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Septa acquires CeeNU from BMS to end Canada's critical chemotherapy shortage

Septa acquires CeeNU from BMS to end Canada's critical chemotherapy shortage

Mississauga, Ontario-based Septa Pharmaceuticals has acquired CeeNU (lomustine) from Bristol Myers Squibb (NYSE: BMY) Canada, effective June 29, 2026, resolving a documented patient access crisis for a chemotherapy agent used in brain tumors and Hodgkin's lymphoma that had been on Canada's Tier 3 Drug Shortages List — the highest severity designation.

The deal is not a conventional commercial transaction. BMS Canada filed a formal discontinuation notice with Health Canada in April 2024, triggering a supply gap that led to emergency importation of UK-labelled lomustine into British Columbia. No generic manufacturer stepped in despite the molecule being off-patent, leaving Septa to fill a structural market gap rather than pursue a standard specialty pharma acquisition.

Lomustine is an alkylating agent in the nitrosourea class that crosslinks and damages DNA strands, inhibiting replication in rapidly dividing cancer cells. It remains a standard-of-care chemotherapy for recurrent glioblastoma and certain Hodgkin's lymphoma regimens in Canada, with no approved targeted replacement in the recurrent glioblastoma setting. Active clinical trials continue to use it as a backbone or comparator, including a randomized Phase II trial at McGill evaluating eflornithine plus lomustine versus lomustine alone in approximately 280 patients.

Financial terms were not disclosed. The absence of a headline price is consistent with the access-driven context of the deal and the modest commercial ceiling imposed by Canada's Patented Medicine Prices Review Board, which limits the pricing upside available to Septa relative to what US acquirers have historically exercised on similar assets.

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The closest structural precedent is BMS's divestiture of US lomustine rights to NextSource Biotechnology in 2013, which led to the rebranded Gleostine and a subsequent price increase of approximately 1,400% — a strategy structurally unavailable to Septa under Canadian price controls. The Canada transaction appears to complete BMS's global exit from lomustine, a molecule the company originally developed and commercialized, consistent with its decade-long strategy of divesting off-patent chemotherapy assets to concentrate capital on immuno-oncology, cell therapy, and novel mechanisms. BMS has simultaneously been expanding its Canadian oncology presence through novel approvals, including Health Canada clearances for Breyanzi (lisocabtagene maraleucel) in second-line diffuse large B-cell lymphoma and dual immunotherapy Opdivo (nivolumab) plus Yervoy (ipilimumab) for colorectal and liver cancers.

For Septa, the CeeNU acquisition represents a foundational oncology asset and establishes the company as a supply-critical provider in the Canadian market — a positioning that may facilitate future acquisitions of similarly distressed or divested oncology brands from large pharma. The company has indicated it is actively seeking further in-licensing and out-licensing opportunities globally.


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