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Bristol Myers (BMY) Partners With SystImmune for Oncology Drug
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Bristol Myers Squibb (BMY - Free Report) has entered an exclusive license and collaboration agreement with Redmond-based clinical-stage biopharmaceutical company SystImmune to jointly develop and commercialize oncology candidate BL-B01D1 in the United States.
SystImmune’s BL-B01D1, a potentially first-in-class EGFRxHER3 bispecific antibody-drug conjugate (“ADC”), is currently being evaluated in a global multi-center early-stage study for the safety and efficacy in individuals with metastatic or unresectable non-small cell lung cancer (NSCLC).
The candidate has also shown potential in breast cancer and can also be evaluated for additional tumor types.
Per the terms, Bristol Myers will make an upfront payment of $800 million to SystImmune. Both companies will share certain global development expenses and profits and losses in the United States.
SystImmune is entitled to get up to $500 million in contingent near-term payments and is also eligible to receive additional milestone payments of up to $7.1 billion upon the achievement of certain development, regulatory and sales performance milestones for a total potential consideration of up to $8.4 billion.
While SystImmune retains exclusive development and commercialization rights in Mainland China, Bristol Myers Squibb will receive a royalty on net sales. Bristol Myers Squibb will assume sole responsibility for development and commercialization of the candidate in the rest of the world. SystImmune will receive a tiered royalty on net sales outside the United States and Mainland China.
The collaboration with SystImmune diversifies Bristol Myers Squibb’s oncology portfolio and strengthens its presence in the ADC space.
BMY shares have lost 30.3% year to date compared with the industry's decline of 19.8%.
Image Source: Zacks Investment Research
The company has been looking to strengthen its portfolio/pipeline through strategic agreements and collaborations.
Bristol Myers recently expanded its collaboration with Avidity Biosciences, Inc. (RNA - Free Report) . The expanded collaboration will focus on the discovery, development and commercialization of up to five cardiovascular targets leveraging Avidity's proprietary antibody oligonucleotide conjugates platform technology, with potential cumulative payments of up to $2.3 billion. The company announced an upfront cash payment of $60 million to Avidity. BMY will also purchase approximately $40 million of Avidity’s common stock at a price of $7.88 per share.
In October 2023, Bristol Myers announced that it would acquire commercial-stage oncology company Mirati Therapeutics, Inc. for $58.00 per share in cash, amounting to a total equity value of $4.8 billion. The total equity value corresponds to an enterprise value of $3.7 billion, which accounts for $1.1 billion of cash held by Mirati.
The acquisition will add Mirati’s lung cancer drug Krazati (adagrasib) to BMY’s strong oncology portfolio. The FDA approved Krazati in December 2022 for the treatment of adult patients with KRAS-mutated locally advanced or metastatic NSCLC who have received at least one prior systemic therapy.
Bristol Myers is looking to offset its declining revenues from the blockbuster multiple myeloma drug Revlimid and the blood thinner medicine Eliquis due to generic competition.
Meanwhile, Bristol Myers and partner 2seventy bio, Inc. (TSVT - Free Report) announced results from the preplanned final progression-free survival analysis of the phase III KarMMa-3 study at the 65th American Society of Hematology Annual Meeting and Exposition.
The late-stage study is evaluating CAR T cell therapy Abecma (idecabtagene vicleucel) compared with standard combination regimens in adults with relapsed and refractory multiple myeloma (“RRMM”) after two to four prior lines of therapy, including an immunomodulatory agent, a proteasome inhibitor and an anti-CD38 monoclonal antibody (triple-class exposed), who were refractory to their last regimen. At a median follow-up of more than 30 months, Abecma maintained a 51% reduction in risk of disease progression or death with a median progression-free survival of 13.8 months compared with 4.4 months for standard regimens.
Bristol Myers and 2seventy bio earlier faced a setback when the FDA informed the companies that the regulatory body would not be able to give a decision on the supplemental biologics license application (“sBLA”) for Abecma by the original target date of Dec 16, 2023.
The sBLA is seeking approval for Abecma for earlier lines of triple-class exposed RRMM based on results from the phase III KarMMa-3 study.
