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M&A abbreviation - mergers and acquisitions, on wooden cubes on a light background.

Nastassia Samal

Mirati Therapeutics (NASDAQ:MRTX) rose 4.5% after jumping 15% on Tuesday on a report that the cancer drug company has been seeing takeover interest from big pharma firms.

Mirati (MRTX) may be worth $185-$200/share in a potential takeover, JPMorgan analyst Eric Joseph wrote in a note on Wednesday. Potential buyers include Merck (MRK), Pfizer (PFE), Bristol-Myers (BMY), and AstraZeneca (AZN).

“With a handful of potential suitors in scope, we wouldn’t be surprised by a competitive dynamic emerging …” Joseph, who has an overweight rating and $94 price target on Mirati (MRTX), wrote in the note.

Bloomberg on Tuesday reported that Mirati (MRTX) has been weighing strategic alternatives, including a possible sale, for a while. There are no formal bids and a deal isn’t imminent.

Potential buyers are waiting for data on Mirati’s lung-cancer treatment called Adagrasib, which the FDA is expected to make a decision on next month.

On Tuesday BMO analyst Evan Seigerman said Mirati (MRTX) may see as much as $200/share in a takeover.

A possible sale comes after a Financial Times report last October that Merck (MRK) was looking at potential targets for acquisitions, including Mirati (MRTX). Merck agreed to buy Imago BioSciences (IMGO), a clinical-stage biotech focused on bone marrow disorders, for $1.35 billion, on Monday.

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