Bristol Myers Squibb Further Diversifies Oncology Portfolio With Mega $8.4B Deal
Bristol Myers Squibb (NYSE:BMY) has announced a significant move to expand its oncology portfolio with a $8.4 billion deal. The company has entered into an exclusive license and collaboration agreement with SystImmune for the development of BL-B01D1, a potentially groundbreaking treatment for lung and breast cancer. This move represents a further step in Bristol Myers Squibb’s efforts to diversify and strengthen its position in the oncology market.
BL-B01D1, a first-in-class EGFRxHER3 bispecific antibody-drug conjugate (ADC), holds promise in treating patients with lung and breast cancer, with potential applications in additional tumor types as well. Under the agreement, SystImmune will be solely responsible for the development, commercialization, and manufacturing of BL-B01D1 in Mainland China, as well as manufacturing certain drug supplies outside of Mainland China. Bristol Myers Squibb, on the other hand, will assume sole responsibility for development and commercialization in the rest of the world.
To secure the rights to BL-B01D1, Bristol Myers Squibb will pay SystImmune up to $8.4 billion. This includes an upfront payment of $800 million to SystImmune and additional contingent payments of up to $7.1 billion, which will be based on specific milestones and achievements in the development and commercialization of BL-B01D1.
This deal comes as Bristol Myers Squibb continues to actively expand its oncology portfolio. The company recently acquired Orum Therapeutic’s ORM-6151 program and gained access to Tubulis’ ADC creation platform through a payment of $22.8 million. Moreover, the company holds a previous license for MORab-202 from Eisai. William Blair notes that this latest investment in ADC technology further diversifies and strengthens Bristol Myers Squibb’s position in the oncology market, which has seen increasing interest in ADCs among pharmaceutical companies.
The oncology landscape has been witnessing significant activity lately, with major deals and acquisitions taking place. AbbVie Inc recently agreed to acquire ADC-maker ImmunoGen Inc for $10.1 billion, while Pfizer Inc’s $43 billion acquisition of Seagen Inc has received all required regulatory approvals and is set to close on December 14.
Bristol Myers Squibb’s shares are currently down 0.18% at $51.00 during the premarket session on Tuesday, reflecting the market’s cautious response to the news.
With its latest $8.4 billion deal, Bristol Myers Squibb is furthering its efforts to diversify and strengthen its position in the competitive field of oncology. The exclusive license and collaboration agreement with SystImmune for BL-B01D1 provides the potential to treat patients with lung and breast cancer, as well as opportunities for expansion into additional tumor types. This strategic move aligns with Bristol Myers Squibb’s goal of enhancing its oncology portfolio through investments in innovative therapies. As the company continues to make significant strides in the field, the healthcare industry will be closely watching for further developments and advancements in the treatment of cancer.
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