Bristol-Myers Squibb Co. and Nektar Therapeutics said Wednesday they have agreed to collaborate on developing NKTR-214 plus Opdivo to treat numerous tumors, based on positive early results from a Phase 1/2 clinical study. NKTR-214 is Nektar’s lead immuno-oncology program, while Opdivo is a Bristol-Myer anti-cancer agent that is already approved as a treatment. The companies will study NKTR-214 with Opdivo and Opdivo plus Yervoy, another anti-cancer agent, in treating melanoma, renal cell carcinoma, non-small cell lung cancer, bladder and triple negative breast cancer. Under the terms of the agreement, Bristol-Myers will pay Nektar $1.85 billion in cash and stock upfront with Nektar eligible for up to $1.78 billion in milestone payments. The companies will split global profits 65% to 35% in Nektar’s favor, while Bristol-Myers will retain 100% of product revenue for its own medicines. Bristol-Myers is expecting the deal to shave 2 cents off adjusted 2018 per-share earnings and 10 cents off adjusted 2019 EPS. Nektar shares dipped 1.5% premarket, but have gained 465% in the last 12 months. Bristol-Myers shares were not yet active, but have gained 19% in the last 12 months, while the S&P 500 has gained 14%.
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