Bristol Myers Squibb has added a premier radiopharmaceutical platform to its portfolio with the acquisition of RayzeBio, a radiopharmaceutical therapeutics (RPT) company focusing on treatments for various cancers, with its lead program in a Phase 3 clinical trial.
Bristol Myers Squibb (NYSE: BMY) and RayzeBio, Inc. (NASDAQ: RYZB) announced the signing of a definitive merger agreement, positioning Bristol Myers Squibb to acquire RayzeBio for $62.50 per share in cash. The transaction carries a total equity value of approximately $4.1 billion, with a net value of $3.6 billion after considering the estimated cash acquired. RayzeBio Inc. (RYZB) shares skyrocketed on Tuesday 26th Dec 2023 following the announcement, trading at $61.31 at noon E.T.
RayzeBio, a clinical-stage radiopharmaceutical therapeutics (RPT) company, has carved out an innovation-leading niche in actinium-based RPTs. The company boasts a promising pipeline consisting of potentially groundbreaking drug development programs. The focus of RayzeBio’s current pipeline programs is on addressing the treatment of solid tumors, including challenging conditions such as gastroenteropancreatic neuroendocrine tumors (GEP-NETs), small cell lung cancer, hepatocellular carcinoma, and various other cancers.
With a persisting high unmet need for more effective treatments in solid tumors, RayzeBio’s RPTs offer a precision-oriented approach to patient treatment. Radiopharmaceutical therapeutics function by binding to tumor cells and delivering targeted radiation to induce cancer cell death. Actinium-based RPTs, such as those developed by RayzeBio, present potential advantages over currently available options. The high potency and short firing range of the alpha-emitter create opportunities for stronger efficacy and more targeted delivery.
The merger with RayzeBio aligns with Bristol Myers Squibb’s strategic vision to strengthen its position in the oncology space and enhance its portfolio with innovative therapies. The acquisition of RayzeBio brings together the complementary expertise of both companies, positioning them to accelerate the development and commercialization of novel radiopharmaceutical therapeutics.
Christopher Boerner, Ph.D., Chief Executive Officer of Bristol Myers Squibb said:
“This transaction enhances our increasingly diversified oncology portfolio by bringing a differentiated platform and pipeline, and further strengthens our growth opportunities in the back half of the decade and beyond. Radiopharmaceutical therapeutics are already transforming cancer care, and RayzeBio is at the forefront of pioneering the application of this novel modality. We look forward to supporting and accelerating RayzeBio’s preclinical and clinical programs and advancing its highly innovative radiopharmaceutical platform.”
Samit Hirawat, M.D., Executive Vice President, Chief Medical Officer, Drug Development of Bristol Myers Squibb stated:
“Acquiring RayzeBio’s differentiated actinium-based radiopharmaceutical platform will establish Bristol Myers Squibb’s presence in one of the most promising and fastest-growing new modalities for the treatment of patients with solid tumors – delivering radioactive payloads to cancer cells in a targeted manner. In addition, RayzeBio’s platform has the potential to be a significant IND engine, generating several therapeutic candidates in the future by leveraging our global drug development capabilities and infrastructure.”
The RayzeBio deal closely follows another recent acquisition by Bristol Myers Squibb, namely the $14 billion acquisition of Karuna Therapeutics Inc. announced earlier in December, aiming to enhance its presence in the field of neuroscience.
For more info please visit Bristol Myers Squibb’s website at www.bms.com