Turning Point Therapeutics stock more than doubles after Bristol Myers buyout deal valuing company at $3.8 billion

Shares of Turning Point Therapeutics Inc. more than doubled, up 116.7%, in premarket trading Friday, after the clinical-stage oncology company agreed to be acquired by biopharmaceutical company Bristol Myers Squibb Co. in an all-cash deal valuing Turning Point at about $3.77 billion. Bristol Myers’ stock was little changed ahead of the open. Under terms of the deal, Turning Point shareholders will receive $76.00 for each Turning Point share they own, representing a 122.5% premium to Thursday’s closing price of $34.16. The deal, which is expected to close during the third quarter of 2022, is expected to add 8 cents to Bristol Myers’ adjusted earnings per share in 2022. “The acquisition of Turning Point Therapeutics further broadens our leading oncology franchise by adding a best-in-class, late-stage precision oncology asset,” said Bristol Myers Chief Executive Giovanni Caforio. Bristol Myers expects Turning Point’s lead asset, repotrectinib, to be approved for treatment of non-small cell lung cancer (NSCLC) in the U.S. in the second half of 2023. Turning Point’s stock has dropped 28.4% year to date through Thursday and Bristol Myers shares have soared 20.4%, while the S&P 500 has declined 12.4%.

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