Bristol Myers To Acquire Mirati Therapeutics In Deal Worth Up To $5.8 Bln

(RTTNews) - Bristol Myers Squibb (BMY) has agreed to acquire Mirati Therapeutics Inc. (MRTX) for $58.00 per share in cash, for a total equity value of $4.8 billion. Mirati stockholders will also receive one non-tradeable Contingent Value Right (CVR) for each Mirati share held, potentially worth $12.00 per share in cash, representing an additional $1.0 billion of value opportunity, the companies said in a statement on Sunday.

The deal price of $58.00 per share representing a 52% premium to the 30-day VWAP as of the unaffected October 4, 2023.

The transaction was unanimously approved by both the Bristol Myers Squibb and the Mirati Boards of Directors. The transaction is anticipated to close by the first half of 2024.

Mirati is a commercial stage targeted oncology company whose mission is to discover, design and deliver breakthrough therapies to transform the lives of patients with cancer and their loved ones.

The transaction is expected to be treated as a business combination and to be dilutive to Bristol Myers Squibb's non-GAAP earnings per share by about $0.35 per share in the first 12 months after the transaction closes.

Bristol Myers Squibb expects to finance the acquisition with a combination of cash and debt.

MRTX closed Friday's regular trading at $60.20 down $2.18 or 3.49%.