BMS Spins Off New Autoimmune-Focused Biotech with $300M Bain Capital Backing

Bristol Myers Squibb (BMS) has announced the creation of a new spinout company focused on autoimmune diseases, backed by $300 million in funding led by Bain Capital. The move comes as part of BMS's ongoing cost-cutting initiatives and strategic shift in immunology research.

Five-Drug Portfolio Transfer

The unnamed biotech will receive five autoimmune disease drugs from BMS's pipeline:

1. Afimetoran: A TLR7/8 inhibitor in phase 2 trials for systemic lupus erythematosus (SLE)
2. BMS-986322: An oral TYK2 inhibitor that completed a mid-stage plaque psoriasis trial
3. BMS-986326: An IL2 fusion protein in phase 1 trials for SLE and atopic dermatitis
4. BMS-986481: A phase 1-ready biologic targeting the IL18 pathway
5. BMS-986498: A phase 1-ready biologic targeting the IL10 pathway

Financial and Operational Details

The new company will launch with a significant financial foundation:

• $300 million in financing led by Bain Capital
• BMS retaining a nearly 20% equity stake
• Potential for royalties and milestone payments to BMS upon drug success

Key leadership appointments include:

• Daniel Lynch as Executive Chairman and interim CEO
• Dr. Robert Plenge, BMS's chief research officer, joining the board of directors

Strategic Implications for BMS

This spinout aligns with BMS's broader corporate strategy:

• Part of a $2 billion cost-saving initiative targeted for completion by 2027
• Follows an earlier $1.5 billion savings plan announced in April 2024
• Represents a shift in BMS's immunology research focus towards assets that can "reset the immune system and promote tissue repair"

Julie Rozenblyum, Senior Vice President of Business Development at BMS, emphasized the potential of the transferred assets and expressed confidence in Bain Capital's ability to advance their development.