BMS Expands Cell Therapy Portfolio with $1.5B Orbital Therapeutics Acquisition

Bristol Myers Squibb (BMS) has announced a $1.5 billion acquisition of Orbital Therapeutics, signaling a significant expansion of its cell therapy capabilities. The deal, which focuses on Orbital's innovative RNA-based technologies, aims to bolster BMS's position in the rapidly evolving field of cell therapy, particularly for autoimmune diseases.

Strategic Expansion into In Vivo CAR T Technology

The acquisition centers around Orbital's RNA therapies that reprogram immune system cells in vivo. Orbital's lead asset, OTX-201, is a circular RNA therapy designed to produce CD19-targeting CAR constructs using the patient's own cells. This approach is being tested for B cell-driven autoimmune disorders, with the goal of depleting disease-causing cells and resetting the immune system.

Robert Plenge, chief research officer at BMS, emphasized the potential of this technology, stating, "In vivo CAR T represents a novel treatment approach that could redefine how we treat autoimmune diseases." The acquisition is expected to enhance BMS's cell therapy research platform and provide a "potential best-in-class therapy" for immune system reset in autoimmune conditions.

Enhancing Accessibility and Efficiency in CAR T-Cell Therapy

BMS, currently the only pharmaceutical company with two approved CAR T therapies targeting different antigens (Abecma for multiple myeloma and Breyanzi for various blood cancers), sees the Orbital acquisition as an opportunity to improve the efficiency and accessibility of CAR T-cell therapy.

Lynelle Hoch, president of BMS's Cell Therapy Organization, highlighted this aspect, noting the "incredible opportunity to make CAR T-cell therapy more efficient and accessible to more patients." This move aligns with the broader industry trend of expanding cell therapy applications beyond oncology into autoimmune disorders.

Market Reaction and Analyst Perspectives

Despite the significant investment, market reaction to the deal has been subdued. Analysts at BMO Capital Markets expressed a cautious outlook, stating they "continue to look for more" from BMS before becoming "excited about the near-term turnaround story."

The analysts also raised concerns about the broader applicability of cell therapies in autoimmune diseases, noting, "Cell therapy in autoimmune disease is interesting in the clear magnitude of benefit that patients receive from treatment. But the therapeutic burden and logistical challenges of administering these treatments to patients will likely limit use to only those in the most severe patient populations."

This acquisition comes at a time of mixed signals in the cell therapy field, with Takeda recently announcing its exit from cell therapy research, resulting in 137 job losses. However, the FDA's recent release of draft guidelines to improve drug development efficiency in the cell therapy space suggests ongoing regulatory support for the field.