Zhitong Finance and Economics learned that the American pharmaceutical giant Bristol-Myers Squibb (BMYUS) said on Tuesday local time that it would acquire Rayzebio (Ryzb.) at a significant premium for a total value of about $4.1 billionus), i.e. at 62 per shareThe $50 cash premium to fully expand its cancer drug pipeline is the drugmaker's second major M&A deal in less than a week. Previously, Bristol-Myers Squibb agreed to acquire Karuna Therapeutics (KRTX., a developer of psychotropic ** drugs, for $14 billionus)。
RayzeBio is a biotechnology company focused on radiopharmaceutical development. The Company is engaged in the development of targeted radioisotope drugs for multiple cancer types. Rayzebio's R&D focus includes a range of targeted drugs for diagnostic and oncology. By targeting radioactive isotopes, these drugs directly attack cancer cells while drastically reducing the impact on healthy tissue.
With the deal, Bristol-Myers Squibb will receive Rayzebio's advanced-stage targeted cancer, RYZ101, which works by combining cell-killing radioactive particles with molecules attached to tumors.
One of the largest U.S. drugmakers is looking for an M&A deal to expand its pipeline at a time when two of its top drugs, Revlimid for *blood cancer and eliquis, a blood thinner, are facing intense competition from generics. The company's other best-selling drug, opdivo, a cancer immunodeficiency** drug, is also expected to face a revenue squeeze as it will completely lose patent protection by the end of the decade.
On Friday, Bristol-Myers Squibb announced a $14 billion acquisition of Karuna Therapeutics, a developer of psychotropic drugs, which gave it access to a promising new antipsychotic drug that could help accelerate its growth.
Bristol-Myers Squibb said it will invest at 62The $50 cash acquisition of Rayzebio represents a premium of approximately 104% to the stock's latest ** price. In pre-market trading, Rayzebio's share price almost doubled to 60$9.
Bristol-Myers Squibb said it expects the company to finance the deal primarily through the issuance of new debt. Bristol-Myers Squibb said the deal is expected to reduce its 2024 adjusted earnings per share by about 13 cents.
Also on Tuesday, British pharmaceutical giant AstraZeneca (AZNUS) announced that it will acquire China-based Gracell Biologics (GRCL.) for up to $1.2 billion**US) to further the UK pharmaceutical company's ambitions in the cell** space.
The cash transaction is intended to strengthen AstraZeneca's product portfolio and values Gracell Biologics, which is listed on the U.S.** market, at US$2 per common share or US$10 per ADS, plus 0. per common share if certain regulatory milestones are met$30 of non-tradable or valuable rights (CVRs).
As soon as the news came out, Gracell Biotech's U.S. stock soared by more than 70% before the market. According to public information, Gracell is a global clinical-stage biopharmaceutical company committed to developing innovative breakthrough cells for tumor and autoimmune diseases.