Bristol Myers Squibb Co. agreed to pay $4.1 billion to acquire Turning Point Therapeutics Inc., the developer of a drug for lung cancer that’s expected to launch next year.
Bristol Myers will pay $76 a share in cash to acquire all outstanding Turning Point shares, the companies said in a statement.
The deal, set to close in the third quarter, is the second by Bristol Myers in as many days in the cancer field, after expanding its partnership with German biotech Immatics NV. The moves reflect a wider movement among big drugmakers to return their focus to the lucrative cancer market as attention to the Covid-19 pandemic wanes.
Turning Point is developing repotrectinib, which it says has potential as a first-line treatment for non-small cell lung cancer. The drug targets two tyrosine kinases, ROS1 and NTRK, molecules known to be active in the growth of non-small cell lung cancer, which accounts for as much as 85 percent of all cases of the disease.
The treatment is set to join a crowded field of lung cancer treatments that includes Merck & Co.’s highly successful Keytruda, AstraZeneca Plc’s Imfinzi and Bristol’s own Opdivo. Cancer treatment overall is one of the fastest-growing sectors of the worldwide drug market.
Unlike Pfizer Inc., Eli Lilly & Co. and some other drug giants, Bristol Myers has had relatively little involvement in developing pandemic vaccines and treatments. The company has been seeking to build out its pipeline as some of its older drugs, such as the blockbuster Revlimid, face competition from lower-priced generic versions.
The transaction is expected to add to Bristol’s earnings starting in 2025, according to the statement. The company said it expects to finance the acquisition with cash on hand.
Gordon Dyal & Co. is serving as financial adviser to Bristol Myers on the deal, and Goldman Sachs & Co. is advising Turning Point Therapeutics, according to the statement.