Benzinga - by Vandana Singh, Benzinga Editor.
On Friday, Bristol Myers Squibb & Co (NYSE: BMY) agreed to acquire Karuna Therapeutics Inc (NASDAQ: KRTX) for $330.00 per share in cash, for a total equity value of $14.0 billion, or $12.7 billion net of estimated cash acquired.
Karuna is focused on developing treatments for psychiatric and neurological conditions. Karuna's lead asset, KarXT (xanomeline-trospium), is an antipsychotic.
A New Drug Application (NDA) for KarXT for schizophrenia in adults was accepted for review by the FDA, with a Prescription Drug User Fee Act date of September 26, 2024.
KarXT is also in registrational trials both for adjunctive therapy to the existing standard-of-care agents in schizophrenia and for the treatment of psychosis in patients with Alzheimer's disease.
Bristol Myers Squibb believes KarXT represents a significant revenue contribution opportunity.
Also Read: Bristol Myers Squibb's Mega $8.4B Oncology Bet - Secures Exclusive License With SystImmune.
Bristol Myers Squibb also sees potential from Karuna's early-stage and pre-clinical pipeline.
- Schizophrenia: KarXT is expected to launch in late 2024 in the U.S. as a treatment for schizophrenia in adults. There are approximately 1.6 million people treated for schizophrenia in the U.S.
- Adjunctive schizophrenia: A registrational clinical trial is currently underway evaluating KarXT as adjunctive treatment with the current standard of care agents for schizophrenia, with data expected in 2025.
- Alzheimer's disease psychosis: Registrational clinical trials are currently underway evaluating KarXT for Alzheimer's disease psychosis, with data expected in 2026. More than 6 million people are living with Alzheimer's disease in the U.S.
- Additional indications: Bristol Myers Squibb believes KarXT also has potential in additional indications, including Bipolar I disorder, which impacts approximately 1.4 million people in the U.S., and Alzheimer's disease agitation.
The transaction is expected to close in the first half of 2024.
Price Action: KRTX shares are up 48.80% at $320.30, and BMY stock is down 0.41% at $51.05 during the premarket session on the last check Friday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.