Bristol Myers to acquire Karuna Therapeutics for $330 per share in cash

Bristol Myers Squibb (BMY) and Karuna Therapeutics (KRTX) announced that they have entered into a definitive merger agreement under which Bristol Myers Squibb has agreed to acquire Karuna for $330.00 per share in cash, for a total equity value of $14B, or $12.7B net of estimated cash acquired. The transaction was unanimously approved by both the Bristol Myers Squibb and Karuna boards of directors. KarXT is also in registrational trials both for adjunctive therapy to existing standard of care agents in schizophrenia and for the treatment of psychosis in patients with Alzheimer’s disease. Bristol Myers Squibb believes KarXT represents a significant revenue contribution opportunity. Bristol Myers Squibb also sees potential from Karuna’s early-stage and pre-clinical pipeline. Under the terms of the merger agreement, Bristol Myers Squibb will acquire all outstanding shares of Karuna common stock for $330.00 per share in cash representing an approximately 53.4% premium to Karuna Therapeutic’s closing stock price on December 21 for a total equity value of approximately $14B, or $12.7B net of estimated cash acquired. The transaction is expected to close in the first half of 2024, subject to customary closing conditions, including approval of Karuna stockholders and receipt of required regulatory approvals.