Bristol-Myers, Samsung BioLogics Extend Ties - Analyst Blog

Bristol-Myers Squibb Company BMY expanded its existing manufacturing agreement with Samsung BioLogics. As per the new deal, Samsung will be manufacturing several biologic medicines for Bristol-Myers at its manufacturing site in Incheon, South Korea. The companies did not reveal any financial details of the deal.

In July last year, Bristol-Myers and Samsung had entered into a 10-year agreement. As per the initial deal, Samsung had to manufacture a single oncology product for Bristol-Myers. The deal aimed at strengthening Bristol-Myers' oncology pipeline.

Bristol-Myers has inked a number of partnerships over the last few months. Last month, Bristol-Myers entered into a deal with Five Prime Therapeutics, Inc. FPRX for the discovery, development and commercialization of immuno-oncology treatments. Under the terms of the deal, Bristol-Myers will have a 4.9% stake in Five Prime shares through an investment of $21 million.

The deal grants Bristol-Myers access to Five Prime's immuno-oncology platform. Bristol-Myers is also responsible for identifying the most promising candidates which will be developed either as monotherapies or in combination with Bristol-Myers' existing immuno-oncology treatments based on two undisclosed immune checkpoint pathways. Furthermore, the deal grants Bristol-Myers full worldwide rights to market these therapies on approval.

Our Take

We are encouraged by Bristol-Myers' collaboration efforts with other companies to advance its pipeline. Bristol-Myers has been trying to offset the declining sales of some of its important products by bringing in new products through in-licensing deals. The company has sold off its global diabetes business to AstraZeneca AZN earlier in the year to shift its focus on its oncology, immunology and other existing portfolios.

Bristol-Myers carries a Zacks Rank #2 (Hold). A better-ranked stock includes Regeneron Pharmaceuticals, Inc. REGN, which carries a Zacks Rank #1 (Strong Buy).