Bristol Myers Squibb said Tuesday it would buy RayzeBio for about $4.1 billion to bolster its cancer drugs business. marking the second major agreement reached by the drug manufacturer in less than a week.
With the deal, Bristol will gain access to RayzeBio’s late-stage targeted cancer therapy, RYZ101, which works by combining radioactive particles that kill cells with molecules that attach to tumors.
The American pharmaceutical company is turning to agreements at a time when two of its main drugs, blood cancer treatment Revlimid and blood thinner Eliquis face generic competition.
Its other flagship product, cancer immunotherapy Opdivo, is also expected to face a loss of revenue as the drug loses patent protection later this decade.
The drug manufacturer had announced on Friday a US$14 billion purchase of the developer of schizophrenia drugs Karuna Therapeutics, obtaining a promising new type of antipsychotic drug to help boost growth.
Bristol said it will pay $62.50 per RayzeBio share in cash, which represents a premium of 104% compared to the last close of the stock.
RayzeBio Shares Nearly Doubled to $60.9 in pre-marketing operations.
Bristol said it expects to finance the transaction primarily with new debt. The deal is expected to reduce its adjusted earnings per share by about 13 cents in 2024, according to Bristol.