By Shares of Karuna Therapeutics Inc. (KRTX) have witnessed a remarkable surge of 33.8% in premarket trading on Friday. This surge comes after The Wall Street Journal reported that Bristol Myers Squibb Co. (BMY) has reached an agreement to acquire the drug developer in a deal worth $14 billion.
Record Surge for Karuna Therapeutics Inc.
Karuna Therapeutics Inc. is set to enter record territory as its stock experiences a significant boost. In contrast, Bristol Myers’ stock, ahead of the market open, has slumped by 2.7%.
Deal Details
According to the report, Bristol Myers will acquire Karuna by paying $330 in cash for each outstanding share, amounting to a premium of 53.4% over Thursday’s closing price of $215.19. The deal also includes the inclusion of $1.3 billion in cash held by Karuna, as well as their schizophrenia treatment KarXT. Notably, Karuna’s new drug application for KarXT has recently been accepted by the U.S. Food and Drug Administration after achieving its primary endpoint in a Phase 3 trial earlier this year.
Performance Update
While Karuna’s stock has experienced a year-to-date gain of 9.5% through Thursday, shares of Bristol Myers have tumbled by 28.8%. In comparison, the S&P 500 has advanced by 23.6%.
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