Listen to this articleBristol Myers Squibb plans to acquire Orbital Therapeutics for $1.5 billion, the Lawrenceville-based company announced Oct. 10.
Privately held biotech Orbital has its headquarters in Cambridge, Mass. The company is working to pioneer “a new generation of RNA medicines that reprogram the immune system in vivo,” according to BMS.
“In vivo CAR T represents a novel treatment approach that could redefine how we treat autoimmune diseases,” explained 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.”
Lynelle Hoch is president of BMS’ Cell Therapy Organization. She said the deal presents “an incredible opportunity to make CAR T-cell therapy more efficient and accessible to more patients.”
Orbital CEO Ron Philip called the deal “a transformational moment for Orbital and the advancement of RNA medicine.”
“Together, we aim to deliver RNA medicines that provide patients with treatments that are simpler, safer, and more accessible compared to today’s complex therapies,” Philip added.
The agreement is subject to customary closing conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Until then, the companies will continue to operate separately and independently.
Refocusing operations
BMS recently announced another round of layoffs in New Jersey. The latest comes as part of the pharma giant’s “strategic productivity initiative.” That plan aims to cut $2 billion in costs by the end of 2027.
“Under this expanded initiative, savings will be driven by changes in organizational design and efforts to enhance operational efficiency. These savings will be removed from our cost structure to contribute to a leaner, more efficient company while investing behind growth brands and promising areas of science,” the company said in February.
Covington & Burling LLP serves as legal counsel to BMS. Centerview Partners LLC serves as exclusive financial advisor to Orbital, whole Goodwin Proctor LLP serves as legal counsel.
