Bristol-Myers and BioNTech Seal $11.1 Billion Deal for Breakthrough Cancer Drug

June 2, 2025, New York - Bristol-Myers Squibb Co. has partnered with BioNTech SE in a deal worth up to $11.1 billion to license BNT327, a promising next-generation cancer drug targeting immuno-oncology, as reported by Bloomberg.com at 06:41 PM IST. The agreement includes an upfront payment of $1.5 billion, $2 billion in phased payments through 2028, and up to $7.6 billion in milestone payments, with both companies equally sharing development costs and profits.

This collaboration intensifies the race in the immuno-oncology sector, where Merck & Co.’s Keytruda leads, with global sales expected to reach $60 billion annually by 2027. BioNTech’s shares soared 15% in premarket trading to $95.81, while Bristol-Myers saw a modest 0.9% uptick to $48.28, reflecting market confidence in the deal’s potential to reshape cancer treatment landscapes.

Advancing Immuno-Oncology Innovation

BNT327, acquired by BioNTech from Biotheus in 2023 for up to $950 million, integrates immune-oncology technology akin to Keytruda with a mechanism that deprives tumors of blood and oxygen, aiming to address a wider spectrum of cancers. Data from the American Society of Clinical Oncology meeting highlighted Pfizer’s competing asset as potentially more effective, but BioNTech leads in expanding treatment applications across various cancer types, according to Bloomberg Intelligence analyst Sam Fazeli.

Online discussions suggest BNT327 could capture a 10% market share by 2030, potentially yielding $6 billion annually. The partnership also enables both companies to explore BNT327 in combination with other experimental drugs, aligning with BioNTech’s focus on comprehensive tumor treatment strategies.

ALSO READ | Will Grammarly’s $1 Billion Fuel the Future of AI Productivity?

Navigating Patent Challenges and Market Dynamics

Bristol-Myers is bolstering its portfolio amid impending patent expirations, having invested over $20 billion in acquisitions since late 2023. Its key cancer drug, Opdivo, with $9.2 billion in 2024 sales, faces pricing pressures by the decade’s end, while Eliquis, generating $12.5 billion annually, will encounter generic competition in 2028. BioNTech, originally a cancer-focused firm before its Covid-19 vaccine success with Pfizer, has ramped up oncology R&D, increasing spending by 30% to $2.1 billion in 2024.

Merck’s Keytruda, with $25 billion in 2024 sales, remains dominant, holding steady at $76.84 in premarket trading, underscoring its strong market position despite emerging competition.

Did You Know?
Since Keytruda’s 2014 approval, it has treated over 1.5 million patients worldwide, doubling survival rates for certain cancers and setting a high bar for new entrants.

Future Prospects in Cancer Treatment

The immuno-oncology sector is witnessing rapid advancements, following Akeso Inc. and Summit Therapeutics’ drug surpassing Keytruda in a Chinese trial last year. However, Summit’s recent global trial, while reducing cancer progression, did not extend patient survival, a critical benchmark in oncology. A direct comparison with Keytruda outside China may take years, providing an opportunity for BNT327 to gain traction.

Ono Pharmaceutical, Bristol-Myers’ partner on Opdivo, saw its shares rise 1.05% to 1,549 yen, reflecting positive market sentiment. The industry watches closely to see if BNT327 can challenge Keytruda’s dominance or enhance existing therapies in this competitive space.