In a statement, Bristol-Myers Squibb Co and Eisai Co said, they had entered into an agreement to jointly develop and market an experimental cancer drug worth up to $3.10 billion.
Bristol-Myers would pay $650 million, including for research and development expenses to Eisai, which will also be eligible for up to $2.45 billion in milestone payments, said the companies.
Both companies will jointly develop and market the drug, MORAb-202, in the United States, Canada, Europe, and Asia.
Earlier this year in May, Bristol-Myers entered into a $1.56 billion deal with Agenus Inc to exclusively develop and market its experimental drug for immuno-oncology treatments, including non-small-cell lung cancer.
Eisai’s drug, MORAb-202, is being developed for the treatment of solid tumors, including ovarian, lung and breast cancers and is in the early stage of development.
Bristol-Myers will pay Eisai a royalty on sales outside of the collaboration territories, said both companies.