Bristol-Myers is acquiring Karuna for $14 billion
Bristol-Myers Squibb Co (NYSE:BMY) stock is on the rise today, up 2.8% at $52.71 at last glance, after news that the biopharmaceutical company is acquiring Karuna (KRTX) for $14 billion. The deal, which will strengthen Bristol-Myers' neuroscience portfolio, is expected to close in the first half of 2024. KRTX is soaring after the news, up about 47%.
Since the start of the year, BMY is down around 26%, recently hitting a Nov. 30 two-year low of $48.25, its lowest point since the start of Covid. The stock has been on the rise since then, however, on track for its fourth-straight week of gains.
Call traders are blasting Bristol-Myers stock in response to today's events. So far, 20,000 calls have been exchanged, which is three times the amount typically seen at this point. The weekly 12/29 52-strike call is the most popular contract by far, where options are being sold-to-open.