Bristol-Myers Squibb has reached an agreement to buy the clinical-stage biotech company MyoKardia for $13.1 billion, or $225 per share, in a deal to expand its heart disease treatments.

The deal is being funded with a combination of cash and debt.

In May, MyoKardia said its experimental drug mavacamten, which is used to treat obstructive hypertrophic cardiomyopathy, had met all of its phase three primary and secondary endpoints.

MyoKardia is expected to submit a marketing application for mavacamten in the first quarter of next year. Bristol-Myers Squib said it also has a promising pipeline that includes two clinical-stage therapeutics.

“MyoKardia was formed eight years ago with the aim of changing the world for people with serious cardiovascular diseases through bold and innovative science,” CEO Tassos Gianakakos. “Since then, MyoKardia’s dedicated employees have established an unparalleled pipeline of targeted therapeutics designed to change the course of disease and return the heart to normal function.”

Bristol-Myers said the acquisition provides a “medium- and long-term growth driver” and will add to its earnings beginning in 2023.

“The acquisition of MyoKardia further strengthens our portfolio, pipeline, and scientific capabilities, and is expected to add a meaningful medium- and long-term growth driver,” Bristol-Myers Squibb chief executive officer Giovanni Caforio said.

MyoKardia’s stock price has nearly doubled this year.

“I think it is a typical acquisition premium for our sales expectations for mavacamten as we had estimates in the initial (and lowest risk) indication of obstructive hypertrophic cardiomyopathy of about $2.5 billion by 2026,” David Nierengarten, an analyst at Wedbush, said.

The deal is expected to close in the fourth quarter of 2020.

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