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MyoKardia soars as Bristol Myers plans $13.1B takeover

Yahoo Finance’s Anjalee Khemlani joins Zack Guzman to discuss Bristol Myers Squibb's move to buy cardiovascular drug developer MyoKardia for $13.1 billion.

Video Transcript

ZACK GUZMAN: Of course we've been highlighting the moves that we've been seeing play out in certain biotech companies as more is learned about President Trump's treatment and regimen in his own COVID-19 battle. But it's not all coronavirus that's moving biotech today, news that Bristol Myers Squibb is acquiring MyoKardia, Inc. for about $13 billion to bolster its portfolio of heart disease treatments. Again, not all coronavirus tide here, but an interesting move as we see MyoKardia, Inc. shares up more than 50%. And here for more on that deal, I want to bring on Yahoo Finance's Anjalee Khemlani with more on this. Anjalee.

ANJALEE KHEMLANI: Thanks, Zack. Yes, so pretty exciting news. We know that Bristol Myers Squibb held the record for largest deal last year with its acquisition of Celgene, so this is actually putting it on the mark for largest this year, even though the numbers are a little bit less than, you know, by comparison. But so what MyoKardia has in its portfolio is a drug that helps with irregular heart rhythms, and that's something that is, you know, towards the tail end of the pipeline, sorry, of the timeframe that it needs to get to market. And so Bristol Myers really excited to get that to approval by the first quarter of 2021, and it helps to boost what Myers Squibb did end up having as more of an oncology having portfolio and balances out with more cardiovascular.

Right now, they have that blood thinner with Pfizer that raked in eight billion last year, and so this helps that side of the portfolio. But looking at the level of deals, I mean, this is to date, the largest deal of 2020. The previous was Thermo Fisher buying Qiagen for about 11 billion, and it really speaks to sort of what we were seeing is kind of a slowdown in sort of these mega deals for the year, down about 87% the first half of 2020 compared to the first half of 2019. Value of pharma deals about 20, 35 billion according to PWC, so definitely an interesting move. Waiting to see how it all pans out. We know that one of the drugs that Celgene had is going off patent in two years, and so balancing that out with, you know, this potential one in 2021.