Bristol Myers Squibb and Bain Capital Launch New Biopharma Company Focused on Autoimmune Disease Therapies

SmartCom APP learned that Bristol-Myers Squibb (BMY.US) and Bain Capital jointly announced the establishment of a new independent biopharmaceutical company focused on developing therapies for autoimmune diseases.

This new company will initially have five immunology assets acquired from Bristol-Myers Squibb and has secured a $300 million financing commitment, primarily from Bain Capital LLC.

The company's R&D pipeline includes three drugs in clinical trial stages and two drugs about to enter early research phases, with all assets targeting mechanisms of action for autoimmune diseases.

At its core assets, Afimetoran is an oral drug currently in the mid-stage clinical trial phase for systemic lupus erythematosus; BMS-986322 has shown positive results in mid-stage trials for plaque psoriasis.

According to the cooperation agreement, Bristol-Myers Squibb will hold nearly 20% of the equity in the new company and will receive royalties and milestone payments based on the R&D progress and commercialization success of these assets.

In addition, the company added that the Canada Pension Plan Investment Board also participated in this investment.

Last week, Bristol-Myers Squibb's Chief Medical Officer resigned after six years with the company. In a statement, the company announced that Samit Hirawat, who is responsible for the company’s new drug development, will step down on August 1 and continue to serve as a consultant until November. The news came as a surprise, as the pharmaceutical company is in urgent need of finding its next blockbuster product to reverse its declining performance.

Bristol-Myers Squibb is banking on a series of new drugs to offset the gradually declining sales of its older blockbuster medications. Opdivo, the company’s top-selling cancer immunotherapy drug, is expected to face pricing pressures by 2030, while its blood thinner Eliquis will encounter generic competition in 2028.

As of press time, the company's U.S. stock price slightly increased by 0.29% in after-hours trading.