Bristol Myers Inks Licensing Pact For Eisai's Folate Receptor ADC Drug, Lays Out Over $3B For Rights

Eisai Co Ltd ESALY and Bristol-Myers Squibb Co BMY have entered into an exclusive global strategic collaboration agreement for the co-development and co-commercialization of MORAb-202, an antibody-drug conjugate (ADC).
Bristol Myers will pay $650 million, including $200 million to Eisai's R&D efforts, for shared global rights to MORAb-202, the Japanese company's first ADC, which is a combination between an in-house folate receptor antibody and chemotherapy eribulin, marketed as Halaven,
Eisai is currently investigating MORAb-202 in FRalpha-positive solid tumors in two studies - Phase 1 study in Japan and Phase 1/2 trial in the U.S.
The companies are planning to move into the registrational stage of development for this asset as early as next year.
Under the agreement, Eisai and Bristol Myers will jointly develop and commercialize MORAb-202 in Japan, China, select countries in the Asia-Pacific; the U.S., Canada; Europe, the U.K., and Russia.
Bristol Myers will be solely responsible for developing and commercializing the drug in regions outside the collaboration territories.
Eisai will remain responsible for the manufacturing and supply of MORAb-202 globally.
Eisai is also entitled to receive up to $2.45 billion potential future milestones payments.
The parties will share profits, R&D, and commercialization costs in the collaboration territories.
Price Action: BMY stock closed at $66.77, and ESALY shares closed at $103.62 on Thursday.