Bristol Myers to purchase Karuna, maker of schizophrenia drug, for $14 billion

Bristol Myers Squibb said Friday that it will acquire Karuna Therapeutics, a developer of medicines for neuropsychiatric conditions, for $14 billion.

The deal values Karuna at $330 per share, or a 53% premium to its Thursday share price. The centerpiece of the transaction is a drug called KarXT to treat schizophrenia.

KarXT is currently under review by the Food and Drug Administration, and if approved next year, would usher in the first new class of medicines for the treatment of schizophrenia in decades.

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