MyoKardia’s stock soars toward a record after $13 billion buyout deal with Bristol Myers

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Shares of MyoKardia Inc. soared 57% toward a record high in premarket trading Monday, after the biotechnology company confirmed that it agreed to be bought out by Bristol Myers Squibb Co. in a deal valued at $13.1 billion in cash. Bristol Myers’ stock slipped 0.5% ahead of the open. The deal values MyoKardia shares at $225 each, which is 61.2% above Friday’s stock closing price of $139.60, which was just below Thursday’s record close of $140.11. MyoKardia’s lead pipeline drug mavacamten treats symptomatic obstructive hypertrophic cardiomyopathy. The deal is expected to “minimally” dilute Bristol Myers’ adjusted earnings in 2021 and 2022 and start adding to earnings beginning 2023. The deal comes in the wake of Bristol Myers’ $74 billion buyout deal for Celgene Corp. last year. MyoKardia’s stock has nearly doubled (up 91.5%) year to date through Friday, while Bristol Myers shares have dropped 8.5% and the S&P 500 has gained 3.6%.
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