As the third core capability driving company growth after R&D and commercialization capabilities, business development (BD) is becoming an important way for pharmaceutical companies to enrich their innovation pipeline. Currently, in the context of continuous adjustments and changes in the global pharmaceutical industry, BD is also exploring long-term value for major pharmaceutical companies and is the best choice to cross the innovation cycle.
In the past decade, driven by multiple favorable factors such as policies, talent, and capital, China's pharmaceutical innovation has entered a rapid development stage, and China is also becoming an important source of innovation in the global pharmaceutical industry. It can be seen that in recent years, many multinational pharmaceutical giants have targeted BD towards local Chinese enterprises, including emerging Biotech companies. Chinese innovation has received global attention and recognition.
With the gradual deepening of China's integration into the global pharmaceutical industry, the BD model is also becoming more diverse. So what kind of BD project can become an industry benchmark? How can a BD project ensure its ultimate success?
Baishime Squibb Oncology, Hematology, and Cell Therapy
Liu Jie, Senior Vice President of Business Development Department
Liu Jie, Senior Vice President of the Oncology, Hematology, and Cell Therapy Business Development Department of Baishi Meishi Squibb, stated in an interview that achieving differentiated and refined BD is one of the shortcuts for pharmaceutical companies to continuously build innovation capabilities. An important experience for Bristol Myers Squibb in carrying out BD projects is not only to consider the originality of the technology platform, but also to pay attention to its compatibility with its own development strategy and BD strategy, while also considering the flexibility of the cooperation model.
The dual wheel drive of high-quality BD: strategic determination+flexible mode
As a globally renowned multinational pharmaceutical giant, BMS has achieved impressive results in the BD field.
In June 2022, Bristol Myers Squibb announced a total acquisition of Turning Point Therapeutics for $4.1 billion, creating the second largest acquisition in the global biopharmaceutical industry that year. Its heavyweight product, Riptinib, has recently been approved for listing by the US Food and Drug Administration (FDA).
In April 2023, Bristol Myers Squibb and Tubulis reached a strategic licensing agreement of up to $1 billion. Bristol Myers Squibb will acquire the latter's P5 coupled ADC technology platform to jointly develop a new generation of anti-tumor ADC drugs. This collaboration has added fuel to the global pharmaceutical industry's enthusiasm for the "Magic Bullet" ADC track.
In just October, Bristol Myers Squibb once again reached a final merger agreement with Mirati Therapeutics, which will receive the KRAS G12C inhibitor Krazati (Adarasib), which was only accelerated for market approval by the US FDA last year. The transaction is expected to be completed in the first half of 2024. It is widely believed in the industry that this acquisition will once again strengthen the strength of Bristol Myers Squibb's tumor pipeline and establish the company's leading position in the KRAS field.
From the above cooperation projects, it can be seen that Bristol Myers Squibb does not have a fixed template for the form and content of BD. Regarding this, Liu Jie pointed out that Bristol Myers Squibb has a good record of cooperation on a global scale. This is based on the BD team's in-depth understanding of the company's strategic goals, as well as comprehensive considerations of partner strategy, demands, and market conditions. Bristol Myers Squibb can tailor a business model for each cooperation, creating the most suitable business model for both parties, such as joint research and development, strategic partnerships, commercial cooperation or acquisitions, So as to maintain long-term and successful cooperation, fully meeting their respective needs.
Successful BD is becoming a strong driving force for continuous innovation and development of Bristol Myers Squibb. Among the top 20 cutting-edge innovative drugs of Bristol Myers Squibb, 12 were developed through collaboration, including the world's first immune twin star (O drug+Y drug). In addition, 60% of the R&D pipelines from external sources are owned by Bristol Myers Squibb, and it has over 300 active alliance partners worldwide.
Refusing the one size fits all BD model does not mean becoming a "sea king" and casting a wide net. Liu Jie introduced that globally, Bristol Myers Squibb's business is focused on five core strategic areas, including oncology, hematology, immunology, cell therapy, and cardiovascular disease. At the same time, it is also interested in the emerging field of neuroscience. Based on this clear strategy, when seeking external opportunities, Bristol Myers Squibb's first consideration is whether the cooperation can fit the company's core treatment areas. In these treatment areas, the most important concern is the scientific strength of the product and whether the treatment truly has differentiation.
