PRINCETON, N.J. - Bristol Myers Squibb (NYSE: NYSE:BMY) has finalized its purchase of biotech firm RayzeBio, Inc., ceasing the latter's shares from trading on the NASDAQ as it becomes a fully owned subsidiary of the pharmaceutical giant.
This strategic move, announced today, marks a significant expansion of Bristol Myers Squibb's oncology portfolio, particularly in the area of radiopharmaceutical therapeutics (RPTs) for solid tumor treatments.
The acquisition includes RayzeBio's lead program, RYZ101, which is currently undergoing a Phase 3 clinical trial for patients with GEP-NETs, a type of cancer that affects the gastroenteropancreatic system.
RYZ101 is also being evaluated as a potential first-line treatment for extensive stage small cell lung cancer (ES-SCLC) in a Phase 1b trial. The deal also brings a manufacturing facility expected to commence operations in the first half of 2024, enhancing Bristol Myers Squibb's capabilities in RPT production.
Bristol Myers Squibb's tender offer to acquire all outstanding shares of RayzeBio at $62.50 per share, totaling approximately $4.1 billion, concluded on February 22, 2024. The tendered shares represent about 86% of RayzeBio's issued and outstanding common stock. Following the tender offer, the acquisition was completed through a merger, with non-tendered RayzeBio shares also being converted into the right to receive the same cash amount.
The transaction is anticipated to bolster Bristol Myers Squibb's growth prospects in the latter part of the decade by diversifying their oncology pipeline and incorporating a novel treatment modality. Chris Boerner, Ph.D., Chief Executive Officer of Bristol Myers Squibb, expressed enthusiasm for the acquisition, highlighting the potential benefits for patients worldwide.
BofA Securities, Inc., and Covington & Burling LLP advised Bristol Myers Squibb on the financial and legal aspects of the deal, respectively. RayzeBio was advised by Centerview Partners LLC and Cooley LLP.
This press release statement contains forward-looking statements about the acquisition's potential benefits and Bristol Myers Squibb's business prospects. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially. The company has not updated any forward-looking statement publicly beyond the information provided in this announcement.
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