Bristol-Myers Squibb Co. (NYSE: BMY), which announced an 11 billion dollar deal on Monday with BioNTech (Nasdaq BNTX), aims to transform cancer treatment.
ASCO in Chicago, which is the largest international cancer conference, announced this partnership.
Despite the price movement today, BMY is down about 25% from its year-to date high.
Christopher Boerner, chief executive officer of Bristol Myers spoke to CNBC this morning and outlined three major reasons why Bristol Myers has partnered with BioNTech.
1. Breakthrough science targets hard-to treat tumors
Christopher Boerner said that the BioNTech agreement stemmed from BioNTech’s dedication to a single mission: to tackle some of the toughest solid tumours, where existing treatments fail.
This collaboration will be focused on developing next-generation immunotherapies that target cancers such as lung cancer and triple negative breast cancer.
Boerner, speaking to CNBC said that while immune-oncology drugs have transformed the treatment landscape of many cancers in recent years, lasting remissions are still only seen by about 30 percent of patients.
This leaves an unmet need for a huge number of patients, which Bristol Myers and BNTX hope to help.
The core of this announced partnership is a promising candidate drug that combines VEGF inhibition and PDL1 in a bispecific molecule. This could lead to more lasting responses.
Boerner said, “We like the science.” He called the bispecific method a game changer.
2. Positioning for first-mover advantage: a strategic approach to key markets
The deal goes beyond the science to gain a competitive advantage.
Boerner stressed the importance of timing during an interview. He said that he learned this from his experiences in immuno-oncology: “If you want capture value in highly-competitive spaces, you have to be the first or the second.”
The chief executive of BioNTech believes that the assets it has are in a good position to be early players across a number of high-value cancer types.
This timing may give BMY a foothold to achieve commercial success. Its expertise in the marketing and distribution of oncology drugs further increases its chances to maximise the deal’s value.
3. Double down on long-term growth potential
Boerner believes that the BioNTech Partnership is more than just a short-term partnership. It will be able to drive the Pharma stock for many years.
BMS is in need of new products to drive future revenue. The collaboration between BioNTech and BMY offers this potential by combining BioNTech’s cutting-edge research with BMY’s commercialization abilities.
Boerner stated that “this deal gives us a new leg of growth for the end of this decade.” The partnership, which could become a cornerstone of Bristol Myers oncology strategy with BioNTech complementing its pipeline, may be able to grow as Bristol Myers continues their growth.
BMY bets big in a field with high stakes and high rewards, but has a vision for where science and the market will go. The partnership, if successful, could transform cancer treatments and bring in billions of dollars.
The post Bristol Myers CEO explains Why He’s Spending Billions on BioNTech Deal may be updated as new developments unfold.
