Benzinga | Jun 18, 2021 07:05AM EDT

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

* Eisai Co Ltd (OTC:ESALY) and Bristol-Myers Squibb Co (NYSE: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.