BMS, PDL BioPharma Enter Multiple Myeloma Drug Pact

Bristol-Myers Squibb and PDL BioPharma, Inc. entered an agreement for the global development and commercialization of PDL’s anti-CS1 antibody, elotuzumab, currently in Phase I development for multiple myeloma.
   
Elotuzumab offers a new approach to treating multiple myeloma in that it binds to the CS1 glycoprotein, allowing the immune system to selectively kill myeloma cells with minimal effects on other cell types. CS1 is a cell surface glycoprotein found on multiple myeloma cells but is minimally expressed on normal cells. Elotuzumab is currently being investigated in Phase I studies as a monotherapy and in combination with other therapies. There are currently no approved monoclonal antibodies on the market to treat multiple myeloma.
   
Under the terms of the collaboration, PDL will receive an upfront cash payment of $30 million for the development and marketing rights to the drug and for an option to expand the collaboration to include PDL241, another anti-CS1 antibody. PDL could receive additional payments of as much as $480 million in development milestones and as much as $200 million in sale-based milestones, in addition to royalties.
   
BMS will cover 80% of development costs and will lead global development activities, while PDL will complete the ongoing Phase I program and provide support for Phase II studies. The companies would share profits on sales of elozutumab in the U.S. PDL would receive royalties on sales outside the U.S.
   
If BMS opts to expand the collaboration to include PDL241, PDL would receive an additional payment of $15 million and could receive as much as $230 million in development milestones, and another $200 million in sales-based milestones. The same division of development costs would apply to that drug.