Bristol-Myers will pay the largest amount in history of biotechnology for a cure for cancer

2018-02-15

Bristol-Myers will pay the largest amount in history of biotechnology for a cure for cancer

The attention to drugs that can potentially cause the immune system to actively fight cancer cells and consequently defeat cancer is growing. Bristol-Myers recently stated that it will pay a record $1.85 billion to Nektar Therapeutics, a small biotechnology startup, for the rights to an experimental cancer drug, codenamed NKTR-214, reports Forbes.

Nektar Therapeutics will be receiving 65% of the world's profit from this medication, if it appears on the market, and Bristol-Myers will receive the remaining 35%. We should note that this is a colossal amount, especially for a share in drug production. Philip S. Ross, Managing Director of Investment Banking in Biotechnology at JP Morgan, said that this deal is one of the largest in the history of biotechnology. The initial payment will equal $1 billion in cash; it will also include the purchase of 8.28 million shares of Nektar at a price of $102.60.

What does Bristol-Myers pay for? In addition to income, corporation will have the exclusive right to combine the drug NKTR-214 with its own drugs - Opdivo and Yervoy. Investment banks predict that by 2022, annual sales of the drug may amount to about $10 billion. Thus, the corporation intends to become the world leader in the field of oncological diseases treatment.

 

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