Bristol Myers Squibb Takes On Novartis, Eli Lilly With RayzeBio $4B Deal In Radiopharmaceuticals

Bristol Myers Squibb & Co BMY has agreed to acquire RayzeBio Inc RYZB for $62.50 per share in cash, for a total equity value of approximately $4.1 billion, or $3.6 billion net of estimated cash acquired. 

RayzeBio is a clinical-stage radiopharmaceutical therapeutics (RPT) focused on actinium-based RPTs. 

Current pipeline programs are targeting the treatment of solid tumors, including gastroenteropancreatic neuroendocrine tumors (GEP-NETs), small-cell lung cancer, hepatocellular carcinoma and other cancers. 

RPTs bind to tumor cells and deliver targeted radiation to induce cancer cell death.

"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," said Christopher Boerner, Chief Executive Officer of Bristol Myers Squibb. 

"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," said Samit Hirawat, Executive Vice President, Chief Medical Officer, Drug Development of Bristol Myers Squibb.

RayzeBio is completing the construction of an in-house manufacturing facility in Indianapolis, Indiana, and GMP drug production is expected to begin in the first half of 2024.

The transaction is expected to be treated as a business combination and to dilute Bristol Myers Squibb's non-GAAP diluted earnings per share by approximately $0.13 in 2024. 

Bristol Myers Squibb expects to finance the acquisition with primarily new debt issuance. 

The transaction is expected to close in the first half of 2024. 

Price Action: RYZB shares are up 100.40% at $61.25 during the premarket session on the last check Tuesday.