Pharmaceutical giant Bristol-Myers Squibb (NYSE:BMY) announced Tuesday that it is acquiring RayzeBio (RYZB) for $4.1 billion, strengthening its oncology portfolio with promising radiopharmaceutical therapeutics (RPTs).

The deal, valued at $62.50 per RayzeBio share, was unanimously approved by both boards and is expected to close in the first half of 2024.

RayzeBio specializes in actinium-based RPTs, a targeted cancer treatment approach. Their lead program, RYZ101, is already in a Phase 3 clinical trial. Other assets in the pipeline focus on renal cell cancer.

Bristol Myers Squibb sees the acquisition as a key driver of future growth, particularly in the “back half of the decade and beyond.” CEO Christopher Boerner highlighted RPTs as “transforming cancer care” and RayzeBio as a pioneer in the field.

RayzeBio CEO Ken Song sees the partnership as ideal, praising Bristol Myers Squibb’s established presence and expertise.

Following the announcement, RYZB shares are up 97% premarket, while BMY has climbed 0.4%.