Bristol-Myers Squibb to Acquire Mirati Therapeutics in $5.8 Billion Deal
Pharmaceutical giant Bristol-Myers Squibb is set to expand its oncology portfolio with the acquisition of cancer drug manufacturer Mirati Therapeutics. The estimated $5.8 billion deal represents a strategic move aimed at addressing anticipated revenue losses due to patent expirations.
Expanding Oncology Portfolio
Bristol-Myers Squibb (BMS) has a long history of strategic acquisitions, dating back to its first purchase of Cheplin Laboratories in 1943. With this latest move to acquire Mirati Therapeutics, BMS is further strengthening its position in the oncology sector. The company aims to tackle serious diseases with significant unmet needs across various therapeutic domains.
Addressing Revenue Losses
The acquisition of Mirati Therapeutics comes as a strategic response to anticipated revenue losses caused by upcoming patent expirations. By expanding its oncology portfolio, BMS aims to mitigate the impact of these losses and ensure a sustainable revenue stream. This move highlights the company’s commitment to meeting the evolving needs of patients and healthcare providers.
A Track Record of Acquisitions
Over the years, BMS has executed 20 acquisitions in diverse sectors, including biopharmaceuticals, life sciences, and immunotherapy. The total spending on these acquisitions has exceeded $101 billion. This demonstrates BMS’s proactive approach to growth and its continuous efforts to enhance its offerings and capabilities.
Financial Outlook and Investor Confidence
As BMS pursues its expansion strategy, the company remains focused on delivering value to its shareholders. It recently declared a $0.57 per share quarterly dividend, reflecting its commitment to rewarding investors. According to Insider Monkey’s Q2 data, 66 hedge funds are bullish on the company, with Pzena Investment Management holding the largest position. This investor confidence speaks volumes about the potential of BMS’s acquisitions and growth prospects.
Corporate Development Programs and CAR-T Platform
In addition to the Mirati Therapeutics acquisition, BMS has made notable strategic moves in recent years. The acquisitions of Celgene in 2019 and Turning Point have been recognized for their strong corporate development programs and CAR-T platform. These initiatives position BMS for success in the face of the impending patent cliff, further solidifying its leadership in the pharmaceutical industry.
With its commitment to innovation, growth, and addressing unmet medical needs, Bristol-Myers Squibb continues to make strategic acquisitions that strengthen its position in the market. The acquisition of Mirati Therapeutics is just one example of BMS’s dedication to advancing healthcare and improving patient outcomes.
