Karuna Therapeutics (KRTX) shares skyrocketed over 46% after Bristol Myers Squibb (BMY) said it would buy the biopharmaceutical firm for $14 billion to expand its nꦰeuroscience portfolio.

Bristol Myers Squibb said it would pay Karuna investors $330 in cash for every share they owned. That works out to a 53% premium to Karuna’s closing price yesterday.

The drug maker said that Karuna is working to develop medicines for those suffering from psychological or neurological conditions. Its lead asset is KarXT, an antipsychotic with “a novel mechanism of action (MoA) and differentiated efficacy and safety.” It noted that the 澳洲幸运5官方开奖结果体彩网:Food and Drug Administration (FDA) wi🍬ll review a new drug application for KarXT to treat schizophrenia in 🍸adults.

Bristol Myers Squibb said it believes KarXT “represജents a significant revenue contribution opportunity.” It added that it also sees potential in Karuna’s early-stage and pre-clinical pipeline.

⭕CEO Christopher Bonner said the purchase “strengthens our position and accelerates the expansion and divers🅠ification of our portfolio in this space.” The deal is expected to close in the first half of 2024.

Karuna Therapeutics shares were up 46.9% to $316 per share as of about noon Eastern following the news. Shares of Bristol-Myers Squbb also advanced and were 2.8% higher at $52.68 per share.