Bristol Myers Squibb Reshapes Portfolio Amid Cost-Cutting Push

Bristol Myers Squibb (BMS) has made significant changes to its drug development pipeline as part of an aggressive cost-cutting strategy, dropping several promising candidates despite positive clinical results. The moves come as the company aims to streamline operations and focus on high-priority assets under the leadership of new CEO Chris Boerner.

Cendakimab Axed Despite Phase 3 Success

In a surprising turn of events, BMS has decided not to commercialize cendakimab, an antibody targeting IL-13, despite the drug meeting its co-primary endpoints in a phase 3 trial for eosinophilic esophagitis. This decision effectively withdraws BMS from the competition against Regeneron and Sanofi's blockbuster drug Dupixent, as well as Takeda's Eohilia in this therapeutic area.

Adam Lenkowsky, chief commercialization officer at BMS, explained the rationale behind this move: "Given the data that we have seen, we've made the decision not to commercialize cendakimab. We're going to continue to prioritize investments and opportunities where we have a competitive advantage."

TYK2 Inhibitor Development Halted

BMS has also pumped the brakes on the development of BMS-986322, a second-generation TYK2 inhibitor that completed a phase 2 trial in psoriasis last August. Despite the drug still being listed in BMS's pipeline, Samit Hirawat, head of development at BMS, confirmed that the program has stalled.

"We have to decide within our pipeline where we are going to really focus and prioritize," Hirawat stated. "At the current time, our focus is truly squarely on Sotyktu and maximizing that opportunity from a development and commercial perspective. So, at this time, that TYK2 is not in development."

Strategic Refocus and Financial Targets

These pipeline adjustments are part of a broader cost-cutting initiative at BMS. CEO Chris Boerner initially targeted $1.5 billion in savings but has since increased that goal by an additional $2 billion. The company is setting a higher bar for investments, focusing on areas where it believes it can deliver potentially transformational outcomes for patients and the highest returns for the company.

Despite these cuts, BMS remains active in certain areas. The company has pulled forward an anticipated readout from a phase 3 study of iberdomide in multiple myeloma after adding minimal residual disease (MRD) as a co-primary endpoint. BMS is also exploring the use of MRD as a potential endpoint to accelerate development across its multiple myeloma portfolio.

Additionally, BMS continues to pursue strategic acquisitions, having recently entered the radiopharmaceuticals space with the $4.1 billion acquisition of RayzeBio. Boerner indicated that the company is open to further business development opportunities that align with their financial and scientific goals, particularly in enhancing their newly acquired radiopharmaceutical capabilities.