Bristol-Meyer Squibb's $4.8 Billion Acquisition of Mirati TherapeuticsOct 09, 2023
In the midst of consolidation season, Big Pharma experiences a significant shakeup as Bristol-Meyer Squibb announces a $4.8 billion cash acquisition of Mirati Therapeutics.
The deal's structure could potentially value it as high as $5.4 billion.
Bristol is acquiring Mirati primarily to strengthen its cancer portfolio, driven by the manufacture of Krazati, a groundbreaking lung cancer medicine.
With cancer rates on the rise globally due to an aging population, numerous companies are making substantial forays into cancer treatment.
Merck and AstraZeneca lead the way with broad-based treatments. In contrast, Bristol is adopting a more targeted approach, demonstrating its bold strategy.
Why It Matters:
Despite the evolving landscape of cancer treatment, the market has mixed reactions to this deal. Bristol-Meyer Squibb has experienced stagnation, with a 20% decline in 2023.
Concurrently, investors speculate on whether Mirati may have made a less favorable deal, as their stock saw a 5% drop in early trading upon the announcement.