September 13, 2024
Growth Portfolio and IRA Impact
BMS's growth portfolio has performed well, now accounting for over 45% of the company's total revenue, and the company aims to surpass the 50% mark in the coming year. Despite the anticipated impact of the Inflation Reduction Act (IRA) on its flagship product, Eliquis, in the near-to-medium term, BMS's established medicines continue to perform well overall. Additionally, the company has promising line extensions for key products in its pipeline, further diversifying its products.
Strategic M&A Activities
The past year has been a period of significant M&A activity for BMS as the company strengthened its portfolio through three major acquisitions:
1. Karuna Therapeutics ($14B): This acquisition bolstered BMS's neuroscience portfolio.
2. RayzeBio ($4.1B): By acquiring RayzeBio, BMS expanded its footprint into the rapidly evolving field of radiopharmaceuticals.
3. Mirati Therapeutics ($5.8B): This acquisition enhanced BMS's oncology pipeline.
Promising Pipeline Candidates
KarXT: A Potential Game-Changer in Schizophrenia Treatment
One of the most promising candidates in BMS's pipeline is KarXT, a unique dual M1/M4 agonist that holds the potential to become the first drug with a new mechanism of action for treating schizophrenia in over 70 years. BMS began commercial preparation efforts even before the acquisition deal with Karuna Therapeutics closed, ensuring a head start in the launch phase.
Karuna, the original developer of KarXT, had already initiated the process of building commercial infrastructure that BMS subsequently expanded upon, particularly on the sales side. This strategic move aims to facilitate broader adoption of KarXT early in its launch phase. BMS anticipates KarXT's launch in 2025, with FDA approval expected next month.
The unmet need in the schizophrenia treatment landscape is substantial. An estimated 1.6 million patients are treated in the United States, 75% of whom are not adequately treated on standard-of-care therapies. KarXT stands out as a highly differentiated treatment option that offers an improved safety profile and efficacy on par with the best atypical antipsychotics currently available. Large phase 3 studies have demonstrated KarXT's ability to improve positive symptoms, negative symptoms, and cognition in schizophrenia patients; this has generated significant excitement within the medical community.
BMS is currently conducting studies to inform the use of KarXT, including its potential for combination therapy with other treatments. If successful, an adjunctive indication would provide a strong competitive advantage, as no other medication in this therapeutic area currently holds an adjunctive indication.
Looking ahead, BMS is exploring KarXT's potential in other indications, such as Alzheimer's Disease, bipolar disorder, and autism spectrum disorder, further expanding the therapy's potential impact.
Milvexian: Complementing Eliquis in the Cardiometabolic Portfolio
Another promising product in BMS's pipeline is Milvexian, an oral Factor XIa inhibitor for atrial fibrillation being developed in partnership with Johnson & Johnson. Granted Fast Track designation by the FDA for three Phase 3 indications, Milvexian complements Eliquis in BMS's cardiometabolic portfolio.
Opdualag: Advancing Immuno-Oncology Therapies
In the oncology space, BMS continues to invest in its strong immuno-oncology portfolio, including Opdivo (nivolumab), which is currently being evaluated in combination with relatlimab as the combo Opdualag. While Opdualag is already approved for the treatment of melanoma, it missed its primary endpoint in a trial for colorectal cancer. Opdualag is currently being evaluated for non-small cell lung cancer in a Phase 2 clinical trial, with estimated completion in September 2025.
Conclusion
Bristol Myers Squibb's presentation at the Morgan Stanley Annual Healthcare Conference showcased the company's growth plain in the face of LOEs and evolving market conditions. With a robust growth portfolio, strategic M&A activities, and a promising pipeline, BMS is well-positioned to maintain its leadership position in the pharmaceutical industry. The company's commitment to operational efficiency, resource allocation, and portfolio prioritization further strengthens its ability to navigate the post-IRA landscape and deliver value to patients and stakeholders alike.
