In premarket trading on Monday, BioNTech’s shares, which ended Friday at $95.81, increased 14% to $109.54.
As per the agreement, Bristol Myers will pay BioNTech $1.5 billion up front and $2 billion in non-contingent anniversary installments until 2028, the firms announced Monday. According to them, BioNTech can also get up to $7.6 billion in rewards for commercial, regulatory, and development milestones.
Bristol Myers, a biopharmaceutical company based in Princeton, N.J., and BioNTech announced that they will equally divide joint development and manufacturing costs as well as worldwide profits and losses as part of their extensive clinical-development program to assess and advance BNT327 across a variety of solid tumor types.
BNT327 from BioNTech is presently being assessed as a first-line treatment for extensive-stage small-cell lung cancer and non-small-cell lung cancer in a number of studies, including Phase 3 trials.
The right to independently develop BNT327 in additional indications and combinations, including with unique pipeline assets, was asserted by Bristol Myers and BioNTech.
The first $3.5 billion in payments to BioNTech, including $1.5 billion in the second quarter, will be recorded by Bristol Myers as tax-deductible charges for acquired in-process research and development.
