Molecular Templates : in Cancer Collaboration With Bristol Myers

By Colin Kellaher

Molecular Templates Inc. on Thursday said it signed a cancer collaboration agreement potentially worth more than $1.3 billion with drug giant Bristol Myers Squibb Co.

Molecular said the collaboration will use its engineered toxin body, or ETB, platform to discover and develop multiple novel therapies aimed at specific oncology targets.

The Austin, Texas, clinical-stage biopharmaceutical company said it will receive an up-front payment of $70 million from Bristol Myers, adding that is eligible for up to roughly $1.3 billion in milestone payments, along with royalties on sales.

Molecular said it will conduct research activities for the discovery of ETBs for multiple targets, the first of which Bristol has already selected. New York-based Bristol will have the option for exclusive worldwide licenses for the ETBs and will be responsible for their development and commercialization, Molecular added.

Shares of Molecular, which closed Wednesday at $12.82, rose more than 25% in premarket trading Thursday.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

02-11-21 0912ET