Bristol-Myers Squibb Co (NYSE:BMY) has unveiled plans to buy Mirati Therapeutics (NASDAQ:MRTX) in a deal that values the cancer drug developer at up to $5.8 billion.
This acquisition aims to diversify Bristol's cancer treatment offerings and mitigate anticipated revenue losses due to upcoming patent expirations.
As part of the deal, the US giant will add to its portfolio and pipeline drugs that focus on the genetic causes of specific cancers, such as the lung cancer medication Krazati, which was approved last December.
Another compound, MRTX1719, which shows promise in treating certain lung cancers, was also cited as a key factor in the acquisition, according to Bristol executives.
Adam Lenkowsky, its chief commercialisation officer, highlighted that the deal not only strategically enhances their oncology portfolio but also provides commercial benefits for the latter part of this decade.
Bristol-Myers Squibb will acquire Mirati at $58 per share in cash, totalling around $4.8 billion.
Considering Mirati's existing cash reserves of approximately $1.1 billion, the effective enterprise value of the deal stands at roughly $3.7 billion.