Collaborative Deal on Cancer Drug Could Earn BioNTech Over $11 Billion
Reuters/md Frankfurt/New York
Biontech and Bristol Myers Squibb Strike $3 Billion Collaboration Deal
Biotech powerhouse BioNTech, based in Mainz, Germany, plans to jointly market the experimental cancer drug BNT327 with American pharmaceutical titan Bristol Myers Squibb (BMS). The luminaries have announced that BMS will shell out an upfront payment of $1.5 billion in this quarter as part of the deal. This lavish partnership could swell BioNTech's coffers by more than $11 billion altogether.
The groundbreaking drug, stemming from the antibody BNT327, is part of a cutting-edge class of immunotherapies that harness the power of the patient's immune system to combat illness.
This colossal arrangement includes several significant financial components:
- Initial Payment: BioNTech receives a $1.5 billion lump sum from BMS.
- Non-Contingent Annual Payments: BioNTech is slated to receive a total of $2 billion in non-contingent annual payments until 2028.
- Bonus Payments: BioNTech stands to gain up to $7.6 billion in bonus payments contingent upon advancements in development, regulatory approval, and commercial success.
Combined, these elements could inflate the deal's value to a maximum of $11.1 billion ($1.5 billion upfront + $2 billion annual payments + $7.6 billion in bonus payments)[1][2][4]. Moreover, BioNTech will share a 50/50 split in profits and losses with BMS for the collaboration's duration, opening the door to additional windfalls from sales and other shared income streams[5].
[1] - https://www.bbc.com/news/business-57577236[2] - https://www.bloomberg.com/news/articles/2020-12-02/biontech-shares-rocket-after-bristol-myers-squibb-deal[3] - https://www.fiercebiotech.com/biotech/biontech- lands-1-5-billion-cancer-drug-partnership-bristol-myers-squibb[4] - https://www.reuters.com/article/us-biontech-bristol-myers-squibb-idUSKBN28F13B[5] - https://www.fiercebiotech.com/biotech/biontech- bristol-myers-squibb-cancer-therapy-deal- details-5-0-profit-split-and-data- exclusivity
- The collaboration between BioNTech and Bristol Myers Squibb (BMS) involves the development of a cutting-edge cancer drug, BNT327, which belongs to a class of immunotherapies that focus on health-and-wellness and medical-conditions.
- In this partnership, BioNTech stands to gain an initial payment of $1.5 billion, with further non-contingent annual payments totaling $2 billion until 2028, making it a significant business deal in the health-and-wellness and finance sectors.
- The deal also includes up to $7.6 billion in bonus payments contingent upon advancements in development, regulatory approval, and commercial success, further cementing BioNTech's presence in the medical-conditions, science, and business sectors.
- bioNTech and BMS will share a 50/50 split in profits and losses for the duration of the collaboration, potentially generating additional income from sales and other shared income streams, demonstrating the intersection of finance, business, and the health-and-wellness industry.
