RayzeBio shares more than doubled in early Tuesday trading after the cancer-drug specialists agreed to a $4.1 billion takeover by Bristol Myers Squibb, marking the pharma giant's second major purchase in less than a week.
Bristol Myers, which on Friday agreed to buy schizophrenia drug specialists Karuna Therapeutics for $14.1 billion, said it would pay $62.50 a share for San Diego-based RayzeBio. The deal that values RayzeBio at $4.1 billion.
RayzeBio which has a pipeline of cancer-drug programs, went public in September at $18 a share and a market value of $1 billion, calls itself a "targeted radiopharmaceutical company" and has recently challenged European giant Novartis (NVS) -) with a drug that targets the same tumor as its Lutathera treatment.
Bristol Myers said integrating the RayzeBio purchase would likely take around 13 cents from its 2024 earnings forecast, although the financing will come from issuance of new debt.
RayzeBio broadens BMY oncology portfolio
“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 Bristol Myers CEO Chris Boerner.
“Radiopharmaceutical therapeutics are already transforming cancer care, and RayzeBio is at the forefront of pioneering the application of this novel modality," he added. "We look forward to supporting and accelerating RayzeBio’s preclinical and clinical programs and advancing its highly innovative radiopharmaceutical platform.”
RayzeBio shares, which closed at $30.57 each on Friday, were marked 101.11% higher in early Tuesday trading to change hands at $61.75 each.
Bristol Myers shares, meanwhile, gained 0.6% to trade at $52.61 each, trimming the stock's six-month decline to around 18.8%.
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