On December 26, Bristol Myers Squibb (BMS) announced that it was entering a merger agreement to acquire RayzeBio, Inc.
BMS will commence a tender offer to acquire all of the outstanding shares of RayzeBio common stock at a price of $62.50 per share in an all-cash transaction 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) company with an innovation-leading position in actinium-based RPTs and a pipeline of potentially first-in-class and best-in-class drug development programs. Current pipeline programs are targeting the treatment of solid tumors, including gastroenteropancreatic neuroendocrine tumors, small cell lung cancer, hepatocellular carcinoma and other cancers.
BMS is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. According to its 2022 annual report, BMS reported an annual revenue for 2022 of $46.2 billion.
The transaction is expected to be treated as a business combination and to be dilutive to Bristol Myers Squibb’s non-GAAP diluted earnings per share by approximately $0.13 in 2024.
BofA Securities, Inc. is serving as financial advisor to BMS, and Covington & Burling LLP is serving as legal counsel. Centerview Partners LLC is serving as financial advisor to RayzeBio, and Cooley LLP is serving as legal counsel.
According to data captured in the LevinPro HC database, this acquisition is the 103rd Pharmaceuticals transaction of 2023. This is also BMS’s fifth transaction of the year.
