Bristol Myers Squibb to Acquire Karuna Therapeutics for $14 Billion

PureTech Health plc's Founded Entity, Karuna Therapeutics, Inc., and Bristol Myers Squibb (BMY) have agreed to a definitive merger deal in which Bristol Myers Squibb will acquire Karuna for $330.00 per share in cash, totaling a $14.0 billion equity value.

Karuna is focused on developing medicines for psychiatric and neurological conditions, with its lead asset, KarXT, showing promise in the treatment of schizophrenia and Alzheimer’s disease psychosis. If approved, KarXT will be the third therapeutic candidate to be taken from inception at PureTech to FDA regulatory approval.

Bristol Myers Squibb expects KarXT to significantly contribute to its revenue and sees potential in Karuna’s early-stage and pre-clinical pipeline. The transaction is expected to close in the first half of 2024, subject to customary closing conditions and regulatory approvals. The acquisition is anticipated to be dilutive to Bristol Myers Squibb’s non-GAAP diluted earnings per share by approximately $0.30 in 2024.  Bristol Myers Squibb plans to finance the acquisition with primarily new debt issuance.