Bristol Myers Collaborates With BNTX for Oncology Candidate

Bristol Myers Squibb BMY announced a strategic collaboration agreement with BioNTech BNTX.

Both companies have entered into an agreement for the global co-development and co-commercialization of BioNTech’s investigational bispecific antibody BNT327 across numerous solid tumor types.

BNT327 is a novel investigational bispecific antibody combining two complementary, validated mechanisms in oncology into a single molecule.

Shares of BNTX surged on the deal announcement.

Shares of Bristol Myers lost 12.8% year to date compared with the industry’s decline of 2.2%.

More on BMY & BNTX Agreement

Per the terms, BMY and BNTX will jointly develop and commercialize BNT327, including the development of BNT327 as monotherapy and in combination with other products.

Both BMY and BNTX own the right to develop BNT327 independently in further indications and combinations, including combinations of BNT327 with proprietary pipeline assets.

Per the terms, BMY will make an upfront payment of $1.5 billion to BioNTech. In addition, BNTX will also receive $2 billion in non-contingent anniversary payments through 2028.

BioNTech is also eligible to receive up to $7.6 billion in additional development, regulatory and commercial milestones.

Both the companies will jointly share development and manufacturing costs along with profits on an equal basis.

BNT327, a next-generation bispecific antibody candidate, targets PD-L1 and VEGF-A. It is currently being evaluated in multiple ongoing trials with more than 1,000 patients treated to date, including phase III studies with registrational potential evaluating BNT327 as first-line treatment in extensive stage small cell lung cancer (ES-SCLC) and non-small cell lung cancer (NSCLC).

A phase III study evaluating the candidate in triple negative breast cancer (TNBC) is planned to start by the end of 2025.

Data from ongoing trials (on a preliminary basis) underscore the potential for combining anti-PD-L1 and anti-VEGF-A – two well-established therapeutic targets – into a single molecule to deliver synergistic clinical benefits for patients across multiple tumor types.

BMY Looks to Diversify Business

BMY is depending on newer drugs like Opdualag, Reblozyl and Breyanzi to stabilize its revenue base as its legacy drugs face generic competition.

BMY earlier won FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia, in adults, under the brand name Cobenfy.

The approval broadens BMY’s portfolio. Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades. This drug is expected to contribute meaningfully to BMY’s top line in the coming years.

BMY has experienced a few pipeline setbacks in recent months, which negatively impacted its share price.

The late-stage ODYSSEY-HCM study evaluating cardiovascular drug Camzyos for the treatment of adult patients with symptomatic New York Heart Association (NYHA) class II-III non-obstructive hypertrophic cardiomyopathy did not meet its dual primary endpoints.

The top-line results from the phase III ARISE study on schizophrenia drug Cobenfy were also disappointing. The study is evaluating the efficacy and safety of the drug as an adjunctive treatment to atypical antipsychotics in adults with inadequately controlled symptoms of schizophrenia.

Developing bispecific antibodies that target two proteins, namely PD-1 and VEGF, has lately been one of the lucrative areas in cancer treatment.

In November, Merck signed a deal with China-based LaNova Medicines for the latter’s PD-1xVEGF targeting bispecific antibody candidate, LM-299.

The latest entrant into this space is Pfizer PFE, which recently entered a multi-billion-dollar deal with Chinese biotech 3SBio for the latter’s PD-1/VEGF bispecific antibody SSGJ-707. The deal is expected to be complete in third-quarter 2025.

BMY’s Zacks Rank & Stocks to Consider

Bristol Myers currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the pharma/biotech sector are Novartis NVS and Pfizer, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Novartis’ 2025 earnings per share (EPS) has risen from $8.47 to $8.74 over the past 60 days. EPS estimates for 2026 have jumped 20 cents to $9.02 during this timeframe. The stock has risen 18.6% so far this year.

Pfizer’s 2025 EPS estimate has risen from $2.97 to $3.06 in the past 60 days, while that for 2026 has gone up from $2.99 to $3.09 over the same timeframe.

 

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