The healthcare sector is abuzz with strategic M & A deals. Fresh on the heels of its $14 billion acquisition of Karuna Therapeutics (NASDAQ:KRTX), biopharmaceutical giant Bristol-Myers Squibb (NYSE:BMY) is now set to acquire RayzeBio (NASDAQ:RYZB) for $4.1 billion.
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While the KRTX deal aimed to boost BMY’s neuroscience portfolio, the acquisition of RayzeBio promises to bolster its Oncology franchise. RayzeBio is a clinical-stage company with a focus on radiopharmaceutical therapeutics (RPT), which bind to tumor cells and deliver targeted radiation. The company’s product pipeline is targeted at solid tumors, including small-cell lung cancer, hepatocellular carcinoma, and gastroenteropancreatic neuroendocrine tumors.
The $62.50 per share acquisition has received approval from the boards of both companies. The transaction remains subject to closing conditions and is anticipated to close in H1 2024. Recently, BMY announced a global strategic collaboration with SystImmune in a deal worth nearly $8.4 billion. It also expanded its global licensing and research collaboration with Avidity Biosciences (NASDAQ:RNA) in a $2.3 billion deal.
Separately, another healthcare heavyweight, AstraZeneca (NASDAQ:AZN), has announced the acquisition of Gracell Biotechnologies (NASDAQ:GRCL) for $1.2 billion. The move is expected to bolster AZN’s presence in cell therapies.
Is Bristol-Myers Squibb a Good Stock to Buy?
Overall, the Street has a Moderate Buy consensus rating on Bristol-Myers Squibb, and the average BMY price target of $60.93 points to a 16.5% potential upside in the stock. That’s on top of a nearly 8% jump in the company’s share price over the past month. Meanwhile, RYZB shares have nearly doubled in today’s early session.
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