Bristol Myers Squibb Acquires Karuna For $14 Billion

Drugmaker Bristol Myers Squibb is set to acquire biopharmaceutical company Karuna Therapeutics in a $14 billion deal, as reported by the Associated Press (AP).

The deal received unanimous approval from both companies’ boards of directors. I Photo: Bristol Myers Squibb

Bristol Myers Squibb and Karuna announced their merger agreement recently, offering $330 per share in cash, representing a premium of 53% over Karuna’s stock. The deal received unanimous approval from both companies’ boards of directors.

Karuna’s key asset is KarXT, an experimental antipsychotic with a promising novel mechanism currently under review by the US Food and Drug Administration for the treatment of schizophrenia in adults.

The drug is also undergoing trials related to Alzheimer’s disease psychosis. In October, Bristol Myers Squibb acquired Mirati Therapeutics for $4.8 billion in equity value.

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