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Lawrenceville-based Bristol Myers Squibb (BMS) announced a pair of acquisitions heading into the holidays.

On Dec. 22, BMS and Karuna Therapeutics entered into a definitive merger agreement. Under the deal, the former will acquire the latter – a Boston-based biopharma company that develops medicines for people living with psychiatric and neurological conditions – for $330 per share in cash, a total equity value of $14 billion, or $12.7 billion net of estimated cash acquired.

Karuna brings with it a lead asset in KarXT — a potential first-in-class treatment for schizophrenia and as an adjunctive therapy as well as first-in-disease treatment of psychosis in patients with Alzheimer’s.

The transaction was unanimously approved by both boards of directors. It is expected to close in the first half of 2024.

“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 growth throughout the late 2020s and into the next decade,” said Christiopher Boerner, CEO of Bristol Myers Squibb, in a press release. “This transaction fits squarely within our business development priorities of pursuing assets that are strategically aligned, scientifically sound, financially attractive, and have the potential to address areas of significant unmet medical need. We look forward to welcoming the talented Karuna team to Bristol Myers Squibb.”

“Schizophrenia and Alzheimer’s disease psychosis affect millions of people worldwide, with limited to no treatment options. KarXT’s novel mechanism has resulted in a transformational profile in schizophrenia, with compelling efficacy and a differentiated safety profile,” said Samit Hirawat, executive vice president and chief medical officer, Drug Development, BMS.

“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,” said Bill Meury, president and CEO of Karuna Therapeutics. “This announcement is a testament to the Karuna team’s talent, hard work, and innovation.”

Transforming cancer care

Then, BMS announced another acquisition Dec. 26. The target, San Diego-based RayzeBio Inc., is a clinical-stage radiopharmaceutical therapeutics company with an innovation-leading position in actinium-based RPTs and a pipeline of potentially first-in-class and best-in-class drug development programs.

Under the merger agreement, BMS will acquire RayzeBio for $62.50 per share in cash, for a total equity value of approximately $4.1 billion, or $3.6 billion net of estimated cash acquired.

That transaction was unanimously approved by both boards of directors and is also is expected to close in the first half of 2024.

“This transaction enhances our increasingly diversified oncology portfolio by bringing a differentiated platform and pipeline, and further strengthens our growth opportunities in the back half of the decade and beyond,” said Boerner. “Radiopharmaceutical therapeutics are already transforming cancer care, and RayzeBio is at the forefront of pioneering the application of this novel modality. We look forward to supporting and accelerating RayzeBio’s preclinical and clinical programs and advancing its highly innovative radiopharmaceutical platform.”

“Despite therapeutic advances in recent years, the need for more effective treatments in solid tumors persists, and radiopharmaceutical therapeutics are positioned to be an important next wave of innovation in oncology therapy,” said Ken Song, president and CEO, RayzeBio. “Bristol Myers Squibb’s well-established presence in oncology and deep expertise in developing, commercializing, and manufacturing treatments on a global scale makes it the ideal partner for RayzeBio at this important moment in our evolution. I am excited to see what our team achieves as part of Bristol Myers Squibb.”

In October, BMS announced plans to acquire commercial-stage targeted oncology company Mirati Therapeutics Inc. for $4.8 billion.