“With this transaction, we are continuing our strong track record of strategic business development to further enhance our growth profile,” said Bristol-Myers CEO Giovanni Caforio.
Bristol-Myers Squibb (BMY) – Get Bristol-Myers Squibb Company Report said Friday it will buy Turning Point Therapeutics (TPTX) – Get Turning Point Therapeutics, Inc. Report in a deal that values the San Diego-based oncology specialists at around $4.1 billion.
Bristol-Myers will pay $76 per share, in cash, for Turning Point Therapeutics, a 122% premium to the group’s Thursday closing price on the Nasdaq, in a deal that has the group’s unanimous board approval.
Bristol-Myers said the acquisition would clip 8 cents per share from its non-GAAP earnings this year, but will begin to boost its bottom line by 2025.
“The acquisition of Turning Point Therapeutics further broadens our leading oncology franchise by adding a best-in-class, late-stage precision oncology asset,” said Bristol-Myers CEO Giovanni Caforio. “With this transaction, we are continuing our strong track record of strategic business development to further enhance our growth profile.”
Turning Point Therapeutics shares were marked 116% higher in pre-market trading immediately following news of the takeover to indicate an opening bell price of $73.80 each. Bristol-Myers shares, meanwhile, edged 0.05% lower to $75.06 each.
The Turning Point Therapeutics deal would bolster Bristol-Myer’s oncology portfolio, which was expanded by the $74 billion acquisition of cancer specialists Celgene Corp. in 2019.
The group posted first quarter sales of around $11.6 billion, driven in part by a 12% surge in sales of Opdivo, used to treat patients with early-stage lung cancer.
Turning Point Therapeutics focuses on Oncogenesis, or the process in which healthy cells turn cancerous.
“With Bristol Myers Squibb’s leadership in oncology, strong commercial capabilities and manufacturing footprint, we will be able to further accelerate the pace at which we can bring our novel medicines to benefit people diagnosed with cancer around the world,” said Turning Point Therapeutics CEO Athena Countouriotis.
