bullish
Karuna Therapeutics (KRTX US): BMS Acquisition Offers Decent Short-Term Trading Opportunity
Tina has highlighted this Insight as a Top Pick
290 Views07 Mar 2024 18:37
SUMMARY
- Bristol Myers Squibb Co (BMY US) is acquiring Karuna Therapeutics Inc (KRTX US) for $330/share in cash for equity value of ~$14B. The transaction is expected to close in 1H24.
- Karuna’s lead asset, KarXT has FDA action date of September 26, 2024 for the treatment of schizophrenia in adults. KarXT has peak annual sales potential of $6–7B.
- Considering strong clinical efficacy and favorable risk profile of KarXT, the deal seems to be fairly valued. Current market price of Karuna shares of $318.41 represents absolute spread of ~3.6%.
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