Bristol Myers Squibb on Friday announced it agreed to purchase biopharmaceutical company Karuna Therapeutics for $14 billion in money, or $330 per share.
Karuna’s stock closed up greater than 47% on the news Friday, hitting $317.85 a share. Bristol Myers Squibb shares closed up 2%.
The deal will help expand Bristol Myers’ drug pipeline after competition from a generic offering caused demand for the corporate’s blood cancer drug Revlimid to tumble in its third quarter.
The boards of directors at each Bristol Myers and Karuna unanimously approved the acquisition, and it is anticipated to shut in the primary half of 2024, based on a release.
Karuna develops medications for patients living with neurological and psychiatric conditions. The corporate’s lead asset is an antipsychotic called KarXT, which is anticipated to function a treatment for adults with schizophrenia starting in late 2024, the discharge said. Â
“There are tremendous opportunities in neuroscience, and Karuna strengthens our position and accelerates the expansion and diversification of our portfolio within the space. We expect KarXT to boost our growth through the late 2020s and into the following decade,” Bristol Myers Squibb CEO Christopher Boerner said in a press release.
KarXT can also be being evaluated as a possible treatment for Alzheimer’s disease psychosis and a type of bipolar disorder, based on the discharge. Karuna CEO Bill Meury said the corporate’s portfolio “offers advancements in treatment not seen in a few years.”
“With Bristol Myers Squibb’s long-standing expertise in developing and commercializing medicines on a world scale and legacy in neuroscience, KarXT and the opposite assets in our pipeline might be well-positioned to succeed in those living with schizophrenia and Alzheimer’s disease psychosis,” he said in a press release.Â
Citi and Gordon Dyal & Co. advised Bristol Myers on the deal, while Goldman Sachs served because the exclusive advisor for Karuna.
— CNBC’s Annika Kim Constantino contributed to this report.
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