BMY – Bristol-Myers Squibb in a transaction that values Turning Point Therapeutics (NASDAQ:TPTX). Report at roughly $4.1 billion, Bristol-Myers Squibb announced Friday it would acquire the San Diego-based cancer experts.
To acquire Turning Point Therapeutics, Bristol-Myers will pay $76 per share in cash, representing a 122 percent premium over the company’s Nasdaq closing price on Thursday. The acquisition was approved by the company’s board of directors with a unanimous vote. Non-GAAP profits for Bristol Myers will be reduced by 8 cents per share but will begin to improve in 2025.
Adding “a best-in-class, late-stage precision oncology asset” to Bristol Myers CEO Giovanni Caforio’s “leading oncology brand” marks a “significant step forward,” Caforio said. To significantly boost our growth profile, we’re continuing our successful track record of strategic company expansion by completing this purchase.”
In pre-market trading, Turning Point Therapeutics shares surged 116.2 percent to imply an opening bell price of $73.85 a share. Shares of Bristol Myers, meanwhile, fell 0.7 percent to $74.56 a share.
In 2019, Celgene Corp.’s $74 billion purchase of cancer specialists Celgene bolstered Bristol Myers Squibb’s oncology portfolio.
A 12 percent increase in Opdivo sales, which are used to treat patients with early-stage lung cancer, helped the company generate first-quarter revenues of roughly $11.6 billion.
It is Turning Point Therapeutics’ goal to understand how healthy cells become malignant so that they may be used to treat cancer patients.
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