RayzeBio shares nearly doubled in early trading Tuesday after the cancer drug specialists agreed to a $4.1 billion acquisition by Bristol Myers Squibb, marking the pharmaceutical giant's second major purchase in less than One week.
Bristol Myers, which on Friday agreed to buy schizophrenia drug specialist Karuna Therapeutics for $14.1 billion, said it would pay $62.50 per share for San Diego-based RayzeBio. The agreement values RayzeBio at $4.1 billion.
RayzeBio, which has a portfolio of cancer drug programs, went public in September at $18 per share and a market value of $1 billion, calls itself a “targeted radiopharmaceutical company” and has recently challenged the European giant Novartis. (NVS) – Get a free report with a drug that targets the same tumor as your Lutathera treatment.
Bristol Myers said integrating the RayzeBio purchase would likely take about 13 cents of its 2024 earnings forecast, although the financing will come from issuing new debt.
RayzeBio Expands BMY Oncology Portfolio
“This transaction enhances our increasingly diversified oncology portfolio by providing a differentiated platform and portfolio, and further strengthens our growth opportunities in the second half of the decade and beyond,” said Chris Boerner, CEO of Bristol Myers. .
“Radiopharmaceutical therapies are already transforming cancer care, and RayzeBio is at the forefront of pioneering the application of this novel modality,” he added. “We look forward to supporting and accelerating RayzeBio's preclinical and clinical programs and advancing its highly innovative radiopharmaceutical platform.”
RayzeBio shares, which closed at $30.57 each on Friday, rose 98.4% in premarket trading to indicate an opening price of $6,065 each.
Meanwhile, Bristol Myers shares gained 0.17% to trade at $52.38 each, paring the stock's six-month decline to about 19.3%.
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