Bristol Myers Squibb Takes On Novartis, Eli Lilly With RayzeBio $4B Deal In Radiopharmaceuticals
Portfolio Pulse from Vandana Singh
Bristol Myers Squibb (BMY) is set to acquire RayzeBio (RYZB) for $4.1 billion, enhancing its oncology portfolio with RayzeBio's radiopharmaceutical therapeutics (RPT) platform. The deal, expected to close in the first half of 2024, will be financed mainly through new debt and is anticipated to dilute BMY's non-GAAP diluted EPS by $0.13 in 2024. RYZB shares surged over 100% in premarket trading.
December 26, 2023 | 1:48 pm
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NEUTRAL IMPACT
Bristol Myers Squibb's acquisition of RayzeBio for $4.1 billion will diversify its oncology portfolio but is expected to dilute its non-GAAP EPS by $0.13 in 2024.
The acquisition of RayzeBio is significant for BMY as it expands its oncology portfolio, which is positive for long-term growth. However, the expected dilution of EPS in 2024 and the financing through new debt could be seen as short-term negatives by investors.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
RayzeBio's shares jumped over 100% in premarket trading following the announcement of its acquisition by Bristol Myers Squibb for $4.1 billion.
The acquisition announcement has led to a significant surge in RYZB's stock price, reflecting a positive short-term impact. The premium offered per share is a direct benefit to RayzeBio's shareholders.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100