Bristol Myers Squibb To Buy Drugmaker Karuna For $14 Bn

Pharmaceutical giant Bristol Myers Squibb will acquire drug-maker Karuna Therapeutics for $14 billion, the two US companies announced Friday

New York, (UrduPoint / Pakistan Point News - 22nd Dec, 2023) Pharmaceutical giant Bristol Myers Squibb will acquire drug-maker Karuna Therapeutics for $14 billion, the two US companies announced Friday.

With the acquisition, Bristol's portfolio will add Karuna's top asset, the experimental drug KarXT, which is being studied to treat schizophrenia, Alzheimer's disease and bipolar disorder.

"We expect KarXT to enhance our growth through the late 2020s and into the next decade," Bristol CEO Christopher Boerner said in a statement.

KarXT could hit the market for schizophrenia treatment as soon as September, pending regulatory approvals.

Clinical trials for Alzheimer's treatment are underway, with data expected by 2026.

An estimated 1.6 million people have schizophrenia in the United States, and in many cases, the current treatments available have harsh side effects or are not effective.

More than six million Americans suffer from Alzheimer's.

The deal approved by the boards of both companies will be for $330 per share, a 53 per cent premium on Karuna Therapeutic's closing stock price on Thursday.

The transaction is expected to be financed primarily with new debt issuance, Bristol said and is expected to close in the first half of 2024.

In pre-market trading Friday on the New York Stock Exchange, BMS shares fell nearly two per cent while Karuna shares surged 47 per cent to $316.20.