Bristol-Myers Squibb is calling it quits with its virology R&D program – a move that undoubtedly will impact its early stage scouting and acquisition efforts.
This largely impacts its early work in hepatitis B and HIV therapies, though it won’t affect the virology therapies currently in development or on the market. It’s cutting 100 jobs in the process, and shut down two sites, Bristol-Myers said in a statement.
It’s interesting timing: Just two weeks ago, I spoke with Bristol-Myers Squibb’s Donnie McGrath – a VP tasked with seeking out targets for acquisition and building out the pharma giant’s R&D pipeline.
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To an audience of venture investors and small life sciences companies, McGrath spoke of Bristol-Myers’ obvious strength in cancer research. However, he said the company was interested in growing other branches – including virology – though Bristol-Myers had an admittedly “narrow” scope.
He highlighted five areas that Bristol-Myers is actively pursuing: Virology, heart failure, fibrosis, genetically driven rare disease and immunoscience. Strike virology from the list – but the rest remain open for expansion.
The pharma giant has recently found success in cancer immunotherapy: Consider the recent success of Opdivo, which was recently forecasted to have a 2019 revenue of $5.68 billion.
As Bloomberg points out, Bristol-Myers also recently agreed to buy Flexus Biosciences and Rigel Pharmaceuticals – deals valued at $1.6 billion – to increase its cancer therapeutic pipeline.
Virology treatments account for about 30 percent of Bristol-Myers’ first quarter revenue – about $1.2 billion. Oncology therapies accounted only for about 22 percent, or $905 million.
Pharma Times points out this shakeup has been in the works since 2013.
The company will close two of its research centers – one in Waltham, Massachusetts and the other in Wallingford, Connecticut – and relocate up to 200 scientists to a new site in Cambridge that’s expected to open in 2018.