Bristol Myers Squibb said that it would purchase Mirati Therapeutics, maker of the cancer drug Krazati, for $4.8 billion in cash in a deal that shows the continued interest of large pharmaceutical firms in relatively small “bolt-on” acquisitions.
Bristol said that it would pay $58.00 per share for Mirati, and would hold another $12.00 per share, or a total of $1 billion, to be paid if one of two different applications for an additional use for Krazati is approved within seven years after the merger closes.
Chris Boerner, Bristol’s chief operating officer and CEO-elect, said in a statement that Mirati had several cancer drugs in development that could deliver sales in the latter half of the decade and beyond, when investors worry that Bristol will need new products to sustain its growth.