© Reuters. Bristol-Myers Squibb (BMY) to acquire Karuna (KRTX) for $14 billion – WSJ
Bristol Myers Squibb (NYSE has reportedly reached an agreement to acquire neuroscience drug developer Karuna Therapeutics (NASDAQ for $14 billion.
Under the terms of the deal, Bristol Myers Squibb will pay $330 per share in cash for Karuna, which includes $1.3 billion in cash that Karuna currently holds, according to the Wall Street Journal.
BMY shares fell 2.2% premarket following this news. Karuna shares closed at $215.19, meaning BMY agreed to pay a premium of more than 50%.
The deal, which is expected to close in the first half of next year, is a strategic move by Bristol Myers Squibb to strengthen its presence in the psychiatric and neurological medicines market.
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.
