Bristol Myers Squibb has announced its acquisition of Karuna Therapeutics for $14 billion in cash, signalling a strategic move to bolster its drug pipeline.
The deal, set to close in the first half of 2024, aims to address challenges faced by Bristol Myers in the wake of generic competition impacting demand for its blood cancer drug Revlimid.
Karuna Therapeutics specialises in developing medications for neurological and psychiatric conditions, with its lead asset, KarXT, positioned as an antipsychotic for adults with schizophrenia, expected to be available by late 2024.
The acquisition underscores Bristol Myers’ commitment to expanding and diversifying its portfolio in the neuroscience space, with potential applications of KarXT being explored for Alzheimer’s disease psychosis and bipolar disorder.
1. Bristol Myers Squibb to acquire Karuna Therapeutics for $14 billion in cash, aiming to strengthen its drug pipeline.
2. Karuna’s stock surges over 47% on the announcement, closing at $317.85 per share.
3. The deal, unanimously approved by both companies’ boards of directors, is expected to close in the first half of 2024.
4. Bristol Myers faced challenges with declining demand for its blood cancer drug Revlimid due to generic competition.
5. Karuna Therapeutics specialises in developing medications for neurological and psychiatric conditions, with a focus on schizophrenia.
6. KarXT, the lead asset, is an antipsychotic expected to be available for adults with schizophrenia by late 2024.
7. The acquisition is positioned to enhance Bristol Myers’ growth in neuroscience and offers potential applications for KarXT in Alzheimer’s disease psychosis and bipolar disorder.
