Bristol Myers to Pay $800 Mn to Chinese Drugmaker for Developing Cancer Drug

As per the partnership, SystImmune, the US-based unit of Sichuan Biokin, will be solely responsible for the development and commercialisation of the drug in mainland China, while Bristol Myers will have those responsibilities for areas outside the country.

US Pharmaceutical player, Bristol Myers Squibb has entered into an agreement to pay $800 million upfront and up to $8.4 billion to Sichuan Biokin Pharmaceutical to develop and commercialise one of the Chinese drugmaker's cancer treatments outside China.

As per the partnership, SystImmune, the US-based unit of Sichuan Biokin, will be solely responsible for the development and commercialisation of the drug in mainland China, while Bristol Myers will have those responsibilities for areas outside the country.

Reportedly, Bristol Myers will pay Sichuan unit SystImmune up to $500 million in contingent near-term payments to co-develop an antibody-drug conjugate (ADC) which has shown promise against a range of solid tumours, including non-small cell lung cancer and breast cancer. The treatment is currently in early-stage clinical trials.

Moreover, SystImmune will be eligible for additional payments of up to $7.1 billion contingent upon achieving certain development, regulatory and sales performance milestones.

Unlike conventional chemotherapy, which can kill healthy cells, ADCs are like guided missiles designed to target only cancer cells, potentially reducing damage to normal cells. Interest in ADC-makers has surged over the past year. Pfizer is in the process of buying ADC pioneer Seagen in a $43 billion deal announced in March.

Founded in 1887 by two former fraternity brothers, William McLaren Bristol and John Ripley Myers, Bristol Myers Squibb (BMS) is a global biopharmaceutical company that discovers, develops, and delivers novel medicines that help patients prevail over serious diseases.

Sichuan Biokin Pharmaceutical Co, Ltd on the other hand was founded in 1996 by Yi Zhu. It is a Chinese biopharmaceutical company that integrates the full life cycle of new drugs and pharmaceutical product development from new drug research and development to production and marketing.

Its US-based unit SystImmune Inc. focuses on developing novel therapeutic bi-specific, and multi-specific antibodies, as well as antibody-drug conjugates (ADCs) for the treatment of cancer.

In October this year, Bristol Myers Squibb acquired Mirati Therapeutics for $4.8 billion. Bristol Myers Squibb's move to acquire Mirati Therapeutics is anticipated to reinforce its position in the oncology market and open new avenues for developing innovative treatments for cancer patients.