How many partners does Bristol-Myers Squibb have?
Like many pharmaceutical companies Bristol-Myers Squibb does not reveal its exact number of alliances.
Some measure of how important alliances are within the company can be seen from the financial figures it provides in its SEC 10K report which indicates that in 2008 the company received $870 million (24%) in receivables net from alliance partners out of a total of US$3,710 receivables net. This is up from 2007 when the company received $602 million (15`%) in receivables net from alliance partners out of a total of US$3,994 receivables net. In 2008 Bristol-Myers-Squibb made a total of US$348 million in upfront and milestone payments out of its US$3.6 billion spent on research and development. A large proportion of these payments went to Exelixis, PDL BioPharma Inc, and KAI Pharmaceuticals.
Bristol-Myers Squibb derives a majority of its revenue from a few key products, many of them the result of alliances or licensing agreements with other companies. In 2008, net sales of Plavix contributed US$5.6 billion in revenue, representing 27% of the company’s total net sales. Plavix was codeveloped and is jointly marketed with Sanofi-Aventis. The same year Bristol Myers-Squibb registered that the net sales of Ablify contributed approximately US$2.2 billion to its revenue, representing approximately 10% of total net sales. The drug was co-developed and commercialised with Otsuka Pharmaceutical and is the subject of a co-promotion and co-marketing agreement. Three other products Avapro/Avalide (a drug co-developed and marketed with Sanofi-Aventis), Reyataz (a drug developed under a worldwide license with Novartis) and the Sustiva (for which Bristol-Myers Squib has a commercial joint venture with Gilead Sciences) each contributed more than US$1.0 billion in net sales in 2008.
How does Bristol-Myers Squibb form alliances?
In order to facilitate alliances, in 2007 Bristol-Myers Squibb established a strategy called “String of Pearls”. The aim of this strategy is to build up a suite of innovative alliances, partnerships and acquisitions with small and large companies. Since October 2007, the company has built up a range of alliances to fit with its strategy of focusing on 10 specific disease areas. Some of the key areas in which Bristol-Myers Squibb has already formed partnerships include: Alzheimer’s, cardiology, hepatitis C, haemotologic malignancies, solid tumours, immuno-science, and HIV.
Leading the String of Pearl’s strategy is the company’s Strategic Transactions Group, which incorporates elements from all parts of the company, including research and development, global marketing, legal, finance and human resources. The Group works directly for the Executive Committee of the company
Who are Bristol-Myers Squibb’s partners?
The following are some of Bristol-Myers Squibb’s recent partners: Albany Molecular Research, Alder Biopharmaceuticals, Ambit Biosciences, Asterand, AstraZeneca, DxS, Endocyte, Exelixis, Gilead Sciences, Imclone, ISIS, KAI Pharmaceuticals, KineMed, Lexicon Pharmaceuticals, Lipha, Medarex, MerckSerono, National Cancer Institute, Nissan Chemical Industries, Otsuka Pharmaceutical, PDL BioPharma, Pfizer, Sanofi-Aventis, Sankyo, Teijin Pharma, Yale University and ZmyoGenetics.
What collaborations has Bristol-Myers Squibb entered into over the past few years?
- In November 2009 Bristol-Myers Squib entered a global agreement with Alder Biopharmaceuticals for the development and commercialization of ALD518, a novel biologic that has completed Phase IIa development for the treatment of rheumatoid arthritis. ZymoGenetics is to receive an upfront cash payment of US$85 million for the development and commercialisation rights to PEG-Interferon lambda, and is eligible to receive an additional license fee of US$20 million in 2009. ZymoGenetics could receive additional payments of up to US$430 million based on pre-defined development and regulatory milestones for PEG-Interferon lambda in Hepatitis C, up to $287 million in development and regulatory milestones for other potential indications, and up to $285 million based on pre-defined sales-based milestones. The companies agreed to co-develop PEG-Interferon lambda in the US and Europe and will share development costs. ZymoGenetics is to conduct a significant portion of continuing Phase I and certain Phase II development activities. ZymoGenetics will have the option to co-promote in the US and to share profits on product sales with Bristol-Myers Squibb. ZymoGenetics may opt out of the co-development, co-promotion and profit sharing arrangement in the US, in which case ZymoGenetics will receive royalties on PEG-Interferon lambda sales worldwide.
- In May 2009 Bristol-Myers Squibb entered a two-year collaboration with KineMed in the area of Alzheimer’s disease and other neurodegenerative conditions. Under the collaboration KineMed’s stable isotope technology is being used to identify novel biomarkers that can be used to assess the extent and treatment of Alzheimer’s disease.
- In March 2009, Bristol-Myers Squibb entered a global collaboration with Nissan Chemical Industries and Teijin Pharma for the development and commercialisation of an investigational compound in Phase I clinical development in Japan for patients with atrial fibrillation.
- In January 2009, Bristol-Myers Squibb and ZymoGenetics started a global collaboration for PEG-interferon lambda, a novel interferon currently in Phase Ib clinical development for the treatment of hepatitis C.
- In December 2008, Bristol-Myers Squibb and Exelixis entered into a global collaboration covering two novel cancer programmes: an investigational anticancer compound currently in Phase III clinical development for medullary thyroid cancer, and a compound in Phase I clinical development for the treatment of patients with advanced solid tumor malignancies.
- In December 2008, Bristol-Myers Squibb and AstraZeneca announced expansion of their worldwide collaboration to include the development and commercialisation of dapagliflozin in Japan. Dapagliflozin, one of two investigational drugs under joint development by the companies, is currently being studied in Phase III clinical trials in several countries, including the U.S., to assess its efficacy and safety as a once-daily treatment for type 2 diabetes.
- In August 2008, Bristol-Myers Squibb and PDL BioPharma began the global co-development and co-commercialisation of elotuzumab, a potential first-in-class biologic approach for the treatment of multiple myeloma.
- In May 2008, Bristol-Myers Squibb and KAI Pharmaceuticals started a global development and commercialisation collaboration for a novel investigational medication for the emergency room treatment of acute heart attack.
- In January 2007, Bristol-Myers Squibb entered into co-development and co-commercialisation agreement with AstraZeneca for the investigational compounds discovered by Bristol-Myers Squibb, Onglyza (saxagliptin), approved by the US Food and Drug Administration for the treatment of type 2 diabetes in adults, and dapagliflozin, an investigational compound for type 2 diabetes.
- In April 2007, Bristol-Myers Squibb entered into a worldwide agreement with Pfizer for the codevelopment and
cocommercialisation of the investigational compound discovered by Bristol-Myers Squibb called apixaban, an anticoagulant being studied for the prevention and treatment of a broad range of venous and arterial thrombotic conditions. - In 2005 Bristol-Myers Squibb received an exclusive license to develop and commercialize a series of biogenic amine reuptake inhibitors from Albany Molecular Research Inc’s proprietary research programme. To date, Bristol-Myers Squibb has selected three compounds from this programme for approval to initiate Phase I studies. The two companies are evaluating additional compounds under this collaboration to develop improved treatments for diseases of the central nervous system.
