Karuna Therapeutics Acquired by Bristol Myers Squibb for $14 Billion
January 5, 2024
🌥️Trending News
Karuna Therapeutics ($NASDAQ:KRTX), a biopharmaceutical company, has been acquired by the multinational pharmaceutical company Bristol Myers Squibb for $14 Billion. Karuna Therapeutics is a clinical-stage biopharmaceutical company dedicated to developing innovative therapies for patients with neuropsychiatric disorders. The acquisition of Karuna Therapeutics will contribute to Bristol Myers Squibb’s mission to address significant unmet needs in neuroscience by helping people suffering from schizophrenia, Alzheimer’s, and other neurological disorders.
With the acquisition, Bristol Myers Squibb will be able to take advantage of Karuna Therapeutic’s promising pipeline of treatments, which includes an oral drug in Phase 3 clinical trials for schizophrenia and another drug in Phase 2 clinical trials for Alzheimer’s. This is also a great opportunity for Bristol Myers Squibb to expand their presence in the neuroscience field and further their mission to help those suffering from neurological disorders.
Share Price
This is the second-largest deal ever made in the biotechnology industry and is sure to have a major impact on the landscape. At the start of the day, Karuna Therapeutics stock opened at $314.7, but closed at $314.2, down by only 0.2% from the prior closing price of 314.7. This minor decline serves as a testament to the confidence investors had in the company. The acquisition reflects the growth and potential of Karuna Therapeutics and is sure to be a positive move for both parties involved. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Karuna Therapeutics. More…
| Total Revenues | Net Income | Net Margin |
| 5.93 | -396.07 | -6676.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Karuna Therapeutics. More…
| Operations | Investing | Financing |
| -353.52 | -559.38 | 468.89 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Karuna Therapeutics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.39k | 62.78 | 35.1 |
Key Ratios Snapshot
Some of the financial key ratios for Karuna Therapeutics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | – | -7589.8% |
| FCF Margin | ROE | ROA |
| -6000.1% | -20.5% | -20.3% |
Analysis
At GoodWhale, we have conducted an analysis of KARUNA THERAPEUTICS‘s financials. According to our Star Chart, KARUNA THERAPEUTICS has an intermediate health score of 5/10 with regard to its cashflows and debt, indicating that the company might be able to safely ride out any crisis without the risk of bankruptcy. Our analysis revealed that KARUNA THERAPEUTICS is strong in terms of asset and growth, but weak in dividend and profitability. We classified this company as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Given KARUNA THERAPEUTICS’s intermediate health score and its ‘rhino’ classification, investors who are interested in moderate-growth companies and who are able to tolerate some risk may be interested in investing in such company. More…
Peers
In the race to develop new and improved treatments for a variety of diseases, Karuna Therapeutics Inc is up against some stiff competition. Verona Pharma PLC, Reviva Pharmaceuticals Holdings Inc, and Aptose Biosciences Inc are all working on their own cutting-edge therapies that could one day revolutionize the way we treat illness. While it remains to be seen who will come out on top in this fierce competition, one thing is for sure: the patients who stand to benefit from these breakthroughs are the real winners.
– Verona Pharma PLC ($NASDAQ:VRNA)
Verona Pharma PLC is a clinical stage pharmaceutical company that focuses on the development of drugs for the treatment of respiratory diseases. The company’s lead product, RPL554, is a novel, inhaled dual inhibitor of the enzymes phosphodiesterase 3 and 4, which are key regulators of airway smooth muscle tone. RPL554 is currently in Phase II clinical trials for the treatment of asthma and chronic obstructive pulmonary disease.
Verona Pharma PLC’s market cap as of 2022 is 790.27M. The company’s ROE for the same period is -28.69%.
– Reviva Pharmaceuticals Holdings Inc ($NASDAQ:RVPH)
Reviva Pharmaceuticals Holdings Inc is a holding company that operates through its subsidiaries in the pharmaceutical industry. The company focuses on the development of drugs for the treatment of neurological and psychiatric disorders. It has a market cap of 86.88M as of 2022 and a ROE of -63.24%. The company’s products include drugs for the treatment of Alzheimer’s disease, Parkinson’s disease, and schizophrenia.
– Aptose Biosciences Inc ($TSX:APS)
Aptose Biosciences Inc is a clinical-stage biotechnology company that focuses on the development of personalized therapeutics for the treatment of cancer. The company’s market cap is 71.07M as of 2022 and has a Return on Equity of -59.91%. The company’s focus on developing personalized therapeutics makes it an attractive option for investors interested in the healthcare sector.
Summary
Karuna Therapeutics has recently been acquired by Bristol Myers Squibb for an estimated all-cash transaction of $14 Billion. This acquisition demonstrates the strength of Karuna’s pipeline of treatments for neurological and psychiatric disorders, which could provide a significant growth opportunity for BMS. Investors should consider the potential investment opportunities presented by the acquisition, as well as any new opportunities that may arise due to increased resources and increased access to new markets.
Additionally, this deal could provide a significant boost to BMS’s share price in the long-term. Overall, this move is expected to be a positive development for both companies, and investors should consider the potential of further strategic partnerships between the two companies.
Related Posts
Recent Posts
