Karuna Therapeutics surges on buyout deal by Bristol Myers

Karuna Therapeutics

22/12/2023 13:01

** Shares of Karuna Therapeutics  KRTX.O  rise 47.4% to
$317.1 premarket
    ** Bristol Myers Squib  BMY.N  agrees to buy KRTX for $14
billion in cash, gaining a promising experimental schizophrenia
drug
    ** BMY shares fall ~2% to $50.4 premarket 
    ** 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
    ** 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
    ** Shares of London-listed Puretech Health  PRTC.L , which
owns 4.06% in Karuna, up ~21% at 169.3 pence  
    ** Up to last close, KRTX shares up 9.5% and BMY down ~29%
YTD  

 (Reporting by Mariam Sunny in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com;))