BMS Acquires Karuna in $14 Billion Deal

Bristol Myers Squibb has agreed to acquire Boston-based biopharma Karuna Therapeutics for $330 per share in a transaction valued at $14 billion. Karuna is focused on therapies for psychiatric and neurological conditions with a lead asset called KarXT, an antipsychotic with a novel mechanism of action and differentiated efficacy and safety.

Karuna’s NDA for KarXT for the treatment of schizophrenia has been accepted for review by the FDA with a Prescription Drug User Fee Act (PDUFA) date of September 26, 2024. KarXT is also in registrational trials both for adjunctive therapy to existing standard of care agents in schizophrenia and for the treatment of psychosis in patients with Alzheimer’s disease. BMS believes KarXT represents a significant “revenue contribution opportunity” and also sees potential in Karuna’s early-stage and pre-clinical pipeline.

“There are tremendous opportunities in neuroscience, and Karuna strengthens our position and accelerates the expansion and diversification of our portfolio in the space. We expect KarXT to enhance our growth through the late 2020s and into the next decade,” said BMS CEO Christopher Boerner.

Bill Meury, President and CEO of Karuna Therapeutics, said, “Karuna’s portfolio offers advancements in treatment not seen in many years. With Bristol Myers Squibb’s long-standing expertise in developing and commercializing medicines on a global scale and legacy in neuroscience, KarXT and the other assets in our pipeline will be well-positioned to reach those living with schizophrenia and Alzheimer’s disease psychosis.”

The transaction is expected to close in the first half of 2024, subject to customary closing conditions, including approval of Karuna stockholders and receipt of required regulatory approvals. (Source: Bristol Myers Squibb Website, 22 December 2023)