Bristol Myers Squibb (BMS), a pharmaceutical company based in New Jersey, has announced an agreement to pay up to $11.1 billion to collaborate with BioNTech on the development of a next-generation cancer immunotherapy drug. The announcement was made on Monday and led to a 20.2% increase in BioNTech's stock during early trading.
The collaboration involves the co-development and co-commercialization of BioNTech's drug, BNT327, targeting multiple solid tumor types. Christopher Boerner, Ph.D., Board Chair and CEO of Bristol Myers Squibb, stated, "Our deep experience and expertise in advancing and delivering groundbreaking immuno-oncology medicines positions BMS well to collaboratively realize the potential of BNT327, an asset with significant potential for transforming the standard of care for patients with solid tumors."
Boerner also emphasized the significance of BNT327 in enhancing their growth trajectory and pursuit of novel mechanisms in oncology. He added that they are impressed by BioNTech's innovation and look forward to accelerating clinical trials and expanding potential indications.
As part of the deal, BMS will make an upfront payment of $1.5 billion to BioNTech along with $2 billion in non-contingent anniversary payments through 2028. These charges will be recorded as Acquired IPR&D Expense when incurred. Additionally, BioNTech may receive up to $7.6 billion from development, regulatory, and commercial milestones.
Both companies will share joint development and manufacturing costs equally, with global profits or losses being shared on a 50:50 basis. Ugur Sahin, M.D., CEO and co-founder of BioNTech, expressed optimism about the partnership stating that BNT327 could become a "foundational immuno-oncology backbone."
Sahin further mentioned that their collaboration aims to accelerate BNT327’s development across multiple solid-tumor indications while complementing other programs such as antibody-drug conjugates and mRNA-based immunotherapies.
BNT327 is described as a novel investigational bispecific antibody combining PD-L1 checkpoint inhibition with VEGF-A neutralization aimed at reversing tumor immunosuppression and preventing tumor growth through anti-angiogenesis effects.
To date, over 1,000 patients have participated in clinical trials involving BNT327. More than 20 clinical trials are either ongoing or planned to evaluate its efficacy as both monotherapy or combined treatment across various oncogenic pathways in over ten solid tumor indications.
