Molecular Templates Shares Jump On Research Pact With Bristol-Myers In Cancer Settings

Molecular Templates Inc (NASDAQ: MTEM) has entered into a worldwide strategic research collaboration with Bristol-Myers Squibb Co (NYSE: BMY) to discover new molecules utilizing MTEM's engineered toxin body (ETB) platform for specific oncology targets.
Under the terms of the agreement, MTEM will conduct research activities to discover ETBs for multiple targets, of which Bristol Myers Squibb has selected the first target.
BMY will have the option to obtain an exclusive worldwide license to develop and commercialize ETBs directed to each selected target. Following the exercise of the option, Bristol Myers Squibb would be solely responsible for developing and commercializing the licensed ETBs.
MTEM will receive an upfront payment of $70 million from BMY and is eligible to receive milestone payments of up to approximately $1.3 billion and tiered royalty payments on future sales.
Price Action: MTEM increased 24.9% at $16 during premarket hours on the last check Thursday.