(Bloomberg) -- Bristol-Myers Squibb Co. agreed to license an experimental cancer therapy from Immatics NV, as funding continues to flow into European biotech firms.
The U.S. pharma company will pay Immatics $150 million upfront, plus as much as $770 million in development, regulatory and commercial milestone payments, as well as royalties if the product is brought to market. The deal is for IMA401, an experimental treatment for which the first patient trial is planned to start next year.
The deal extends the Tuebingen, Germany-based biotech's cash reach “well into 2024,” co-founder and Chief Executive Officer Harpreet Singh said in an interview.
Immatics shares jumped 13% in U.S. premarket trading.
The company will push forward next year as well with its own experimental cell therapy projects in oncology, he said, adding: “2022 is really the big year for us showing efficacy with our cell therapy.”
Immatics also has a cell therapy partnership with Bristol-Myers via a deal that dates to 2019. The German biotech is backed by billionaire German investor Dietmar Hopp, whose Dievini Hopp BioTech Holding GmbH holds 26% of the company. Hopp also backs Tuebingen-based Covid-19 vaccine developer CureVac NV.
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