Mirum Stock Slips On $820M Bluejay Deal — But Wall Street Calls The Hepatitis Drug Seal A 'Steal'

• Brelovitug is a late-stage experimental drug being studied for chronic hepatitis delta virus infection. 
• The transaction with Bluejay is expected to close in the first quarter of 2026.
• Mirum said it had secured $200 million through a private placement to be used to fund clinical development and commercial activities following the proposed acquisition.

Shares of Mirum Pharmaceuticals, Inc. (MIRM) fell as much as 5% on Monday morning after the company announced that it has agreed to buy privately held Bluejay Therapeutics in a deal worth up to $820 million.

The move is aimed at advancing the company in rare disease by adding Bluejay’s Brelovitug to its portfolio. Brelovitug is a late-stage experimental drug being studied for chronic hepatitis delta virus (HDV) infection, a most severe form of viral hepatitis in which nearly half of those affected progress to liver-related death within 10 years of diagnosis.

Deal Terms

Under the deal, Mirum has agreed to acquire all outstanding shares of Bluejay for $250 million in cash and $370 million in Mirum common stock, in addition to potential sales-based milestone payments of up to $200 million in cash.

The transaction with Bluejay is expected to close in the first quarter of 2026, subject to regulatory approval and other customary closing conditions, the company added.

About the Liver Drug 

Brelovitug is currently in late stage trials for HDV. In mid-stage trials, Brelovitug demonstrated strong antiviral activity in HDV and improvements in liver enzyme levels and a favorable safety profile.

Mirum said on Monday that it expects top-line data from the late-stage trial in the second half of 2026, with application to the FDA for potential approval slated for 2027.

Mirum also said that it will evaluate strategic options for Bluejay’s additional investigational programs after closing of the deal.

Placement Announcement

Mirum on Monday also said that it has entered into a definitive agreement with a syndicate of existing and new healthcare investors, for the sale of Mirum common stock and pre-funded warrants, in a private placement.

The private placement is expected to result in gross proceeds of $200 million which will be used to fund clinical development and commercial activities following the proposed acquisition, the company said.

Expert Take

Cantor Fitzgerald subsequently raised the price target on Mirum to $130 from $95, while keeping an ‘Overweight’ rating on the shares. The new price target represents a potential upside of about 90% from the stock’s closing price on Friday.

Cantor opined that Mirum’s proposed acquisition of Bluejay under the agreed-upon terms is a “steal.”

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around MIRM jumped from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

MIRM stock has gained 64% this year and by about 57% over the past 12 months.

Also See: Apple Chip Chief Reportedly Dismisses Concerns About Exit: ‘I Love My Job’

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