Bristol Myers Squibb (BMS) has concluded the acquisition of biopharmaceutical company Karuna Therapeutics for $14bn in cash.

The transaction was finalised following a definitive agreement signed by the companies in December 2023. Karuna now becomes a wholly owned BMS subsidiary.

The deal will boost BMS's neuroscience portfolio.

BMS has acquired Karuna's lead asset, KarXT (xanomeline-trospium), along with its early-stage and pre-clinical pipeline.

KarXT is an antipsychotic with a unique mechanism of action and a promising efficacy and safety profile.

The US Food and Drug Administration (FDA) recently accepted a new drug application for KarXT for the treatment of adults with schizophrenia, with an approval decision anticipated on 26 September 2025 under the Prescription Drug User Fee Act.

KarXT is also undergoing registrational trials as an adjunctive therapy for schizophrenia and for treating psychosis in Alzheimer's disease patients.

Its potential for further indications such as bipolar 1 disorder and agitation in Alzheimer's disease is being explored.

Financial advisory services for the deal were provided to BMS by Gordon Dyal and Citi, with Covington & Burling offering legal counsel.

Goldman Sachs acted as exclusive financial adviser to Karuna, with Simpson Thacher & Bartlett providing legal counsel.

Bristol Myers Squibb CEO Chris Boerner stated: “We are excited to expand our neuroscience portfolio as we welcome Karuna to Bristol Myers Squibb.

“Importantly, this transaction aligns with our commitment to strengthening BMS’s growth profile in the latter half of the decade and beyond. We look forward to working with Karuna’s talented team to bring KarXT to patients with schizophrenia later this year.”

The new development comes after the FDA’s committee voted eight to three to approve BMS and 2seventy bio’s Abecma to treat relapsed or refractory multiple myeloma.