(Updated - December 22, 2023 7:16 AM EST)
Bristol Myers Squibb (NYSE:BMY) has agreed to a deal to acquire neuroscience-drug developer Karuna Therapeutics (NASDAQ:KRTX) for $14 billion, the two companies said.
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.
The Wall Street Journal first reported the terms of the deal.
BMY shares fell 1.5% 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.
“There are tremendous opportunities in neuroscience, and Karuna strengthens our position and accelerates the expansion and diversification of our portfolio in the space. We expect KarXT to enhance our growth through the late 2020s and into the next decade,” said Christopher Boerner, Ph.D., Chief Executive Officer of Bristol Myers Squibb.
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.