Shares of Turning Point Therapeutics Inc (NASDAQ: TPTX) more than doubled on Friday after Bristol-Myers Squibb Co (NYSE: BMY) said it will buy the biotech company for $4.10 billion in cash.
Bristol-Myers to pay $76 a share for TPTX
The pharmaceutical giant is paying $76 a share for Turning Point that represents a 116% premium on the price at which TPTX closed the regular session on Thursday.
According to Bristol-Myers, it will use cash on hand to finance the acquisition that it forecasts will take until 2025 to be accretive to its non-GAAP per-share earnings. BMY is roughly flat on Friday.
The news comes weeks after Turning Point Therapeutics Inc reported wider-than-expected per-share loss for its fiscal first quarter.
Deal to close in the third quarter of 2022
Both Bristol-Myers and Turning Point have already secured approval from their respective boards. The transaction is expected to complete in the third quarter of 2022, subject to customary closing conditions.
TPTX Board of Directors have recommended that shareholders accept the tender offer. In the press release this morning, Turning Point Therapeutics Inc CEO Athena Countouriotis said:
With Bristol Myers’ leadership in oncology, strong commercial capabilities and manufacturing footprint, we’ll be able to further accelerate the pace at which we can bring our novel medicines to benefit people diagnosed with cancer.
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