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BMY Collaborates for Oncology Drug: Will This Boost Its Portfolio?
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Key Takeaways
BMY will co-develop BioNTech's BNT327, targeting PD-L1 and VEGF-A in multiple solid tumor types
The billion-dollar deal includes an upfront payment of $1.5 billion, along with other payments
BMY seeks pipeline growth as drugs like Revlimid and Abraxane lose ground to generics
Bristol Myers Squibb (BMY - Free Report) recently announced a strategic collaboration agreement with BioNTech (BNTX - Free Report) for the global co-development and co-commercialization of the latter’s investigational bispecific antibody BNT327 across numerous solid tumor types.
BNT327, a next-generation bispecific antibody candidate, targets PD-L1 and VEGF-A. It is currently being evaluated in multiple ongoing trials with more than 1,000 patients treated to date, including phase III studies with registrational potential evaluating BNT327 as first-line treatment in extensive stage small cell lung cancer (ES-SCLC) and non-small cell lung cancer (NSCLC).
A phase III study evaluating the candidate in triple negative breast cancer (TNBC) is planned to start by the end of 2025.
BMY is looking to expand its pipeline/portfolio as the legacy portfolio is being adversely impacted due to continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane.
Per the terms, BMY will make an upfront payment of $1.5 billion to BioNTech. In addition, BNTX will receive $2 billion in non-contingent anniversary payments through 2028. BioNTech is also eligible to receive up to $7.6 billion in additional development, regulatory and commercial milestones.
Both companies will jointly share development and manufacturing costs along with profits on an equal basis.
Data from ongoing trials (on a preliminary basis) underscore the potential for combining anti-PD-L1 and anti-VEGF-A — two well-established therapeutic targets — into a single molecule to deliver synergistic clinical benefits for patients across multiple tumor types.
Competition in Dual Target Cancer Therapy Space
Developing bispecific antibodies that target two proteins, namely PD-1 and VEGF, has lately been one of the lucrative areas in cancer treatment attracting pharma giants Merck (MRK - Free Report) and Pfizer (PFE - Free Report) .
In November 2024, pharma giant Merck received an exclusive global license to develop, manufacture and commercialize LM-299, a novel investigational PD-1/VEGF bispecific antibody from LaNova. Merck’s oncology portfolio boasts a blockbuster PD-L1 inhibitor, Keytruda, and the company is looking to build a diversified oncology pipeline spanning differentiated mechanisms and multiple modalities.
Last month, Pfizer inked a licensing agreement with 3SBio for the development, manufacturing and commercialization of SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, outside China.
The candidate is already being evaluated in China for non-small cell lung cancer, metastatic colorectal cancer and gynecological tumors. Pfizer will also make an equity investment of $100 million in 3SBio upon close, subject to an agreement.
BMY’s Price Performance, Valuation and Estimates
Shares of Bristol Myers have lost 13.6% year to date compared with the industry’s decline of 3.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, BMY is trading at a discount to the large-cap pharma industry. Going by the price/earnings ratio, BMY’s shares currently trade at 7.31x forward earnings, lower than its mean of 8.55x and the large-cap pharma industry’s 14.95X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 earnings per share has moved up to $6.85 from $6.75 in the past 60 days, while that for 2026 has moved south.
Image: Shutterstock
BMY Collaborates for Oncology Drug: Will This Boost Its Portfolio?
Key Takeaways
Bristol Myers Squibb (BMY - Free Report) recently announced a strategic collaboration agreement with BioNTech (BNTX - Free Report) for the global co-development and co-commercialization of the latter’s investigational bispecific antibody BNT327 across numerous solid tumor types.
BNT327, a next-generation bispecific antibody candidate, targets PD-L1 and VEGF-A. It is currently being evaluated in multiple ongoing trials with more than 1,000 patients treated to date, including phase III studies with registrational potential evaluating BNT327 as first-line treatment in extensive stage small cell lung cancer (ES-SCLC) and non-small cell lung cancer (NSCLC).
A phase III study evaluating the candidate in triple negative breast cancer (TNBC) is planned to start by the end of 2025.
BMY is looking to expand its pipeline/portfolio as the legacy portfolio is being adversely impacted due to continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane.
Per the terms, BMY will make an upfront payment of $1.5 billion to BioNTech. In addition, BNTX will receive $2 billion in non-contingent anniversary payments through 2028. BioNTech is also eligible to receive up to $7.6 billion in additional development, regulatory and commercial milestones.
Both companies will jointly share development and manufacturing costs along with profits on an equal basis.
Data from ongoing trials (on a preliminary basis) underscore the potential for combining anti-PD-L1 and anti-VEGF-A — two well-established therapeutic targets — into a single molecule to deliver synergistic clinical benefits for patients across multiple tumor types.
Competition in Dual Target Cancer Therapy Space
Developing bispecific antibodies that target two proteins, namely PD-1 and VEGF, has lately been one of the lucrative areas in cancer treatment attracting pharma giants Merck (MRK - Free Report) and Pfizer (PFE - Free Report) .
In November 2024, pharma giant Merck received an exclusive global license to develop, manufacture and commercialize LM-299, a novel investigational PD-1/VEGF bispecific antibody from LaNova. Merck’s oncology portfolio boasts a blockbuster PD-L1 inhibitor, Keytruda, and the company is looking to build a diversified oncology pipeline spanning differentiated mechanisms and multiple modalities.
Last month, Pfizer inked a licensing agreement with 3SBio for the development, manufacturing and commercialization of SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, outside China.
The candidate is already being evaluated in China for non-small cell lung cancer, metastatic colorectal cancer and gynecological tumors. Pfizer will also make an equity investment of $100 million in 3SBio upon close, subject to an agreement.
BMY’s Price Performance, Valuation and Estimates
Shares of Bristol Myers have lost 13.6% year to date compared with the industry’s decline of 3.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, BMY is trading at a discount to the large-cap pharma industry. Going by the price/earnings ratio, BMY’s shares currently trade at 7.31x forward earnings, lower than its mean of 8.55x and the large-cap pharma industry’s 14.95X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 earnings per share has moved up to $6.85 from $6.75 in the past 60 days, while that for 2026 has moved south.
Image Source: Zacks Investment Research
BMY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.