Bristol Myers Squibb acquires Karuna Therapeutics for $14 billion, boosting neuroscience portfolio

NEW YORK (AP) — Drugmaker Bristol Myers Squibb is acquiring Karuna Therapeutics, a biopharmaceutical company that has developed a new antipsychotic, in a $14 billion deal. Bristol Myers Squibb and Karuna announced their merger agreement on Friday. The transaction, which divvies out to $330 per share in cash, was unanimously approved by both companies’ boards of directors. Karuna’s top asset on the table is KarXT, an experimental antipsychotic with promising novel mechanism. KarXT is currently being reviewed by the U.S. Food and Drug Administration for the treatment of schizophrenia in adults. The drug is also undergoing trials related to Alzheimer’s disease psychosis. The transaction is expected to close in the first half of 2024, subject to regulatory approvals and other closing conditions.