Key Takeaways
- Bristol Myers Squibb Co. announced it was buying RayzeBio Inc. for $4.1 billion, its second multibillion-dollar deal in less than a week.
- The agreement offers RayzeBio shareholders a 104% premium to their stock’s closing price Friday, and shares of RayzeBio doubled in price after the news in Tuesday trading.
- Both recent company purchases expand Bristol-Myers Squibb’s cancer-fighting portfolio.
RayzeBio Inc. (RYZB) shares skyrocketed Tuesday after Bristol Myers Squibb Co. (BMY) said it was buying the radiopharmaceutical therapy company for $4.1 billion to expand its cancer treatment options. It was the second multibillion-dollar acquisition for Bristol Myers Squibb in less than a week.
Bristol Myers Squibb said in a press release it would pay RayzeBio investors $62.50 for every share they held. That works out to be a 104% premium to RayzeBio’s closing price Friday.
RayzeBio is developing ways to use radioactive particles to kill cancer cells. Bristol Myers Squibb said RayzeBio’s current pipeline includes programs that treat solid tumors, including gastroenteropancreatic neuroendocrine tumors, small cell lung cancer, and hepatocellular carcinoma.
Bristol Myers Squibb Chief Executive Officer Christopher Boerner said radiopharmaceutical therapeutics already are transforming cancer care, and that adding RayzeBio “enhances our increasingly diversified oncology portfolio by bringing a differentiated platform and pipeline.”
The company said it expects to finance the deal by issuing debt. The transaction is expected to be completed in the first half of next year.
On Friday, Bristol Myers Squibb announced a $14 billion purchase of Karuna Therapeutics Inc. to boost its neuroscience portfolio.
Shares of RayzeBio, which carried out an initial public offering in September, doubled on Tuesday, trading at $61.31 at noon E.T.
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Bristol Myers Squibb shares were 2.1% lower.
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