Bristol-Myers Squibb Invests in Dutch Company UniQure, Announces Collaboration

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Bristol Myers

Bristol MyersBristol-Myers Squibb (NYSE:BMY) announced that the company will be collaborating with UniQure NV (NASDAQ:QURE) on gene therapy drugs. UniQure has a gene therapy program aimed at helping congestive heart failure patients. The companies will collaborate on 10 targets with more targets proposed in the future.

Bristol-Meyers will gain exclusive access to gene therapy technology.

The deal also includes Bristol-Myers acquiring 4.9% of UniQure for $32 million. The company will acquire another 5% of UniQure stock by the end of the year. Furthermore, Bristol-Myers will pay $50 million upfront for the collaboration plus another $15 million to select just two collaboration targets.

According to the deal, UniQure may also receive $254 million if certain conditions are met. The company may receive another $217 for gene therapy products.

News of the investment has caused UniQure stocks to jump 47%. Bristol-Myers stock has remained fairly even at just a 0.05% increase.

Bristol-Myers purchased UniQure stock at a premium of $33.84 a share. In comparison, UniQure stock had a Thursday closing price of $22.86. The large premium has been narrowed greatly Monday morning with UniQure stock now selling for $33.7 a share on the news.

Investment analysts currently rate Bristol-Myers a hold due to a decline in net income and a weak operating cash flow.

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