Bristol Myers Shells Out $4.1B for Turning Point’s Targeted Cancer Drugs

Turning Point Therapeutics is being purchased by biopharmaceutical heavyweight Bristol Myers Squibb, and the $4.1 billion deal will give the latter access to the experimental cancer drug Repotrectinib. Based on the deal’s hefty price tag, BMS sees Turning Point as being worth around $76 per share. While that figure is four times higher than the company’s $18 IPO price three years ago, it represents a steep drop off from a market value peak that saw it reach $133 a share in February 2021.

Repotrectinib is designed to combat mutations in solid tumors, particularly for lung cancer. The drug has passed through Phase 2 testing in lung cancer patients with tumors providing refuge for a mutation known as ROS1. A small study of the drug in non-small cell lung cancer patients led to 79% of participants having their tumors reduced in size or altogether eliminated. FDA approval for Repotrectinib is expected in mid to late 2023.

The competition in this class of drugs has been heating up of late, and a substantial amount of capital is being sunk into various ventures from major biopharma players. Roche’s Rozlytrek was derived from a $1.7 billion deal for Ignyta, and Vitrakvi from Bayer was licensed for $400 million—including total payments of up to $1.6 billion—from Loxo Oncology, which was recently absorbed by Eli Lilly.