Bristol-Myers Squibb Co (NYSE:BMY, ETR:RM, OTC:BMYMP) has made its second major acquisition in the span of a week, this time buying cancer drug developer RayzeBio in a $4.1 billion deal.
The deal values RayzeBio at $62.50 per share. Following reports of the deal, the stock more than doubled in value to $61.40 Tuesday morning. Bristol Myers shares fell more than 2%.
For Bristol Myers, the new acquisition gives the company a late-stage drug called RYZ101 that utilizes radioactive particles to kill cancer cells. The drug is currently being evaluated in late-stage studies as a treatment for a rare variety of pancreatic cancer.
The deal also includes a RayzeBio manufacturing site for radio-pharmaceutical compounds currently under construction in Indianapolis.
This move comes less than a week after Bristol Myers announced a $14 billion deal to buy Karuna Therapeutics.
Karuna’s primary development focus is treatments for neurological and psychiatric conditions. Its flagship drug, KarXT, is an antipsychotic for patients with schizophrenia.
Both moves are significant, particularly after demand for its blood cancer medication Revlimid dropped in recent months due to competition from a generic version.