Bristol Myers Squibb Acquires Karuna Therapeutics in $14 Billion Deal

Karuna's Antipsychotic Drug KarXT Under FDA Review, Decision Expected by September 2024

Bristol Myers Squibb has agreed to acquire Karuna Therapeutics for $14 billion in cash, paying Karuna investors $330 per share, a 53% premium to Karuna’s closing price.
Karuna Therapeutics' shares soared over 46% following the announcement, while Bristol Myers Squibb's shares also advanced by 2.8%.
Karuna's lead asset is KarXT, an antipsychotic drug currently under FDA review for treating schizophrenia in adults, with a decision expected by September 26, 2024.
KarXT is also being evaluated as a potential treatment for Alzheimer's disease psychosis and a form of bipolar disorder.
The acquisition is expected to close in the first half of 2024.