BMS Spins Out New Biotech with $300M Bain Capital Backing for Autoimmune Drug Development

Bristol Myers Squibb (BMS) has announced the creation of a new, independent biotech company focused on developing novel therapies for autoimmune disorders. The unnamed startup will be backed by $300 million in funding from Bain Capital and will take over the development of five immunology assets from BMS's pipeline.

Asset Transfer and Funding Details

The new company will receive five investigational assets from BMS, including three in clinical development and two that are Phase 1-ready. Leading the portfolio are afimetoran and BMS-986322, both in mid-stage development:

• Afimetoran: An oral TLR7/8 inhibitor being evaluated in a Phase 2 study for systemic lupus erythematosus (SLE). Phase Ib data from mid-2025 showed rapid and safe responses in patients with cutaneous lupus erythematosus.

• BMS-986322: An oral TYK2 inhibitor that completed a successful mid-stage trial for plaque psoriasis but was discontinued by BMS in February.

• BMS-986326: An IL-2 fusion protein in Phase 1 trials for SLE and atopic dermatitis.

• BMS-986481 and BMS-986498: Two Phase 1-ready biologics targeting the IL18 and IL10 pathways, respectively.

Bain Capital will contribute $300 million in capital funding, while BMS will retain a nearly 20% equity stake in the new company. BMS will also be eligible for royalties and success-based milestones for each asset.

Strategic Implications and Leadership

This spinout aligns with BMS's ongoing cost-cutting initiatives and strategic shift in immunology research. The company aims to save $2 billion by the end of 2027, on top of a separate $1.5 billion savings plan announced in April 2024.

Daniel Lynch, who serves on the boards of biotechs like Xilio, Springworks, and Blueprint, has been appointed as Executive Chairman of the new company's board of directors and interim CEO. BMS's chief research officer, Robert Plenge, M.D., Ph.D., will also serve on the board.

Julie Rozenblyum, Senior Vice President of Business Development at BMS, expressed confidence in the potential of the transferred assets and Bain Capital's ability to advance their development. The move allows BMS to focus on its core priorities while ensuring continued development of promising medicines.

This development comes amid Bain Capital's increased activity in the life sciences sector. The investment firm recently closed its fourth life sciences fund, raising $3 billion, and made a $3.3 billion acquisition of Mitsubishi Tanabe Pharma Corporation in February.