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Bristol-Myers Squibb | 8-K: Bristol-Myers Squibb Announces Completion of Acquisition of Karuna Therapeutics

SEC announcement ·  Mar 18 20:59
Summary by Futu AI
On March 18, 2024, Bristol-Myers Squibb (BMS) announced the successful completion of its acquisition of Karuna Therapeutics, Inc., a move that strengthens BMS's neuroscience portfolio. The acquisition results in Karuna becoming a wholly owned subsidiary of BMS, with Karuna's common stock ceasing to trade on the Nasdaq. The transaction involved the conversion of each Karuna share into the right to receive $330.00 in cash. BMS's acquisition includes KarXT, a potential first-in-class schizophrenia treatment with a PDUFA date set for September 26, 2024, and a pipeline of early-stage and pre-clinical neuroscience assets. The acquisition is expected to be dilutive to BMS's non-GAAP diluted earnings per share by approximately $0.30 in 2024 due to financing costs, but BMS plans...Show More
On March 18, 2024, Bristol-Myers Squibb (BMS) announced the successful completion of its acquisition of Karuna Therapeutics, Inc., a move that strengthens BMS's neuroscience portfolio. The acquisition results in Karuna becoming a wholly owned subsidiary of BMS, with Karuna's common stock ceasing to trade on the Nasdaq. The transaction involved the conversion of each Karuna share into the right to receive $330.00 in cash. BMS's acquisition includes KarXT, a potential first-in-class schizophrenia treatment with a PDUFA date set for September 26, 2024, and a pipeline of early-stage and pre-clinical neuroscience assets. The acquisition is expected to be dilutive to BMS's non-GAAP diluted earnings per share by approximately $0.30 in 2024 due to financing costs, but BMS plans to offset these costs through disciplined resource allocation and cost efficiencies. The transaction will also result in a one-time, non-deductible Acquired In-Process Research and Development charge of approximately $12 billion, impacting both GAAP and non-GAAP EPS by approximately $5.93. BMS will update its financial outlook for the first quarter of 2024 on April 25, 2024. Advisors for the transaction included Gordon Dyal & Co. and Citi for BMS, and Goldman Sachs & Co. LLC for Karuna.

This announcement is a separate document:

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