U.S. pharmaceutical giant Bristol-Myers Squibb (BMY) is acquiring Mirati Therapeutics (MRTX), which specializes in cancer medications, in a deal valued at $5.8 billion U.S.
Bristol-Myers Squibb has offered to pay $58 U.S. per Mirati share in an all-cash deal, as well as a non-tradeable contingent value right worth what could be $12 U.S. a share in cash for each Mirati share.
In a news release, Bristol-Myers said the takeover will boost its revenue by offsetting upcoming competition from generic versions of its best-selling prescription drugs.
The Mirati Therapeutics deal comes just over a year after Bristol-Myers Squibb acquired small-cap cancer biotech firm Turning Point.
The Mirati acquisition is subject to regulatory approvals. A closing date for the takeover has not yet been announced.
Mirati stock fell 1.7% to $59.20 U.S. on news of the Bristol-Myers acquisition. The purchase price is less than the $60.20 U.S. that Mirati’s stock closed at on October 6.
Bristol-Myers Squibb’s stock has declined 17% over the last 12 months and currently trades at $56.66 U.S. per share.