Bristol Myers Squibb (NYSE: BMY) agreed to acquire MyoKardia Inc. (NASDAQ: MYOK) for $13.1 billion in cash. The deal, which amounts to $225 per share, was approved by the Boards of Directors of both companies and is expected to close during the fourth quarter of 2020.
This transaction will give Bristol Myers access to the medicine mavacamten intended for the treatment of the chronic heart disease obstructive hypertrophic cardiomyopathy (HCM), thus helping in expanding its cardiovascular portfolio.
Mavacamten has the potential to become a significant medium and long-term growth driver due to the vast unmet medical need in obstructive HCM. The deal is expected to be slightly dilutive to Bristol’s adjusted EPS in 2021 and 2022 and become accretive from 2023.
MyoKardia is a biopharma company that specializes in the treatment of serious cardiovascular diseases. The company’s clinical-stage therapeutics include mavacamten, danicamtiv and MYK-224. In August, MyoKardia reported positive results from its Phase 3 EXPLORER-HCM clinical trial of mavacamten for the treatment of obstructive HCM. The company also entered into a strategic partnership with LianBio for the development and commercialization of mavacamten in China and other Asian regions.
Based on the EXPLORER-HCM study, the company expects to submit a new drug application (NDA) for mavacamten for the treatment of symptomatic obstructive HCM to the US FDA in the first quarter of 2021. MyoKardia is also working on the Phase 2 clinical trial to test danicamtiv for the treatment of genetic dilated cardiomyopathy.
MyoKardia reported a net loss of $63.6 million, or $1.27 per share, for the second quarter of 2020 and the company ended the period with cash, cash equivalents and investments of $918.1 million.
Bristol Myers – pipeline and plans
Bristol Myers is looking to explore the potential of mavacamten in additional indications such as non-obstructive HCM and to develop MyoKardia’s pipeline of compounds including danicamtiv and MYK-224.
Bristol Myers believes mavacamden will fit well within its cardiovascular product portfolio and believes it is well-positioned to advance the development of MyoKardia’s pipeline candidates. The company reported $4.8 billion in revenue from its anticoagulant Eliquis for the first half of 2020, representing a 21% increase from the same period last year.
Last week, Bristol Myers received FDA approval for Opdivo+Yervoy to be used in the treatment of malignant pleural mesothelioma, a rare cancer with limited treatment options. Last month, the company acquired Forbius for its TGF-beta program and its AVID200 asset which is in Phase 1 for oncology and fibrosis.
Bristol Myers recorded a 61% increase in total revenues to $10.1 billion for the second quarter of 2020 along with a 38% increase in adjusted EPS to $1.63. For the full year of 2020, the company has guided for revenues of $40.5-42 billion and adjusted EPS of $6.10-6.25.
Shares of Bristol Myers stayed in green territory during midday trade on Monday. The stock has gained 15% in the past one year. Shares of MyoKardia continued to soar over 57%. The stock has jumped 202% since the beginning of this year and 138% over the past three months.
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