Britsol-Myers Squibb Co. (BMY) – Get Report agreed to buy drugmaker MyoKardia Inc. (MYOK) – Get Report, which makes the experimental heart treatment mavacamten, for around $13.1 billion.
Bristol-Myers will pay $225 per share, for the Brisbane, California-based MyoKardia, a 62% premium to its Friday closing price of $139.60 each. Bristol-Myers said the deal will begin adding to its overall bottom line in 2023, and plans to finance the acquisition with a combination of cash and debt.
Britsol-Myers also reiterated its existing profit guidance for the 2021 fiscal year, which sees non-GAAP earnings in the range of $7.15 to $7.45 per share. The group boosted in 2020 forecast in August to a range of $6.10 to $6.25 per share.
MyoKardia recently completed a Phase 2 study of its mavacamten drug, which targets patients with hypertrophic cardiomyopathy, a progressive heart disease that increases the risk of strokes, heart failures and sudden cardiac death.
“The acquisition of MyoKardia further strengthens our portfolio, pipeline and scientific capabilities, and is expected to add a meaningful medium- and long-term growth driver,” said CEO Giovanni Caforio. “We are further strengthening our outstanding cardiovascular franchise through the addition of mavacamten, a promising medicine with the potential to address a significant unmet medical need in patients with cardiovascular disease.”
“Our companies share a commitment to innovation and bold science, and our respective strengths will help us realize the value inherent in this portfolio,” he added. “We have long admired MyoKardia and what they have done to revolutionize cardiovascular treatments through a precision medicine approach. We look forward to welcoming their talented team to our company.”
Bristol-Myers shares were marked 0.5% lower from their Friday close to indicate an opening bell price of $58.40 each, while MyoKardia shares surged 59.4% to indicate an opening bell price of $222.50 each.