Mirati Therapeutics falls after buyout deal by Bristol-Myers Squibb

Mirati Therapeutics

09/10/2023 12:39

(Updates)
    ** Shares of drugmaker Mirati Therapeutics  MRTX.O  fall
~4.7% to $57.40 premarket 
    ** Bristol-Myers Squibb  BMY.N  said on Sunday it will
acquire Mirati for up to $5.8 billion  
    ** The deal helps Bristol-Myers diversify oncology business
and add drugs it hopes can help offset expected revenue loss
from patent expirations later this decade 
    ** BMY said it will buy Mirati for $58 per share in cash, or
around $4.8 billion and a non-tradeable contingent value right
representing an additional $1 billion of value opportunity  
    ** Leerink Partners analyst David Risinger thinks the deal
has a reasonable enterprise value but there's a risk of U.S.
medicare price controls bringing down 2032 sales of Mirati's
lung cancer drug Krazati 
    ** Bristol's purchase comes when Mirati's shares are trading
cheap; shares hit a 52-week high of $101.3 apiece in November;
they closed at $60.2 on Friday
    ** Up to last close, MRTX shares up ~32.9% 

 (Reporting by Mariam Sunny and Christy Santhosh in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com;))