Five Prime Therapeutics (FPRX) Sees Windfall on Anti-CSF1R Collaboration Agreement (BMY)
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Five Prime Therapeutics, Inc.(Nasdaq: FPRX) shares are ripping early following news that the company entered an exclusive worldwide license and collaboration agreement with Bristol-Myers Squibb (NYSE: BMY) for the development and commercialization of Five Prime’s colony stimulating factor 1 receptor (CSF1R) antibody program, including FPA008 which is in Phase 1 development for immunology and oncology indications.
According to terms of the agreement, Bristol-Myers Squibb will make a $350 million upfront payment to Five Prime. In addition to the upfront payment, Five Prime will be eligible to receive up to $1.05 billion in development and regulatory milestone payments per anti-CSF1R product for oncology indications (including combinations with Opdivo and any other agent), and up to $340 million in development and regulatory milestone payments per anti-CSF1R product for non-oncology indications, as well as double digit royalties, such royalties to be enhanced in the U.S. in the event that Five Prime exercises its co-promotion option.
That puts the total value of the deal around $1.74 billion. Comparably, Five Prime's market cap stood at around $440 million ahead of today's announcement.
Shares of Five Prime are up nearly 70 percent early Thursday.
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