Bristol Myers Squibb, Bain Capital Form Autoimmune Disease Biopharmaceutical Company

Bristol Myers Squibb and Bain Capital have announced the formation of a new independent biopharmaceutical company focused on developing therapies for autoimmune diseases. The new entity will initially acquire five immuno-oncology assets from Bristol Myers Squibb, with a financing commitment of 300 million dollars, primarily provided by Bain Capital. This strategic partnership aims to accelerate the development of innovative treatments for patients suffering from autoimmune conditions.

The new company's research pipeline includes three drugs currently in clinical trials and two others that are in the pre-clinical stage. All of these assets are targeted at the mechanisms of action for autoimmune diseases. Among the core assets, afimetoran is an oral drug currently in the mid-stage clinical trial for systemic lupus erythematosus, while BMS-986322 has shown positive effects in mid-stage trials for plaque psoriasis.

According to the terms of the agreement, Bristol Myers Squibb will hold nearly 20% of the new company's shares and will receive royalties and milestone payments based on the development and commercial success of these assets. Additionally, the Canada Pension Plan Investment Board has also participated in this investment.

This collaboration leverages Bristol Myers Squibb's expertise in immuno-oncology and Bain Capital's investment capabilities to drive forward the research and development of these promising therapies. The focus on autoimmune diseases highlights the growing need for effective treatments in this area, as these conditions affect millions of people worldwide.

The formation of this new biopharmaceutical company underscores the increasing trend of partnerships between pharmaceutical companies and private equity firms. Such collaborations enable the pooling of resources and expertise, leading to more efficient and effective drug development processes. By combining Bristol Myers Squibb's scientific knowledge with Bain Capital's financial backing, the new company is well-positioned to make significant advancements in the field of autoimmune disease treatment.

Bristol Myers Squibb is currently investing in a series of new drugs to offset the declining sales of its flagship products. The company's top-selling cancer immunotherapy drug, Opdivo, is expected to face pricing pressures by 2030, while its blood thinner, Eliquis, will face generic competition by 2028. This strategic move with Bain Capital is part of Bristol Myers Squibb's broader effort to secure its future in the competitive pharmaceutical landscape.