Bristol Myers Squibb (BMY), a leading biopharmaceutical company, announced today that it has agreed to acquire RayzeBio (RYZB), a clinical-stage company developing novel radiopharmaceutical therapies for solid tumors, for $62.50 per share in cash, or $4.1 billion in total.

The deal, which was approved by both boards, will expand Bristol Myers Squibb’s oncology portfolio with RayzeBio’s pipeline of actinium-based drugs that target and kill cancer cells with precision. RayzeBio is building a manufacturing facility in Indiana and expects to start producing its drugs in 2024.

Bristol Myers Squibb will finance the acquisition with new debt and expects it to lower its earnings per share by $0.13 in 2024. The company will launch a tender offer for RayzeBio’s shares and expects to close the transaction in the first half of 2024, subject to regulatory approvals and other conditions.

“This transaction enhances our increasingly diversified oncology portfolio by bringing a differentiated platform and pipeline, and further strengthens our growth opportunities in the back half of the decade and beyond,” said Christopher Boerner, Ph.D., Chief Executive Officer of Bristol Myers Squibb.

“Radiopharmaceutical therapeutics are already transforming cancer care, and RayzeBio is at the forefront of pioneering the application of this novel modality. We look forward to supporting and accelerating RayzeBio’s preclinical and clinical programs and advancing its highly innovative radiopharmaceutical platform.”

Samit Hirawat, M.D., Executive Vice President, Chief Medical Officer, Drug Development of Bristol Myers Squibb, said, “Acquiring RayzeBio’s differentiated actinium-based radiopharmaceutical platform will establish Bristol Myers Squibb’s presence in one of the most promising and fastest-growing new modalities for the treatment of patients with solid tumors – delivering radioactive payloads to cancer cells in a targeted manner.”

“In addition, RayzeBio’s platform has the potential to be a significant IND engine, generating several therapeutic candidates in the future by leveraging our global drug development capabilities and infrastructure.”

Ken Song, M.D., President and CEO of RayzeBio, said, “Despite therapeutic advances in recent years, the need for more effective treatments in solid tumors persists, and radiopharmaceutical therapeutics are positioned to be an important next wave of innovation in oncology therapy.

Bristol Myers Squibb’s well-established presence in oncology and deep expertise in developing, commercializing and manufacturing treatments on a global scale makes it the ideal partner for RayzeBio at this important moment in our evolution. I am excited to see what our team achieves as part of Bristol Myers Squibb.”

Bristol Myers Squibb to buy Karuna Therapeutics for $14 billion