Bristol Myers Squibb To Acquire Karuna Therapeutics For USD 14 Billion

India Pharma Outlook Team | Tuesday, 26 December 2023

 India Pharma Outlook Team

Bristol Myers Squibb and neuroscience-focused Karuna Therapeutics, Inc announced a definitive merger agreement in which Bristol Myers Squibb will acquire Karuna for $330.00 per share in cash, for a total equity value of $14.0 billion, or $12.7 billion net of estimated cash acquired. Both the Bristol Myers Squibb and Karuna boards of directors unanimously authorized the deal.

Karuna is a biopharmaceutical company 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. Karuna’s New Drug Application (NDA) for KarXT for the treatment of schizophrenia in adults was accepted for review by the US Food and Drug Administration (FDA), with a Prescription Drug User Fee Act (PDUFA) date of September 26, 2024. 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, as per pharmabiz. 

KarXT has the potential to be a first-in-class treatment for schizophrenia as well as an adjuvant therapy, as well as a first-in-disease treatment for Alzheimer's disease psychosis, with other neuropsychiatric and neurodegenerative indications showing promise.

“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,” said Christopher Boerner, chief executive officer of Bristol Myers Squibb. “This transaction fits squarely within our 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. We look forward to welcoming the talented Karuna team to Bristol Myers Squibb.”

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