Hey, did you catch the big news? Bristol Myers Squibb, that mega pharmaceutical titan (yeah, the one trading under NYSE:BMY), is splashing some serious cash! They’re grabbing the reins of Mirati Therapeutics (got the ticker NASDAQ:MRTX) in a deal that’s ringing the cash register to the tune of $5.8 billion. No kidding! And the big reveal came just this Sunday. Giovanni Caforio, the head honcho at Bristol, sure knows how to shake things up!
Now, here’s the breakdown: $58 per share (that’s a cool $4.8 billion) and then there’s this cherry on top – an extra potential billion through something fancy called Contingent Value Rights. And if you’re thinking, “How big is this move?” Well, when you’ve got a market cap of $118.4 billion, like Bristol Myers, according to those InvestingPro whizzes, it’s kinda like throwing a huge party!
Word on the street, courtesy of InvestingPro Tips, is that Bristol Myers Squibb is basically the LeBron James of the Pharma world. They’ve got money rolling in, buying back their shares like hotcakes, hinting that the future’s looking pretty rosy. And with their net income set to climb even higher? This buyout’s got everyone on the edge of their seats!
But why Mirati? Well, they’ve got this ace up their sleeve: a lung-cancer drug called Krazati. With this merger, Bristol’s aiming to beef up its medicine chest and give its shareholders even more to cheer about. Although, heads up, there might be a tiny dip of 35 cents per share in the first year after the merger. No biggie!
Despite a 21% tumble in their share value this year, Bristol Myers Squibb isn’t crying in their coffee. They’ve been sending out dividend checks for 53 straight years and still look like a good deal, especially compared to their earnings.
Mirati? Oh, they’re riding high! Their shares closed at $60.20 last Friday (a sweet 33% rise). They’re basically the cool kid on the block, especially with the S&P 500 only gaining about 12% this year. And with a value of around $4.21 billion and more cash than IOUs? They’re living the dream.
Fast forward to 2024, and if all goes to plan, Mirati will snugly fit into Bristol Myers Squibb’s sprawling empire.
By the way, a little birdie (or maybe an AI) helped craft this story, but a human gave it the final touch. Want the nitty-gritty? Check out the T&Cs. Until next time, folks!