Molecular Templates, Inc. entered into a worldwide strategic research collaboration with Bristol Myers Squibb to discover and develop multiple therapies for specific oncology targets. The collaboration aims to discover new molecules utilizing MTEM’s next-gen engineered toxin body (ETB) platform. ETBs represent a new class of targeted therapeutics that act through differentiated mechanisms of actions including the ability to force receptor internalization, deliver therapeutic payloads, and directly kill targeted cells through the enzymatic inactivation of ribosomes.

MTEM will conduct research activities for the discovery of next generation ETBs for multiple targets. BMS has selected the first target and will have the option to obtain an exclusive worldwide license to develop and commercialize ETBs directed to each selected target. Following the exercise of the option, BMS would be solely responsible for developing and commercializing the licensed ETBs.

MTEM will receive $70 million up-front and is eligible to receive near-term and development, regulatory and sales milestones of up to approximately $1.3 billion, as well as royalty payments on future sales.

“Bristol Myers Squibb is a leading global pharmaceutical company with a strong oncology franchise and a history of innovation, making them an ideal partner for the discovery and development of novel ETBs for the treatment of cancer,” said Eric Poma, Ph.D., Molecular Templates’ Chief Executive and Scientific Officer. “MTEM is excited to be working with Bristol Myers Squibb to focus on discovering and developing new ETBs against promising oncology targets. This collaboration provides further validation of our ETB platform while we continue to advance our wholly-owned product pipeline to offer promising therapeutic options for patients.”