Sector News

Bristol-Myers inks a blockbuster $1.74B deal for an Opdivo combo drug

October 15, 2015
Life sciences

Bristol-Myers Squibb has struck a $1.74 billion deal–fronted with a $350 million cash buy-in–to grab worldwide rights to an early-stage anti-immunosuppression drug from Five Prime that can be combined with its pioneering checkpoint inhibitor Opdivo.

In the deal Bristol-Myers is snagging San Francisco-based Five Prime’s colony stimulating factor 1 receptor (CSF1R) antibody program, including FPA008, a drug that blocks a key mediator–tumor-associated macrophages–that blunts an immune response to cancer cells. That makes it an ideal combination therapy with Bristol-Myers’ Opdivo, which dismantles a mechanism that prevents a T cell attack on cancer.

Five Prime’s shares rocketed up 78% in premarket trading this morning.

The deal marks yet another major collaboration in the immuno-oncology field, which has inspired dozens of partnerships and acquisitions over the past two years. And the pact provides fresh evidence that the leaders in the field are willing to gamble big sums in order to keep driving new advances in the clinic.

In this case Bristol-Myers has agreed to pay up to $1.05 billion in development and regulatory milestones to Five Prime, along with up to $340 million in development and regulatory milestone payments per anti-CSF1R product for non-oncology indications, as well as double digit royalties.

In the pact, which expands a combination deal set up in late 2014, Five Prime will continue to handle the ongoing Phase Ia/Ib trial underway, which matches Opdivo and FPA008. Five Prime–a 2004 Fierce 15 company–also retains co-promotion rights in the U.S.

Lewis T. “Rusty” Williams, president and chief executive officer of Five Prime Therapeutics, called it a “transformational” deal for his company.

“Bristol-Myers Squibb has undisputed leadership in the immuno-oncology landscape, deep clinical development and regulatory expertise, and an established commercial infrastructure to deliver important new therapies to patients,” he said in a statement. “Bristol-Myers Squibb also has a rich pipeline of clinical candidates and approved products, a number of which may have therapeutic synergy when coupled with FPA008, given the potential of CSF1R inhibition to suppress the activity and survival of tumor associated macrophages. At the same time, Five Prime will continue to conduct trials in pigmented villonodular synovitis (PVNS) and immuno-oncology with FPA008, which is a product of our proprietary protein platform and our discovery of IL-34, one of the two ligands for CSF1R that FPA008 blocks.”

By John Carroll

Source: Fierce Biotech

comments closed

Related News

November 21, 2021

Johnson & Johnson to focus on pharmaceuticals

Life sciences

Johnson & Johnson has announced that it plans to separate its Consumer Health business, leaving the new Johnson & Johnson to focus on pharmaceuticals and medical devices. Alex Gorsky, current CEO, will become the Executive Chairman of the new Johnson & Johnson. Joaquin Duato, currently Vice Chairman of the Company’s Executive Committee, will become the new CEO.

November 21, 2021

Novo Nordisk to acquire Dicerna Pharmaceuticals including the RNAi research technology platform

Life sciences

Novo Nordisk today announced that it has entered into a definitive agreement to acquire Dicerna Pharmaceuticals (Dicerna). The acquisition of Dicerna’s ribonucleic acid interference (RNAi) platform is a strategic addition to Novo Nordisk’s existing research technology platforms and supports the strategy of using a broad range of technology platforms applicable across all Novo Nordisk’s therapeutic focus areas.

November 21, 2021

What are the benefits of the digital health revolution?

Life sciences

Naomi predicts that start-ups will continue to take over the healthcare industry, and Big Pharma companies will be forced to adapt to the future by partnering with small tech start-ups, or fade away due to irrelevance. Discover more of industry leader Naomi Fried’s insights as she discusses the future of healthcare with Andrew Kris of Borderless

Send this to a friend