MyoKardia Shareholders Are Getting a Really Sweet Payday
MyoKardia shares hit an all-time high early on Monday after it was announced that Bristol-Myers Squibb would be acquiring the company.
MyoKardia Inc. (NASDAQ: MYOK) shares hit an all-time high early on Monday after it was announced that Bristol-Myers Squibb Co. (NYSE: BMY | BMY Price Prediction) would be acquiring the company. Needless to say, shareholders are getting a solid payout for their shares in this all-cash deal.
Under the terms of the deal, Bristol-Myers Squibb will acquire all outstanding shares of MyoKardia for $225 per share, for a total consideration of $13.1 billion. This price tag offers premiums of 101% and 165% from the stock’s 50-day and 200-day moving averages of $111.88 and $84.80, respectively.
Keep in mind that MyoKardia only came pubic in the fall of 2015 and since then shares have risen over 2,200% (including Monday’s move).
MyoKardia is a clinical-stage biopharmaceutical company discovering and developing targeted therapies for the treatment of serious cardiovascular diseases.
[nativounit]
Through the transaction, Bristol-Myers Squibb gains mavacamten, 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. A New Drug Application (NDA) 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 expects to explore the full potential of mavacamten in additional indications, including non-obstructive HCM, as well as develop MyoKardia’s promising pipeline of novel compounds, including two clinical-stage therapeutics: danicamtiv (formerly MYK-491) and MYK-224.
The deal was approved unanimously by both boards of directors and is anticipated to close during the fourth quarter of 2020.
Bristol-Myers Squibb stock traded down 1.1% Monday morning to $58.00, in a 52-week range of $45.76 to $68.34. The consensus price target is $73.62.
MyoKardia stock traded up 58% to $220.72, above the prior 52-week range of $42.65 to $140.93. The consensus price target is $137.45.
[recirclink id=799978][wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
