BRISTOL Myers Squibb agreed to buy radiological drug developer RayzeBio for about US$4.1 billion, the latest deal in a buying spree to bolster its pipeline.

Bristol will pay US$62.50 a share for San Diego-based RayzeBio, which is targeting a variety of tumours in the lung, pancreas, liver and other organs with radioactive drugs, Bristol said on Tuesday (Dec 26). That is more than double RayzeBio’s Friday closing price of US$30.57. 

RayzeBio jumped 98 per cent before US markets opened. If the gain holds into regular trading hours, it will be the company’s biggest since the shares began trading in September. Bristol shares were little changed in premarket trading in New York.

Chief executive officer Chris Boerner hinted that Bristol was still on the hunt for deals last week when the company agreed to pay US$14 billion for schizophrenia drug developer Karuna Therapeutics. With RayzeBio, Bristol is rounding out its portfolio with drugs that target cancer with tumour-killing radiation. 

Pharmaceutical companies are increasingly interested in drugs that can precisely deliver medication to tumours, while leaving surrounding tissues relatively unscathed. The approach, similar to that employed by the antibody-drug conjugates made by Pfizer acquisition Seagen, is seen leading to higher efficacy with fewer side effects.

Bristol is also getting US$500 million in cash with the purchase, making it worth US$3.6 billion net. BLOOMBERG 

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