Prior to the opening of U.S. markets today, clinical-stage precision oncology company Turning Point Therapeutics Inc. (TPTX:NASDAQ), which is focused on developing investigational drugs to treat non-small cell lung cancer (NSCLC) and other advanced solid tumors, announced that it entered into a definitive agreement to be acquired by global biopharmaceutical company Bristol-Myers Squibb Co. (BMY:NYSE) in an all-cash transaction for $76.00 per share.
The merger agreement stipulates that Bristol-Myers Squibb must make a cash tender offer to acquire all outstanding Turning Point Therapeutics common stock at a price of $76.00 per share. The report indicated that the price equates to a total equity valuation for Turning Point of $4.1 billion.
The report mentioned that the acquisition has already been unanimously unapproved by each company's respective Board of Directors and is expected to close in Q3/22, subject to approval by a majority of Turning Point Therapeutics' common stockholders demonstrated by acceptance of the tender offer, ordinary closing conditions, and regulatory approval including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
"The acquisition of Turning Point Therapeutics further broadens our leading oncology franchise by adding a best-in-class, late-stage precision oncology asset."
The merger transaction is said to support Bristol-Myers Squibb's medium-to-long-term growth strategy. Bristol-Myers Squibb plans to fund the purchase with cash on hand on its balance sheet and expects that starting in 2025, the acquisition will be accretive to non-GAAP earnings per share.
Turning Point's investigational medicine pipeline is centered around targeting the most frequently occurring mutations related to oncogenesis. Its lead asset, called repotrectinib, was described as "a next-generation, potential best-in-class tyrosine kinase inhibitor (TKI) targeting the ROS1 and NTRK oncogenic drivers of non-small cell lung cancer (NSCLC) and other advanced solid tumors."
Repotrectinib has received three separate Breakthrough Therapy Designations from the U.S. Food and Drug Administration (FDA) and is currently being evaluated in three Phase 1/2 clinical trials (CARE, Trident-1, Trident-2).
Bristol-Myers Squibb anticipates that in H2/23, repotrectinib will be approved for use in the U.S. and has the potential to become "a new standard of care for patients with ROS1-positive NSCLC in the first-line setting."
Bristol-Myers Squibb's Board Chair and CEO Giovanni Caforio, M.D., stated, "The acquisition of Turning Point Therapeutics further broadens our leading oncology franchise by adding a best-in-class, late-stage precision oncology asset…With this transaction, we are continuing our strong track record of strategic business development to further enhance our growth profile."
Bristol-Myers' Chief Medical Officer of Global Drug Development Samit Hirawat, M.D. added, "Today's news builds upon our long legacy of pioneering next-generation medicines for patients with cancer…With repotrectinib, we have the opportunity to change the standard of care and address a significant unmet medical need for ROS1-positive non-small cell lung cancer patients."
Turning Point Therapeutics President and CEO Athena Countouriotis, M.D. commented, "Through this transaction, we will be able to harness the full potential of our precision oncology platform to advance the standard of care for cancer patients…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."
Bristol-Myers Squibb is headquartered in New York and is a global biopharma company with a market cap of about $160 billion. The firm is engaged in all aspects of drug development, from discovery and development to licensing, manufacturing, marketing, distribution, and sales. The firm has a large and diverse portfolio of biologics and medicines in the areas of cardiovascular diseases, fibrosis, immunology, and oncology. Bristol-Myers Squibb's well-known and top-selling brands include Eliquis, Opdivo, and Orencia, along with many others.
Turning Point is a clinical-stage precision oncology company based in San Diego, California, that is engaged in developing a pipeline of novel investigational drugs to treat non-small cell lung cancer (NSCLC) and other advanced solid tumors. The company's lead drug candidate is a next-generation tyrosine kinase inhibitor called repotrectinib that is being developed for the purpose of targeting ROS1 and TRK oncogenic drivers of NSCLC and advanced solid tumors. Repotrectinib is presently being evaluated in a Phase 2 clinical trial in adults and additionally in a Phase 1/2 study in pediatric patients.
Turning Point started the day with a market cap of around $1.7 billion with approximately 49.67 million shares outstanding and a short interest of about 8.3%. TPTX shares opened 116% higher today at $73.78 (+$39.62, +115.98%) over yesterday's $34.16 closing price. The stock has traded today between $73.53 and $74.10 per share and is currently trading at $74.00 (+$39.84, +116.63%).
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