Brington Investment Limited - Bristol Myers Squibb Expands Neuroscience With $14 B Karuna Investment

CENTRAL, Hong Kong - Dec. 26, 2023 - PRLog -- Bristol Myers Squibb said that it will compensate Karuna shareholders $330 in cash for each share they held. This is a 53% premium over Karuna's closing price yesterday.

According to the drugmaker, Karuna is aiming to produce treatments for those suffering from psychiatric or neurological problems. KarXT is the company's flagship asset, an antipsychotic with "a novel mechanism of action (MoA) and differentiated efficacy and safety." The FDA will consider a new medication application for KarXT to treat schizophrenia in adults, according to the statement.

According to Bristol Myers Squibb, KarXT "represents a significant revenue contribution opportunity." It also sees promise in Karuna's early-stage and pre-clinical pipeline.

The acquisition, according to CEO Christopher Bonner, "strengthens our position and accelerates the expansion and diversification of our portfolio in this space." The transaction is scheduled to be completed in the first half of 2024.

Following the announcement, Karuna Therapeutics shares went up 46.9% to $316 per share at about noon Eastern. Bristol-Myers Squibb shares gained as well, rising 2.8% to $52.68 per share.

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