Turning Point climbs 116% on buyout deal with Bristol Myers for over $4B in cash

Jun. 03, 2022 9:36 AM ETBristol-Myers Squibb Company (BMY)BMYBy: Dulan Lokuwithana, SA News Editor14 Comments

word m and a made with wood building blocks, stock image

Maks_Lab/iStock via Getty Images

Bristol Myers Squibb (NYSE:BMY) has entered into an agreement to acquire the clinical-stage precision oncology biotech Turning Point Therapeutics (TPTX) at a price of $76.00 per share in cash for a total consideration of $4.1B, the companies announced Friday.

Turning Point (TPTX) shares have added ~116% in reaction while Bristol Myers (BMY) is trading flat in the morning hours.

The acquisition is expected to be accretive to Bristol Myers’ (BMY) non-GAAP earnings per share (EPS) from 2025 and up to $0.08 per share dilutive to non-GAAP EPS in 2022 before certain adjustments.

Bristol Myers (BMY) plans to use cash to fund the deal, which is expected to close in 3Q 2022.

Turning Point (TPTX) is advancing its lead asset repotrectinib against non-small cell lung cancer (NSCLC) and other advanced solid tumors. Bristol Myers (BMY) expects the tyrosine kinase inhibitor to receive U.S. regulatory clearance in 2H 2023.

“With this transaction, we are continuing our strong track record of strategic business development to further enhance our growth profile,” Bristol Myers (BMY) Chief Executive Giovanni Caforio remarked.

“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,” noted Turning Point (TPTX) Chief Executive Athena Countouriotis.

Early this month, Turning Point (TPTX) said that the FDA granted its Breakthrough Therapy designation for repotrectinib for the treatment of certain patients with NSCLC.

Recommended For You

Comments (14)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.