Bristol Myers Squibb Co. said Sunday it will buy Mirati Therapeutics Inc. in a deal valued at up to $5.8 billion.
The pharmaceutical giant announced it will pay $58 a share for Mirati, for a total equity value of $4.8 billion. Mirati stockholders will also receive one non-tradeable Contingent Value Right for each share they hold, potentially worth $12 a share in cash, representing an additional $1 billion of possible value.
Mirati shares closed Friday at $60.20, with the company’s market cap at about $4.21 billion.
Mirati develops commercial-stage oncology therapies, and through the deal, Bristol Myers Squibb will add lung-cancer medicine Krazati, among others, to its portfolio.
“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, Bristol Myers Squibb’s chief executive and chairman, said in a statement. “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.”
The deal is expected to be dilutive to Bristol Myers Squibb’s non-GAAP earnings per share by about 35 cents a share in the first 12 months after the transaction closes. The merger is expected to close by the first half of 2024.
Bristol Myers Squibb, with a market cap of about $118.4 billion, has seen its shares
BMY,
sink 21% year to date. Mirati shares
MRTX,
are up 33% this year. The S&P 500
SPX,
in comparison, has gained about 12% in 2023.