Bristol Myers to buy RayzeBio for about $4.1 billion to bolster its cancer drug business

Bristol Myers Squibb said on Tuesday it would buy RayzeBio for about $4.1 billion to bolster its cancer drug business, marking the second large deal struck by the drugmaker in less than a week.

With the deal, Bristol will gain access to RayzeBio’s late-stage targeted cancer therapy, RYZ101, which works by combining radioactive particles that kill cells with molecules that attach themselves to the tumors.

The U.S. drugmaker is turning to deals at a time when two of its top drugs, blood cancer treatment Revlimid and blood thinner Eliquis, face generic competition.

Its other top seller, cancer immunotherapy Opdivo, is also expected to face revenue loss as the drug will lose patent protection later this decade.

The drugmaker had announced a $14 billion buyout of schizophrenia drug developer Karuna Therapeutics on Friday, gaining a promising new type of antipsychotic medicine to help power growth.

Bristol said it will pay $62.50 for each share of RayzeBio in cash, representing a premium of 104% to the stock’s last close.

RayzeBio shares nearly doubled to $60.9 in premarket trading.

Bristol said it expects to finance the transaction primarily with new debt. The deal is expected to reduce its adjusted profit per share by about 13 cents in 2024, according to Bristol.