BMS Invests $1.5B in BioNTech's China-Origin PD-L1/VEGF-A

Bristol Myers Squibb (BMS) is advancing its efforts in the competitive field of bispecific antibodies by securing a significant partnership with BioNTech. This collaboration involves the co-development of BNT327, a promising bispecific antibody designed to target PD-L1 and VEGF-A, aimed at tackling various solid tumors. The upfront payment for this agreement amounts to $1.5 billion, with the potential total value of the deal exceeding $10 billion upon meeting specific milestones.

This strategic move follows a trend seen within the pharmaceutical industry, where major players such as Pfizer and Merck & Co. have begun investing in innovative therapies originating from Chinese biotechnology firms. BNT327 became part of BioNTech's portfolio after acquiring its partner Biotheus last year for $800 million. The therapy is currently undergoing several Phase III clinical trials, with the aim of gaining regulatory approval for treating advanced-stage small-cell lung cancer and non-small-cell lung cancer. Furthermore, a late-stage study targeting triple-negative breast cancer is scheduled to commence in 2025.

Christopher Boerner, the CEO of Bristol Myers Squibb, emphasized the transformative potential of BNT327 in altering the standard treatment regimens for patients with solid tumors. He expressed a commitment to accelerating the ongoing clinical trials and reducing the time required to bring the therapy to market. Additionally, there are plans to explore a broader range of potential applications for the treatment. Once the deal is fully operational, both BMS and BioNTech will jointly develop BNT327 as a monotherapy and in combination with other drugs. Each company retains the right to independently pursue further indications and combinations, drawing from their respective drug pipelines.

In addition to the initial payment, BMS has agreed to provide $2 billion in non-contingent payments over the next five years. BioNTech also stands to receive up to $7.6 billion more, contingent on achieving various developmental, regulatory, and commercial benchmarks. The collaboration involves a shared approach to development and manufacturing, with both companies equally dividing any resulting profits or losses.

This partnership underscores a broader industry trend towards embracing innovative biotechnologies, particularly those emerging from rapidly growing markets like China. By joining forces, BMS and BioNTech aim to leverage their combined expertise and resources to bring cutting-edge cancer therapies to patients worldwide, potentially reshaping the landscape of cancer treatment.