BMS is spinning out a new company with five immunology assets, including oral drugs being developed for systemic lupus erythematosus and plaque psoriasis, and $300 million in funds from Bain Capital.
Bristol Myers Squibb has spun out a new, independent and as yet unnamed startup that will advance novel therapies for autoimmune disorders, with funds from Bain Capital.
BMS is handing over five investigational assets to the new company, three of which are in clinical development and two that are Phase 1-ready. Meanwhile, Bain will contribute $300 million in capital funding. BMS will have a nearly 20% equity stake in this new company and will receive certain royalties and success-based milestones for each asset.
Leading the five-molecule delegation are afimetoran and BMS-986322, both of which are in mid-stage development. Afimetoran is an oral drug for systemic lupus erythematosus and works by blocking the TLR7/8 proteins, which play a key role in regulating the immune response. Phase Ib data published in mid-2025 showed that patients with cutaneous lupus erythematosus can respond rapidly and safely to afimetoran, with a pharmacokinetic profile supportive of daily dosing.
Similarly, BMS-986322 is an orally available inhibitor of the TYK2 enzyme, which likewise plays a role in several immune and inflammatory pathways. BMS had been studying the asset in moderate-to-severe plaque psoriasis before discontinuing its development in February. During the pharma’s Q4 earnings call, chief medical officer Samit Hirawat told investors the decision was made because “our focus is truly squarely on Sotyktu and maximizing that opportunity from a development and commercial perspective.”
BMS is also giving the Bain-partnered startup BMS-986326, an IL-2 fusion protein that is currently in early-stage clinical development for atopic dermatitis and systemic lupus erythematosus. The new company will also receive two Phase I-ready biologics, BMS-986481 and BMS-986498, targeting IL18 and IL10, respectively.
For BMS, the new company comes amid a sweeping strategic push. In February last year, the pharma set a target of generating $1.5 billion through 2025—a bar it raised by $2 billion in February this year, to realize through 2027. BMS is meeting this target mainly through layoffs, which have had a casualty count of hundreds, including Hirawat.
Bain’s participation in the BMS spinout comes after the investment firm wrapped up its fourth life sciences fund in September, raising some $3 billion with the goal of supporting biotechs addressing unmet medical needs. Then, in February, Bain made a $3.3 billion bet to acquire Japanese player Mitsubishi Tanabe Pharma Corporation, establishing a presence in vaccines, diabetes, metabolic conditions and central nervous system diseases.
