San Diego-based radiopharmaceutical company RayzeBio will be acquired by pharmaceutical corporation Bristol-Myers Squibb, the companies announced Tuesday.
Radiopharmaceuticals use small amounts of radioactive agents in order to make diagnoses or aid treatments. RayzeBio develops drugs which use targeted forms of radiation that are delivered directly to cancer cells.
The RayzeBio acquisition deal cost $4.1 billion.
Bristol executives said they wanted to bolster the company’s cancer drug portfolio. The pharmaceutical giant also signed a deal on Friday to acquire schizophrenia drugmaker Karuna Therapeutics for $14 billion.
“Radiopharmaceutical therapeutics are already transforming cancer care, and RayzeBio is at the forefront of pioneering the application of this novel modality,” said Christopher Boerner, Bristol-Myers Squibb’s chief exective officer, in a statement.
“We look forward to supporting and accelerating RayzeBio’s preclinical and clinical programs and advancing its highly innovative radiopharmaceutical platform.”
Princeton, New Jersey-based Bristol said it would pay $62.50 a share in cash for RayzeBio, more than double Friday’s closing price of $30.57.
Bristol has reportedly committed to roughly $24 billion in acquisitions and licensing deals announced in the second half of 2023.
The RayzeBio deal is slated to close in the first half of 2024.
City News Service contributed to this report.
