Bristol Myers To Pay Up To $11.1B To BioNTech To Co-Develop, Commercialize Investigational Cancer Drug

Shares of BionNTech SE (BNTX) jumped 13% in Monday’s pre-market after the company announced that it has entered into an agreement with Bristol Myers Squibb (BMY) for the collective development and commercialization of the former’s investigational cancer therapy BNT327.

BNT327 is currently being evaluated in multiple ongoing trials with more than 1,000 patients treated to date, including in the treatment of extensive-stage small-cell lung cancer and non-small cell lung cancer.

The company is also eyeing a late-stage trial evaluating the candidate in triple-negative breast cancer by the end of 2025.

BMS will pay BioNTech $1.5 billion in an upfront payment in the second quarter and $2 billion total in non-contingent anniversary payments through 2028 under the deal. BioNTech will also be eligible to receive up to $7.6 billion in additional development, regulatory, and commercial milestones. This takes the total value to approximately $11.1 billion.

The two companies will share joint development and manufacturing costs equally, except for a few exceptions. Global profits or losses will also be shared equally between the two.

The companies will jointly develop and commercialize BNT327, including the development of BNT327 as monotherapy and in combination with other products, positioning it as a therapy across a wide range of solid tumors.

Both companies will also have the right to independently develop BNT327 in further indications and combinations.

A treatment with BNT327 is intended to help normalize blood vessels at the tumor site, improving delivery and potential effectiveness of combination therapies. More than 20 clinical trials are currently ongoing or planned to evaluate BNT327 in more than 10 solid tumor indications.

BioNTech CEO Ugur Sahin said that the company believes in the potential of the BNT327 to become “a foundational immuno-oncology backbone.”

“Our collaboration with BMS, a pioneering leader in immuno-oncology, aims to accelerate and broadly expand BNT327’s development to fully realize its potential,” he said.

BMY shares traded 1% higher in premarket on Monday.

While BNTX shares are down by 17% this year, BMY stock is down by 15%.

Read Next: Trump Drops Musk-Backed Isaacman For NASA Chief: Is He Heading Back to Shift4 Payments?

For updates and corrections, email newsroom[at]stocktwits[dot]com.