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Bristol-Myers Squibb Buying MyoKardia for $13 Billion

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Bristol-Myers Squibb announced on Monday, Oct. 5 that it will purchase MyoKardia for $13.1 billion. The acquisition is intended to grow the oncology powerhouse’s share in the heart disease treatment market, including MyoKardia’s new heart drug mavacamten.  

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Bristol-Myers Squibb's news

Bristol-Myers Squibb will pay $225 per share for MyoKardia, which is a clinical-stage biotechnical company, according to The Wall Street Journal. The amount is a 61 percent increase compared to MyoKardia’s closing price of $139.60 on Oct. 2.  

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According to Business Insider, Giovanni Caforio, M.D., the board chair and CEO of Bristol-Myers Squibb, said, "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 also acquired Celgene, which is a leader in multiple-myeloma drug treatments, for $74 billion in 2019. According to CNBC, the Celgene deal was the biggest pharmaceutical deal in history. 

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Bristol-Myers Squibb and MyoKardia

The merger of the two companies is focused on “expanding the cancer-drug powerhouse’s lineup of heart drugs,” according to The Wall Street Journal

MyoKardia brings its experimental heart-disease therapy mavacamten to the merger. BMO Capital Markets analysts predict that the drug could bring in over $1.5 billion in global sales by 2025, according to a report from The Wall Street Journal.  

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Mavacamten is a drug that treats obstructive hypertrophic cardiomyopathy. Business Insider reported that in May, MyoKardia announced that it had met all Phase 3 primary and secondary endpoints

The deal should close during the fourth quarter of 2020. Bristol-Myers will apply for U.S. approval of the drug in 2021. The company also expects to explore the use of mavacamten to treat other diseases, according to CNBC

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“We really think we are the ideal company to launch that new medication into the marketplace,” Bristol executive Caforio told The Wall Street Journal. The company said that the acquisition “will add to its earnings beginning in 2023,” according to CNBC

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Bristol-Myers Squibb looks to diversify from mainly producing cancer treatments. A top-selling cancer drug made by Bristol-Myers, Revlimid, “is expected to lose some of its patent exclusivity in the United States” in 2022. Also, Merck’s Keytruda has threatened sales for Bristol's immunotherapy Opdivo, which treats lung, skin, and other tumors, according to a report from The Wall Street Journal

What is the MyoKardia stock price today?

MyoKardia’s new drug mavacamten aims to treat hypertrophic cardiomyopathy. As part of the condition, the heart muscle thickens and makes it difficult to pump blood. Most patients with the condition don't suffer serious consequences, but “it can lead to abnormal heart rhythms or even sudden death in some patients,” according to The Wall Street Journal

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MyoKardia was priced at $220.94 as of 10:39 a.m. ET on Oct. 5, which is an increase of 58.27 percent. 

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Source: Bristol-Myers Squibb
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What is Bristol-Myers Squibb's stock price today?

Bristol-Myers Squibb is a longtime market leader in oncology drugs. However, investors are concerned that the company depends too much on the oncology market. The Wall Street Journal reported that over $16 billion of the $20 billion in total sales in the first half of 2020 came from cancer therapies.

Bristol-Myers Squibb was priced at $58.74 per share as of 10:40 a.m. ET on Oct. 5. 

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