Biotech Values

[DewDiligence]

BMY-MRTX—Details of the $12/sh CVR:

https://investors.bms.com/iframes/press-releases/press-release-details/2023/Bristol-Myers-Squibb-Strengthens-and-Diversifies-Oncology-Portfolio-With-Acquisition-of-Mirati-Therapeutics/default.aspx

Each Mirati stockholder will also receive one non-tradeable CVR per Mirati share, which will entitle its holder to receive a one-time potential payment of $12.00 in cash, for a total value of approximately $1.0 billion, upon acceptance by U.S. FDA of a new drug application for MRTX1719 for the treatment of either locally advanced or metastatic NSCLC in patients who have received no more than two prior lines of systemic therapy within seven years after the closing of the merger...

I'm somehwat surprised to see BMY deploying a large, all-or-nothing CVR after the squabble with CELG shareholders over such a vehicle. At least this time the CVR is based on only one event. Also, this time the CVR is non-tradable.