MyoKardia soars 59% after Bristol-Myers agrees to acquire it for $13 billion in cash
- Bristol-Myers Squibb said on Monday that it agreed to acquire MyoKardia for $13.1 billion in cash.
- The deal will bolster Bristol-Myers' cardiovascular franchise, as the acquisition gives the biotech company exposure to promising pipeline candidates for the treatment of hypertrophic cardiomyopathy, among others.
- The deal is expected to close in the fourth quarter of 2020 and is expected to be accretive to non-GAAP earnings beginning in 2023, according to Bristol-Myers.
- MyoKardia soared 59% in Monday trades.
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MyoKardia, a clinical-stage biotechnology company based in Brisbane, California, soared 59% on Monday after it was announced that Bristol-Myers Squibb had agreed to acquire the company for $13.1 billion in cash.
MyoKardia has developed a pipeline of potential therapies to combat cardiovascular diseases, and announced in May that its experimental drug for obstructive hypertrophic cardiomyopathy, mavacamten, met all of its phase 3 primary and secondary endpoints.
The deal has been approved by the boards of both companies and is expected to close in the fourth quarter of 2020. Bristol-Myers will fund the deal with a combination of cash and debt.
Bristol-Myers said the acquisition would be accretive to its non-GAAP earnings in the beginning of 2023, as the company ramps up the commercialization of mavacamten. The company reaffirmed its 2021 non-GAAP earnings-per-share guidance.
Mavacamten is expected to be submitted to the FDA for approval in the first quarter of 2021.
"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," Giovanni Caforio, M.D., board chair and CEO of Bristol Myers Squibb, said.
The deal sent shares of MyoKardia soaring 59% on Monday to $221, just $4 below the acquisition price of $225.
