Bristol Myers Squibb said on Sunday it will acquire cancer drugmaker Mirati Therapeutics (MRTX.O) in an up to $5.8 billion deal that diversifies its oncology business and adds drugs it hopes can help offset expected lost revenue from patent expirations later this decade. The Deal is a sign of the growing urgency among pharmaceutical companies to find new ways to treat diseases affecting tens of millions worldwide.
Mirati is working on designing and delivering cancer treatments that target the genetic drivers of specific tumors. Its portfolio includes the lung cancer drug Krazati, approved in December for use in patients with a type of tumor with the mutated KRAS gene. Mirati also has a leading EGFR inhibitor program and several other clinical assets, including a potential new treatment for pancreatic cancer.
The Deal with Mirati will give Bristol Myers access to adagrasib, a drug that targets a genetic mutation found in some tumors, the companies said. Bristol Myers is expected to fund Adagrasib’s continued development and commercialization, including advancing a second drug targeting a different genetic mutation.
Mirati’s drug discovery and preclinical pipeline are expected to complement Bristol Myers’ existing immunotherapy and targeted therapies pipeline. Bristol Myers aims to expand its oncology presence, especially in immuno-oncology, to build on the success of blockbuster immunotherapy Opdivo.
Investors reacted positively to the news, sending shares of Bristol Myers up about 4.5% to $118.4. Mirati shares surged about 45% on Thursday following a report that Sanofi was exploring a sale, but the acquisition announcement sent them further up.
BMY Revenues
The move comes as Bristol Myers seeks to offset falling sales of its multiple myeloma drug Revlimid and blood thinner Eliquis, both facing competition from generic versions. The company said on Monday that it has made “meaningful progress” toward its global inclusion and diversity goals and health equity commitments.
Bristol Myers has been shifting its focus to oncology, shedding units in other areas and spending billions of dollars last year buying a cancer drugmaker and a promising experimental treatment that uses the patient’s immune system to fight disease. The New York-based company focuses heavily on treatments that harness the body’s defenses and has several late-stage trials of immunotherapies in its pipeline. Bristol Myers also announced deals on Monday with Flexus Biosciences and Rigel Pharmaceuticals that will add to its oncology portfolio. Both deals are expected to close in the first half of 2024.
