Pharmaceutical giant Bristol-Myers Squibb (NYSE:BMY) is set to acquire cancer drug manufacturer Mirati Therapeutics (NASDAQ: NASDAQ:MRTX) in a deal estimated at $5.8 billion, marking another strategic move aimed at expanding its oncology portfolio. The acquisition, announced on Monday, could serve as a buffer against anticipated revenue losses due to upcoming patent expirations.
Since its first acquisition of Cheplin Laboratories in 1943, BMS has executed 20 acquisitions in diverse sectors such as Biopharmaceuticals, Life Sciences – U.S., and Immunotherapy. The total spending on these acquisitions has surpassed $101 billion.
Earlier this week, the company declared a $0.57 per share quarterly dividend due on November 1. According to Insider Monkey’s Q2 data, 66 hedge funds are bullish on the company. Pzena Investment Management holds the largest position with 4.33 million shares worth an impressive $276.75 million stake.
In addition to its recent acquisitions, Bristol-Myers’ robust double-digit free cash flow yield is split among repurchases, dividends, and M&A activities. The company’s strategic acquisitions of Celgene (NASDAQ:CELG) in 2019 and Turning Point have been noted for their strong corporate development programs and CAR-T platform. These moves are expected to help the company overcome its impending patent cliff.
Bristol-Myers Squibb’s fundamental mission remains to tackle serious diseases with significant unmet needs across six key therapeutic domains. With the acquisition of Mirati Therapeutics, BMS continues to strengthen its position in the oncology sector.
