In a rapid-paced deal, Bristol Myers Squibb Co. has announced an agreement to acquire schizophrenia drug developer, Karuna Therapeutics Inc., for a sum of $14 billion. This acquisition signifies an invigorating race amongst drugmakers to fill their pipeline gaps.
This acquisition, culminated within the last fortnight, began with Bristol Myers’s unprompted proposal only days following AbbVie Inc.’s announced takeover of Cerevel Therapeutics Holdings Inc. for $8.7 billion. The latter is another biotech firm specializing in neurological drugs. Those aware of the deal chose to remain anonymous due to the confidential status of the information.
The purchase plan involves Bristol Myers agreeing to pay $330 per share in cash for the Boston-based company, Karuna Therapeutics. This move ostensibly shows Bristol Myers’s intent to reestablish itself in the neuroscience field and acquire a drug on the brink of an FDA decision.
The developments clearly illustrate the intensifying competition in the pharmaceutical industry, with major companies seeking to enforce a stronger position through strategic mergers and acquisitions. And it seems, neuroscience has emerged as a preferred field of many, with several firms moving toward consolidating their presence in this space.