Persistence, creative combinations behind Karuna’s $14B exit

Bristol Myers Squibb is making a major move into neuroscience through the $14 billion acquisition of Karuna Therapeutics — a deal that also solidifies neuropsychology’s position as a major interest area for big pharma, and proves that persistence in challenging but promising biology can pay off.

Bristol Myers Squibb Co. (NYSE:BMY) will acquire the biotech for $330 per share, a 53% premium over the biotech’s close on Thursday and a 35% premium over its 52-week-high. It’s the second large neurology acquisition this month following the proposed buyout of Cerevel Therapeutics Holdings Inc. (NASDAQ:CERE) and its next-generation schizophrenia asset by AbbVie Inc. (NASDAQ:ABBV) for $8.7 billion...