Bristol Myers Acquires Karuna Therapeutics in $14 Billion Deal, Sending Stock Soaring
Bristol Myers Squib has agreed to acquire Karuna Therapeutics for $14 billion in cash, securing a promising experimental schizophrenia drug to drive growth as patents on its older therapies expire. The deal includes a 53.4% premium to Karuna's last closing price. Bristol Myers has been under pressure to expand its drug pipeline due to declining demand for its top drugs, Revlimid and Eliquis. The acquisition is expected to enhance Bristol's growth in the coming years, with analysts forecasting significant sales for Karuna's drug, KarXT. The deal is anticipated to impact Bristol's earnings per share in 2024 due to financing costs.