- Bristol Myers to acquire MyoKardia for £10 billion or £173.58 per share.
- The U.S. drugmaker bought Celgene Corp for £57.09 billion last year.
- Bristol Myers to explore Mavacamten’s potential for other indications.
In an announcement on Monday, Bristol Myers Squibb Co (NYSE: BMY) said it will invest £10 billion to acquire MyoKardia Inc (Nasdaq: MYOK). The deal will help it expand its footprint in the heart drugs business and minimise reliance on cancer treatments.
Bristol Myers remained almost flat in premarket trading on Monday. At £45.32 per share, it is now 7% down as compared to £48.86 per share at the start of 2020. In March, the Coronavirus pandemic had pushed the stock down to as low as £35.80 per share. At the time of writing, Bristol Myers has a market capitalisation of £102.10 billion. Interested in investing in the stock market online? Here’s a simple guide to get you started.
Bristol bought Celgene Corp for £57.09 billion last year
Bristol’s cash offer stands at £173.58 per share that translates to a 61.2% premium on the price at which MyoKardia closed the regular session on Friday. In separate news from the U.S., Caterpillar said on Monday that it will buy Weir Group for a cash deal valued at £312.67 million.
In 2019, Bristol had purchased Celgene Corp for £57.09 billion that was labelled as the largest pharmaceutical deal in history as it merged the world’s top two cancer drug businesses. Earlier this week, Bristol Myers’ drug combination secured approval from the U.S. FDA for Mesothelioma.
Following the completion of the transaction, Bristol Myers will bring Mavacamten under its umbrella – a candidate drug for a chronic heart disease with over 200 thousand patients in Europe and the United States.
As per the sources, MyoKardia will seek approval from the U.S. FDA for its Mavacamten drug next year. If its application is accepted in the first quarter, it will be able to market the drug for chronic heart disease.
Bristol to explore Mavacamten’s potential for other indications
In its statement on Monday, Bristol Myers confirmed its plans of exploring if Mavacamten could be useful for other indications. It will also take over production of MyoKardia’s other drugs that are currently in the pipeline.
MyoKardia is currently exchanging hands at £107.70 per share. Shares of the company have recovered sharply since a year to date low of £34.10 per share in the first week of April. In comparison, MyoKardia had started the year at a per-share price of £55.46.
At the time of writing, the Brisbane-based company has a market cap of £5.71 billion.