BMS to Acquire Rare Cancer Therapy Developer Turning Point for $4.1 billion
June 3, 2022
Bristol Myers Squibb will acquire rare cancer precision therapy developer Turning Point Therapeutics for $76.00 per share or $4.1 billion in cash.
The boards of Bristol Myers Squibb and Turning Point Therapeutics unanimously approved the transaction. They expect to close it during the third quarter of 2022. It is subject to customary closing conditions, including the tender of a majority of the outstanding shares of Turning Point Therapeutics’ common stock.
Turning Point Therapeutics is a clinical-stage company with a pipeline of experimental therapies designed to target the most common mutations associated with oncogenesis. Turning Point Therapeutics’ lead asset, repotrectinib, is a next-generation, potential best-in-class tyrosine kinase inhibitor targeting the ROS1 and NTRK oncogenic drivers of non-small cell lung cancer and other advanced solid tumors.
The U.S. Food and Drug Administration granted Repotrectinib three Breakthrough Therapy designations, as well as orphan drug designation. In the phase 1/2 TRIDENT-1 clinical trial, longer duration of response has been observed in the landmark analysis with repotrectinib than with existing ROS1 agents in first-line NSCLC.
Bristol Myers Squibb expects repotrectinib to win approval in the United States in the second half of 2023 and become a new standard of care for patients with ROS1-positive NSCLC in the first-line setting. The company also plans to continue to explore the potential of Turning Point Therapeutics’ promising pipeline of novel compounds.
“Through this transaction, we will be able to harness the full potential of our precision oncology platform to advance the standard of care for cancer patients. Since our founding, we have leveraged our deep scientific expertise to develop a pipeline of promising precision oncology assets,” said Athena Countouriotis, president and CEO of Turning Point Therapeutics. “With Bristol Myers Squibb’s leadership in oncology, strong commercial capabilities and manufacturing footprint, we will be able to further accelerate the pace at which we can bring our novel medicines to benefit people diagnosed with cancer around the world.”
The transaction supports Bristol Myers Squibb’s medium- to long-term growth strategy with accretion to non-GAAP earnings per share beginning in 2025. The companies expect the transaction to be up to $0.08 per share dilutive to non-GAAP EPS in 2022 prior to any impact from an acquired in-process research and development charge based on final accounting treatment. The accounting treatment as a business combination or asset acquisition will be determined upon the expected close of the transaction in the third quarter of 2022.
Photo: Athena Countouriotis, president and CEO of Turning Point Therapeutics
Author: Rare Daily Staff
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