BMS Terminates Eisai ADC Deal 3 Years After $650M Investment

Bristol Myers Squibb (BMS) has decided to terminate its co-development agreement with Eisai for the antibody-drug conjugate (ADC) farletuzumab ecteribulin (FZEC), originally known as MORAb-202. The termination is part of BMS's ongoing efforts to prioritize its portfolio.

In 2021, BMS entered into a partnership with Eisai, investing $450 million upfront for the rights to MORAb-202. Eisai had phase 1 data from 22 patients at the time. The drug candidate was created by conjugating an anti-folate receptor alpha (FRα) antibody with an anticancer agent. In addition to the upfront payment, BMS also provided $200 million in R&D support and offered potential milestone payments amounting to $2.5 billion.

However, three years later, BMS has decided that MORAb-202 no longer aligns with its strategic plans. BMS had secured joint rights to the ADC in regions including the U.S. and Europe, along with exclusive rights in other areas. With BMS stepping away from the project, Eisai has regained full rights to the ADC and plans to return part of the unused $200 million provided by BMS for R&D support. Eisai has stated it will now "accelerate the development of the agent as a high priority."

BMS had initiated two phase 2 clinical trials in 2022 involving MORAb-202. One trial targeted ovarian, peritoneal, and fallopian tube cancers, and another focused on non-small cell lung cancer. Although these studies have passed their estimated primary completion dates, they are still recruiting participants. BMS has also reduced its enrollment targets and dropped a dosage in both trials. The trials were designed based on evidence that FRα is highly expressed in certain solid tumors, suggesting that an antibody targeting FRα could effectively deliver a cytotoxic payload to tumor cells while sparing healthy tissues.

Eisai continues to manage a phase 1/2 study in solid tumors that began in 2020. Since the initial partnership, BMS has observed significant developments in the competitive landscape for FRα-directed ADCs. ImmunoGen gained approval for its rival ADC, Elahere, which was later sold to AbbVie in a deal valued at $10.1 billion. Other pharmaceutical companies are also entering the fray, with Genmab announcing its acquisition of ProfoundBio for $1.8 billion earlier this year.

In April, BMS announced plans for a substantial "pipeline rationalization" effort, which included laying off over 2,000 employees and discontinuing approximately a dozen development programs. These programs involved medications targeting CTLA4, SIRPα, and BET. BMS Chief Medical Officer Samit Hirawat, M.D., indicated that the company would continue to evaluate and potentially remove additional projects from its pipeline throughout the year, either by externalizing them or halting further development.