Allied Minds, a Boston-based specialist in commercialising university research, and Bristol-Myers Squibb, a New York-based pharmaceutical company, have formed a joint venture, Allied-Bristol Life Sciences, to seek out and support research and pre-clinical development of biopharmaceutical products and technologies at US universities.
The two partners are hoping the collaboration will allow them to identify therapies and drug candidates that could eventually be brought to market globally and tackle serious diseases.
As part of any agreements with universities, researchers will be given full access to Bristol-Myers Squibb’s drug discovery research expertise, and will be able to draw on Allied Minds for financial and management experience.
Under the terms of the deal, Bristol-Myers Squibb has the option to acquire a company from Allied-Bristol Life Sciences if a pre-clinical trial proves successful. The terms of such an acquisition are pre-determined as part of the formation of the joint venture.
Bristol-Myers Squibb is the result of the 1989 merger of Bristol-Myers – established in 1887 – and Squibb – established in 1858. From the 1940s to 1960, the two companies were each instrumental in the development of various antibiotics, and in 1961 Squibb invented the electric toothbrush.
The company’s greatest recognition came in 1999, when US president Bill Clinton awarded Bristol-Myers Squibb the National Medal of Technology, the nation’s highest recognition for technological achievement, for its contributions to the pharmaceutical industry. As of the financial year 2013, Bristol-Myers Squibb had a revenue of $16.39bn and a net income of $2.56bn.
Meanwhile, Allied Minds was established in 2006 and is a science and technology development and commercialisation company. It currently counts partnerships with 33 US universities and 26 US federal government institutions. These partnerships have so far led to 18 portfolio companies, a figure the company is hoping to double in the next couple of years.
Among its university partners are six of the eight Ivy League institutions – Harvard, Brown, Columbia,Yale, Penn State and Cornell universities – and six of the 10 University of California campuses – Los Angeles, Berkeley, San Diego, Davis, Irvine and San Francisco.
Allied Minds floated on the London’s alternative investment market Aim in June this year, and has a current market cap of more than £480m ($809m). The company’s shares have been steadily increasing invalue since the initial public offering and at the time of writing individual shares were priced at £235, upfrom £190 on flotation.
The companies have issued no statement on a timeline for Allied-Bristol Life Sciences.
Carl Decicco, senior vice-president and head of discovery at Bristol-Myers Squibb, said: “Allied-Bristol Life Sciences brings together cutting-edge ideas, biopharmaceutical experience and drug discovery expertise focused on maximising the potential of new scientific approaches to addressing serious disease. We believe this new venture will enhance the translation of early-stage academic research and will ultimately help advance important potential newmedicines more efficiently.”
Chris Silva, chief executive of Allied Minds, added: “The innovations developed in US research institutions represent an important resource for scientific advancement, as well as economic development and financial returns. Our partnership with Bristol-Myers Squibb combines complementary strengths, resources, reach and expertise to create an exciting new paradigm in the drug-development space.