Bristol Myers Squibb
agreed to buy drug developer
Karuna Therapeutics
for $330 a share in cash, or $14 billion.
Karuna
has an experimental schizophrenia drug called KarXT up for U.S. government approval. The treatment could generate more than $6 billion in sales if it reaches the market, according to analysts.
Karuna stock jumped 47% to $316 and was on pace to close at an all-time high, according to Dow Jones Market Data. The stock also was on track for its largest percentage increase since August 2022.
Bristol Myers
shares rose 1.4% to $52.62.
The deal adds to
Bristol Myers’s
neuroscience portfolio. The company said that KarXT “represents a significant revenue contribution opportunity,” and it also sees potential in Karuna’s pipeline.
Lee Brown, the global sector lead for healthcare at research firm Third Bridge, wrote Friday that the merger agreement “delivers an exceptionally promising lead drug candidate, KarXT, which our experts believe meaningfully strengthens Bristol’s neuroscience portfolio and represents a win-win transaction for both companies.”
Write to Brian Swint at [email protected]
Read the full article here