Blueprint Medicines Merger Arb

Back in the merger arb game by picking up some Blueprint Medicines (~ 7% position), which is being acquired by Sanofi for $129 in cash plus a cvr of up to $6.00. The stock is currently trading at ~ $127.79, which gives you an annualized returnn of 5 – 6%. Not great in terms of annualized return, but I am playing this for the free cvr. I’m modeling this deal to close at the end of July. I don’t see any regulatory issues.

Regulatory / Closing Timeline (updated based on the tender offer filing):

·       HSR filed on 6/9.

·       HSR waiting period expires on 7/9.

·       Tender Offer Expires on 7/16.