Exciting news broke on Sunday as Bristol Myers Squibb (BMS) unveiled a groundbreaking merger agreement with the cancer-focused biotech company, Mirati Therapeutics. The aim? To supercharge BMS’s already robust oncology franchise.
In a strategic move, BMS will acquire Mirati at a striking price of $58.00 per Mirati share in cash, resulting in a colossal deal valued at $4.8 billion. This bold step is poised to be financed through a shrewd combination of cash and debt.
Notably, this acquisition comes with a twist – it offers Mirati stockholders a non-tradeable contingent value right (CVR) for each share held, potentially adding another $1 billion to the pot. This tantalizing opportunity hinges on the FDA’s acceptance of the New Drug Application for Mirati’s MRTX1719 within seven years post-acquisition.
MRTX1719, the linchpin of the CVR, is a groundbreaking PRMT5 inhibitor still in its early stages of development, with its sights set on a variety of tumor types, including non-small cell lung cancer (NSCLC). Anticipated to venture into Phase II studies by the first half of 2024, it’s a prime candidate for reshaping the oncology landscape.
But that’s not all – Mirati brings to the table Krazati (adagrasib), a game-changing therapy for NSCLC. Recently granted FDA accelerated approval, Krazati targets patients with the G12C KRAS mutation who have already undergone prior systemic therapy. It’s a game-changer.
In a twist of fate, Krazati’s main rival, Amgen’s Lumakras (sotorasib), faced a setback during an FDA meeting when the Oncologic Drugs Advisory Committee cast doubts on the reliability of its Phase III progression-free survival data. The FDA’s decision on Lumakras’ approval status is eagerly awaited on December 14.
Samit Hirawat, BMS’s Chief Medical Officer, expressed great enthusiasm about this merger, emphasizing how Mirati’s assets align perfectly with BMS’s vision. These assets, targeting intrinsic tumor pathways, hold the potential to redefine the standard of care across multiple cancers, promising exciting synergy with BMS’s existing products and candidates.
But the intrigue doesn’t stop there. Krazati’s active ingredient, adagrasib, boasts an ability to infiltrate the central nervous system, potentially opening doors to treating patients with active and untreated brain metastases. Moreover, it has displayed remarkable efficacy in colorectal cancer and pancreatic ductal adenocarcinoma.
BMS intends to execute this game-changing deal through a subsidiary and anticipates a closure by the first half of 2024, pending the green light from Mirati’s stockholders and regulatory authorities. This is a deal poised to reshape the future of oncology.