Bristol-Myers Squibb BMY has entered into a strategic collaboration with Dual Therapeutics, LLC to advance small-molecule compounds for the treatment of cancer and other diseases.
Per the terms of the collaboration agreement, Bristol-Myers will get the exclusive, worldwide rights to develop and commercialize small molecule therapeutics discovered by Dual Therapeutics. In exchange, it will pay an undisclosed upfront fee as well as development costs. The company will also make development and regulatory milestones payments to Dual Therapeutics, which could amount to more than $255 million, for a successful compound approved for multiple indications in addition to royalties on future sales of products discovered under the collaboration.
Bristol-Myers is focused on expanding its pipeline and is highly active on the deal signing/acquisition front. In Oct 2015, the company entered into an exclusive worldwide license and collaboration agreement with Five Prime Therapeutics FPRX for the development and commercialization of the latter’s colony stimulating factor 1 receptor (CSF1R) antibody program, including FPA008 (phase I), for immunology and oncology indications.
Apart from this, Bristol-Myers has been aggressively inking deals with health care companies like Eli Lilly LLY and others to study its high-profile immuno-oncology drug, Opdivo, to be used either alone or in combination with other therapies in multiple tumor types. The drug generated revenues of $305 million in the third quarter of 2015 compared with $122 million in the previous quarter. The company continues to work on label expansion of the drug.
As licensing agreements and acquisitions in the highly lucrative immuno-oncology space continue to attract attention, we expect to see more of such deals at the company over the coming months.
Bristol-Myers currently carries a Zacks Rank #2 (Buy). Another well-ranked stock in the health care sector is Achillion Pharmaceuticals, Inc. ACHN, sporting a Zacks Rank #2 (Buy).
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