Bristol-Myers Squibb Co. (NYSE:BMY) on Tuesday announced a partnership with Hengrui Pharma to develop a portfolio of 13 early-stage programs spanning oncology, hematology and immunology.
The deal follows the company’s earlier success with Sotyktu, an oral drug, which received FDA approval for treating adults with active psoriatic arthritis after demonstrating superior disease control compared to placebo in Phase 3 trials.
Terms and Conditions
Under the terms of the agreement, Bristol Myers Squibb will pay Hengrui up to $950 million, including a $600 million upfront payment, a $175 million payment after the first anniversary of the deal and another contingent $175 million anniversary payment in 2028.
The total potential value of the collaboration could reach approximately $15.2 billion, contingent on option exercises for joint-discovery programs and the achievement of development, regulatory and commercial milestones across all 13 programs.
The deal, pending regulatory clearance under the Hart-Scott-Rodino Antitrust Improvements Act, is expected to close in the third quarter of 2026.
Potential Gains for Bristol Myers
The partnership is expected to accelerate drug discovery and development, with an emphasis on medicines intended for patients worldwide.
The 13-program package is split across contributions from both sides – four oncology and hematology assets originating from Hengrui, four immunology assets from Bristol Myers Squibb, and five additional programs that will be jointly discovered and developed.
Bristol Myers Squibb will receive exclusive worldwide rights to Hengrui-originated assets outside mainland China, Hong Kong and Macau, while Hengrui will obtain exclusive rights to BMS-originated assets within those territories.
The U.S. large pharma company will retain rights for the rest of the world. In a statement, Bristol Myers research chief Robert Plenge said, “This strategic collaboration reflects our commitment to advancing innovative science while maintaining a disciplined approach to portfolio management.”
Strong Q1 Earnings
Bristol Myers Squibb reported adjusted earnings of $1.58 per share, exceeding Wall Street’s estimate of $1.42. Sales reached $11.49 billion, a 3% increase that surpassed the consensus projection of $10.91 billion.
The pharma company reaffirmed fiscal 2026 adjusted earnings guidance of $6.05-$6.35 per share, and sales of $46 billion-$47.50 billion.
Benzinga Edge Stock Rankings indicate that BMY maintains a weak price trend in the short and medium term but strong trends in the long term, with a solid Growth score in the 72nd percentile.
Price Action: BMY shares gained 0.27% at 4:37 a.m. ET on Tuesday after falling 0.9% in Monday’s trading session.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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