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Key Growth Drivers for Bristol-Myers Squibb Going Forward

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Major markets

Bristol-Myers Squibb (BMY) will target four major therapeutic areas after completing the acquisition of Celgene (CELG): solid tumors, hematologic-oncology, immunology and inflammation, and cardiovascular diseases.

According to Bristol-Myers Squibb’s investor presentation, the combined company is expected to target a market opportunity worth $31 billion by 2022 in the immune-oncology-based solid tumor segment with drugs such as Opdivo, Abraxane, and Yervoy. The combined company is also expected to target a market opportunity worth $27 billion, $17 billion, and $5 billion in multiple myeloma, non-Hodgkin lymphoma, and the myeloid diseases segments, respectively, by 2022. Bristol-Myers Squibb will have drugs such as Revlimid, Sprycel, Idhifa, Pomalyst, and Empliciti in its hematologic-oncology portfolio.

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Bristol-Myers Squibb is expected to target a market opportunity worth $26 billion and $21 billion in the psoriasis/psoriatic arthritis and irritable bowel disease segments, respectively, by 2022 with drugs such as Orencia and Otezla. Finally, the combined company is expected to target a market opportunity worth $17 billion in the cardiovascular stroke prophylaxis segment by 2022 with Eliquis.

Oncology drugs for solid tumors, oncology drugs for hematologic malignancies, immunology and inflammation drugs, and cardiovascular drugs accounted for 23%, 39%, 11%, and 17% of Bristol-Myers Squibb’s (BMY) total revenues in the 12 months ending September 2018.

Immuno-oncology pipeline

According to the company’s investor presentation, Bristol-Myers Squibb will be announcing more than 20 registrational readouts from its ongoing immune-oncology research programs in the coming quarters. The company is currently evaluating 15 novel immuno-oncology compounds and is studying the applicability of its IO capabilities in more than 50 tumors.

Bristol-Myers Squibb is currently working on more than 350 clinical trials in the immune-oncology space. According to Bristol-Myers Squibb’s M&A conference transcript, the company is studying the efficacy of its immune-oncology compounds in early disease settings, as combinations with the existing standard of care and in immune-oncology refractory settings.

In the next article, we’ll discuss how Celgene will be strengthening Bristol-Myers Squibb’s business in greater detail.

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