Bristol’s $14 Billion Karuna Deal Highlights Race for New Drugs

Bristol Myers Squibb Co. agreed to buy schizophrenia drug developer Karuna Therapeutics Inc. for $14 billion in a fast-moving deal that highlights drugmakers’ race to fill pipeline holes.

Bristol’s negotiations for Karuna came together within the last two weeks, people familiar with the matter said. The drugmaker made an unprompted proposal days after AbbVie Inc. announced its $8.7 billion takeover of Cerevel Therapeutics Holdings Inc., another biotech working on neurological drugs, according to the people, who asked not to be named as the information isn’t public.

Bristol Myers will pay $330 a share in cash for the Boston-based company, according ...