Bristol Myers to Pay Nearly $5 Billion to Acquire Mirati

Bristol Myers Squibb (BMY:US) has announced its agreement to acquire Mirati Therapeutics (MRTX:US) for $58 per share in cash, resulting in a total equity value of $4.8 billion. 

Additionally, Mirati stockholders will be granted one non-tradeable contingent value right for each Mirati share they own, which could potentially be valued at $12.00 per share in cash. This represents an additional $1 billion in value opportunity, as stated in the company's official statement.

The price represents a 52% premium to the 30-day VWAP as of the unaffected October 4, 2023 close.

This transaction has received unanimous approval from both the Bristol Myers Squibb and Mirati boards of directors. This move signifies a significant development in the pharmaceutical industry and may have far-reaching implications for both companies involved.

“With multiple targeted oncology assets including KRAZATI, Mirati is another important step forward in our efforts to grow our diversified oncology portfolio and further strengthen Bristol Myers Squibb’s pipeline for the latter half of the decade and beyond,” said Chris Boerner, Ph.D., Executive Vice President and Chief Operating Officer and Chief Executive Officer-Elect, Bristol Myers Squibb.

The deal is expected to be dilutive to Bristol Myers Squibb's adjusted earnings per share by approximately $0.35 per share in the first 12 months following the closing of the transaction.

Congressman Daniel Goldman was trading MRTX shares earlier this year. The stock is up 29% YTD.

Rep. Goldman was also trading shares of BMY, including the $15,000 - $50,000 worth of sales reported in July this year.