Bristol Myers is set to acquire heart-drug maker MyoKardia for $13.1 billion dollars. Yahoo Finance's Anjalee Khemlani shares the details.
JULIE HYMAN: There is a big deal in the pharmaceutical industry to talk about. Bristol Myers Squibb has agreed to buy Myokardia for just over $13 billion in all cash. Our Anjalee Khemlani covers the healthcare industry for us. And Anjalee, this basically appears to be a diversification into cardiovascular health and away from Bristol Myers's really big portfolio in cancer treatments.
ANJALEE KHEMLANI: That's correct, Julie. I'm glad you kind of said it for me. But that is really the goal of this right now. We know that Bristol Myers really set the record last year with its acquisition of Celgene, which is really what boosted and made it really heavy on the oncology side.
That $74 billion deal was the largest of 2019. And this one right now with Myokadia does seem to be sending it at a pace for the largest for 2020. So far, that $13 billion is higher than the $11 billion that was paid by Thermo Fisher for acquiring Qiagen earlier this year.
And we know that PwC has noted that the value of pharma deals in the first half of 2020 has been about $35 billion, which is an 87% decline from the same period last year. But back to Myokardia specifically, yes, its drug that is helping with irregular heart rhythms is really crucial for Bristol Myers.
That's the thing that they're focused on possibly getting to market by the first quarter of 2021-- or, sorry, approval for it by the first quarter of 2021. So looking at that, along with its current drug with Pfizer, a blood thinner that gave it $8 billion in sales for 2019, really to help boost that side of the portfolio for them.