Monday morning, before the opening bell, Bristol Myers Squibb (BMY) and MyoKardia, Inc. (MYOK) announced an agreement in which Bristol Myers Squibb will acquire MyoKardia for $13.1 billion or $225 a share for MyoKardia. The price represents a 61% premium to MyoKardia’s stock closing price of $139.60 on Friday.
MyoKardia is a clinical-stage biopharmaceutical company that discovers, develops and commercializes targeted therapies for the treatment of cardiovascular diseases.
MyoKardia’s s lead pipeline drug, mavacamten, is an experimental heart disease therapy that has great potential.
Mavacamten, is a drug that is being tested for treating hypertrophic cardiomyopathy (“HCM”). A chronic heart condition that can cause irregular heart rhythms and even death, this impacts about 200,000 across the United States and Europe.
MyoKardia is expected to submit a New Drug Application (“NDA”) for mavacamten to the U.S. Food and Drug Administration (“FDA”) in 1Q2021.
Giovanni Caforio, M.D., Board Chair and Chief Executive Officer of Bristol Myers Squibb announced that “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,”. Bristol Myers Squibb has admired MyoKardia for a long time.
Bristol Myers Squibb went on to add, “The transaction is expected to add a significant growth driver during the medium- to long-term.” This acquisition is expected to “minimally dilutive” to non-GAAP earnings in 2021 and 2022 before becoming accretive in 2023.
Mavacamten will accelerate the expansion of Bristol Myers Squibb’s cardiovascular portfolio. Alongside, Eliquis, the #1 oral anticoagulant globally with the best-in-class profile, mavacamten can be the perfect asset that fits into Bristol Myers Squibb’s portfolio, given the addition of MyoKardia’s critical talent and capabilities.
BMO Capital Markets analysts forecast mavacamten to gain more than $1.5 billion in global sales by 2025.
More than 75% of Bristol Myers Squibb’s $20 billion in sales during the first half of 2020 were through cancer therapies.
Bristol Myers Squibb expects to explore mavacamten for other diseases and is planning to excel in MyoKardia’s experimental drug portfolio.
Disclosure: At the time of publication, I have no positions in any of the securities mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for creating this article (other than from TheStreet) and have no business relationship with any company whose stock is mentioned in this article.