage oncology-focused company, strives to revolutionize cancer treatment. The acquisition means that Bristol Myers Squibb will incorporate KRAZATI, a critical lung cancer medicine, into its commercial offerings. This move grants Bristol Myers Squibb access to numerous promising clinical assets that complement its already robust oncology pipeline.

Mirati Therapeutics to merge with Bristol Myers Squibb: What this means for oncology. Photo courtesy of Bristol-Myers Squibb Company.

KRAZATI (adagrasib) stands out due to its recent accelerated U.S. Food and Drug Administration (FDA) approval for treating adult patients with KRASG12C-mutated advanced or metastatic Non-Small Cell Lung Cancer (NSCLC). Notably, KRAZATI offers several advantages over other KRASG12C inhibitors, such as a longer half-life and the potential to pair with a PD-1 inhibitor for NSCLC’s initial treatment phases. Furthermore, Mirati Therapeutics’ portfolio includes MRTX1719, a potential first-in-class MTA-cooperative PRMT5 inhibitor, and a pioneering KRAS program with MRTX1133 and MRTX0902.

Executives Weigh in on the Merger

Giovanni Caforio, the CEO and Board Chair at Bristol Myers Squibb, voiced enthusiasm about incorporating these assets. He stated, “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.”

Echoing his sentiments, Chris Boerner, the EVP, COO, and CEO-Elect of Bristol Myers Squibb, emphasized their goal to augment their diversified oncology portfolio. He expressed admiration for Mirati’s groundbreaking science and its potential to revolutionize cancer treatment. Samit Hirawat, the Chief Medical Officer at Bristol Myers Squibb, also highlighted the transformative potential of Mirati’s assets in cancer care.

From Mirati Therapeutics’ end, Charles Baum, the Founder, President, and CEO, underscored their decade-long journey in developing cutting-edge cancer treatments and expressed confidence in Bristol Myers Squibb’s ability to propel their innovations to greater heights.

Transaction Details

The acquisition is expected to slightly impact Bristol Myers Squibb’s non-GAAP earnings, with a dilution of approximately $0.35 per share in the year following the deal’s closure. The terms include a 52% premium based on the 30-day VWAP as of October 4, 2023. Expected to close by the first half of 2024, the acquisition awaits customary closing conditions, including regulatory approvals and Mirati Therapeutics stockholder consent. Financing will be a combination of cash and debt.

Evercore Inc. and Morgan Stanley & Co. LLC are advising Bristol Myers Squibb, while Centerview Partners LLC advises Mirati Therapeutics on the deal.