Bristol-Myers Squibb, Nektar to Partner on Cancer Therapy
February 14 2018 - 7:59AM
Dow Jones News
By Bowdeya Tweh
Bristol-Myers Squibb Co. (BMY) and Nektar Therapeutics (NKTR)
have struck a deal to collaborate on developing an immuno-oncology
treatment to be used in combination with other drugs.
Bristol-Myers Squibb will make an upfront payment of $1 billion
to Nektar and buy $850 million of the San Francisco company's
shares as part of the agreement, the companies said Wednesday.
The development plan for the candidate, called NKTR-214, calls
for studying its use in combination with Bristol-Myers Squibb's
Opdivo and Opdivo plus Yervoy across several tumor types.
Assuming Nektar hits development and regulatory-approval
milestones, Nektar could receive as much as $1.43 billion, the
companies said. Reaching certain sales goals could earn Nektar an
additional $350 million.
Nektar will book revenue for world-wide sales of the drug
candidate, the companies said. The companies will split global
profits for the drug candidate, with Nektar receiving 65% and
Bristol-Myers Squibb 35%. Bristol-Myers Squibb will retain 100% of
revenue for its own medicines, the companies said.
The companies entered into a clinical collaboration in September
2016 to evaluate whether the drug candidate used in combination
with Opdivo could improve outcomes for patients. A clinical study
is underway in more than 350 patients with melanoma, and cancer of
the kidney, lung, bladder, and breast.
Bristol-Myers Squibb has a market value of more than $104
billion.
Shares in Nektar fell 2.9% in premarket trading, while
Bristol-Myers Squibb shares were little changed.
Write to Bowdeya Tweh at bowdeya.tweh@wsj.com
(END) Dow Jones Newswires
February 14, 2018 07:44 ET (12:44 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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