(Finance) – Bristol Myers Squibbone of the world’s leading pharmaceutical companies, has entered into a definitive merger agreement under which it will acquire Karuna Therapeutic for $330 per share (53% premium to last close) in cash, for a total equity value of 14 billion dollars, or $12.7 billion net of estimated cash acquired. Karuna is a biopharmaceutical company committed to discovering, developing and delivering transformative medicines for people living with psychiatric and neurological conditions
“There are huge opportunities in the field of neuroscience and Karuna strengthens our position and accelerates the expansion and diversification of our portfolio in this sector. We expect KarXT (Karuna’s lead asset, ed.) to improve our growth towards the end of the 2020s and into the next decade” – he said Christopher Boerner, CEO by Bristol Myers Squibb – This transaction fits squarely with our business development priorities in pursuing assets that are strategically aligned, scientifically sound, financially attractive and have the potential to address areas of significant unmet medical need.”
The transaction was approved unanimously by the boards of directors of Bristol Myers Squibb and Karuna. The transaction is expected will end in the first half of 2024subject to customary closing conditions, including approval by Karuna shareholders and receipt of necessary regulatory approvals.