Bristol Myers Squibb agreed to buy Orbital Therapeutics Oct. 10 for $1.5 billion in a cash transaction that strengthens Bristol Myers’s cell therapy portfolio, expanding CAR T-cell access to more patients in the future.
BMS’s further push into cell therapy is part of its intention of diversifying its portfolio and moving beyond established treatments such as the blood thinner Eliquis and cancer drug Revlimid.
Shares of BMS declined 50 cents, or 1.12%, to $44.18, after the market opened Friday morning.
Orbital is a privately held biotechnology company pioneering a new generation of RNA medicines that reprogram the immune system in vivo, enabling treatments that provide the precision, control, and flexibility needed to address the underlying biology and unique complexities of each disease.
The purchase includes OTX-201, an investigational next-generation CAR T-cell therapy designed to reprogram cells in vivo with potential best-in-class profile for autoimmune diseases. This in vivo approach, in which the patient’s own body serves as the manufacturer of CAR T-cells, has the potential to offer a reduced treatment burden and improved accessibility compared with ex vivo CAR T-cell therapies.
Additionally, BMS will acquire Orbital’s proprietary RNA platform, which integrates circular and linear RNA engineering, advanced LNP delivery, and AI-driven design to enable durable, programmable RNA therapies tailored to the distinct biology of a broad spectrum of diseases.
“In vivo CAR T represents a novel treatment approach that could redefine how we treat autoimmune diseases,” said Dr. Robert Plenge, executive vice president, chief research officer, BMS. “This acquisition enhances our robust cell therapy research platform and provides an opportunity to advance a potential best-in-class therapy designed to deplete autoreactive B cells and reset the immune system. We are excited by the promise this holds for patients with autoimmune diseases who are waiting for better options.”
“With the acquisition of Orbital Therapeutics and its next-generation RNA platform, we have an incredible opportunity to make CAR T-cell therapy more efficient and accessible to more patients,” said Lynelle B. Hoch, president, cell therapy organization, BMS. “As a leader in cell therapy, we are uniquely positioned to evaluate multiple different platform approaches to induce immune reset in autoimmune diseases and continue to optimize in vivo technology in clinical development.”
“This agreement with Bristol Myers Squibb, a recognized leader in global medicine, marks a transformational moment for Orbital and the advancement of RNA medicine,” said Ron Philip,
Under the terms of the agreement, BMS will pay $1.5 billion in cash at closing to acquire Orbital, which is subject to the satisfaction of customary closing conditions.
Covington & Burling LLP is serving as legal counsel to Bristol Myers Squibb. Centerview Partners LLC is serving as exclusive financial adviser to Orbital Therapeutics, and Goodwin Proctor LLP is serving as legal counsel.
