BY Fraser Tennant
In its second multibillion-dollar deal in weeks, US multinational pharmaceutical company Bristol Myers Squibb is to acquire radiological drug developer RayzeBio, Inc. for approximately $4.1bn.
Under the terms of the definitive agreement, Bristol Myers Squibb will acquire RayzeBio for $62.50 per share in cash, representing a premium of 104 percent to the stock’s last close.
A clinical-stage radiopharmaceutical therapeutics (RPTs) company, RayzeBio has an innovation-leading position in actinium-based RPTs and a pipeline of potentially first-in-class and best-in-class drug development programmes.
“Despite therapeutic advances in recent years, the need for more effective treatments in solid tumours persists, and radiopharmaceutical therapeutics are positioned to be an important next wave of innovation in oncology therapy,” said Ken Song, president and chief executive of 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.”
The transaction has been unanimously approved by both the Bristol Myers Squibb and RayzeBio boards of directors.
“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 Christopher Boerner, chief executive of Bristol Myers Squibb. “Radiopharmaceutical therapeutics are already transforming cancer care, and RayzeBio is at the forefront of pioneering the application of this novel modality.”
Bristol Myers Squibb’s previous acquisition saw it buy Karuna Therapeutics Inc. in a $14bn transaction designed to boost its neuroscience portfolio.
The transaction is expected to close in the first half of 2024, subject to customary closing conditions, including the tender of a majority of the outstanding shares of RayzeBio’s common stock and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Mr Boerner concluded: “We look forward to supporting and accelerating RayzeBio’s preclinical and clinical programmes and advancing its highly innovative radiopharmaceutical platform.”
News: Bristol Myers to buy RayzeBio for $4.1 billion in targeted cancer therapy push