Bristol-Myers Squibb Co (NYSE: BMY) Announces Plan to Purchase Turning Point Therapeutics Inc (NASDAQ: TPTX)

Bristol-Myers Squibb Co (NYSE: BMY) has announced that it will purchase Turning Point Therapeutics Inc (NASDAQ: TPTX) for $4.1 billion. The latter is currently developing a drug named repotrectinib. Turning Point Therapeutics is creating the drug to treat ROS1-positive advanced non-small-cell lung cancer. It could also treat other cancers.

This is a great time to buy the company as the new drug could enable it to compete with

Rozyltrek and Xalkori, two cancer drugs that have been developed by Roche Holding AG (OTCMKTS: RHHBF) and Pfizer Inc. (NYSE: PFE), respectively. Both these drugs have approval from the U.S Food and Drug Administration (FDA).

How the treatment works

Turning Point’s drug works by inhibiting tyrosine kinase. This compound is a protein that plays a significant role in cell signalling. Its dysfunctions lead to many cancers. In this disease, ROS1, which encodes for a tyrosine kinase, fuses with another gene causing cancer. Reproticinib works by targeting the gene by blocking its fusion.

According to Turning Point Therapeutics, Reproticinib is a rigid and compact molecule. For this reason, it can work against mutations that make the cancer resistant to drugs with larger molecules.

The drug is more effective than others in the market

Turning Point’s drug shows excellent potential in competing with Pfizer and Roche. For example, in Phase I/II study where patients were given Reproticinib, Xalkori and Rozyltrek, they showed higher rates of recovery with the new drug. Repotrectinib showed a 79% recovery compared to Xalkori and Rozyltrek, which showed a 74% and 66% recovery rate, respectively.

Bristol Myers Squibb believed the new drug would receive FDA approval by the second half of 2023.

According to an Informa Pharma Custom Intelligence Consultant, Tara Hansen, these results show a lot of promise and could mean that the compound is the best so far. However, he believes that more information is needed to determine if the drug could beat its competitors. For instance, researchers need to investigate how long it could stave off tumour growth. However, they acknowledge that things look suitable for the drug so far.

The CMO of Bristol Myers Squibb, Samit Hirawat,  this news reflects on the computer experience launching life-changing cancer drugs to patients globally. He adds that the new therapy would enable the company to provide a drug that could change the standard of care for people with cancer.