(Reuters) – Drugmaker Bristol Myers Squibb will pay biotech firm Agenus Inc up to $1.38 billion to exclusively develop and commercialize its experimental cancer drug, AGEN1777, the companies said on Tuesday.
The drug candidate, primarily being tested to improve anti-tumor activity, will also be studied and developed by Bristol Myers for immuno-oncology treatments including non-small cell lung cancer, which accounts for about 85% of lung cancer cases globally.
Bristol Myers has been betting on sales of its Opdivo drug to treat such cancers, but that market is currently dominated by Merck & Co’s rival treatment Keytruda.
Agenus will receive up to $1.36 billion in development, regulatory and commercial milestones in addition to double-digit royalties on net product sales. It will receive an upfront payment of $200 million. (https://refini.tv/2STY2pX)
The biotech company will retain options to conduct clinical studies under the development plan, and to test it in combination with certain other pipeline assets, and will co-promote AGEN1777 in the United States after commercialization.
Agenus plans to file a marketing application for the therapy with the U.S. Food and Drug Administration in the second quarter of this year, the company said.
(Reporting by Trisha Roy in Bengaluru; Editing by Ramakrishnan M.)
