Bristol-Myers CEO talks new acquisitions: ‘Writing the next chapter’

Bristol-Myers Squibb CEO Chris Boerner detailed the pharmaceutical giant’s bundle of recent acquisitions in a Monday interview with CNBC’s Jim Cramer, and indicated the company is in a transformative stage.

“We are writing the next chapter of this company,” Boerner said. “And we’ve got real financial strength that has enabled us to go and actually bring innovation in to the company from outside. And that’s what we’ve done with these most recent deals.”

Bristol-Myers Squibb announced three multi-billion-dollar acquisitions towards the end of 2023. The company plans to buy RayzeBio and Mirati Therapeutics, both of which are known for cancer drugs. It also intends to buy Karuna Therapeutics, which develops medications to treat neurological and psychiatric conditions.

Boerner expressed particular excitement about its deal with Karuna, saying the company wants to “accelerate” its business in neuropsychology. Karuna’s new medication, KarXT, is expected to treat schizophrenia as well as psychosis in Alzheimer’s patients.

According to Boerner, the the drug is unique because it has shown high efficacy without some of the side effects of other antipsychotic drugs, such as weight gain.

“We believe commercially they’re attractive opportunities, and, as I said, real potential is not just in neuropsych,” he said. “It’s that bridge to neurodegeneration, and, you know, we’re on the potential upswing of being able to provide really meaningful improvements in the lives of patients with Alzheimer’s disease.”