Bristol Myers Squibb is paying biotechnology startup SystImmune $800 million for rights to an experimental cancer treatment, adding to a recent surge in pharmaceutical dealmaking for drugs of its kind.
The deal announced Monday afternoon gives Bristol Myers worldwide rights, outside of China, and a split of the U.S. rights, to a medicine in early clinical testing for breast and lung tumors. The partners envision the medicine as having broader potential, too, as it’s shown early signs of activity in other solid tumors.
Bristol Myers is betting heavily on its success. In addition to a sizable upfront check, the pharma is promising $500 million in near-term contingent payments and, potentially, another $7.1 billion in downstream payouts. All told, the alliance could be worth $8.4 billion to SystImmune, a subsidiary of China-based Sichuan Biokin Pharmaceutical that’s partly funded by venture firm OrbiMed. Much of those payments are linked to future milestones and may never materialize, however.
Still, the alliance is the latest in an influx in investments into a class of medicines known as antibody-drug conjugates, or ADCs, which chemically link an antibody to a toxic payload. Though researchers and drugmakers have worked on ADCs for many years, interest has surged of late, catalyzed by technical advances and a recent uptick in approvals.
In the last few years alone, Pfizer, Gilead Sciences and AbbVie have acquired some of the largest ADC drug developers. Eli Lilly and Merck & Co. have been active, too, acquiring startups for access to some drug prospects and forming alliances to grab rights to others.
Bristol Myers has been bolstering its capabilities as well. The pharma company hasn’t historically had a major presence in ADCs, with much of its attention focused on medicines that spur the immune system to fight cancer. But since 2021, the company has struck deals with Eisai and ADC-focused startup Tubulis. The SystImmune alliance builds on those efforts, and is “consistent with our strategy to diversify beyond immuno-oncology,” said Chief Medical Officer Samit Hirawat, in a statement.
The deal’s impact will depend on the success of a medicine currently known as BL-B01D1. The drug is an ADC that homes in on two different targets, EGFR and HER3, that are overexpressed in most epithelial tumors. Data presented at the American Society of Clinical Oncology meeting and, more recently, the San Antonio Breast Cancer Symposium, showed promise in treating a range of solid tumor types. But testing remains in early stages, and breast and lung cancers are some of the most competitive areas in oncology research.
“While this has the potential to treat large patient populations in both lung cancer and breast cancer, they are competitive indications with many established standards of care and assets in development,” wrote William Blair analyst Matt Phipps, in a Tuesday note to investors.
Additional data from an ongoing lung cancer trial are expected next year.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.biopharmadive.com/news/bristol-myers-systimmune-adc-cancer-drug-deal/702223/