Mirati Shares Slip Premarket on Bristol Myers Takeover

By Colin Kellaher

Shares of Mirati Therapeutics edged lower in premarket trading Monday after the biotechnology company agreed to be acquired by drugmaker Bristol Myers Squibb in a deal worth up to $5.8 billion.

Bristol Myers on Sunday said it would pay an initial $4.8 billion, or $58 a share, in cash, for Mirati, nearly 3.7% below Friday's closing price of $60.20 for the San Diego company.

However, the purchase price is 35% above Thursday's closing price of $42.89 for Mirati, before Bloomberg reported that France's Sanofi was considering a takeover bid.

Mirati shareholders also will receive non-tradeable contingent value rights potentially worth another $12 a share in cash tied to Mirati's pipeline drug candidate for non-small cell lung cancer, bringing the potential value of the transaction to $70 a share.

The deal, which Princeton, N.J.-based Bristol Myers plans to finance with cash on hand and debt, is slated to close by the first half of 2024.

Mirati shares were recently down 2% in premarket trading to $59.02.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

October 09, 2023 06:11 ET (10:11 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.