As a multinational giant with rich experience in BD transactions and the ability to treat partners with respect, how does Bristol Meier Squibb evaluate its strategic partners or transaction choices? Liu Jie revealed that Bai Shi Mei Shi Gui Bao mainly values strategy, potential, and long-term value in three aspects:
-Firstly, whether its treatment field aligns with the established strategy of Bristol Myers Squibb. In the above-mentioned mergers and acquisitions of Turning Point Therapeutics, Tubulis, Mirati Therapeutics, etc., continuously enhancing the strength of tumor pipelines is the most coveted goal of Bristol Myers Squibb;
-Secondly, from a scientific perspective, whether there is strong scientific strength or breakthrough potential, that is, whether it will become the "first in class" or "best in class" in a certain treatment field, but there is no preference for its stage, treatment target, or treatment mode.
-Finally, innovative assets also need to have financial stability and rigorous execution conditions, in order to bring long-term value to Bristol Myers Squibb, partner shareholders, and patients.
In the specific cooperation process, Liu Jie believes that trust and consensus are the foundation of cooperation. Both parties need to establish a sufficient trust relationship and complete the construction of a common vision before entering into a relationship, in order to lay a solid foundation for cooperation.
Boosting China's Innovation: The BD Logic and Practice of Multinational Pharmaceutical Enterprises
In recent years, the domestic pharmaceutical industry has continuously achieved innovative results, and a series of favorable policies such as accelerating new drug approval, patent protection, and market access have been continuously introduced. The quality of pharmaceutical innovation has also been continuously improving, which has also driven the interest of multinational pharmaceutical giants in Chinese innovation.
"Looking back ten years ago, many local pharmaceutical innovations were still in the imitation stage, but now we see more and more innovations, such as new targets, very innovative therapies, and strong clinical data to support their research and development. All of these have impressed us." Liu Jie said in an interview, "The rapid development of China's innovative pharmaceutical industry is exciting.".
In September 2020, the global board of directors of Bristol Myers Squibb approved the "China 2030 Strategy" of Bristol Myers Squibb, which closely corresponds to the national policy of "Healthy China 2030". Liu Jie stated in an interview that an important core of the company's "China 2030 strategy" is to establish a very close relationship with the innovation ecosystem in China, which is also the work being carried out by the Bristol Myers Squibb China BD team. At present, the team is actively establishing contacts with domestic biotechnology companies in China, and some have already begun some negotiations and negotiations that are still in the confidential stage, while also achieving some phased results.
On October 24th, Bristol-Myers Squibb and Liantuo Biotech announced that they had signed an agreement, granting Bristol-Myers Squibb the exclusive rights to develop and commercialize the world's first reversible inhibitor of cardiac myosin, Mavacamten, in Greater China, Singapore, and Thailand. According to the terms of the agreement, Liantuo Biotechnology will receive a one-time consideration of $350 million. Mavacamten has just won the "Best Biotechnology Product Award" at this year's Galen Awards, indicating its innovative value. It is reported that Mavacamten has been approved in the United States and its listing application in China has also been prioritized for review and approval by the National Medical Products Administration (NMPA) of China.
From October 23rd to 27th, the first "China Cooperation Week" of Bristol Myers Squibb was successfully held in China, showcasing the determination of this veteran multinational pharmaceutical company to build an ecosystem in China and sending a positive signal to seek partners in China. It can be foreseen that in the future, Bristol Myers Squibb will have more innovation partners in China.
"The global BD team of Bristol Myers Squibb has over 100 employees with diverse backgrounds, such as scientists, business experts, and legal experts. The Chinese BD team is an important component of the global BD team, constantly monitoring innovation trends in the Chinese pharmaceutical industry, evaluating cooperation opportunities, and playing a role in China's pharmaceutical innovation ecosystem," said Liu Jie, "We hope to make everyone aware that among many pharmaceutical companies around the world, Bristol Meier Squibb is a preferred partner."
In Liu Jie's view, in the past decade, China's pharmaceutical innovation has developed rapidly, with a large amount of capital flowing to Chinese biotechnology companies, which has led to their rapid growth. Currently, the world is pursuing more cutting-edge scientific discoveries and stronger innovative breakthroughs, which is a major advantage of the Chinese pharmaceutical market. At the same time, it also brings some challenges.
Regarding the suggestion for developing Chinese pharmaceutical companies to carry out BD cooperation, Liu Jie pointed out that companies should attach importance to IP and ensure clear property rights; Ensure high-quality clinical data to support innovative outcomes, and conduct comprehensive design, implementation, and management of clinical research; Have reasonable expectations for financial returns.
Looking ahead to the future, Liu Jie said, "In the rapidly developing global biopharmaceutical industry, China has become a pivotal and dynamic member. Through exploring and deepening local cooperation, we are confident in leading innovation, co creating value, accelerating the transformation from basic research to clinical development, and truly achieving in China, for China; in China, for the world, so as to bring more innovative drugs to more patients more quickly."