Bristol Myers Squibb (BMY) offered to buy Mirati Therapeutics (MRTX) for up to $5.8 billion, but MRTX stock tumbled Monday on the lowball bid.
The deal values Mirati stock at $58 per share, representing a total $4.8 billion takeover price. But MRTX stock closed at 60.20 on Friday.
On Thursday, a Food and Drug Administration panel said the evidence backing Amgen's (AMGN) lung cancer treatment, Lumakras, a rival to a Mirati drug called Krazati, isn't sufficient to support its accelerated approval. Now, it's unclear whether the FDA will allow Amgen to keep Lumakras on the market. The same day, Bloomberg reported Sanofi (SNY) was looking to buy Mirati, and MRTX stock rocketed more than 45%.
Bristol's offer includes a contingent value right worth $12 per share of MRTX stock. It will pay that if the FDA accepts an application for approval of Mirati's drug, MRTX1719. The company is testing that drug in patients with a form of lung cancer. That would bring the total deal value up to $5.8 billion.
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