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Bristol’s Big Play: Snatching Up Mirati for a Cool $5.8 Billion

Hold onto your hats, folks! Bristol-Myers Squibb just threw a curveball. They’re splashing out big bucks – we’re talking up to $5.8 billion – to snap up Mirati Therapeutics. Why, you ask? They’re eyeing those juicy cancer drugs Mirati’s been cooking up. It’s a smart move, especially with some of Bristol’s patents getting ready to say adieu.

So, here’s the skinny: Bristol’s taking all of Mirati’s game-changing drugs, like that lung cancer fighter, Krazati. Got the green light last December, by the way. And let’s not forget MRTX1719, another potential lung cancer hitter. Bristol’s top dogs mentioned in a chat how these drugs are the perfect fit for their current lineup.

Adam Lenkowsky, the big shot handling Bristol’s business, chimed in, “This move? It’s a no-brainer. It’s gonna keep our oncology game strong and help our bottom line in the coming years.” They’re shelling out $58 for each Mirati share, and if you do the math, it’s around $4.8 billion. But here’s the twist: Mirati’s got a stash of $1.1 billion. So, really, Bristol’s paying just about $3.7 billion. Sweet deal, right?

Mirati shareholders, though, they’re in for a treat. They’re getting a special bonus for every share. Could be worth up to 12 bucks a pop, adding another billion to the pot. And how’s Bristol paying for this shopping spree? A mix of cash and a little borrowing.

Now, the U.S. Food folks gave Krazati the thumbs up last December, helping adults battling advanced lung cancer. Chris Boerner, who’s gearing up to be Bristol’s next big boss, said, “With Krazati in our pocket, we’re pushing our cancer-fighting game up a notch. We’re setting up Bristol for success in the years to come.”

Times have been a bit tough for Bristol. Their heavy hitters, Revlimid and Eliquis, are seeing their popularity dip. And the price tag on Mirati? Let’s just say it’s a bargain compared to what it was. Their shares? Once soared to a whopping $101.3 but now hover around $60.2.

However, a teeny heads up: This deal might make Bristol’s earnings drop a smidge – about 35 cents per share in the first year after sealing the deal.

Oh, and before I forget, there’s a changing of the guard happening at Bristol. Giovanni Caforio’s stepping down in November, and Boerner’s stepping up. Last year? Bristol made another big buy, grabbing Turning Point Therapeutics for a sweet $4.1 billion.

Quite the roller coaster, huh? Well, hang tight. This industry’s full of twists and turns, and who knows what’s around the corner!

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