a cellphone on a table: Bristol-Myers (BMY) logo at the top of a cellphone.


© Source: Piotr Swat / Shutterstock.com
Bristol-Myers (BMY) logo at the top of a cellphone.

Shares of MyoKardia (NASDAQ:MYOK) stock are soaring on Monday after a major deal with another pharmaceutical company.



a close up of a cell phone: Bristol-Myers (BMY) logo at the top of a cellphone.


© Provided by InvestorPlace
Bristol-Myers (BMY) logo at the top of a cellphone.

Bristol Myers Squibb (NYSE:BMY) announced that it is acquiring MyoKardia for $13.1 billion, or $225 per share, in cash. MyoKardia is a biopharmaceutical company that discovers and develops specific therapies in order to treat serious cardiovascular diseases.

That said, the major asset in this acquisition is mavacamten. It is a possible top-of-the-line cardiovascular medicine for treating people with obstructive hypertrophic cardiomyopathy.

Tassos Gianakakos, CEO of MyoKardia, had this to say about the deal with Bristol Myers Squibb:

“Bristol Myers Squibb shares our vision for transforming the treatment of cardiovascular disease. They value our team and the potential of our platform and, most importantly, share our unwavering commitment to placing patients at the center of everything we do. Together, our complementary strengths and expanded resources and reach will further accelerate the pace at which we can discover, develop and commercialize our novel medicines for the benefit of people suffering from cardiovascular disease around the world.”

Moreover, according to the release, Bristol Myers Squibb plans to explore all the possibilities of mavacamten. Also, they will work to “develop MyoKardia’s promising pipeline of novel compounds, including two clinical-stage therapeutics: danicamtiv (formerly MYK-491) and MYK-224.”

Overall, Bristol Myers Squibb expects the acquisition to do three things:

  • Further strengthen the company’s outlook with the addition of mavacamten
  • Accelerate the expansion of its cardiovascular portfolio.
  • Deliver significant financial benefits

MYOK stock was up more than 55% as of Monday afternoon.

On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in

Bristol-Myers Squibb Company BMY has entered into a definitive agreement with clinical-stage biopharmaceutical company, MyoKardia MYOK in a bid to acquire the latter for $225 per share in cash or a total value of $13.1 billion. The deal is expected to close in the fourth quarter of 2020 and approved by the boards of directors of both companies.

Per the agreement, a subsidiary of Bristol Myers will begin a tender offer to acquire all the outstanding shares of MyoKardia’s common stock. Following the successful closing of the tender offer, Bristol Myers will acquire all the remaining shares of MyoKardia that are not proposed in the tender offer through a second-step merger at the same price of $225 per share.

The transaction is subject to customary closing conditions and the termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The deal, if successful, will strengthen Bristol Myers’ cardiovascular franchise as MyoKardia develops targeted therapies for the treatment of serious cardiovascular diseases.

MyoKardia’s lead therapeutic candidate mavacamten, a potential first-in-class cardiovascular medicine, is being developed for the treatment of obstructive hypertrophic cardiomyopathy (HCM). A new drug application for mavacamten to treat obstructive HCM is expected to be filed in the first quarter of 2021 in the United States.

With this acquisition, Bristol Myers will add mavacamten to its portfolio and explore the full potential of the same for additional indications, such as non-obstructive HCM. The company will also gain MyoKardia’s two clinical-stage novel therapies, namely danicamtiv and MYK-224 developed for cardiovascular treatment.

Shares of Bristol Myers have declined 8.5% so far this year compared with the industry’s decrease of 3%.

We note that Bristol-Myers is highly active on the acquisition front. The company is looking to counter the generic threat to its key drugs through deal wins and

KEY POINTS

  • Bristol Myers’ tender price represents a 61-percent premium on MyoKardia shares
  • The transaction is expected to close during the fourth quarter of 2020
  • An estimated 160,000 to 200,000 people have been diagnosed with symptomatic obstructive HCM in the U.S. and EU

Bristol Myers Squibb (BMY) said on Monday it signed a definitive agreement to acquire MyoKardia Inc. (MYOK) in a deal valued at $13.1 billion, or $225 per share in cash.

MyoKardia closed at $139.60 per share on Friday, meaning Bristol Myers’ tender price represents a 61% premium. The transaction is expected to close during the fourth quarter of 2020.

MyoKardia is a clinical-stage biopharmaceutical company focused on the treatment of serious cardiovascular diseases.

Bristol Myers Squibb said the transaction is expected to be “minimally dilutive” to its non-GAAP earnings per share in 2021 and 2022 and “accretive” beginning in 2023.

Bristol Myers Squibb expects to finance the deal through a combination of cash and debt.

As a result of the merger, Bristol Myers Squibb will obtain mavacamten, a potential treatment for obstructive hypertrophic cardiomyopathy, or HCM, a chronic heart disease with high morbidity. A New Drug Application for mavacamten for the treatment of symptomatic obstructive HCM is expected to be submitted to the U.S. Food and Drug Administration in the first quarter of 2021.

There are an estimated 160,000 to 200,000 people diagnosed with symptomatic obstructive HCM in the U.S. and EU, with no existing treatment options outside of limited symptomatic relief.

Bristol Myers Squibb also said it expects to “explore the full potential” of mavacamten in additional indications, including non-obstructive HCM, and to develop MyoKardia’s “promising pipeline” of novel compounds, including two clinical-stage therapeutics: danicamtiv (formerly called MYK-491) and MYK-224.

Mavacamten could generate annual sales of more than $1.5 billion worldwide by 2025, BMO Capital Markets