(Reuters) -Drugmaker Bristol Myers Squibb and private equity firm Bain Capital will launch an independent company focused on developing immunology drugs, backed by Bain’s $300 million financing round, the companies said on Monday.
The new company will work on five experimental drugs licensed from Bristol Myers, including a late-stage lupus treatment and a mid-stage psoriasis drug that has shown promise in trials.
Bristol Myers will retain nearly 20% equity in the venture and is set to receive royalties and milestone payments based on the drugs’ success.
The collaboration allows the drugmaker to concentrate its immunology research on treatments aimed at resetting the immune system while ensuring the continued development of promising assets, the companies said.
“These assets have significant potential, and we are confident that this new company will drive their development to ensure greater impact for patients,” said Julie Rozenblyum, senior vice president of business development at Bristol Myers.
Daniel Lynch, a seasoned pharmaceutical executive, will take on the roles of executive chairman and interim CEO of the new company, while Bristol Myers’ chief research officer Robert Plenge is set to join the board alongside Bain Capital partners.
Canada Pension Plan Investment Board also participated in the financing round.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Mohammed Safi Shamsi)
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