BMS to buy MyoKardia for $13.1 billion, expanding cardiovascular franchise

Bristol Myers Squibb announced Monday that it agreed to purchase MyoKardia for $225 per share in cash, or approximately $13.1 billion, gaining the latter's experimental heart disease drug mavacamten. The transaction, which represents a 61% premium to MyoKardia's closing share price on October 2, has been unanimously approved by the boards of both companies and is expected to close during the fourth quarter.

Mavacamten is being investigated for the treatment of obstructive hypertrophic cardiomyopathy (HCM), with MyoKardia reporting in May that the Phase II EXPLORER-HCM trial met its primary endpoint and all secondary goals. The company plans to seek FDA approval of the drug in this indication in the first quarter of 2021. Meanwhile, in March, MyoKardia announced data from the Phase II MAVERICK-HCM trial showing that mavacamten was associated with significant improvements in NT-proBNP and troponin levels, as well as wall stress, in patients with non-obstructive HCM.

Long-term growth driver

Bristol Myers Squibb suggested that mavacamten "will be a medium- and long-term growth driver presenting a significant commercial opportunity upon approval." BMO Capital Markets analysts predict that if approved, the oral allosteric modulator of cardiac myosin could generate more than $1.5 billion in global sales by 2025. Meanwhile, Wedbush analyst David Nierengarten remarked "I think it is a typical acquisition premium for our sales expectations for mavacamten as we had estimates in the initial (and lowest risk) indication of obstructive hypertrophic cardiomyopathy of about $2.5 billion by 2026."

The drugmaker said it plans to "explore the full potential" of mavacamten, also known as MYK-461, in additional indications, including non-obstructive HCM. Bristol Myers Squibb noted that the acquisition will give it access to other compounds in MyoKardia's pipeline as well, including the clinical-stage therapeutics danicamtiv, formerly known as MYK-491, and MYK-224.

Commenting on the deal, CEO Giovanni Caforio said that the purchase will further strengthen the drugmaker's cardiovascular franchise, which currently comprises the oral anticoagulant Eliquis (apixaban). "We really think we are the ideal company to launch [mavacamten] into the marketplace," Caforio remarked, because treating heart conditions is "one of the key areas for us."

The transaction is expected to be minimally dilutive to Bristol Myers Squibb's earnings in 2021 and 2022, and accretive beginning in 2023.

 

 

 

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