December 22 (Reuters) – Bristol Myers Squibb announced on Friday an agreement to acquire Karuna Therapeutics for $14 billion (12.7 billion euros), giving it its hands on KarXT, a promising experimental drug against schizophrenia.
The pharmaceutical group, headquartered in New York, is under pressure to expand its drug portfolio as it faces generic competition for its two flagship treatments, Revlimid, for certain blood cancers, and anticoagulant Eliquis.
“We expect KarXT to strengthen our growth in the late 2020s and into the next decade,” Christopher Boerner, chief executive officer of Bristol Myers, said in a statement.
Under the terms of the agreement, Bristol Myers will pay $330 per share in cash for Karuna, a premium of 53.4% to its last closing price.
Karuna shares soared by more than 47% in pre-market trading while Bristol Myers shares fell by 3%, the group having planned to finance the operation mainly through new debt.
According to analysts, KarXT sales could reach several billion dollars. A decision on its use in adults is expected by September 2024, and the company is also testing it to treat patients with Alzheimer’s-related psychosis.
There are currently several treatments for schizophrenia, but KarXT belongs to a new class of drugs that may cause fewer side effects, such as weight gain. (Reporting by Manas Mishra in Bangalore; French version by Stéphanie Hamel, edited by Blandine Hénault)
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