Bristol Myers multiple paid for Mirati ‘looks reasonable,’ says BofA

After Bristol-Myers Squibb (BMY) announced plans to acquire Mirati Therapeutics (MRTX) for $58 per share in cash plus $12 per share in a CVR for a total of up to $5.8B, BofA said the firm thinks the acquisition “makes strategic sense” as Mirati’s precision oncology portfolio complements Bristol’s IO portfolio. Lead Mirati drug adagrasib is likely to see a more rapid commercial rollout under Bristol’s leadership and the multiple paid “looks reasonable to us” with low expectations for adagrasib outside of lung cancer and optionality from the phase 1 pipeline, added the analyst, who maintains a Buy rating and $80 price target on Bristol shares.