Biotech Values

[DewDiligence]

BMY, JNJ ink worldwide collaboration to develop/commercialize BMS-986177, a BMY anticoagulant ready for phase-2 that works by inhibiting FXIa:

https://news.bms.com/press-release/partnering-news/bristol-myers-squibb-announces-worldwide-collaboration-janssen-develop

The companies are expected to advance BMS-986177 into Phase 2 clinical trials in the second half of 2018 for the study of secondary stroke prevention.

…Janssen will pay Bristol-Myers Squibb an [undisclosed] upfront sum along with potential development and regulatory milestone payments. The companies will share development costs and commercial profits and losses. Additional terms of the agreement were not disclosed.

This is an odd partnership insofar as BMY and JNJ each have big-selling anticoagulant drugs (Eliquis and Xarelto, respectively) whose sales could be cannibalized by BMS-986177 if FXIa inhibition turns out to be a better MoA for anticoagulation than FXa inhibition.

On the other hand, by the time BMS-986177 gets to market, there won’t be much patent life remaining on Eliquis or Xarelto, so BMS-986177 could be considered a lifecycle management program for both BMY and JNJ (but not for PFE and Bayer, who co-own Eliquis and Xarelto, respectively).