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):

1) US - HSR filed on 6/9, waiting period expires on 7/9

2) Australian Federal Cartel Act filed on 6/10, waiting period expires by 7/8

3) Germany Federal Cartel Office filed on 6/10, clearance by 7/10.

4) Italy filed for foreign notification on 6/9 with an anticipated review within 45 days.

5) Tender Offer expires on 7/16.