NEW YORK: Pharmaceutical giant Bristol Myers Squibb will acquire drug-maker Karuna Therapeutics for 14 billion dollars, the two US companies announced Friday.
With the acquisition, Bristol’s portfolio will add Karuna’s top asset, the experimental medicine KarXT, which is being studied to cure schizophrenia, bipolar disorder, and Alzheimer.
Bristol CEO Christopher Boerner said in a statement that we expect KarXT to increase our growth through the late 2020s and into the coming decade, according to western media reports.
KarXT could hit the market for schizophrenia cure as soon as September next year, waiting for regulatory approvals.
Clinical trials for Alzheimer’s treatment are underway, with data likely by 2026.
An estimated 1.6 million people have schizophrenia in the US, and in many cases, the current treatments available have severe side effects or are not effective.
More than 6 million Americans suffer from the disease of Alzheimer’s.
The agreement approved by the boards of both companies will be for 330 dollars per share, a 53% premium on Karuna Therapeutic’s closing stock price on Thursday.
The transaction is likely to be financed primarily with new debt issuance, Bristol said and is likely to close in the first half of 2024.
Bristol’s shares
In pre-market trading on Friday on the New York Stock Exchange, BMS shares fell nearly 2% while Karuna shares surged 47% to $316.20.
