‘BMS seeks to redesign growth through open innovation’

Steve Sugino, Senior Vice President and General Manager, BMS Asia-Pacific

Over half of global new drug candidate pipeline is sourced externally

“Science, clinical capability, supply chain, commercialization… Korea's role will grow”

Bristol Myers Squibb (BMS) defines itself as an ‘open innovation company’ for a reason.

Over 60% of the company’s global pipeline now consists of assets sourced through external collaborations, including next-generation platforms such as targeted protein degradation, cell therapy, and radiopharmaceuticals.

Steve Sugino, Senior Vice President and General Manager, BMS Asia-Pacific

Steve Sugino, Senior Vice President and General Manager at BMS Asia-Pacific, recently stated to reporters, “Science knows no borders. BMS goes where the science is.”

BMS is one of the global pharmaceutical companies most actively pursuing open innovation and mergers and acquisitions (M&A).

The company had faced declining sales due to patent cliffs with the expiry of several major drug patents, including the anticoagulant Eliquis (apixaban) and the blood cancer treatment Revlimid (lenalidomide), and the entry of their generic versions. Furthermore, its global blockbuster immunotherapy drug Opdivo (nivolumab) is also nearing patent expiration.

To address this, BMS has expanded its pipeline over the past five years through investments in companies like Karuna Therapeutics (USD 14 billion), RayzeBio (USD 4.1 billion), Mirati Therapeutics (USD 4.8 billion), and SystImmune (USD 8.4 billion).

Through its acquisition of Karuna, BMS developed the schizophrenia drug ‘Cobenfy (xanomeline /trospium chloride). It also entered the radiopharmaceutical market by acquiring RayzeBio and plans to develop new anticancer drugs through Mirati and SystImmune.

This principle is also evident in APAC. One prime example is the agreement with Orum Therapeutics in Korea.

In 2023, BMS paid Orum Therapeutics USD 180 million (approximately KRW 260 billion) and successfully secured its degrader antibody conjugate (DAC) technology.

Sugino stated, “Protein degradation is an area where BMS holds a strategic advantage, and Orum's technology had clear global scalability. This is a landmark case of Korean technology becoming a global standard.”

Sugino also emphasized that manufacturing and supply chain (M&SC) collaboration with domestic companies is a core pillar of BMS's strategy.

He explained, “Amid complex global circumstances, a stable supply chain is an essential competitive capability for global pharmaceutical companies. BMS is strengthening its global supply chain not only through its own production but also through collaborations with Samsung Biologics and Lotte Biologics. Based on the collaborations, BMS is reliably supplying innovative therapies to patients worldwide.”

BMS is working to systematically implement its collaborative framework with companies in Korea. One flagship program is the ‘Seoul–BMS Innovation Square Challenge,’ which BMS has operated since 2022. 

Through this program, companies like Prazer Therapeutics (proteasome inhibitors), Illimis Therapeutics (Alzheimer's disease drug), and Galux (AI-driven protein design) have been selected and are growing, leveraging BMS's global network and commercialization expertise. This serves as an incubator, placing Korean biotech companies on a global growth trajectory.

BMS's criteria for evaluating external collaborations are straightforward: scientific excellence, commercial potential, strong intellectual property (IP), and ideally, both first-in-class and best-in-class potential.

Sugino advised, “While excellent science is adequate, companies also must further develop global commercialization capabilities. Articulating how science translates into patient value is key to partnering.

Organization dedicated to APAC established… BMS's growth axis shifts to Asia

BMS's open innovation strategy and manufacturing/supply chain collaborations ultimately align with the strategic question of ‘where to create innovation and where to execute it.’

Sugino stressed, “APAC, which includes Korea, is one of the most dynamic regions, with strengths across science, clinical infrastructure, manufacturing, and commercial potential. Asia’s role will only continue to grow.”

This assessment is directly reflected in BMS's global reorganization. In January this year, BMS created a dedicated APAC division through a structural reorganization. Sugino explained, “This strategic realignment was made to support key markets like Korea, Japan, China, and Australia from a closer location.”

He explained that this organizational change is not merely a restructuring but the result of a company-wide decision recognizing APAC as the next-generation growth engine. BMS determined that the core APAC countries—Korea, China, Japan, and India—would be the central axis after questioning ‘Where should we invest and where should we expect growth?’

BMS is seeking to expand partnerships with domestic companies. Vice President Steve Sugino and BMS Korea Country Manager Hye Young Lee at the Global Open Innovation Week held last month in Seocho-gu, Seoul.

APAC has already established itself as a major clinical base for BMS. BMS has set a long-term goal of securing 40% of patients enrolled in Phase III clinical trials from APAC. In fact, Korea is included as a ‘priority country’ across all phases of development, from Phase 1 to Phase 3.

Sugino noted, “Korea's medical infrastructure, clinical execution capabilities, and patient accessibility are among the best globally. There is a reason Korea has become an essential region for pivotal trials.”

Since 2022, BMS has acquired 8 approvals and 6 insurance reimbursement listings in Korea alone, across key therapeutic areas including solid tumors, hematologic malignancies, and rare cardiovascular diseases.

Sugino assessed, “The Korean government and regulatory authorities are making significant contributions to expanding access to innovative therapies. This is an important signal that goes beyond short-term results, earning Korea the trust of global pharmaceutical companies.”

However, he clearly pointed out structural challenges. The one-year introduction rate for new drugs is only 5% in Korea compared to 78% in the US, and the health insurance coverage rate is also significantly lower at 22% in Korea versus 85% in the US and 48% in Japan. The average 46-month timeframe from approval to coverage was also highlighted as a problem.

Sugino emphasized, "My father also battled cancer. If he had to wait 46 months for treatment, he would have lost his chance. Innovation only matters when it reaches patients in time."

Ultimately, BMS’s goal is clear: Deliver innovative therapies to patients with serious diseases faster and more widely. AI-driven R&D, open innovation, and APAC-centric strategies are simply means to achieve that goal, with Korea at the strategic core.

Sugino concluded, “BMS exists to discover, develop, and deliver innovation. For these values to be properly realized, we need an environment where new therapies are approved and reimbursed in a timely manner.

“Ensuring innovation reaches patients worldwide, including those in Korea, rather than remaining confined to specific countries—that is the challenge BMS must address.”