Bavarian Nordic Could Tally up to $975M in Prostate Cancer Deal with BMS
Monday, March 9, 2015
Bristol-Myers Squibb (BMS) obtained an exclusive option to license and commercialize PROSTVAC®, Bavarian Nordic’s Phase III prostate-specific antigen (PSA)-targeting cancer immunotherapy in development for the treatment of asymptomatic or minimally symptomatic metastatic castration-resistant prostate cancer.
Bavarian Nordic is scheduled to receive an upfront payment of $60 million. BMS can exercise that option within a designated time after data is available from the ongoing trial. Bavarian Nordic would be entitled to a payment of $80 million upon exercise of the option plus additional incremental payments starting at $50 million, but with a potential to exceed $230 million should the median overall survival benefit of PROSTVAC exceed the efficacy seen in Phase II results.
Bavarian Nordic also could receive regulatory milestone payments of $110 million, up to $495 million in sales milestones as well as tiered double-digit royalties on future sales of PROSTVAC. The parties have also agreed to enter into a supply contract, under which Bavarian Nordic will undertake the future commercial manufacturing of PROSTVAC.