PRINCETON, N.J. - Bristol Myers Squibb (NYSE: NYSE:BMY) has finalized its acquisition of Karuna Therapeutics (NASDAQ:KRTX), Inc., integrating the latter as a fully owned subsidiary, the company announced today. With the completion of the acquisition, Karuna's shares have ceased trading on the Nasdaq Global Select Market.
The transaction introduces KarXT, an investigational antipsychotic treatment for schizophrenia in adults, to Bristol Myers Squibb's portfolio. KarXT, which has a Prescription Drug User Fee Act (PDUFA) target action date set for September 26, 2024, is also undergoing trials for adjunctive therapy in schizophrenia and for psychosis in Alzheimer's patients, with potential applications in Bipolar I disorder and Alzheimer's disease agitation.
Bristol Myers Squibb anticipates the acquisition to be slightly dilutive to its non-GAAP diluted earnings per share by roughly $0.30 in 2024 due to financing costs, mainly attributed to recent debt issuance. However, the company expects to balance these expenses through disciplined resource allocation and cost efficiencies.
A significant financial impact of the deal is a one-time, non-deductible Acquired In-Process Research and Development (Acquired IPR&D) charge of approximately $12 billion. This charge will affect the company's GAAP and non-GAAP earnings per share (EPS) by about $5.93 for the first quarter and full year of 2024.
Chris Boerner, Ph.D., Chief Executive Officer of Bristol Myers Squibb, expressed enthusiasm about expanding their neuroscience portfolio and the strategic fit of the acquisition with the company's growth objectives for the latter half of the decade.
Bristol Myers Squibb, a global biopharmaceutical firm, is known for its commitment to developing medicines for serious diseases. The company plans to update its financial outlook during its first-quarter 2024 results announcement on April 25, 2024.
This news is based on a press release statement.
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