Bristol-Myers Squibb (BMS) has agreed to acquire Turning Point Therapeutics, a San Diego, California-based clinical-stage bio/pharmaceutical company focused on oncology, for $4.1 billion.

Turning Point Therapeutics has a pipeline of investigational medicines designed to target the most common mutations associated with oncogenesis or the development of tumors. The company’s lead asset, repotrectinib, is a tyrosine kinase inhibitor targeting the ROS1 and NTRK oncogenic drivers of non-small cell lung cancer (NSCLC) and other advanced solid tumors. Repotrectinib has been granted three breakthrough therapy designations from the US Food and Drug Administration.

BMS expects repotrectinib to be approved in the US in the second half of 2023 and become a new standard of care for patients with ROS1-positive NSCLC in the first-line setting.

Under the merger agreement, BMS will commence a tender offer to acquire all of the outstanding shares of Turning Point Therapeutics’ common stock at a price of $76.00 per share in an all-cash transaction for a total consideration of $4.1 billion in equity value. The transaction was unanimously approved by both the BMS and Turning Point Therapeutics Boards of Directors and is expected to close during the third quarter of 2022.

The transaction is subject to customary closing conditions, including the tender of a majority of the outstanding shares of Turning Point Therapeutics’ common stock and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Following the successful closing of the tender offer, BMS will acquire all remaining shares of Turning Point Therapeutics that are not tendered into the tender offer through a second-step merger at the same price of $76.00 per share.

Source: Bristol-Myers Squibb and Turning Point Therapeutics