Bristol Myers Squibb (BMY) announced its $14 billion acquisition of Karuna Therapeutics (KRTX) on Friday, sending KRTX stock into the stratosphere.

prescription to succeed in the market may make your head spin. On this episode of “Industry Insights,” we’ll discuss what factors to consider with biotech stocks. We also examine how FDA approvals influence sector performance over the long term.” vid-name=”Biotech Stocks Are Shooting Higher. Here’s How You Can Play Them.” vid-cat=”Industry Insights” vid-date=”12/19/2023″ vid-date-tmsp=”1702977121″ vid-image=”https://www.investors.com/wp-content/uploads/2023/12/pXpNIwoM-640×360.jpg” vid-authors=”MEREDITH HEYMAN”>
X

The deal comes as the Food and Drug Administration reviews Karuna’s experimental schizophrenia treatment, KarXT. If approved in September, KarXT would be the first new mechanism to tackle the disease in decades. Karuna is also working on treatments for psychosis due to Alzheimer’s disease and other neuropsychiatric and neurodegenerative diseases.

In premarket action on the stock market today, KRTX stock soared 47% to 317, just below the buyout price of $333 a share. Bristol Myers stock slipped a fraction to 51.04.

More to follow.

Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.

YOU MAY ALSO LIKE:

Argenx Crashes 25% As The Setbacks Mount For Its Hallmark Drug, Vyvgart

The Cream Of The Crop: 5 Biotechs That Outrank Most Stocks

IBD Stock Of The Day: See How To Find, Track And Buy The Best Stocks

Watch IBD’s Investing Strategies Show For Actionable Market Insights

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today