Here's Why Bristol Myers Offered MyoKardia $13.1 Billion

Shares of relatively unknown biotech company MyoKardia (NASDAQ:MYOK) jumped overnight after Bristol Myers Squibb (NYSE:BMY) agreed to pay a steep premium to acquire the clinical-stage biotech and its pipeline of cardiovascular drugs.

Over the past several years, we've seen some high-profile cardiovascular drug launches produce disappointing sales. Bristol Myers Squibb's recent decision to pay a steep premium for MyoKardia and its pipeline of new cardiovascular drugs thus might seem a little bonkers. Yet there's a good chance this $13.1 billion deal will work out well for investors in the long run.