Will Collaboration With Bain Capital Help BMY Advance Its Pipeline?

Core Insights - Bristol Myers (BMY) has partnered with Bain Capital to establish a new independent biopharmaceutical company focused on developing therapies for autoimmune diseases, addressing significant unmet patient needs [1][9] - Bain Capital will invest $300 million in the new company, while BMY will out-license five immunology candidates and retain a nearly 20% equity stake [1][3][9] Summary by Categories Company Developments - The new company will focus on autoimmune disease therapies, with BMY out-licensing five immunology candidates, including three clinical stage candidates and two phase I-ready candidates [2][3] - The most advanced assets include afimetoran, an oral TLR7/8 inhibitor in phase II for systemic lupus erythematosus (SLE), and BMS-986322, an oral TYK2 inhibitor with positive phase II results for plaque psoriasis [2] Financial Aspects - BMY will earn royalties and milestones based on the success of each asset in the new company [3][9] - BMY's shares have decreased by 17.2% year-to-date, contrasting with the industry growth of 0.6% [7][8] - BMY is trading at a price/earnings ratio of 7.59x forward earnings, lower than its historical mean of 8.51x and the large-cap pharma industry's 15.11x [10] Market Competition - BMY faces competition in the immunology space, particularly with its drug Sotyktu competing against Amgen's Otezla in psoriasis [5] - In oncology, BMY competes with major players like Merck, whose Keytruda dominates the immuno-oncology market [6] Future Estimates - The bottom-line estimate for 2025 has been revised down to $6.33 from $6.76 over the past month, with a slight decline in the 2026 estimate as well [11]