MyoKardia Shareholders Are Getting a Really Sweet Payday

By Chris Lange Published Oct 5, 10:07AM EDT

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MyoKardia Shareholders Are Getting a Really Sweet Payday — © SIphotography / iStock

MyoKardia Inc. (NASDAQ: MYOK) shares hit an all-time high early on Monday after it was announced that Bristol-Myers Squibb Co. (NYSE: BMY | BMY Price Prediction) 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.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.