Bristol Myers Squibb has successfully acquired RayzeBio, Inc., adding radiopharmaceutical therapeutics to its portfolio. The acquisition, completed through a tender offer of $4.1 billion, brings promising RPT pipeline, notably RYZ101 targeting solid tumors. Bristol Myers Squibb gains access to RayzeBio’s advanced RPT manufacturing facility, enhancing its capabilities. The transaction concluded via a merger without requiring a vote from RayzeBio’s stockholders.
Bristol Myers Squibb has officially finalized its acquisition of RayzeBio, Inc. (NASDAQ: RYZB), marking the completion of the transaction. RayzeBio shares are no longer traded on the NASDAQ Global Market, as RayzeBio now operates as a wholly owned subsidiary of Bristol Myers Squibb.
Chris Boerner, Ph.D., CEO of Bristol Myers Squibb, expressed enthusiasm about the acquisition, emphasizing the addition of radiopharmaceutical therapeutics (RPTs) to the company’s portfolio, which represents one of the fastest-growing modalities for treating solid tumors. Boerner highlighted the strategic move to expand beyond immune-oncology (I-O) and the potential for significant growth opportunities in the coming years.
The acquisition brings a promising pipeline of RPTs to Bristol Myers Squibb, notably RayzeBio’s lead program RYZ101 (225Ac-DOTATATE), designed to target somatostatin receptor 2 (SSTR2), particularly over-expressed in gastroenteropancreatic neuroendocrine tumors (GEP-NETs) and extensive stage small cell lung cancer (ES-SCLC). Ongoing clinical trials, including a Phase 3 study for GEP-NETs patients previously treated with somatostatin therapies, have shown encouraging interim results, suggesting both efficacy and tolerability. Additionally, a Phase 1b trial is underway to assess RYZ101 as a first-line treatment for ES-SCLC in combination with standard-of-care therapy.
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Furthermore, Bristol Myers Squibb gains access to RayzeBio’s cutting-edge RPT manufacturing facility, set to commence operations in the first half of 2024, enhancing the company’s capabilities in this field.
The acquisition was completed following Bristol Myers Squibb’s tender offer to acquire all outstanding shares of RayzeBio common stock for $62.50 per share in cash, totaling approximately $4.1 billion. Approximately 86% of RayzeBio’s issued and outstanding shares were tendered, meeting the requirements for the offer’s completion. The acquisition was finalized through a merger with Bristol Myers Squibb’s wholly owned subsidiary, Rudolph Merger Sub Inc., without requiring a vote from RayzeBio’s stockholders, as per Section 251(h) of the General Corporation Law of Delaware. As a result, each remaining share of RayzeBio common stock was converted into the right to receive $62.50 in cash, mirroring the tender offer price.