Bristol-Myers Squibb to Acquire Mirati Therapeutics for $4.8 Billion in Cash: A Game-Changing Move in the Cancer Drug Industry

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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.

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