BioNTech (BNTX -2.31%), one of the companies made famous for its role developing vaccines with Pfizer (PFE 0.60%) during the COVID-19 pandemic, soared 20.2% through 12:50 p.m. Monday on news entirely unrelated to COVID.
The German biotech announced this morning it is partnering with pharmaceuticals giant Bristol Myers Squibb (BMY 0.44%) to "co-develop and co-commercialize" BioNTech's drug candidate BNT327 as an immunotherapy against multiple kinds of cancer.
Image source: Getty Images.
BioNTech's big news
BioNTech and Bristol will evenly split the costs of developing and commercializing BNT327, and will "work jointly to broaden and accelerate the development of this clinical candidate."
The drug is already involved in "multiple" ongoing clinical trials, including an advanced phase 3 trial testing its usefulness in treating breast cancer and both small cell and non-small cell lung cancer. BioNTech CEO Dr. Uğur Şahin expressed the belief that "BNT327 has the potential to become a foundational immuno-oncology backbone, moving beyond single-mechanism checkpoint inhibitors and expanding into multiple solid-tumor indications."
Bristol CEO Christopher Boerner agreed that BNT327 has "significant potential for transforming the standard of care for patients with solid tumors."
What this means for BioNTech
There are more immediate benefits for BioNTech stock, beginning with Bristol Myers Squibb paying BioNTech $1.5 billion up front for the rights to team up and a further $2 billion in noncontingent payments through 2028 as drug development continues. Additional developmental, regulatory, and commercial milestones, which are contingent on successful development, could add a further $7.6 billion to BioNTech's balance sheet over time.
With its lucrative COVID days behind it, BioNTech reported nearly $690 million in losses last year and turned free-cash-flow negative. A tidal wave of cash from Bristol Myers Squibb could really come in handy right about now.