Image: Shutterstock
Bristol Myers (BMY) Partners With SystImmune for Oncology Drug
Bristol Myers Squibb (BMY - Free Report) has entered an exclusive license and collaboration agreement with Redmond-based clinical-stage biopharmaceutical company SystImmune to jointly develop and commercialize oncology candidate BL-B01D1 in the United States.
SystImmune’s BL-B01D1, a potentially first-in-class EGFRxHER3 bispecific antibody-drug conjugate (“ADC”), is currently being evaluated in a global multi-center early-stage study for the safety and efficacy in individuals with metastatic or unresectable non-small cell lung cancer (NSCLC).
The candidate has also shown potential in breast cancer and can also be evaluated for additional tumor types.
Per the terms, Bristol Myers will make an upfront payment of $800 million to SystImmune. Both companies will share certain global development expenses and profits and losses in the United States.
SystImmune is entitled to get up to $500 million in contingent near-term payments and is also eligible to receive additional milestone payments of up to $7.1 billion upon the achievement of certain development, regulatory and sales performance milestones for a total potential consideration of up to $8.4 billion.
While SystImmune retains exclusive development and commercialization rights in Mainland China, Bristol Myers Squibb will receive a royalty on net sales. Bristol Myers Squibb will assume sole responsibility for development and commercialization of the candidate in the rest of the world. SystImmune will receive a tiered royalty on net sales outside the United States and Mainland China.
The collaboration with SystImmune diversifies Bristol Myers Squibb’s oncology portfolio and strengthens its presence in the ADC space.
BMY shares have lost 30.3% year to date compared with the industry's decline of 19.8%.
Image Source: Zacks Investment Research
The company has been looking to strengthen its portfolio/pipeline through strategic agreements and collaborations.
Bristol Myers recently expanded its collaboration with Avidity Biosciences, Inc. (RNA - Free Report) . The expanded collaboration will focus on the discovery, development and commercialization of up to five cardiovascular targets leveraging Avidity's proprietary antibody oligonucleotide conjugates platform technology, with potential cumulative payments of up to $2.3 billion. The company announced an upfront cash payment of $60 million to Avidity. BMY will also purchase approximately $40 million of Avidity’s common stock at a price of $7.88 per share.
In October 2023, Bristol Myers announced that it would acquire commercial-stage oncology company Mirati Therapeutics, Inc. for $58.00 per share in cash, amounting to a total equity value of $4.8 billion. The total equity value corresponds to an enterprise value of $3.7 billion, which accounts for $1.1 billion of cash held by Mirati.
The acquisition will add Mirati’s lung cancer drug Krazati (adagrasib) to BMY’s strong oncology portfolio. The FDA approved Krazati in December 2022 for the treatment of adult patients with KRAS-mutated locally advanced or metastatic NSCLC who have received at least one prior systemic therapy.
Bristol Myers is looking to offset its declining revenues from the blockbuster multiple myeloma drug Revlimid and the blood thinner medicine Eliquis due to generic competition.
Meanwhile, Bristol Myers and partner 2seventy bio, Inc. (TSVT - Free Report) announced results from the preplanned final progression-free survival analysis of the phase III KarMMa-3 study at the 65th American Society of Hematology Annual Meeting and Exposition.
The late-stage study is evaluating CAR T cell therapy Abecma (idecabtagene vicleucel) compared with standard combination regimens in adults with relapsed and refractory multiple myeloma (“RRMM”) after two to four prior lines of therapy, including an immunomodulatory agent, a proteasome inhibitor and an anti-CD38 monoclonal antibody (triple-class exposed), who were refractory to their last regimen. At a median follow-up of more than 30 months, Abecma maintained a 51% reduction in risk of disease progression or death with a median progression-free survival of 13.8 months compared with 4.4 months for standard regimens.
Bristol Myers and 2seventy bio earlier faced a setback when the FDA informed the companies that the regulatory body would not be able to give a decision on the supplemental biologics license application (“sBLA”) for Abecma by the original target date of Dec 16, 2023.
The sBLA is seeking approval for Abecma for earlier lines of triple-class exposed RRMM based on results from the phase III KarMMa-3 study.
BMY currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.