Bristol Myers Squibb has agreed to invest at least $100 million to expand its partnership aimed at creating RNA-based drugs for cardiovascular diseases.
The agreement, announced Tuesday, demonstrates that Bristol Myers is willing to bet more on the drug manufacturing technology developed by Avidity Biosciences.
Founded in 2012, Avidity seeks to combine elements of two types of drugs: monoclonal antibodies and oligonucleotide therapies, to develop precise treatments that focus on the root cause of diseases.
The expanded collaboration will include the discovery, development and commercialization of antibody-oligonucleotide conjugates (AOCs) for up to five cardiovascular targets.
According to the terms of the agreement, Avidity will initially receive $60 million in cash and a stock investment of approximately $40 million. Additionally, Bristol Myers agreed to pay up to $2.2 billion more, provided that Avidity's programs reach certain milestones.
Bristol Myers will finance all future clinical development, regulatory and commercialization activities related to the agreement, while Avidity could receive royalties of up to low double-digit figures on net sales of the resulting products.
The original collaboration between the two companies was established in late 2020, when Avidity launched a research partnership with MyoKardia, a Bristol Myers subsidiary, to demonstrate the utility of AOCs in cardiac tissue.
This new agreement reinforces Bristol Myers' commitment to cardiology and follows the acquisition of MyoKardia for $13 billion.
For Steven Seedhouse, an analyst at investment firm Raymond James, the collaboration is positive for Avidity, providing it with a significant extension of its solid financial position and support from a major established pharmaceutical manufacturer.
Avidity shares rose more than 11% Tuesday morning, reaching $6.87 per share. Seedhouse suggests that the expansion of the collaboration implies a high probability that the partial clinical restriction that affected one of Avidity's drugs in clinical trials will soon be lifted.
With information from: BioPharma Dive.
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