Karuna jumps on $14 bln buyout by Bristol Myers in last minute Christmas shopping
Updates
** Shares of Karuna Therapeutics KRTX.O rise 47.4% to $317.1
** Bristol Myers Squib BMY.N agrees to buy KRTX for $14 billion in cash, gaining a promising experimental schizophrenia drug
** BMY shares up 2.7% to $52.7 - among top pct gainers on S&P 500 Healthcare index .SPXHC
** BMY will pay $330 a share in cash for KRTX, which represents a 53.4% premium to its last closing price
** Analysts have forecast multi-billion dollars in sales of the schizophrenia drug, KarXT
** BMY is expected to face revenue losses for two of its other top sellers, cancer immunotherapy Opdivo and blood thinner Eliquis, as they lose patent protection later this decade
** While there are several drugs for schizophrenia, KarXT belongs to a new class of drug that are likely to cause lesser side effects like weight gain
** The deal is "fairly valued in our view and can’t rule out another potential bidder, given this is first-in-class in an area that has not seen a new mechanism approval in decades," said William Blair analyst Myles Minter
** Including session's gain, KRTXcshares up ~61%and BMY down ~26% YTD
Bristol-Myers' blockbuster drugs see steady decline https://tmsnrt.rs/3NBWsmh
Reporting by Mariam Sunny and Khushi Mandowara in Bengaluru
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