Turning Point Therapeutics, Inc. (NASDAQ: TPTX) is a clinical-stage precision oncology company, which is focused on the research and development of treatments for unmet cancer needs. Shares of the oncology company are skyrocketing 116% through early trading on Friday, June 3, 2022. Over the past three months, Turning Point Therapeutics has seen average daily volume of 664,090 shares. However, volume of 17.34 million shares or dollar volume of around $1.28 billion, has already exchanged hands through early trading.
Shares of Turning Point Therapeutics are surging after the company announced that it has entered into a definitive agreement to be acquired by Bristol Myers Squibb (NYSE: BMY). Under the terms of the deal, Bristol Myers has agreed to acquire all of Turning Point’s outstanding common stock at a price per share of $76.00 in cash. This gives the transaction a total equity value of $4.1 billion. If approved by shareholders and other customary closing conditions, the acquisition is estimated to close during the third quarter of 2022.
Among the drug candidates Bristol Myers will takeover is Turning Point’s lead asset, repotrectinib, a next-generation tyrosine kinase inhibitor (TKI) that targets the ROS1 and NTRK oncogenic divers of non-small cell lung cancer. Repotrectinib has already been granted Breakthrough Therapy Designation from the U.S. FDA. During its Phase ½ TRIDENT-1 clinical trial, repotrectinib demonstrated a longer response duration compared to existing treatments. Bristol Myers estimates the potential best-in-class treatment could be approved by the FDA during the second half of 2023.
“The acquisition of Turning Point Therapeutics further broadens our leading oncology franchise by adding a best-in-class, late-stage precision oncology asset,” said Giovanni Caforio, M.D., Board Chair and Chief Executive Officer, Bristol Myers Squibb. “With this transaction, we are continuing our strong track record of strategic business development to further enhance our growth profile.”
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