Investing.com -- Shares in BioNTech (NASDAQ:BNTX) soared sharply Monday after Bristol-Myers Squibb Company (NYSE:BMY) agreed to pay $1.5 billion upfront to collaborate with the German biotech firm on the development of an experimental cancer treatment, the U.S. pharmaceutical company announced on Monday.
The partnership, centered around BioNTech’s BNT327, could be worth over $11 billion if all milestones are met.
BioNTech shares were up 14.8% as of 07:35 GMT.
Under the agreement, Bristol Myers will jointly develop and commercialize BNT327, a bispecific antibody being studied for a range of solid tumors.
The therapy combines two mechanisms: stimulating the immune system in a way similar to immunotherapies like Merck’s Keytruda, while also disrupting blood flow to tumors.
“We are impressed by the innovation that BioNTech has achieved to date and we look forward to partnering to accelerate existing clinical trials and time to market, while expanding the number of potential indications,” said Bristol Myers CEO Chris Boerner.
BioNTech secured full rights to BNT327 earlier this year through its $800 million acquisition of China-based Biotheus, with an additional $150 million tied to future development milestones. Before that, BioNTech held partial rights through a 2023 collaboration.
In addition to the upfront payment, Bristol Myers committed to up to $2 billion in non-contingent payments through 2028. BioNTech is also eligible for as much as $7.6 billion in further development, regulatory, and commercial milestone payments.
The companies plan to split global profits and losses from the drug equally, as well as share development and manufacturing costs on a 50/50 basis, with some exceptions.
"We believe BNT327 has the potential to become a foundational immuno-oncology backbone, moving beyond single-mechanism checkpoint inhibitors and expanding into multiple solid-tumor indications,” said Prof. Ugur Sahin, CEO and Co-Founder of BioNTech.
“Our focus remains on advancing high-impact, pan-tumor programs and combination strategies in oncology, with BNT327 complementing our antibody-drug conjugate programs and mRNA-based immunotherapies,” he added.
BNT327 is currently in clinical trials as a first-line treatment for both extensive-stage small cell lung cancer and non-small cell lung cancer, with over 1,000 patients already treated in ongoing studies.