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Key Takeaways

• BioNTech's U.S.-listed shares surged more than 15% Monday morning after the company said it will partner with Bristol Myers Squibb.

• The companies will co-develop a drug currently in trials to treat several types of cancerous tumors.

• Bristol Myers Squibb will pay $1.5 billion to BioNTech up front, $2 billion in "non-contingent anniversary payments through 2028," and up to $7.6 billion in future payments possible based on certain milestones.

U.S.-listed shares of BioNTech (BNTX) jumped more than 15% Monday morning after the German vaccine maker announced a collaboration with Bristol Myers Squibb (BMY).

The companies will work together to develop and eventually sell BNT327, one of BioNTech's developmental antibodies that is in trials to treat a number of types of tumors. More than 20 trials are ongoing or planned to study the drug's effectiveness in treating certain lung, breast, and other types of cancer.

Princeton, N.J.-based Bristol Myers Squibb "will pay BioNTech $1.5 billion in an upfront payment and $2 billion total in non-contingent anniversary payments through 2028." BioNTech is also eligible to receive up to $7.6 billion in future payments based on certain developmental and regulatory milestones, while the companies will share manufacturing costs and profits or losses.

"Our collaboration with BMS, a pioneering leader in immuno-oncology, aims to accelerate and broadly expand BNT327’s development to fully realize its potential," BioNTech CEO Dr. Ugur Sahin said. "Our focus remains on advancing high-impact, pan-tumor programs and combination strategies in oncology, with BNT327 complementing our antibody-drug conjugate programs and mRNA-based immunotherapies."

U.S.-listed shares of BioNTech were up 17% in the opening hour of trading, while Bristol Myers Squibb stock was down less than 1%.

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