Bristol-Meyer Squibb's $4.8 Billion Acquisition of Mirati Therapeutics
Oct 09, 2023Breaking News:
In the midst of consolidation season, Big Pharma experiences a significant shakeup as Bristol-Meyer Squibb announces a $4.8 billion cash acquisition of Mirati Therapeutics.
What Happened:
The deal's structure could potentially value it as high as $5.4 billion.
Bristol is acquiring Mirati primarily to strengthen its cancer portfolio, driven by the manufacture of Krazati, a groundbreaking lung cancer medicine.
Current Status:
With cancer rates on the rise globally due to an aging population, numerous companies are making substantial forays into cancer treatment.
Merck and AstraZeneca lead the way with broad-based treatments. In contrast, Bristol is adopting a more targeted approach, demonstrating its bold strategy.
Why It Matters:
Despite the evolving landscape of cancer treatment, the market has mixed reactions to this deal. Bristol-Meyer Squibb has experienced stagnation, with a 20% decline in 2023.
Concurrently, investors speculate on whether Mirati may have made a less favorable deal, as their stock saw a 5% drop in early trading upon the announcement.
