Bristol Myers Squibb to acquire RayzeBio for $4.1B

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In its second multibillion-dollar acquisition announced within a week, Bristol Myers Squibb will acquire RayzeBio, which develops radiopharmaceutical cancer therapeutics, in an agreement worth approximately $4.1 billion.

Under the terms of the agreement, which was unanimously approved by the boards of both companies, Bristol Myers Squibb will purchase RayzeBio for $62.50 per share in cash.

BofA Securities is serving as financial adviser to Bristol Myers Squibb, with Covington & Burling serving as the firm’s legal counsel. Centerview Partners is serving as financial adviser to RayzeBio, with Cooley serving as RayzeBio’s legal counsel.

Last week, Bristol Myers Squibb forged an agreement to buy biotech firm Karuna Therapeutics for $14 billion, an acquisition that will give the firm KarXT, a promising experimental treatment for schizophrenia currently under review with the U.S. Food and Drug Administration (FDA).

The acquisitions come as part of the firm’s strategy to expand its portfolio, with increased competition from generics for some of its therapies and patents on several others due to expire. The RayzeBio acquisition will garner the company RYZ101, a clinical-stage actinium-based targeted radiopharmaceutical therapy for solid tumors that is currently being studied in a phase III trial.

“Despite therapeutic advances in recent years, the need for more effective treatments in solid tumors persists, and radiopharmaceutical therapeutics are positioned to be an important next wave of innovation in oncology therapy. 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. I am excited to see what our team achieves as part of Bristol Myers Squibb,” Dr. Ken Song president and CEO of RayzeBio said in a statement.

The deal is expected to close in the first half of 2024, subject to customary closing conditions.

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