Bristol Myers to buy Karuna Therapeutics for $14 billion Reuters

© Reuters. PHOTO: A sign stands outside a Bristol Myers Squibb facility in Cambridge, Massachusetts, U.S., May 20, 2021. REUTERS/Brian Snyder/File Photo

(Reuters) – Bristol Myers Squib agreed to buy Karuna Therapeutics (NASDAQ: ) for $14 billion on Friday, acquiring a promising experimental schizophrenia drug that would help the drugmaker fend off a patent expiration on an older treatment.

Analysts are predicting multi-billion dollar sales for KarXT. The deal would help Bristol Myers (NYSE: ) expand its drug portfolio and offset potential revenue losses from patent expirations later this decade.

Under the terms of the deal, Bristol would pay $330 per share in cash for Karuna, representing a 53.4% ​​premium over Karuna’s last closing price of $215.19.

Shares of Karuna were trading higher at $319.80 on light volume, while shares of Bristol Myers were down 3% before the bell.

Bristol Myers in October signed a deal worth up to $5.8 billion to buy cancer drug maker Mirati Therapeutics (NASDAQ:

The New York-based company has been under pressure from falling demand for two of its top drugs, blood cancer treatment Revlimid and blood thinner Eliquis, which face generic competition.