Turning Point (TPTX) stock zooms 115% on Bristol Myers’ (BMY) acquisition

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Turning Point (TPTX) stock zooms 115% on Bristol Myers’ (BMY) acquisition

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 Turning Point (TPTX) stock zooms 115% on Bristol Myers’ (BMY) acquisition
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Highlights 

  • Turning Point Therapeutics, Inc. (TPTX) is focused on precision oncology therapy.
  • It was founded in 2013 and launched its IPO in April 2019. 
  • Bristol Myers Squibb is acquiring Turning Point for US$4.1 billion in equity value. 

Turning Point Therapeutics, Inc. (TPTX) stock skyrocketed by 115.85% to US$73.735 at 10:25 am ET on Friday following the announcement of its acquisition by Bristol Myers Squibb (BMY). 

Bristol-Myers Squibb Company (BMY) stock traded 0.13% lower at US$74.9742.

On Friday, Turning Point announced entering into a definitive merger agreement with Bristol Myers Squibb for US$4.1 billion in equity value or US$76.00 per share in an all-cash deal. The transaction is expected to complete in the third quarter of 2022. 

Turning Point Therapeutics is a clinical-stage biopharmaceutical company focused on developing molecule and precision oncology therapies. 

It was founded in 2013 and launched its IPO in April 2019. 

Its pipeline products include investigational drugs for common mutations in oncogenesis. Its lead drug candidate, Repotrectinib, is a next-generation tyrosine kinase inhibitor (TKI), targeting drivers of non-small cell lung cancer (NSCLC) and other solid tumors.

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The US Food and Drug Administration (FDA) has granted three Breakthrough Therapy Designations to Repotrectinib, currently under evaluation in a Phase 1/2 trial called TRIDENT-1.

Athena Countouriotis, the MD, President, and CEO of Turning Point, said in a press statement, “Through this transaction, we will be able to harness the full potential of our precision oncology platform to advance the standard of care for cancer patients.”

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Samit Hirawat, MD, CMO, Global Drug Development, Bristol Myers Squibb, said, “With repotrectinib, we have the opportunity to change the standard of care and address a significant unmet medical need for ROS1-positive non-small cell lung cancer patients.”

Bristol Myers expects US approval of Repotrectinib in the second half of 2023. The company plans to continue exploring Turnings Point’s pipeline of novel compounds. 

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TPTX stock

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Financials:

Turning Point reported revenue of US$0.429 million for the quarter ended March 31, 2022, compared to US$25.2 million for the same period in 2021.

Its net loss more than doubled YoY to US$74.44 million or US$1.50 per share diluted in the March quarter of 2022. In the year-ago period, it was US$35.50 million or US$0.73 per share diluted. 

TPTX’s accumulated deficit was US$591.2 million as of March 31, 2022, and its cash, cash equivalents and marketable securities were US$918.2 million.

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Bottom line:

The TPTX stock gained around 28% since its listing on Nasdaq in 2019 but fell 47.53% in one year and 33.35% YTD.

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