Shares of MyoKardia (NASDAQ:MYOK) stock are soaring on Monday after a major deal with another pharmaceutical company.
Bristol Myers Squibb (NYSE:BMY) announced that it is acquiring MyoKardia for $13.1 billion, or $225 per share, in cash. MyoKardia is a biopharmaceutical company that discovers and develops specific therapies in order to treat serious cardiovascular diseases.
That said, the major asset in this acquisition is mavacamten. It is a possible top-of-the-line cardiovascular medicine for treating people with obstructive hypertrophic cardiomyopathy.
Tassos Gianakakos, CEO of MyoKardia, had this to say about the deal with Bristol Myers Squibb:
“Bristol Myers Squibb shares our vision for transforming the treatment of cardiovascular disease. They value our team and the potential of our platform and, most importantly, share our unwavering commitment to placing patients at the center of everything we do. Together, our complementary strengths and expanded resources and reach will further accelerate the pace at which we can discover, develop and commercialize our novel medicines for the benefit of people suffering from cardiovascular disease around the world.”
Moreover, according to the release, Bristol Myers Squibb plans to explore all the possibilities of mavacamten. Also, they will work to “develop MyoKardia’s promising pipeline of novel compounds, including two clinical-stage therapeutics: danicamtiv (formerly MYK-491) and MYK-224.”
Overall, Bristol Myers Squibb expects the acquisition to do three things:
- Further strengthen the company’s outlook with the addition of mavacamten
- Accelerate the expansion of its cardiovascular portfolio.
- Deliver significant financial benefits
MYOK stock was up more than 55% as of Monday afternoon.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick Clarkson is a web editor at InvestorPlace.