Bristol-Myers Squibb Company (NYSE: BMY) reported third-quarter 2020 financial results before the market opened on Thursday. The pharmaceutical company reported a 75% growth in Q3 revenue of $10.5 billion, surpassing the Wall Street consensus. The company reported a net income of $1.63 per share, better than what analysts had anticipated.
BMY shares gained 1.8% immediately following the announcement. The stock has traded mostly flattish so far this year.
Last month, the company had announced the acquisition of MyoKardia Inc. 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.
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