Philadelphia-based cell therapy developer Century Therapeutics has entered into a $150 million cancer drug development partnership with Bristol Myers Squibb, a deal with the potential to become a multibillion-dollar collaboration.
Under the terms, North Jersey-based Bristol Myers Squibb (NYSE: BMY) will make a $100 million upfront payment to Century Therapeutics (NASDAQ: IPSC) and a $50 million equity investment in the company.
Century could receive an additional $3 billion in payments, plus royalties on global net product sales, should the collaboration across multiple programs in hematologic malignancies and solid tumors yield approved products.
In early afternoon trading, Century’s stock was trading up more than 13% at $14.08 per share.
The collaboration calls for Century and Bristol Myers to develop cell therapies. The first two programs will target acute myeloid leukemia and multiple myeloma.
Bristol Myers Squibb has the option to add two additional drug development programs, which it can select subject to certain conditions agreed to with Century in the agreement.
The partnership brings together Century’s iPSC-derived allogeneic cell therapy platform with Bristol Myers Squibb’s expertise in cell therapy and oncology drug development.