Bristol Myers Squibb (BMS) has completed its $4,1-billion acquisition of RayzeBio, a San Diego, California-based clinical-stage radiopharmaceutical company, The acquisition was announced in January 2024. 

RayzeBio has a position in actinium-based radiopharmaceutical therapeutics targeting solid tumors, including gastroenteropancreatic neuroendocrine tumors (GEP-NETs), small-cell lung cancer, hepatocellular carcinoma, and other cancers.   

Its lead program is RYZ101 (225Ac-dotatate), a small-cell lung cancer drug candidate in Phase III development targeting somatostatin receptor 2 (SSTR2) in patients with SSTR-positive GEP-NETs who have previously been treated with lutetium-177-based somatostatin therapies. Its pipeline also includes: RYZ801, a proprietary peptide for treating hepatocellular carcinoma, now in investigational new drug (IND)-enabling studies; an asset targeting CA9, which is expressed in renal cell cancer and currently in IND-enabling studies; and multiple preclinical assets to treat solid tumors.  

On the manufacturing side, BMS will gain a soon-to-be completed manufacturing facility. RayzeBio is completing construction of an in-house manufacturing facility in Indianapolis, Indiana, with GMP drug production expected to begin in the first half of 2024.  

In terms of the deal, BMS’ previously announced tender offer to acquire all of the outstanding shares of RayzeBio common stock was for a purchase price of $62.50 per share in cash, or approximately $4.1 billion. Approximately 53,052,499 shares of RayzeBio common stock were validly tendered, and not validly withdrawn from the tender offer, representing approximately 86% of RayzeBio’s issued and outstanding shares of common stock. In accordance with tender offer, all shares that were validly tendered and not validly withdrawn have been accepted for payment, and Bristol Myers Squibb expects to pay for all such shares. 

Following completion of the tender offer, Bristol Myers Squibb completed the acquisition of RayzeBio through the merger of its wholly owned subsidiary, Rudolph Merger Sub Inc., with and into RayzeBio, without a vote of RayzeBio’s stockholders,  As a result of the merger, each share of common stock of RayzeBio issued and outstanding and not tendered in the tender offer was converted into the right to receive an amount in cash equal to $62.50, without interest and less any required withholding taxes, the same price offered in the tender offer. 

Source: Bristol Myers Squibb