Bristol Myers Squibb to buy Karuna for $14 billion

NEW YORK

Pharmaceutical giant Bristol Myers Squibb will acquire drugmaker Karuna Therapeutics for $14 billion, the two U.S. companies have announced. 

With the acquisition, Bristol's portfolio will add Karuna's top asset, the experimental drug KarXT, which is being studied to treat schizophrenia, Alzheimer's disease and bipolar disorder.

"We expect KarXT to enhance our growth through the late 2020s and into the next decade," Bristol CEO Christopher Boerner said in a statement.

KarXT could hit the market for schizophrenia treatment as soon as September, pending regulatory approvals.

Clinical trials for Alzheimer's treatment are underway, with data expected by 2026.

An estimated 1.6 million people have schizophrenia in the United States, and in many cases, the current treatments available have harsh side effects or are not effective.

More than six million Americans suffer from Alzheimer's.

The deal approved by the boards of both companies will be for $330 per share, a 53 percent premium on Karuna Therapeutic's closing stock price on Dec. 21.

The transaction is expected to be financed primarily with new debt issuance, Bristol said, and is expected to close in the first half of 2024.