Bristol Myers Squibb Co said on Monday it would buy MyoKardia Inc for about US$13 billion to bolster its portfolio of heart disease treatments, ahead of the potential loss of sales exclusivity of some of its blockbuster drugs.
Shares of MyoKardia, which have nearly doubled in value this year, surged another 57.8% to US$220.31, just shy of the offer of US$225 per share. Eliquis, which made up about 21% of the company's total sales in the latest reported quarter, faces US market exclusivity loss after 2026. The company's top-selling cancer drug, Revlimid, will also lose some of its US patent exclusivity in 2022.
"I think it is a typical acquisition premium for our sales expectations for mavacamten as we had estimates in the initial indication of obstructive hypertrophic cardiomyopathy of about US$2.5 billion by 2026," said Wedbush analyst David Nierengarten, referring to the 61% premium offered by Bristol Myers.