Bristol Myers Squibb announced on Friday that it will acquire privately held cell therapy company Orbital Therapeutics for $1.5 billion in cash, marking its first major acquisition of the year.
The move comes as the pharmaceutical giant seeks to diversify away from its legacy products, including the blood thinner Eliquis and cancer drug Revlimid, which face growing competition from generic versions.
By acquiring Orbital, Bristol Myers aims to strengthen its cell therapy business and reassure investors that new treatments will sustain its long-term growth.
Expanding the CAR T-Cell Therapy Portfolio
The deal significantly broadens Bristol Myers’ pipeline of CAR T-cell therapies through the addition of Orbital’s lead experimental candidate, OTX-201.
OTX-201 is designed to target autoimmune diseases, representing a shift from Bristol’s traditional focus on oncology toward a wider range of therapeutic areas.
CAR T-cell therapies work by extracting a patient’s white blood cells, genetically modifying them to better target disease, and then reintroducing them into the body to fight harmful cells.
Bristol Myers already markets two cell therapy treatments — Abecma and Breyanzi — both used to treat blood cancers.
Together, these products accounted for about 1.7% of the company’s total revenue last year.
However, with Orbital’s technology, Bristol is looking to expand the application of CAR T-cell therapies beyond oncology and into autoimmune disorders, where the potential market is vast.
Previous Acquisitions Set the Stage
Earlier this year, Bristol Myers acquired its partner 2seventy bio for approximately $286 million in cash.
That smaller deal allowed the company to eliminate future profit-sharing costs on Abecma, the CAR T-cell therapy developed jointly for treating multiple myeloma.
The Orbital acquisition, in comparison, represents a more ambitious step toward innovation in next-generation cell therapies.
By integrating Orbital’s assets, Bristol Myers hopes to improve the efficiency and scalability of its cell therapy programs.
H2: Access to Advanced RNA and AI Technology
Beyond OTX-201, Bristol Myers will gain access to Orbital’s proprietary RNA-based therapeutic platform.
The Massachusetts-based company’s technology leverages RNA engineering, advanced delivery systems, and artificial intelligence to develop customized treatments for a wide variety of diseases.
This combination of RNA science and AI-driven design could help Bristol Myers accelerate the development of novel therapies that are tailored to individual patient needs.
“With the acquisition of Orbital Therapeutics…we have an incredible opportunity to make CAR T-cell therapy more efficient and accessible to more patients,” said Lynelle B. Hoch, president of Bristol Myers’ cell therapy organization.
The integration of Orbital’s RNA technology may also help Bristol streamline manufacturing and potentially reduce costs associated with complex cell therapy production.
A Renewed Push for Innovation
The $1.5 billion acquisition underlines Bristol Myers Squibb’s commitment to maintaining a leadership position in the evolving cell therapy market.
As older revenue sources decline due to generic competition, the company’s strategy is increasingly centered on innovation and diversification into next-generation treatments.
By combining Orbital’s scientific capabilities with its own global scale, Bristol Myers hopes to accelerate development timelines and bring transformative therapies to patients faster.
Industry analysts view the move as a clear signal that Bristol is intent on strengthening its foothold in cell and gene therapy — areas expected to drive substantial growth in the coming decade.
The acquisition also reflects a broader trend among major pharmaceutical firms, many of which are turning to emerging biotech startups to replenish their pipelines and offset revenue losses from expiring patents.
With Orbital’s expertise in RNA and cell therapy design, Bristol Myers Squibb could be better positioned to develop treatments that address unmet medical needs across a wider range of diseases, from cancer to autoimmune disorders.
Looking Ahead
The transaction underscores how crucial innovation has become in a pharmaceutical industry that is rapidly shifting toward personalized and regenerative medicine.
If the integration of Orbital’s technology proves successful, Bristol Myers could unlock new ways to make CAR T-cell therapy not only more effective but also more broadly available.
For patients with autoimmune and blood diseases, that could translate into faster access to cutting-edge treatments.
For Bristol Myers Squibb, it’s a calculated bet on the future of medicine — one that signals the company’s determination to stay ahead of both scientific and market challenges.