Under the deal, BMS will use Five Prime’s platform to move forward its existing immuno-oncology programs by identifying the most viable drug targets for continued research and development.
The drug candidates developed against the new and existing targets are expected to be studied either as single agents or in combination with existing or potential BMS immuno-oncology therapies.
Bristol-Myers Squibb executive vice president and chief scientific officer Francis Cuss said immuno-oncology has the potential to be transformational in the treatment of cancer, and the company has an extensive clinical pipeline and discovery programmes dedicated to maximising this field of research.
"Five Prime’s innovative technology platforms complement our immuno-oncology pipeline and will help expand our understanding of promising new therapeutic options for patients," Cuss said.
As part of the agreement, BMS will secure exclusive, worldwide rights to develop and commercialize products directed toward certain protein targets identified by Five Prime prior to and during the collaboration.
The deal will see BMS make an upfront payment of $20m to Five Prime and offer about $9.5m in research funding over the course of the research term.
Additionally, BMS will make a payment of about $21m to acquire 4.9% of Five Prime’s outstanding common stock purchased at approximately a 30% premium.
Five Prime will also be eligible to get around $300m in future development, regulatory and sales based milestone payments per collaboration target and tiered mid-single-digit rising to low-double-digit royalty payments on net sales of each product commercialized by BMS.