Health and Healthcare

MyoKardia Shareholders Are Getting a Really Sweet Payday

Chris Lange

Published: October 5, 2020 10:07 am

MyoKardia Inc. (NASDAQ: MYOK) shares hit an all-time high early on Monday after it was announced that Bristol-Myers Squibb Co. (NYSE: BMY) would be acquiring the company. Needless to say, shareholders are getting a solid payout for their shares in this all-cash deal.

Under the terms of the deal, Bristol-Myers Squibb will acquire all outstanding shares of MyoKardia for $225 per share, for a total consideration of $13.1 billion. This price tag offers premiums of 101% and 165% from the stock’s 50-day and 200-day moving averages of $111.88 and $84.80, respectively.

Keep in mind that MyoKardia only came pubic in the fall of 2015 and since then shares have risen over 2,200% (including Monday’s move).

MyoKardia is a clinical-stage biopharmaceutical company discovering and developing targeted therapies for the treatment of serious cardiovascular diseases.

Through the transaction, Bristol-Myers Squibb gains mavacamten, a potential first-in-class cardiovascular medicine for the treatment of obstructive hypertrophic cardiomyopathy (HCM), a chronic heart disease with high morbidity and patient impact. A New Drug Application (NDA) for mavacamten for the treatment of symptomatic obstructive HCM (based on data from the EXPLORER-HCM study) is expected to be submitted to the U.S. Food and Drug Administration in the first quarter of 2021.

Bristol-Myers Squibb expects to explore the full potential of mavacamten in additional indications, including non-obstructive HCM, as well as develop MyoKardia’s promising pipeline of novel compounds, including two clinical-stage therapeutics: danicamtiv (formerly MYK-491) and MYK-224.

The deal was approved unanimously by both boards of directors and is anticipated to close during the fourth quarter of 2020.

Bristol-Myers Squibb stock traded down 1.1% Monday morning to $58.00, in a 52-week range of $45.76 to $68.34. The consensus price target is $73.62.

MyoKardia stock traded up 58% to $220.72, above the prior 52-week range of $42.65 to $140.93. The consensus price target is $137.45.