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Bristol-Myers Squibb to acquire Karuna for $14 billion – WSJ
© Reuters. Bristol-Myers Squibb (BMY) to acquire Karuna (KRTX) for $14 billion – WSJ
Bristol Myers Squibb (NYSE:) has reportedly agreed to a deal to acquire neuroscience-drug developer Karuna Therapeutics (NASDAQ:) for $14 billion.
Under the terms of the agreement, Bristol Myers Squibb will pay $330 per share in cash for Karuna, which includes $1.3 billion in cash that Karuna currently holds, according to the Wall Street Journal.
BMY shares fell 2.2% in pre-market on this news. Karuna shares closed at $215.19, which means BMY agreed to pay a premium of over 50%.
The deal, expected to close in the first half of the next year, is a strategic move by Bristol Myers Squibb to strengthen its presence in the psychiatric and neurological drugs market.
The centerpiece of Karuna’s portfolio is an experimental drug called KarXT, currently under review by the Food and Drug Administration (FDA) for the treatment of schizophrenia.
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