Photograph by Georges Gobet/AFP/Getty Images
Turning Point Therapeutics
stock has more than doubled after
Squibb announced that it had agreed to buy the company. It’s just the latest deal for a beaten-up biotech stock.
Turning Point stock (TPTX) was up 114% to $73.26 at 7:05 a.m. Friday after Bristol (BMY) said that it would purchase the small-cap biotech company for $76 a share. Bristol stock is little changed.
Turning Point has no current products for sale, but does have a lung cancer drug in clinical trials, and is working on other cancer treatments. Apparently, Bristol feels good enough about these treatments—and the technology behind them—to pay up for the company.
“The acquisition of Turning Point Therapeutics further broadens our leading oncology franchise by adding a best-in-class, late-stage precision oncology asset,” Bristol CEO Giovanni Caforio said in a statement. “With this transaction, we are continuing our strong track record of strategic business development to further enhance our growth profile.”
The deal is just the latest in the biotech space.
(GSK) said it would buy
(SRRA) for $1.9 billion in April. “BMY/TPTX brings the Biotech public-for-public M&A count to 7 YTD and $21.3B in dollar value, so we’re annualizing to 17 takeouts and $50.7B in dollar value for 2022 which is below 2021’s 17 takeouts for $61B in dollar value,” writes Jefferies’ Will Sevush.
Still, the M&A hasn’t helped biotech stocks as of yet. the
SPDR S&P Biotech ETF
(XBI) has dropped 39% this year, and is up just 0.4% over the past week even as the
SPDR S&P 500 ETF
(SPY) has gained 3%. Turning Point stock had dropped 28% through Thursday’s close.
Bristol-Myers was a Barron’s stock pick on May 26, in part for a pipeline that includes more than 10 potential cancer treatments. Now it has another.
Write to Ben Levisohn at email@example.com