By Daniel Shvartsman
Investing.com -- Pharmaceutical giant Bristol Myers Squibb Company (NYSE:BMY) announced a $4.1 billion deal for Turning Point Therapeutics Inc (NASDAQ:TPTX) on Friday morning, the first sizable acquisition for the company since 2020.
The accepted offer is for $76/share. Turning Point closed yesterday at $34.16, and popped 117% in pre-market trading, to $74.27. The offer is a bit shy of TPTX's 52-week high of $82.72 set last September.
“The acquisition of Turning Point Therapeutics further broadens our leading oncology franchise by adding a best-in-class, late-stage precision oncology asset,” said Giovanni Caforio, M.D., Board Chair and Chief Executive Officer, Bristol Myers Squibb. “With this transaction, we are continuing our strong track record of strategic business development to further enhance our growth profile.”
Turning Point's chief asset is repotrectinib, which targets non-small cell lung cancer and has received three breakthrough therapy designations from the FDA. BMY stated it expects the drug to be approved by the second half of 2023.
The deal will be funded with cash on hand, and Bristol Myers expects it to close in Q3 2022.
Bristol Myers's last significant transaction came in 2020 with the purchase of Myokardia, with a buyout of Celgene the year prior. The $160 billion market cap company is trading slightly lower in the pre-market, down 0.4%, though it is close to 52-week highs. In its Q1 earnings report, the company beat expectations but lowered guidance for the year.