Key Takeaways
- New biotech company formed: Bristol Myers Squibb (BMS) and Bain Capital launched an independent company, NewCo, focused on autoimmune disease therapies with $300 million in funding.
- Pipeline includes five assets: NewCo will advance three clinical-stage and two Phase I-ready immunology programs targeting TLR7/8, TYK2, IL2, IL18, and IL10 pathways.
- Strategic shift at BMS: The move reflects BMS’ evolving R&D focus on immune modulation and tissue repair, while maintaining a 20% stake and long-term upside through milestones and royalties.
Bristol Myers Squibb (BMS) and Bain Capital have announced the launch of a new independent biopharmaceutical company focused on developing innovative therapies for autoimmune diseases with high unmet medical need. Backed by a $300 million financing commitment led by Bain Capital, the company, referred to as NewCo, is expected to advance a pipeline of five immunology assets in-licensed from BMS. These assets include three clinical-stage and two Phase I-ready programs targeting mechanisms such as TLR7/8, TYK2, interleukin (IL)2, IL18, and IL10. Additionally, afimetoran, a TLR7/8 inhibitor, is in Phase II trials for lupus, while BMS-986322, an oral TYK2 inhibitor, showed positive Phase II results in plaque psoriasis.1
What is NewCo and how Does it Fit into BMS’s Broader Immunology Strategy?
“These assets have significant potential, and we are confident that this new company will drive their development to ensure greater impact for patients,” said Julie Rozenblyum, SVP, business development, BMS, in a press release. “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.”
Structure and Governance of NewCo
- The agreement grants NewCo rights to a set of immunology assets developed by BMS, with BMS retaining a nearly 20% ownership stake and eligibility for royalties and milestone payments based on asset performance.
- Robert Plenge, MD, PhD, EVP, and chief research officer at BMS, is expected to join NewCo’s board of directors.
- Daniel S. Lynch will serve as executive chairman of the board as well as interim CEO.
- Nicholas Downing, MD; Adam M. Koppel, MD, PhD; and Andrew Kaplan will represent Bain Capital on NewCo’s board of directors.1
Strategic Alignment with BMS’s Evolving R&D Focus
“We are excited to partner with BMS and we share their commitment to improving lives through science,” said Koppel, partner, Bain Capital Life Sciences, in the press release. “We look forward to working together and leveraging our company creation experience to build out this new platform and advance these distinct assets in an effort to bring innovative, high-quality therapies to patients with autoimmune diseases.”