Some day-after thoughts on Bristol Myers Squibb acquiring Mirati Therapeutics:
A take-under deal feels meh for biotech sector sentiment.Bristol is paying $58 per share in cash for Mirati, which closed Friday at $60. Granted, Mirati was trading in the $30 range in September, so from there, the roughly 50% premium isn’t terrible. But as Mizuho strategist Jared Holz pointed out, investors would liked to have seen Mirati go for $75-$100 per share.
advertisement
With the closely watched XBI biotech index down 13% for the year, every M&A deal helps improve sentiment, but this one — maybe just a little. Bristol is paying $4.8 billion in cash to acquire Mirati, or $3.7 billion after accounting for Mirati’s cash. It’s a small bolt-on acquisition for Bristol, which isn’t overpaying.
Get unlimited access to award-winning journalism and exclusive events.
Subscribe Log In
Previous article：
FDA approves world's first CRISPR
Next article： Medicare details structure of new drug price negotiation program
Next article： Medicare details structure of new drug price negotiation program
