Bristol Myers Squibb Strikes $8.4 Billion Deal with Sichuan Biokin for Promising Cancer Treatment

Highlights

• Bristol Myers Squibb (BMY.N) to pay $800 million upfront and up to $8.4 billion to Sichuan Biokin Pharmaceutical (688506.SS) for a cancer treatment collaboration.
• SystImmune, a unit of Sichuan Biokin, to receive up to $500 million for co-developing an antibody-drug conjugate (ADC) targeting solid tumors.
• The ADC shows promise against non-small cell lung cancer and breast cancer in early-stage clinical trials.
  Additional payments of up to $7.1 billion contingent on achieving development, regulatory, and sales milestones.
• SystImmune to lead development and commercialization in mainland China; Bristol Myers responsible for other regions.
• ADCs are precision-guided missiles targeting cancer cells, potentially minimizing damage to healthy cells.
• Pharmaceutical industry sees increased interest in ADCs; Pfizer, Merck, and AbbVie involved in significant deals.
• SystImmune, a U.S.-based unit of Sichuan Biokin, attracts investments from OrbiMed, emphasizing confidence in ADC therapies.
• Collaboration positions Bristol Myers Squibb as a key player in advancing cutting-edge cancer treatments using ADC technology.

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In a significant collaboration, Bristol Myers Squibb (BMY.N) has announced an upfront payment of $800 million and a potential total of $8.4 billion to Sichuan Biokin Pharmaceutical (688506.SS) for the development and commercialization of a promising cancer treatment outside China.

The deal involves an initial payment to Sichuan’s unit, SystImmune, of up to $500 million for the co-development of an antibody-drug conjugate (ADC). This innovative treatment, currently in early-stage clinical trials, exhibits promise against various solid tumors, including non-small cell lung cancer and breast cancer.

SystImmune stands to gain additional payments of up to $7.1 billion, contingent on achieving specific development, regulatory, and sales performance milestones.

Under the agreement, SystImmune will take the lead in developing and commercializing the drug in mainland China, while Bristol Myers will oversee responsibilities in all other regions.

Antibody-drug conjugates represent a breakthrough in cancer treatment, acting like precision-guided missiles that target cancer cells, potentially minimizing damage to healthy cells compared to traditional chemotherapy.

The pharmaceutical industry’s interest in ADCs has surged, with Pfizer (PFE.N) in the process of acquiring ADC pioneer Seagen (SGEN.O) in a massive $43 billion deal. In October, Merck (MRK.N) announced a $5.5 billion joint development venture with Daiichi Sankyo (4568.T) for three ADCs, and last month, AbbVie (ABBV.N) sealed a $10.1 billion deal to acquire Immunigen (IMGN.O).

SystImmune, a U.S.-based unit of Sichuan Biokin, has attracted investments from U.S. venture capital firm OrbiMed, further underlining the growing interest and confidence in the potential of ADC therapies.

This collaboration positions Bristol Myers Squibb as a key player in advancing cutting-edge cancer treatments, leveraging the promising ADC technology developed by SystImmune.