MyoKardia Inc. (MYOK), which is focused on developing targeted therapies for the treatment of serious cardiovascular diseases, and Bristol Myers Squibb (BMY:NYSE) today announced that the two companies have entered into a definitive merger agreement whereby Bristol Myers Squibb will acquire MyoKardia for $13.1 billion, or $225.00 per share in cash. The firms advised that the transaction has already been unanimously approved by each company's Board of Directors and is expected to close during Q4/20.
The companies indicated that the transaction will provide Bristol Myers Squibb with MyoKardia's mavacamten, which is described as "a potential first-in-class cardiovascular medicine for the treatment of obstructive hypertrophic cardiomyopathy (HCM), a chronic heart disease with high morbidity and patient impact."
The report additionally noted that "a New Drug Application for mavacamten for the treatment of symptomatic obstructive HCM – based on data from the EXPLORER-HCM study – is expected to be submitted to the U.S. Food and Drug Administration in the first quarter of 2021."
Bristol Myers Squibb's Board Chair and CEO Giovanni Caforio, M.D., commented, "The acquisition of MyoKardia further strengthens our portfolio, pipeline and scientific capabilities, and is expected to add a meaningful medium- and long-term growth driver...We are further strengthening our outstanding cardiovascular franchise through the addition of mavacamten, a promising medicine with the potential to address a significant unmet medical need in patients with cardiovascular disease...We have long admired MyoKardia and what they have done to revolutionize cardiovascular treatments through a precision medicine approach. We look forward to welcoming their talented team to our company."
MyoKardia's CEO Tassos Gianakakos remarked, "MyoKardia was formed eight years ago with the aim of changing the world for people with serious cardiovascular diseases through bold and innovative science. Since then, MyoKardia's dedicated employees have established an unparalleled pipeline of targeted therapeutics designed to change the course of disease and return the heart to normal function...Bristol Myers Squibb shares our vision for transforming the treatment of cardiovascular disease. They value our team and the potential of our platform and, most importantly, share our unwavering commitment to placing patients at the center of everything we do. Together, our complementary strengths and expanded resources and reach will further accelerate the pace at which we can discover, develop and commercialize our novel medicines for the benefit of people suffering from cardiovascular disease around the world."
The firms advised that according to the terms of the merger agreement, a Bristol Myers Squibb subsidiary will commence a tender offer to acquire all outstanding MyoKardia shares for $225.00 per share in cash. MyoKardia's Board of Directors have recommended that shareholders accept the offer and noted that the transaction remains subject to ordinary closing conditions, including the tender of a majority of the outstanding shares of MyoKardia's common stock and regulatory requirement. It was listed in the report that Bristol Myers Squibb plans to finance the purchase via a combination of cash and debt.
The company explained that "HCM is a chronic, progressive disease in which excessive contraction of the heart muscle and reduced ability of the left ventricle to fill can lead to the development of debilitating symptoms and cardiac dysfunction and it is estimated to affect one in every 500 people." The firm noted that the most frequent cause of HCM is mutations in the heart muscle proteins of the sarcomere; however, it has additionally been linked to increased risks of atrial fibrillation, stroke, heart failure and sudden cardiac death. Approximately 160,000-200,000 people have been diagnosed with symptomatic obstructive HCM in the U.S. and Europe.
Bristol Myers Squibb is a global biopharmaceutical company headquartered in New York, with a market cap of over $132 billion. The company has a broad range of brand drugs in its portfolio used in the treatment of virology, infection, oncology, immunoscience and cardiovascular disease.
MyoKardia is a clinical-stage biopharmaceutical company based in Brisbane, Calif., that concentrates on developing targeted therapies for cardiovascular diseases. The firm stated that "its initial focus is on small molecule therapeutics aimed at the proteins of the heart that modulate cardiac muscle contraction to address diseases driven by excessive contraction, impaired relaxation, or insufficient contraction." The firm noted that over its history it has discovered three clinical-stage therapeutics: mavacamten (formerly MYK-461); danicamtiv (formerly MYK-491) and MYK-224.
MyoKardia Inc. started off the day with a market capitalization of around $7.4 billion with approximately 53 million shares outstanding and a short interest of about 10.1%. MYOK shares opened 58% higher today at $220.68 (+$81.08, +58.08%) over Friday's $139.60 closing price and reached a new 52-week high this morning of $224.00. The stock has traded today between $220.10 and $224.00 per share and is currently trading at $220.43 (+$80.83, +57.90%).
[NLINSERT]Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
