Bristol Myers Squibb (BMY) early Monday announced an agreement to buy MyoKardia (MYOK) for $13.1 billion, adding to its portfolio of heart disease treatments. BMY stock edged higher on the news, while MYOK stock soared.
In addition, the announcement boosted shares of MyoKardia rival Cytokinetics (CYTK), which gapped up to a buy point.
The purchase price comes to $225 per share. That’s a more than 60% premium to MYOK’s closing price of 139.60 on Friday. MYOK stock has been trading near record highs.
Bristol Myers Squibb said the deal gives them MyoKardia’s mavacamten, a potential first-in-class cardiovascular medicine for the treatment of obstructive HCM, or hypertrophic cardiomyopathy. HCM is a chronic heart disease with high morbidity and patient impact, the companies said.
In their news release, the companies said they expect to file a New Drug Application for mavacamten in first quarter 2021. Bristol Myers Squibb also said it expects the therapy will have other applications and also praised “MyoKardia’s promising pipeline of novel compounds.”
Acquiring MyoKardia gives Bristol Myers “a meaningful medium- and long-term growth driver,” Bristol Myers Chief Executive Giovanni Caforio said in the news release.
BMY Stock Forms Base; MYOK Stock At Highs
Meanwhile, Cytokinetics stock jumped 21% above 28 in late morning trading in the stock market today. The company is developing a rival drug to MyoKardia’s mavacamten. The move elevated the stock above a 29.20 buy point out of a consolidation.
In a research note Monday, JMP Securities analyst Jason Butler said the Bristol Myers deal was good news for Cytokinetics.
Butler wrote that a Cytokinetics drug candidate has different attributes than mavacamten “and possibly even better clinical benefit.” He maintained a market outperform rating on CYTK stock.
Raymond James analyst Chris Caso kept his outperform rating on BMY stock, though he noted MyoKardia’s competitive risks vs. Cytokinetics as well as Amgen (AMGN). In a research note to clients, he estimated mavacamten annual sales at more than $2 billion by 2025.
Several Deals For Bristol Myers
The latest deal is not the only recent big acquisition by Bristol Myers. In November, it completed its $74 billion acquisition of Celgene.
BMY stock rose 0.8% to 59.20 on Monday. MYOK stock shot up 57.8% to 220.34.
In May, MYOK stock jumped 58% to a then-record high above 104 after the company released positive final-phase data on mavacamten in treating HCM patients. The company, which went public in 2015, then set a new high last month when it broke out of a cup base at a buy point of 126.40. MYOK stock soon extended beyond the chase zone.
BMY stock touched a 19-month high of 68.34 at the start of the year. It’s formed a cup-with-handle base, and BMY has a potential buy price of 65.44. Shares have traded just below their 50-day and 200-day moving averages for the past month.
Follow Michael Krey on Twitter at @MichaelKrey.
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