Bristol Myers Squibb Accelerates M&A to Counter Looming Generics Threat, With Up to 47% of Revenue at Risk by 2030

　　【Pharmaceutical Network Enterprise News】Industry analysis points out that by 2030, the loss of patent exclusivity is expected to have a significant negative impact on Bristol-Myers Squibb (BMS), Amgen, and Pfizer. By 2030, the revenue that could be eroded by generic drugs for the three companies is projected to reach 47%, 29%, and 28% of their respective total revenues in 2025. In response, BMS is accelerating mergers and acquisitions to expand its product pipeline, injecting more "fresh blood" into the company. According to statistics, in 2023, BMS initiated multiple acquisitions.
 

On December 26, 2023, BMS announced that it had reached an acquisition agreement with biotechnology company RayzeBio, Inc. According to the agreement, BMS will acquire RayzeBio at a price of $62.50 per share, with the total transaction valued at approximately $4.1 billion.
 

Reportedly, RayzeBio, which Bristol-Myers Squibb (BMS) acquired at a 100% premium, is a radiopharmaceutical therapy (RPT) company focused on developing anticancer drugs using radioactive isotopes. The company’s most advanced product in development is “RYZ101,” designed to deliver the synthetic radioactive isotope actinium-225 to tumors. The evaluation process for treating gastroenteropancreatic neuroendocrine tumors (GEP-NETs) with this drug has entered Phase III clinical trials.
 

On December 22, 2023, BMS announced that it had signed an agreement with Karuna Therapeutics to acquire Karuna for $330 per share in cash, at a total price of $14 billion.
 

Data shows that Karuna is an innovative company focused on product development in the field of neuroscience. Its core product, the muscarinic antipsychotic drug KarXT, has been submitted for market approval in the United States for the treatment of adult schizophrenia. The PDUFA date for this application is September 26, 2024. If approved, KarXT will become the first treatment for schizophrenia with a new pharmacological mechanism in decades.
 

On October 8, 2023, BMS announced that it had reached a merger agreement with Mirati Therapeutics ("Mirati"). According to the terms of the agreement, BMS will acquire Mirati at a price of $58 per share, representing an equity value of $4.8 billion, with a total value of up to $5.8 billion including contingent value rights (CVR).
 

Data shows that Mirati is a biotechnology company at the commercial stage. The company is relentlessly committed to launching therapies that address highly unmet needs, including lung cancer, and advancing a pipeline of novel therapies targeting the genetic and immune drivers of cancer. The company's key drugs include KRAZATI (adagrasib): a KRAS G12C small molecule inhibitor for treating KRAS-G12C mutated NSCLC, colorectal cancer, pancreatic cancer, and other solid tumors. MRTX1719: a potential MTA-cooperative PRMT5 inhibitor currently in Phase 1 development. MRTX1133: an effective, selective, and non-covalent KRAS G12D inhibitor currently in Phase I clinical trials. MRTX0902: a SOS1 inhibitor currently in Phase 1 clinical development.
 

Industry insiders stated that large pharmaceutical companies still have significant "firepower" on their balance sheets, and many companies are facing the critical point of a large number of drug patent expirations. Therefore, a wave of pharmaceutical company acquisitions continues to emerge. It is reported that, apart from BMS, AbbVie has reached two multi-billion-dollar deals since November 2023. AstraZeneca will acquire Gracell Biotechnologies, a Chinese company, for up to $1.2 billion, while Eli Lilly announced it would acquire Point Biopharma, a radiopharmaceutical company, for $1.4 billion.
 

Disclaimer: In no event shall the information or opinions expressed in this article constitute investment advice to any person.