Bristol-Myers Squibb and Alder Biopharmaceuticals, Inc. entered a global agreement for the development and commercialization of ALD518, a biologic that has completed Phase IIa development for the treatment of rheumatoid arthritis.
Under the terms of the collaboration, BMS gains worldwide exclusive rights to develop and commercialize the drug for all potential indications except cancer, for which Alder will retain rights and BMS has an option to co-develop and commercialize outside the U.S. Alder will receive an upfront cash payment of $85 million, development and regulatory-based milestone payments of as much as $764 million, sales milestones which, under certain circumstances, may exceed $200 million, and royalties on sales. Additionally, Alder has an option to require BMS to make an equity investment of as much as $20 million in Alder during an initial public offering.
“With its novel mechanism of action, ALD518 has the potential to offer an exciting new option for patients with rheumatoid arthritis,” said Brian Daniels, M.D., senior vice president, Global Development & Medical Affairs, BMS. “We are pleased to have the opportunity to develop this novel monoclonal antibody. As part of our String of Pearls strategy, this transaction provides Bristol-Myers Squibb with the opportunity to strengthen our immunoscience pipeline, and leverage our company’s experience in developing and delivering novel biologics to help patients prevail over rheumatoid arthritis and, potentially, other autoimmune diseases.”
“Bristol-Myers Squibb and Alder share the vision that ALD518 could become an important part of treating patients with rheumatoid arthritis,” said Randall C. Schatzman, Ph.D., president and chief executive officer of Alder Biopharmaceuticals. “Bristol-Myers Squibb’s extensive development and commercial experience in immunology translate into an exceptionally good fit for Alder, especially at this stage of our corporate development.”