Nektar Therapeutics (NASDAQ:NKTR) shares soared beyond 11% after the company entered into a global strategic collaboration agreement with Bristol-Myers Squibb Co (NYSE:BMY) recently. According to an agreement, both the companies will be involved in jointly developing as well as commercializing the lead candidate for immune-oncology-NKTR-214 of the former combining with the Opdivo (Nivolumab) and Opdivo plus Yervoy (ipilimumab) of the latter.
As a pursuant to the contract, the research-based development stage biopharmaceutical company will be receiving $1.85 billion as an upfront payment including an equity investment of $850 million and $1 billion in cash. The company engaged in discovering and developing innovative medicines in areas of high unmet medical need will also receive additional potential payment of $1.78 billion on the achievement of certain developmental as well as sale-based milestones.
According to the report, both the companies will share profits of 65% and 35% respectively from the worldwide potential sales of NKTR-214. The collaboration seems to be working quite positively for Nektar as the company will not only retain the ownership of its candidate but will also have the freedom to collaborate with the other companies for developing it further.
Bristol-Meyers To Commercialize NKTR-214 In Global Market
Nektar will be jointly commercializing the combinations of NKTR-214/Opdivo in the United States and in the markets of Japan and the EU. However, on the global front, Bristol- Meyers will be solely commercializing the combinations. The Californian company is already evaluating NKTR-214/Opdivo in phase I/11 PIVOT studies across five different type of tumors including kidney, bladder, melanoma, colorectal and non-small cell lung cancer as well as in eight potential indications.
As per the agreement, the two companies will be evaluating NKTR-214/Opdivo and NKTR-214/Opdivo plus Yervoy combinations in over 20 cancer indications across nine types of tumor. Last year in November, both the companies reported a positive interim data from dose-escalation part of the study and evaluated the safety as well as the efficacy of the combo therapy on patients suffering from melanoma, non-small cell lung cancers and renal cell carcinoma.