Bristol Myers Squibb has entered into an agreement to acquire Karuna Therapeutics for $14 billion in cash, valuing each share at $330. The deal aims to strengthen Bristol Myers’ drug pipeline, particularly in the field of neuroscience, as it expands and diversifies its portfolio. The acquisition comes as Bristol Myers faces challenges in demand for its blood cancer drug Revlimid due to competition from generic offerings. Karuna Therapeutics specializes in developing medications for neurological and psychiatric conditions, with its lead asset, an antipsychotic called KarXT, expected to be a treatment for adults with schizophrenia starting in late 2024. The deal, unanimously approved by both companies’ boards of directors, is set to close in the first half of 2024.
KarXT, in addition to its application for schizophrenia, is undergoing evaluation as a potential treatment for Alzheimer’s disease psychosis and a form of bipolar disorder. Bristol Myers Squibb sees significant opportunities in the neuroscience field and anticipates that KarXT will contribute to its growth through the late 2020s and into the next decade. The acquisition aligns with Bristol Myers Squibb’s strategy to address unmet medical needs and reinforce its position in neuroscience.
Karuna’s CEO, Bill Meury, expressed confidence in the collaboration, highlighting the advancements in treatment offered by the company’s portfolio. Meury emphasized that with Bristol Myers Squibb’s global expertise in developing and commercializing medicines and a legacy in neuroscience, KarXT and other assets in the pipeline would be well-positioned to reach individuals dealing with schizophrenia and Alzheimer’s disease psychosis.
The acquisition is expected to enhance Bristol Myers Squibb’s capabilities in addressing neurological and psychiatric conditions, contributing to its long-term growth and commitment to improving patient outcomes. The deal reflects the pharmaceutical industry’s ongoing efforts to expand therapeutic offerings and address diverse medical needs through strategic acquisitions and partnerships.
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