Bain Capital and Bristol Myers Squibb Launch $300M Immune Disease Startup

Bristol Myers Squibb (BMS) and investment firm Bain Capital have joined forces to create a new biotechnology startup focused on developing five experimental immune disease drugs. The yet-to-be-named company will begin with a $300 million funding commitment led by Bain Capital and will advance three clinical-stage drug prospects and two Phase 1-ready medicines targeting autoimmune diseases such as lupus, plaque psoriasis, and atopic dermatitis.

Strategic Partnership and Asset Transfer

The newly formed company represents a strategic shift for Bristol Myers Squibb, which will receive a 20% equity stake in the startup. BMS could also benefit from milestone payments tied to the success of the five drug programs and royalties on any eventual sales. The pharmaceutical giant has decided to focus its internal efforts on drugs with the potential to "reset the immune system and promote tissue repair," including cell therapies for autoimmune diseases and a multifunctional antibody for IgG4-related disease in collaboration with Zenas Biopharma.

Dan Lynch, a former Bristol Myers executive, will serve as the startup's executive chairman and interim CEO. The board of directors will include Robert Plenge, BMS's executive vice president and chief research officer, alongside Bain Capital representatives Nicholas Downing, Adam Koppel, and Andrew Kaplan.

Drug Pipeline and Development Focus

The startup's initial pipeline consists of five promising drug candidates:

1. Afimetoran: A clinical-stage drug that blocks a pair of toll-like receptors, being developed for lupus.
2. TYK2 inhibitor: Similar to BMS's marketed medicine Sotyktu, this drug is already in clinical testing.
3. IL2 fusion protein: In clinical development for lupus and atopic dermatitis.
4. IL8 targeting biologic: Ready for Phase 1 testing.
5. IL10 targeting biologic: Also prepared to enter clinical trials.

These assets target "promising mechanisms" in autoimmune diseases, according to the companies. The formation of this new entity allows Bristol Myers to monetize pipeline projects that may have stalled or no longer fit its strategic plans while providing Bain Capital with an opportunity for potentially quicker returns on investment.

Industry Trend and Bain Capital's Track Record

This startup launch follows a trend in the biotechnology industry where venture capital firms partner with large pharmaceutical companies to create new entities around existing drug candidates. Bain Capital's life sciences division has successfully employed this strategy multiple times over the past eight years.

Notable examples include the launch of Springworks Therapeutics in 2017, built around four of Pfizer's experimental therapies, and the co-founding of Cerevel Therapeutics with Pfizer in 2018, focusing on neuroscience drugs. Both companies have since been acquired in multibillion-dollar deals. Bain Capital has also created companies like Aiolos Bio and Timberlyne Therapeutics by in-licensing medicines from China.

Julie Rozenblyum, Bristol Myers' senior vice president of business development, expressed confidence in the new venture, stating, "These assets have significant potential, and we are confident that this new company will drive their development to ensure greater impact for patients. Bain Capital's exceptional track record in building successful life science companies by providing focused development and dedicated resources makes them ideally suited to advance these assets to realize their full promise."