Bristol-Myers Squibb to Acquire Mirati Therapeutics for $4.8 Billion
Introduction
Bristol-Myers Squibb is set to acquire cancer drugmaker Mirati Therapeutics for $58 per share in cash, amounting to a $4.8 billion equity value.
Financial Details
Bristol-Myers Squibb will finance the transaction using a combination of cash and debt.
Impact on Earnings
The transaction is expected to have a negative impact on Bristol-Myers Squibb’s non-GAAP earnings per share, reducing it by approximately 35 cents per share in the first 12 months after the transaction closes.
Additional Benefit for Mirati Stockholders
Mirati stockholders will receive a non-tradeable Contingent Value Right for each Mirati share they hold. This could potentially be valued at $12.00 per share in cash.
Regulatory Approval
In December, the U.S. health regulator approved Mirati’s lung cancer drug, Krazati, for the treatment of advanced lung cancer in adults.
Bristol-Myers Squibb to Acquire Mirati Therapeutics for $4.8 Billion
Introduction
Bristol-Myers Squibb is set to acquire cancer drugmaker Mirati Therapeutics for $58 per share in cash, amounting to a $4.8 billion equity value.
Financial Details
Bristol-Myers Squibb will finance the transaction using a combination of cash and debt.
Impact on Earnings
The transaction is expected to have a negative impact on Bristol-Myers Squibb’s non-GAAP earnings per share, reducing it by approximately 35 cents per share in the first 12 months after the transaction closes.
Additional Benefit for Mirati Stockholders
Mirati stockholders will receive a non-tradeable Contingent Value Right for each Mirati share they hold. This could potentially be valued at $12.00 per share in cash.
Regulatory Approval
In December, the U.S. health regulator approved Mirati’s lung cancer drug, Krazati, for the treatment of advanced lung cancer in adults.