Bristol Myers to Buy Karuna Therapeutics for $14 Bn to Bolster Neuro Portfolio

This strategic acquisition fits squarely with Briston’s business development priorities of pursuing assets that are strategically aligned, scientifically sound, financially attractive, and have the potential to address areas of significant unmet medical need.

Global pharma player Bristol Myers Squibb has agreed to acquire neuroscience-focused Karuna Therapeutics, Inc for $14.0 billion to bolster its neuro portfolio.

Karuna, the US-based biopharmaceutical company, is driven to discover, develop and deliver transformative medicines for people living with psychiatric and neurological conditions. Karuna’s lead asset, KarXT (xanomeline-trospium), is an antipsychotic with a novel mechanism of action (MoA) and differentiated efficacy and safety.

According to the merger agreement, Bristol has agreed to acquire Karuna for $330.00 per share in cash, for a total equity value of $14.0 billion. The transaction was unanimously approved by both the Bristol Myers Squibb and Karuna boards of directors.

This strategic acquisition fits squarely with Briston’s business development priorities of pursuing assets that are strategically aligned, scientifically sound, financially attractive, and have the potential to address areas of significant unmet medical need.

Sharing his thoughts, Christopher Boerner, CEO, Bristol Myers Squibb, said “There are tremendous opportunities in neuroscience, and Karuna strengthens our position and accelerates the expansion and diversification of our portfolio in the space. We expect KarXT to enhance our growth through the late 2020s and into the next decade.”

Established in 2009 by Andrew Miller, Karuna Therapeutics is a biopharmaceutical company that develops and delivers medicines for psychiatric and neurological conditions.

Karuna Therapeutics’ mission is to create and deliver transformative medicines for people living with psychiatric and neurological conditions. The company believes that its KarXT platform can offer a new paradigm for treating these diseases by targeting their molecular underpinnings with high specificity and efficacy.

On the strategic deal, Bill Meury, president and CEO, Karuna Therapeutics, said, “With Bristol Myers Squibb’s long-standing expertise in developing and commercialising medicines on a global scale and legacy in neuroscience, KarXT and the other assets in our pipeline will be well-positioned to reach those living with schizophrenia and Alzheimer’s disease psychosis.”

Bristol Myers Squibb (BMS) on the other hand, was founded in 1887 by two former fraternity brothers, William McLaren Bristol and John Ripley Myers, is a global biopharmaceutical company that discovers, develops, and delivers novel medicines that help patients prevail over serious diseases.

In October this year, Bristol acquired Mirati Therapeutics for $4.8 billion making it one of the major pharma acquisitions of the year.. With the acquisition of this company, Bristol Myers Squibb plans to enhance its oncological offerings and potentially position Adagrasib as a leading treatment for cancer patients.