Risky biotech M&A therapy will heal more fractures

Mirati Therapeutics

19/10/2023 12:18

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Jonathan Guilford
       NEW YORK, Oct 19 (Reuters Breakingviews) - Bristol Myers
is paying $5 bln upfront for Mirati, and will fork out another
$1 bln if the target’s lung-cancer drug makes headway. Such
contingent value rights often end up worthless, sowing discord.
As valuation spats gum up deals, however, the sweeteners hold
greater appeal.
    Full view will be published shortly.
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    CONTEXT NEWS
    Drugmaker Bristol Myers Squibb said on Oct. 8 that it had
agreed to buy Mirati Therapeutics, which is developing oncology
treatments, for $4.8 billion, excluding the seller’s net cash.
    The deal includes a further $1 billion in payments tied to a
contingent value right, or CVR, which will pay out $12 per share
if the U.S. Food and Drug Administration accepts a new drug
application for Mirati’s non-small cell lung cancer therapy
within seven years after the closing of the deal.

 (Editing by Jeffrey Goldfarb, Sharon Lam and Streisand Neto)
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